The first cultural difference is the relationships. Americans tend to work alone, on seceding what needs to be done, valuing their independence and control, whereas the Chinese rely on groups to make to make decisions, this builds trust and loyalty, a trait that is extremely valuable in the Chinese Culture. 2. The Second cultural difference is conflict disputes. Americans and the Chinese often handle conflict disputes differently, The Chinese will often seek out a third party as a mediator, an unbiased party, whereas Americans will allow the conflicts to be open and direct. . The third cultural difference is communication. Chinese people prefer to deal with people face to face; arsenal meetings are received better than a meeting than a teleconference or an internet conference meeting. B. Comparing United States Practices to China Business Practices using the 4 Up’s. 1. Product – Products may differ place to place, have different markings, coloring. A product that is successful in the United States might not be in China.
Some cultures in China, certain colors represent different things, for example, red and black represent darkness or bad omens, so those colors should be avoided on packaging, other colors like, purple, mean dignity and rower, so that color could be used instead of black and red. In the united States, coloring of the packaging is not an issue, a lot of colors are used for different promotions, seasonal colors and other possible occasions. Price – Prices also fluctuate place to place, region to region.
Chinese people are more likely to be sensitive to dynamic pricing, the ability to higher or lower prices of an item by a customer’s ability to pay for that item, than Americans. In the united States, the price of an item is not much as a concern, with consumers having more of a ability to pay for extra items. With many of the Chinese people having lower incomes, it will also affect their ability to pay for extra items. So having a stable price that does not fluctuate will be key to developing a consumer base in China.
Another key point it that Chinese people are very social able people and care about their “face”, or dignity. So if one bought a product that was considered over priced, they would “lose face” and would dishonored and ashamed, they would feel possibility inferior to friends and family who purchased the same product for a lower cost. 3. Promotion – Regulations on promoting in China are less strict then in the United States, many claims may be skewed or even completely false whereas here in the united States, company’s could get into major legal issues if they were to be found falsify data and claims.
Again, the Chinese consumers are self-conscious about their “face”, so if a particular product is inferior to another brand, it might make the customer inferior. 4. Place – Also known as distribution, how are we going to get the product into the consumers’ hands? The transportation of goods to and through China will have a more difficult time with importing and exporting items than the United States, where almost over half of the borders are coastline in the United States, and there is only one side of the country of China is coastline and the others are land locked.
Trade routes are another concern, In the United States, roads are planned out accordingly to small and major cities, so it easy to move the product from the port of sea to store inland. In China, roads are UN organized, many are small and difficult to travel to and from different cities, making it difficult to move product from the sea port to the smaller communities. Also, Chinese people prefer to have interaction with the product and other humans before they buy their product, this stems from skepticism about the quality Of the product.
So having a facility where customers can come and interact with the product would be ideal and help with the distribution of the product. C. Ethical Issues 1. Work Environments – With Unions and other regulations that are in place in the United States, Factories are very clean and acceptable places to work, with regular work weeks, occasional overtime if employees want to work extra hours. The same things cannot be said about many factories in China. China has a history of having children in factories, working a minimum of sixty plus ours a week with salaries that are a fraction of what salaries are in the united States. . Business Relationships- Ethical and Culture beliefs also change region to region; these beliefs affect how people perceive one another and how they do business with each other. One example is giving gifts. In the United States, giving gifts to a potential client or business partner would come off as a form of bribery or buying their services. In China, it is the complete opposite; it is customary to give gifts as a way to promote a healthy relationship moving forward.