The Cultural Elements Effects on Business Practice in China

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Table of Contents

Introduction
Effect of the cultural elements on business practice in China
Conclusion
References

Introduction

Culture is defined as the values, attitudes and beliefs that people in a given region or organization uphold. Culture also refers to a system of knowledge shared by a relatively large group of people. Culture is dynamic because it changes with time. However, changing the culture of people in a given region takes time.

Culture is normally acquired by the group of people through the course of their life. Normally, culture differentiates a group from the others. On the other hand, culture differentiates organizations in that; the way of doing things in an organization is different from other organizations (Fowler & Fowler, 2008). This paper focuses on the culture of China organizations and how it affects business practice.

China has a unique culture in terms of beliefs, traditions, attitudes, arts, and etiquette among other elements. Additionally, the Chinese plan their business meticulously and are very punctual. Therefore, for successful establishment of a business in China, there is the need to understand the cultural aspects of the people. This is a vital concept in business since through understanding customers’ needs; one can address and exceed customers’ needs and wants effectively. In this case, customers’ loyalty will substantially increase (Leung, 2010).

Effect of the cultural elements on business practice in China

Language and body movement

Communication is as a two way process, and is one of the most essential elements when conducting any business. This is because communication helps to ensure that there are seamless operations in an organization. Whenever there is a communication breakdown, business operations may not be effective.

Difference in language may cause misunderstanding among the participants who are conducting business together. Therefore, there will be difficulties in the business operations. When conducting business in China, it is crucial to understand the Chinese language. This is because Chinese are shy, reserved, evasive, and they enjoy speaking their language. Therefore, failure to adhere to these aspects create communication barrier between Chinese and other people (Leung, 2010).

Majority of business expatriates in China operates in unfamiliar surroundings. In this case, they do not understand much of the language and culture. It is essential for business expatriates to understand that the official government communication in China is Mandarin language. Therefore, interactions with customers, suppliers, and government may be affected by this language. Therefore, it is advisable for people who are willing to conduct business in China to conduct their business through intermediary.

This is because of the language barriers that may arise. On the other hand, body movement is taken with a lot of seriousness. For example, free hand movement should not be used when addressing the Chinese host in business meetings. Additionally, pointing when speaking and putting the hands on the mouth while speaking should also be avoided. This is because such body movement may be considered disturbing to the host (Leung, 2010).

Religion believes and traditions

Chinese business community is normally influenced by the three religions. This includes Confucianism, Taoism and Buddhism. Normally, the Chinese seek to live in harmony and are peace loving people. Their religion and beliefs have a significant effect on the business. In this respect, Confucianism and Taoist philosophies hold a strong belief that business progress can only be achieved through harmonious relationship with nature (Leung, 2010).

According to this belief, a person with ill behavior and wrong doing will be haunted in one way or another. Recently, Buddhism is the most widely practiced in China. In Buddhism, a person should not blame others for his or her failure in business. Instead, an individual should bravely face the challenges that come with the business.

Confucianism has predominantly contributed to the growth of Chinese business and the overall economy. Therefore, it is necessary for any business expatriate that wants to conduct business in China to at least understand the Chinese religion and beliefs with respect to business (Palmer, Shive & Wickeri, 2011).

Business Etiquette, attitude and Arts

The Chinese do not prefer doing business with companies that they do not know. Therefore, it is advisable to work with them through intermediary. It is also vital to encode information about the activities of a company before establishing operations in China. The information to provide concerning a company is the history of a company, and products offered in the market.

It is evident that Chinese prefer using intermediaries to enquire about the activities of a foreign company. Business relationships with Chinese people are established after the Chinese get to build acquaintance. As such, Chinese perceive foreigners to represent their home countries. They do not see them as business practitioners (Menipaz & Menipaz, 2007).

The Chinese like face to face communication, as opposed to the use of written or telecommunication. Additionally, Chinese discuss business activities in social places. Chinese also prefers treating people of high ranks with respect. As such, it is not acceptable to treat respectable informally, especially when there are other people present. Normally, when entering into business deals with Chinese, it is necessary to arrive at the scene slightly earlier.

Late arrivals are regarded as insults, and this affects the relationship between the people present. People should regard the appointment as necessary, as they should be issued one or two months before the set date. Appointments are delivered in writing. On arrival, guests should be escorted to their seats. Guests’ seats are arranged according to the ranks of the invited people. In this case, senior people sit opposite junior people (Tsai, 2007).

Visuals are used in large meetings. They are written in black color and presented on a white background. This is because, in China, color has a distinct meaning and thus care should be taken when choosing a color. The dressing code of the Chinese allows men to wear dark suits. Women should wear business suits and shoes which are flat. Bright colors should be avoided, and when negotiating on a certain deal, senior members should be chosen as spokesperson especially for introductory functions.

Chinese attitude towards customers is influenced with a lot of humility, patience, kind and inventing. It is normally a rare occurrence to see Chinese entrepreneurs quarreling over certain business dealing. This is because they have a strong attitude patience and tolerance even when business is not doing well. This attitude has significantly contributed to their business success (Tong, 2012).

Conclusion

There is no doubt that culture effects business practice in Chinese economy. Therefore, any business expatriate who wants to conduct business in China should at least understand Chinese culture and protocols. Failure to understand customers’ way of life may lead to production of goods and services that fail to meet and exceed customers’ demands. It is crucial for business people to understand cultural effects on business performance and practices.

References

Fowler, J.D. & Fowler, M. (2008). Chinese religions: Beliefs and practices. Brighton: Sussex Academic Press.

Leung, A.K. (2010). Cultural Process: A social psychological perspective. New York: Cambridge Univ. Press.

Menipaz, E. & Menipaz, A. (2007). International business. London [u.a.: SAGE.

Palmer, D. A., Shive, G. L., & Wickeri, P. L. (2011). Chinese religious life. Oxford: Oxford University Press.

Tong, J.K-C. (2012). Overseas Chinese Christian entrepreneurs in modern China: A case study of the influence of Christian ethics on business life. London: Anthem Press.

Tsai, S-Y. (2007). Globalization effects on China’s influence on Taiwan economy. Frankfurt am Main: Lang.

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