Expanding into the China Market
Expanding into the China Market
Student’s Name
Institutional Affiliation
Expanding into the China Market
Business environment in China is very dynamic in its essence. It welcomes businesses from different countries and nations, but it also demands skills, commitment and long term planning if you want to stay afloat. It may become even rewarding for those foreign companies who conduct the proper research and can thoroughly craft a strategy to execute.
Likely, one of the biggest determinants of a company’s ultimate success being in China is the quality of staff. The quality of HR for you will surely be closely related to your company’s location, so first of all, you have to decide where your company will be located in and where are you planning to expand your market. You also have to take into consideration the fact, that in some cities the quality of people is much higher than in others. For instance, you should not lose sight of such cities as Shanghai and Beijing.
Next key decision you are to make is choosing between the hiring expats for senior management positions and localizing these roles. You should know that hiring expats offers greater operation control, but it is also more expensive. Furthermore, most expat managers do not have enough local knowledge of cultural and business practices in China. They also often do not have the Chinese language skills which are necessary for dealing with all Chinese companies in everyday practice. The main benefit of hiring a Chinese manager is knowledge of the local market and deeper understanding of local business they used to. Chinese managers have existing contacts with suppliers, customers and different local government authorities.
As for cross-cultural issues, well, they might emerge, but all depends on a cultural level of each person and his capability to work in a team. There are no problems which cannot be solved. Thus, first step into the China market is always intimidating for
Student’s Name
Institutional Affiliation
Expanding into the China Market
Business environment in China is very dynamic in its essence. It welcomes businesses from different countries and nations, but it also demands skills, commitment and long term planning if you want to stay afloat. It may become even rewarding for those foreign companies who conduct the proper research and can thoroughly craft a strategy to execute.
Likely, one of the biggest determinants of a company’s ultimate success being in China is the quality of staff. The quality of HR for you will surely be closely related to your company’s location, so first of all, you have to decide where your company will be located in and where are you planning to expand your market. You also have to take into consideration the fact, that in some cities the quality of people is much higher than in others. For instance, you should not lose sight of such cities as Shanghai and Beijing.
Next key decision you are to make is choosing between the hiring expats for senior management positions and localizing these roles. You should know that hiring expats offers greater operation control, but it is also more expensive. Furthermore, most expat managers do not have enough local knowledge of cultural and business practices in China. They also often do not have the Chinese language skills which are necessary for dealing with all Chinese companies in everyday practice. The main benefit of hiring a Chinese manager is knowledge of the local market and deeper understanding of local business they used to. Chinese managers have existing contacts with suppliers, customers and different local government authorities.
As for cross-cultural issues, well, they might emerge, but all depends on a cultural level of each person and his capability to work in a team. There are no problems which cannot be solved. Thus, first step into the China market is always intimidating for
References: China Market Entry Strategies. (2013). Slide share. Retrieved from http://www.slideshare.net/tutor2u/china-market-entry-strategies Entering Chinese Business-to-Business Markets: The Challenges & Opportunities. B2binternational. Retrieved from http://www.b2binternational.com/publications/china-market-entry/ China 101: Market Entry Strategy. 6 Points to Consider. (2012). Foreignentrepreneursinchina. Retrieved from http://www.foreignentrepreneursinchina.com/2012/06/china-101-market-entry-strategy-6-points-to-consider/