Mary is an Australian resident, came from family who owns food industry. Mary is passionate on experimenting new recipes and condiments which she use organic ingredients and guaranteed to not use preservatives. She owns “The Aroma Shop” in Wagga Wagga and now wishes to expand her business in China. She consider the fact that flying to China and meet the manager of a famous shop own by a fifty five years old Chinese man Mr. Lau will be beneficial for her. The only issue is that Mary is unsure how to do business with Chinese and specifically how to proceed with the first meeting.
This essay will discuss analytical study in order to assist Mary on her business development. Furthermore, the comparison between Chinese business culture and Australian business culture by using Hofstede five cross-cultural dimensions such as power distance, uncertainty avoidance, masculinity/femininity, individualisms/collectivisms, long and short term orientation will elucidate in this essay.
To begin with, an international business particularly in China it is expected to respect those who rank higher than you. It will make a positive impression upon the China market if you show that you understand and be grateful for your place. The employee-employer relationship tend to be polarizes, superior is more controlling and less approachable. While in Australia, most of the offices hierarchies are remarkably flat which means most companies encourage the same level or respect and engagement with all employees, tend to be more strong favourable participation in decision making into the organization.
Uncertainty avoidance refers to a concept that helps explain how cultures respond to the uncertain nature of future events. In Australian business tradition is tolerant of uncertainty. To keep up suspicions, Aussie don’t usually show aggression and feelings in vague situations and the laws are not that precise. On the contrary, Chinese people don’t like taking risks, which is why it is significant to build Xin (trust) with them. It can be seen that China has tons of rules and regulations in place to stay away from uncertain situations; however, they are open minded to bend and changes the rules as situations require it.
Another aspect of Hofstede’s is the mentality of thinking of “I” or “We”. Chinese individual is extremely collectivistic and they tend to think in terms of ‘We’ against independently. Guanxi (relationship), is therefore very important to Chinese business culture. On the other hand, this attitude is opposite to Australians culture due to the fact that they are more self-centred and focus more on furthering individualisms.
“Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life.” Whereas “Femininity stands for a society in which social gender roles overlap: Both men and women are supposed to be modest, tender, and concerned with the quality of life.”
China is categorised as masculine by Geert which refers to a preference for achievement, heroisms ant material success. Yet, Australia is measured feminine with a preference for relationships, modesty and quality of life.
The People’s Republic of China is apt to see issues, and start negotiations, by looking at the big pictures. China’s business negotiation process is like a ritual and courtship which is often portrayed as relationship oriented and focuses on a long-term. In addition, Chinese people value information in formulating their business assessment and they believe in the notion of ‘closing a deal’ needs to be treated with caution. In contrast the Australian way of transaction is to concentrate on the results as an ending. Moreover, in Australia operating within a low-context mentality, one seals the deal and then walks away to begin another one. The short-time orientation of Australian in their negotiating approach is style is merely a reflection of their business dealings generally, and this has led to an undue concern with quarterly profits rather than the long term.