Starbucks in China
Three major cultural differences between USA and China
Julio A. Escalante de la Piedra
JIU University
February 7, 2014
Author Note
Julio A. Escalante de la Piedra, Global Strategies, JIU University.
This analysis is supported by three references cited on the reference list at the end of this document and the author`s personal experience.
Correspondence concerning this article should be addressed to Julio A. Escalante de la Piedra. E-mail: Julio.escalante.p@gmail.com
SECTION 1: CULTURAL DIFFERENCES
The next table shows three major cultural differences between Starbuck`s home country (USA) VS the host country analyzed (China) and how these differences can represent a problem. (Li Qing, 1995)
Chinese
American
Problem
Conception of the Self
Collectivist: Higher value placed on group cooperation and individual modesty.
Individualist: Higher value placed on self-reliance. Self-promotion is more accepted. High value placed on "freedom" from externally imposed constraints.
It may be difficult to approach a high-status Chinese executive if you ignore this difference of conception.
Role of laws, rules, and regulations
More faith in personal relationships than in written rules and procedures for structuring interactions.
Written rules presumably apply to everyone and are assumed to produce fair, reasonable procedures and decisions.
The firm might trust China`s rules without knowing that relationships are more relevant.
Time Consciousness
Relatively more attention to the past and to the longer-term future.
Less interested in the past; eye on near-term future.
The firm needs to focus on a long-term relationship instead of a short-term profit.
SECTION 2: VALUE OF CULTURAL KNOWLEDGE
It is extremely important for Starbucks to be aware of the cultural differences mentioned in section one. Not being aware of them may result in business failure.
The value of knowing these differences is
Julio A. Escalante de la Piedra
JIU University
February 7, 2014
Author Note
Julio A. Escalante de la Piedra, Global Strategies, JIU University.
This analysis is supported by three references cited on the reference list at the end of this document and the author`s personal experience.
Correspondence concerning this article should be addressed to Julio A. Escalante de la Piedra. E-mail: Julio.escalante.p@gmail.com
SECTION 1: CULTURAL DIFFERENCES
The next table shows three major cultural differences between Starbuck`s home country (USA) VS the host country analyzed (China) and how these differences can represent a problem. (Li Qing, 1995)
Chinese
American
Problem
Conception of the Self
Collectivist: Higher value placed on group cooperation and individual modesty.
Individualist: Higher value placed on self-reliance. Self-promotion is more accepted. High value placed on "freedom" from externally imposed constraints.
It may be difficult to approach a high-status Chinese executive if you ignore this difference of conception.
Role of laws, rules, and regulations
More faith in personal relationships than in written rules and procedures for structuring interactions.
Written rules presumably apply to everyone and are assumed to produce fair, reasonable procedures and decisions.
The firm might trust China`s rules without knowing that relationships are more relevant.
Time Consciousness
Relatively more attention to the past and to the longer-term future.
Less interested in the past; eye on near-term future.
The firm needs to focus on a long-term relationship instead of a short-term profit.
SECTION 2: VALUE OF CULTURAL KNOWLEDGE
It is extremely important for Starbucks to be aware of the cultural differences mentioned in section one. Not being aware of them may result in business failure.
The value of knowing these differences is