Preview

Dmg Shanghai

Better Essays
Open Document
Open Document
746 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Dmg Shanghai
QUESTION 1: Why do you that it is so important to cultivate guanxi and guanxiwang in China?
ANSWER 1: Guanxi literally means relationships, although in business settings in can better be understood as “connections.” The concept of guanxi is deeply rooted in Chinese culture and Confucianism. The Chinese will often cultivate a guanxiwang, or “relationship network,” for help. In China, there is a tacit acknowledgement that if you have the right guanxi, legal rules can be broken or bent. Mintz made connections with two Chinese men who had access to high ranking government officials. Through these men, Mintz was able to secure permission to film commercials in locations that are normally closed to outsiders.
Guanxi and guanxiwang are essential to business in China. It is an important mechanism for building long-term business relationships and getting business done in China successfully.
There are so many laws that without guanxi and guanxiwang nothing would get done and a business would go out of business. The connections that a businessman makes can either make or break a deal. A deal gone well will give that businessman prestige and allow for him easy access to other resources in the future.
QUESTION 2: What does the experience of DMG tell us about the way things work in China? What would likely happen to a business that obeyed all of the rules and regulations, rather than trying to find a way around them as Dan Mintz apparently does?
ANSWER 2: Personal power and relationships or connections (guanxi), rather than the rule of law, have always been the key to getting things done in China. Most students will probably agree that companies that play by the rules in China will probably find it difficult to compete.
China is a country filled with people who will not do anything for free. There is always a cost. This is called bribery in the United States and is a crime under bribery law as well as white-collar law. The business that tried to follow all of

You May Also Find These Documents Helpful

  • Satisfactory Essays

    EGT1 Task 4

    • 922 Words
    • 3 Pages

    The world is changing in many different areas, and one of the many different ways it's changing is how businesses change and continue to grow. When businesses grow and expanded there are possibilities of gaining access into new markets that need to be understood before entering. Business markets in China are completely different than markets over here in the United States. We need to take a look at some of those differences.…

    • 922 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    With more and more companies that are turning to China to do business it is mainly because of their low production costs. China has a huge population and it creates a mass market for selling things. I believe the CEO may have felt that if other companies are doing business in China, that he should be doing the same thing because there was no harm no fowl in it. The main thing I see as a problem is that China could perhaps have some policies and regulations that are not the same as we have here in the United States. It is known by the CEO and senior officers that they are aware of the rules and regulations in China, and by knowing this they went ahead with the decision to set up shop and market in Hong Kong. China believes that in doing this that there are no ethical implications to doing this type of stuff.…

    • 738 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Jurlique Case Study1

    • 607 Words
    • 14 Pages

    Potential in China Dilution of “natural” credentials 7 Challenges of the New Corporate Structure Pola Orbis revenue split, 2011 (before Jurlique’s takeover) 12/20/14 • Pola Orbis acquired Jurlique with the clear intent of expanding overseas sales, and Jurlique’s presence in China is a key element in the purchasing decision. • Pola Orbis’ management would be reluctant to allow Jurlique to withdraw from the Chinese market 12/20/14 12/20/14 12/20/14…

    • 607 Words
    • 14 Pages
    Satisfactory Essays
  • Good Essays

    Business in China

    • 698 Words
    • 3 Pages

    After reading the article I believe that a US company will partner up with a company that will provide them with tangible assets and other services. As the fastest-growing major economy in the world, China continues to offer global companies attractive investment and business opportunities. However, doing business in China also means navigating the complexities that arise from China’s unique historical, political, and cultural contexts (Burkitt, 2012). Establishing a company in China can be a trying and tedious task requiring elaborate approval and registration procedures. Despite the challenges, leading US companies are succeeding in China by developing collaborative relationships with Chinese stakeholders and demonstrating the agility to continuously adapt their strategies to the country’s dynamic environment. Applying for approvals from various authorities is common in China. Navigating China's complex business and regulatory environment to submit the applications to the right channels is an extremely tedious process that the enlightened businessman would rather leave to a partner in China. These companies are positioning themselves for long-term success by embracing the Chinese proverb qiu tong cun yi, which means “seeking similarities while respecting differences.” In doing so, they are co-opting China’s long-term interest in stability and prosperity into their business strategies, China investment regulations and compliance issues (Chu, nd).…

    • 698 Words
    • 3 Pages
    Good Essays
  • Better Essays

    cut out the middle-man by working directly with the factories in China that supplied his company’s…

    • 1282 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    New and Difficult Challenges brought by corruption MNEs need to interact with various host country organisations, including the government and its bureaucracy. Government bureaucrats have the opportunity of trying to bend or even break rules and regulations for personal gains. This type of corruption has the strongest effect on MNEs‟ activities in the host country. Corruption is usually a way to avoid the complex system of government‟s approval to sell a new product or offer a new service, and to reduce time delays. In many countries, business is based on personal relationships, trust and friendship and exchanging gifts. That‟s what we call „Guanxi‟ in China. Usually when MNEs are going international, their destination is mainly the least-developed countries (LCDs) which all involve phenomena similar to „guanxi‟. Many cultural aspects encourage corruption such as the high level of power distance, the high level in individualism and many others. So „Guanxi‟ has become a cultural norm in almost all the LCDs and some of the developed western countries (i.e. Italy) (based on the statistics of Transparency and World Bank).therefore, „guanxi‟ has become a part of achieving successful business and it is not seen as „corruption‟. Corruption affects everybody. Corruption reduces the overall wealth in a country since it can discourage businesses from…

    • 1497 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    BMGT 392

    • 1330 Words
    • 6 Pages

    Steen, M. (2007, March). Business Ethics in China: Challenges and Opportunities. Retrieved September 16, 2011, from Santa Clara University: http://www.scu.edu/ethics/practicing/focusareas/business/conference/2007/presentations/china-panel.html…

    • 1330 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    China Myths , China facts

    • 1104 Words
    • 5 Pages

    Globalization has changed a lot of ways corporations are operating these days. It has been very hard for most of the companies to adjust in this new environment. One of the countries that these companies had challenges was China. Businesses are learning every day that successful managers need cross cultural skills and training to succeed in a position outside of their country.…

    • 1104 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    China has the largest population in the world, and has the largest market to the international business. So China reasonably becomes the focus of the international business. There are different business rules in different countries because of various cultures. China is a traditional country, which deeply affected by Confucianism. The foreigners who want to do business with China, should be familiar with the dominant social institutions , beliefs and values in China. Because the operation of business systems is controlled by all kinds of rules, especially by some informal rules. In this essay, i will identify some rules which govern the operation of business systems in China from the essence of formal and informal rules. In the first section formal rules such as laws will be clearly stated , and some informal rules will be discussed from socio-cultural practices.…

    • 1369 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Cultural Sensitivity

    • 1560 Words
    • 7 Pages

    Let’s begin with Doing Business within the Community – Again, China is heavily influenced by tradition, religion and Confucianism. China has been influenced by the western world and the business and family units have changed with this influence. However, Confucianism says that structure comes from order of life and society. There is a hierarchical structure not only within families but also within a business and it is respected. In America, we are use to making a decision, calling a meeting, talking about it or voting on it, and then moving on. This can sometimes happen in a very short amount of time. Unlike us, the Chinese like to ponder. It is not uncommon for them to take days to make a decision. It is always in…

    • 1560 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Question #1: For Google in 2005, from a business perspective, what are the arguments for and against entering China?…

    • 2616 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    This case is just an example and representations of what companies are willing to do and how much money they are willing to pay to enter a contract with China or their market. Most of the payments and other favors are made to establish guanxi in China. Gunaxi means “connections” and it is important part of the Chinese culture. According to Western standards most of these connections which include gifts and bribes are illegal but must be done in order to successfully deal with Chinese businesses. This case presents with various illegal and some legal types of payments.…

    • 1831 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Confucianism Paper

    • 467 Words
    • 2 Pages

    Yeung, I. Y., & Tung, R. L. (2012). Achieving business success in Confucian societies: The importance of guanxi (connections). Organizational Dynamics, 34(94), 71. doi:10.1016/S0090-2616(96)90025-X…

    • 467 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Play in a child’s life is extremely important. Starting with mental, social, health and just how they will develop as they grow. In researching several theories, we will look at how play and the lack there of has changed over the years. How children react to play and the environment they are placed in. Children tell us a lot without us always seeing the signs. Play does contribute to the way children deal with experiences in their life.…

    • 1751 Words
    • 1 Page
    Better Essays
  • Powerful Essays

    Gujrat and Bihar

    • 2256 Words
    • 10 Pages

    INSIGHT Have Gujarat and Bihar Outperformed the Rest of India? A Statistical Note R Nagaraj, Shruti Pandey In the popular and media imagination, fed by economists and columnists, Gujarat and Bihar have both recorded an extraordinary economic performance in the past decade.…

    • 2256 Words
    • 10 Pages
    Powerful Essays

Related Topics