GROUP 3

Shelby McCraw, Melinda Wade, Rosa Sanchez, Ian Kannady, Stefan Sansone, Allan Hu, Brandon Southern

Background
You are the chair of the selections committee and your international company

is sending an expatriate to China for a three-year assignment to staff and run a new branch of its industrial products business
Who Gets the Assignment??
Analyze 3 candidates using Hofstedes 5 Cultural Dimensions Compare the challenges that each candidate will face regarding international

business in China Find the candidate who will run the most successful business for our company

Environmental Forces

External forces over which management has no control

Internal forces that managements administer to adapt to changes in the

enivironment
Competitive forces
Competition firm faces, number and location of competing firms
Can influence competition indirectly by competing in same markets or lobbying for

barriers to entry into particular market

Hofstedes 5 Cultural Dimensions

The framework for communication across different cultures.

It can be used to describe the effects of societal culture and the differences

within the cultures.

Used world-wide for cross culture psychology and international management

Individualistic/Collectivistic, Masculine/Feminine, Uncertainty Avoidance,

Power Distance, Long Term Orientation

Individualism-Collectivism

Individualism: individuals are expected to take care of only themselves and

immediate family members

- Countries with highly individualistic culture reward independence

Collectivism: individuals expect their families to look after them

-Countries with highly collectivistic cultures belong to strong groups filled with loyalty

Power Distance

Society expects and accepts power to be distributed unequally The differences in power reflect inherent inequalities People accept a hierarchical order in which everybody has a place and there is no questions about it In large power distance countries, the people want directions, situations are based on seniority, age, and title In low power distance countries, the people try to equalize distribution of power

Uncertainty Avoidance

Members of a society feel uncomfortable with uncertainty Societies with strong uncertainty avoidance maintain strict codes of belief and behavior and are intolerant to other ideas and behavior Societies with weak uncertainty avoidance have a more relaxed attitude when it comes to principles

Masculinity-Femininity

It is the gap between mens and womens values Masculinity represents heroism and achievement

- Business performance is primary goal - Achievements are emphasized

Femininity prefers modesty and caring for the weak and quality of life

- Quality of life is important - Work in order to live

Long Term Orientation/Pragmatic-Normative

Added when he collaborated with researchers in Asia

They value actions and attitudes that affect the future

life

Pragmatic people believe it is impossible to fully understand the complexity of

Normative people feel strongly about establishing the Absolute Truth

China vs. India & Japan

By looking at the comparison of China in respects to 2 other countries (India & Japan) sideby-side, we can see that the only areas that all 3 countries are close to being evenly matched are Power Distance and Indulgence. Using these two areas, we can stand to reason that business communications between China and other Asian countries will be relatively fairly matched in most aspects; except where some group projects, and mostly innovation come into play. There will be some need to expect China to back down a little on the risk-taking and innovation to match others comfort levels.

China vs. Middle Eastern Countries

Pragmaticism Uncertainty Avoidance Masculinity

Individualism
Power Distance

Nigeria Iran Saudi Arabia Egypt China 0 20 40 60 80 100 120

Middle Eastern Countries

Score above 50 on Power Distance Accept hierarchial order, hierarchy reflects inherent inequalities Score below 50 on Collectivism Collectivist build loyal, strong relationships Score below 50 on Masculinity Relatively feministic , care for others, quality of life=succes Score above 50 on Uncertainty Avoidance Prefer to avoid uncertainty, rigid codes of belief, time is money, precision

China
SAME

SAME Scored above 50 -masculine, driven by competition, success is the winner Scored below 50 -adherence to laws and rules may be flexible, Scored above 50 -very pragmatic, truth depends on the situation, place, and time, strong propensity to save and invest

Score below 50 on pragmaticism Normative, strong concern to establish absolute Truth, respect for traditions

China vs. European Countries

Pragmaticism Uncertainty Avoidance Masculinity . Norway China

Individualism
Power Distance

20

40

60

80

100

120

European Countries
Score below 50 on Power Distance Independent, power is decentralized, control is disliked Score above 50 on Collectivism Considered individualistic, self is important, personal opinions are expressed Score below 50 on Masculinity Relatively feministic , care for others, quality of life=succes Scored below 50 on Uncertainty Avoidance -adherence to laws and rules may be flexible,

China
Score above 50 on Power Distance Accept hierarchial order, hierarchy reflects inherent inequalities

Score below 50 on Collectivism Collectivist build loyal, strong relationships Scored above 50 -masculine, driven by competition, success is the winner SAME

Score below 50 on pragmaticism Normative, strong concern to establish absolute Truth, respect for traditions

Scored above 50 -very pragmatic, truth depends on the situation, place, and time, strong propensity to save and invest

China vs. American Countries

Pragmaticism Uncertainty Avoidance Masculinity

Collectivism
Power Distance

Brazil Mexico Argentina America China 0 20 40 60 80 100 120

American Countries
Score below 50 on Power Distance Independent, power is decentralized, control is disliked Score above 50 on Collectivism Considered individualistic, self is important, personal opinions are expressed

China
Score above 50 on Power Distance Accept hierarchial order, hierarchy reflects inherent inequalities

Score below 50 on Collectivism Collectivist build loyal, strong relationships SAME

Scored above 50 on Masculinity -masculine, driven by competition, success is the winner

Scored below 50 on Uncertainty Avoidance -adherence to laws and rules may be flexible, ***with the exception of US*** NEUTRAL on Pragmatism

SAME

Scored above 50 -very pragmatic, truth depends on the situation, place, and time, strong propensity to save and invest

US vs. China Analysis

Difference in power distance means the disparity between

subordinates/supervisors/managers is much greater in China

Chinese see things as a team effort where the US places more value on what each

individual contributes
The Chinese welcome ambiguity/risk, and although the US also falls lows on

Uncertainty Avoidance, they are less willing to gamble

The Chinese restrain their desires to a high degree, whereas the US tends to gratify

their desires

Challenges of International Business in China

Inexperienced Management Having experience conducting business globally is critical to successful business operations Communication Cultural misunderstandings make business negotiations difficult Need someone who can bridge Chinese and US cultural differences

Human Resources Chinese workers are in a hierarchial structure where each person has a specific role and dont necessarily take initiative They are used to doing only what higher people tell them so there needs to be a well defined leader

Challenges, cont.
Bureaucratic tasks tasks that were simplified elsewhere may be still timeconsuming and difficult Even opening a bank account can take months Lack of strong rule of law and inconsistent application of regulations Many procedures that are electronic here require loads of paperwork
Relationships Build strong business relationships (guanxi) In China it is necessary to get to know your Chinese counterparts outside of business during tea sessions and dinner Need to have patience to build these because deals may take 5 times longer to make in China than in US

Who gets the assignment?

Tom? Firdaus? Or Gunther?

Tom
Professional Life Mid-level finance manager Stellar Performance Reviews No foreign experience MBA Ohio State University (50 miles from home) Undergraduate finance degree Local Council of Foreign Relations Personal Life Single Accomplished athlete

Advantages

Disadvantages

Mid-level finance manager MBA Undergraduate Finance Degree Local Council of Foreign Relations Single

No foreign experience Out of school for 20 years

Firdaus
Professional Life
Deputy VP of HR at Corporate Joined company on operations side Successful mid-career transfer to HR Stellar Performance Reviews PhD in engineering from the University of London

Personal Life
Family emigrated from Yemen Speaks, reads, and writes Arabic traditional and Yemen dialect Married to History Professor 2 children

Advantages

Disadvantages

Deputy VP of HR at Corporate Married Joined company on operations side 2 children Successful mid-career transfer to HR Stellar Performance Reviews PhD in engineering from the University of London Family emigrated from Yemen Speaks, reads, and writes Arabic traditional *Incident at HQ about headscarf but resolved without change of practice

Gunther
Professional Life Personal Life Speaks German Well organized and button-upped VP of German based EU company Functional background in Accounting Lead German based company to sector leader in only 7 years. Well organized and button-upped Timely, accurate, and detailed Undergraduate degree in Anthropology

Advantages

Disadvantages

VP of German based EU company Functional background in Accounting Lead German based company to sector leader in only 7 years.

Well organized and button-upped Timely, accurate, and detailed

WE PICK FIRDAUS!!!

He already works in a high-level HR Position and is already accustomed to

handling people from a variety of backgrounds

Proven track record of being able to transition across a diverse range of

cultures (US, Middle East, Western Europe)

Socially intelligent, well liked despite cultural differences Able to resolve culture based conflicts without issue Has highest level of education

Works Cited
China-Egypt 10 Year Strategic Cooperation. Forum on China-Africa Cooperation. June 2009. Web. 03 Feb. 2014. Meyer, Henry. China and Saudi Arabia Form Stronger Trade Ties. The New York Times. April 2010. Web. 03 Feb. 2014.

US-Pacific Rim International. The 5 Biggest Challenges Businesses Face When They Expand to China. Business Insider. Dec 2010. Web. 03 Feb. 2014.

http://web.b.ebscohost.com.libproxy.utdallas.edu/ehost/detail?vid=4&sid=6d0ac1a5-f3fc-45d1-845d3873ada77846%40sessionmgr198&hid=124&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&A N=27221860