Cross-Cultural Transaction Management Essay Example | Topics and Well Written Essays - 1500 words

Cross-Cultural Transaction Management - Essay Example The Chinese space for individuals to make decisions appear to experience some direct influence from the government, the US has a liberal space for individuals to decide on many issues without a direct influence from the government. Politics around the social scene affects the cultural definition between the two countries with the Chinese culture being closely monitored and dictated upon by the strong political forces. The US democratic model is perhaps one of the most liberalized in the world making it one of the leaders in the most favored nation (MFN) in economic terms. In contrast, the Chinese political setting has been a socialist model that appears to be on the opposite end when compared to democracy, which depicts the setting as intolerant of democratic values and principles. Entering the Chinese market to set up shop is likely to be subjected to tight government bureaucracies than in the US. The government cronies found all over China may pose the greatest challenge to setting out investment due to their political inclination thereby affecting foreign investment. In addition, the highly patriarchal cultural system that is established in the political arena hinders the role of women in Chinese economy.The Motosuzhou management makes are defined by high political influence right from the organization structure. Considerations of the political influence that the Electrowide joint venture may have on the Chinese foreign policy of isolation based on its government structure come into the equation.... that the government has accorded Motosuzhou along side other 1000 companies in terms of liberal decision making, the role of Minister of Finance in the internal structure contradicts this assumption. Socialist model of the Chinese culture that emphasizes on understanding social attributes of the negotiation panel forwarded by Electrowide also consumed a lot of time that would otherwise have made progress in terms of the Americans’ estimation. Gender discrimination of female negotiator in the Electrowide team was not welcome from the Americans causing more frustrations. Negotiations failure between Electrowide and Motosuzhou Joint venture negotiations must contemplate the selection criteria of a partner for success in such negotiations, which were heavily compromised in the Electrowide and Motosuzhou case. During the negotiations, it was not clear what each partner was willing to obtain and offer as part of the joint venture. The Chinese team acted casually and did not utilize the time as the American team expected during the negotiations. Several assumptions were made by both parties which were not the exact positions of the intended entry strategies for the other parties. The accounting policies that the two firms applied in their operations were very different, for instance, in the treatment of manufacturing costs and their allocation in the books. For better performance of the joint venture, it is important that the internal operations of the firms are not very different for purposes of harmonizing the joint operations. As it also appeared in the disparities, Motosuzhou did not strictly comply with audit rules which are fundament in American corporate operations. Thirdly, communication is a basic necessity in the negotiations of a joint venture as well as during

International Marketing Essay Example | Topics and Well Written Essays - 1000 words - 4

International Marketing - Essay Example l have to make decisions based on the interests of its customers, governments, employees and other key partners in the different markets it will operate in. There are various operational actions that will vary with particular business environments that need to be taken into consideration. Differentiation of products or services offered by the company will therefore have to follow highly integrative guidelines for the success of its operations. For instance, Ooredoo is a communication company and therefore it will have to take into account the various communication habits of the different countries it intends to establish itself. The company will also have to be aware of legal provisions that are aligned to ethics which may be varying. Recognition of the mentioned and many more will enable the organization effectively strategize on its expansion plans. Secondly, the belief system of various countries may have an impact on the business strategy. The company will have to incorporate the various moral values and principles into its business culture according to the needs of the customers and society it will operate in. For instance, honesty, integrity and trust may be some of the varied values that may be differently preferred to by various customers according to their country of origin’s belief system. As a result of the beliefs, there might be consequences the company will have to face in the different regions of operations. The cultures of communities have a potential of pushing businesses to align to their demands. Same is the social components that have a connection with ethical concerns. Different countries, for instance, have consumer lobby groups that may demand for certain ethical standards to be met by companies. An organization like Ooredoo will therefore have... This paper stresses that factors in international trade are also important to the expansion planning process. The company will, for instance, have to take note of the various restrictions or economic barriers that exist in the target markets. For business to operate effectively, it will be important for the company’s management to examine the socio-cultural influences on product consumption and the values that are attached to service in the respective regions. Lastly, given the challenges of globalization noted above, the strategic positioning of the company with regards to different market issues will be important. The company will have to engage in product differentiation and market segmentation strategies, for example, so as to penetrate different markets. This paper makes a conclusion that ethical and globalization concerns raised above are therefore significant for the success of Ooredoo’s internationalization plans. The company will have to involve its research and design department to ensure that all the issues are well understood before management arrives at viable projects. With the opportunities presented by globalization and market liberalization, it is evident that so long as the company will be able to understand and act on different ethical and global perspective concerns, success will be more than guaranteed. As a leader in the provision of communication products, it is important that it maintains this position even in the identified international markets.