1 northern china/beijing tommy beatrous haein cho kevin havice louise johnston sean krug kathy...
Post on 22-Dec-2015
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Northern China/Beijing
Tommy BeatrousHaein Cho
Kevin HaviceLouise Johnston
Sean KrugKathy Miller Stan TellinsJoe Siripong
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Agenda Objectives Doing Business in China and Beijing The Rules and Scenario of the
Game Cross-Cultural Game Summary
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Objectives Prepare teammates for a business
meeting in Northern China, specifically Beijing
Teach beginning cross-cultural skills, using a scenario-based game as the framework for the training
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Why do Business in China? 2nd largest economy in the world, current
account surplus of $180 billion, $10 trillion GDP Transforming from outpost of low-cost
manufacturing to hub of technology creation – design, R&D, engineering
Large and quickly expanding pool of engineers and scientists
Huge, young and literate market – population 1.3 billion, median age is 32, literacy over 91%
Socialist market economy - market mechanisms introduced to attract foreign investment and improved trade terms
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China Business Trends Chinese stock correction - A-Share IPO pipeline - est
$30 billion raised in ’07 Major bank makeover (and deal with $200+ billion in
non-performing loans in state-owned banks) Rural strategy – improving income levels in rural
sectors $1.1 trillion in foreign currency reserves – new
channels for money management (70% are US treasury bills)
5% appreciation in the Chinese yuan in 2007 - reflects confidence that the financial system can accommodate a stronger currency
China reported a record $177 billion trade surplus last year
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Why do Business in Beijing?
Capital of China, where all decisions are made Aggressively becoming a ‘global’ city, attracting
many MNCs, huge investment in transportation and infrastructure
Home of the 2008 Summer Olympics Beijing taking the lead in combining traditional
Asian and Western values Industrial Parks - Beijing Economic & Technological
Development Zone, Zhongguancun Science Park Top universities and R&D institutes - Peking
University, Tsinghua University, Chinese Academy of Science
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Game Basics Each team has two game boards
4 players for each board The Scenario will be read so that the
players understand the setting Eight questions After the question is read, the player’s
note on their handout their choice (A or B) After the answer is read, the player will
move to either the left (correct answer) or to the right (incorrect answer)
The answers will be explained and discussed
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Game Scenario American-based MNC manufacturer is
interested in procuring parts from Chinese-based MNC The Chinese firm can give a strong
competitive advantage to the American firm The American firm wants an exclusive
contract with the Chinese firm The two MNCs have never worked together
before
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Game Scenario A week-long meeting has been
scheduled in Beijing 7-10 representatives from each
company, many different organizational levels
American MNC will send mostly Americans,
Chinese MNC participants will be mostly Chinese
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Game Scenario Primary objective of the meeting
Americans want to share information about their company, goals and lay the groundwork for successful contract negotiations
Due to the competitive nature of the industry, they want to work as fast as possible, and if things don’t work out with this Chinese firm, they will quickly need to try and procure material from their second choice
The Chinese firm has many options so they want to determine if there can be a successful long-term profitable relationship with the American firm.
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Q1: You are working on the presentation materials for the meeting. The text of the presentation will be in English, and because this will be the first time your company has worked with the Chinese company, the
information presented will be completely new. Do you…
A: Print hard copies of the presentation and give to everyone as
they enter the meeting room
B:Send the material to
the participants at least one week
ahead of the meeting
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Q1: You are working on the presentation materials for the meeting. The text of the presentation will be in English, and because this will be the first time your company has worked with the Chinese company, the
information presented will be completely new. Do you…
A:
Move 1 space to the right
B:
Move 1 space to the Left
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Explanation Though it is fine to print hard copies of the
material, don’t present to the participants as they enter the meeting room The first part of the meeting is for introductions
Participants working in a 2nd language will want to find ways to add value to a meeting rather than sitting back and saying nothing If they have the material beforehand, then they
can prepare questions and comments and be prepared to express them
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Introductions Make contacts prior to arriving Make an appointment Introductions
Shake hands if Chinese partner offers
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Introductions Business Cards
Printed in both English and Chinese Use both hands Bring lots Inspect closely Treat card with respect
Meeting Preparation Slides and handouts in black and white Bring more handouts than you think you
need Be on time
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Q2: Your Chinese business partner just offered you a gift. Do you…
A: Politely refuse it with
no explanation
B:Accept it graciously
and open it
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Q2: Your Chinese business partner just offered you a gift. Do you…
A:
Move 1 space to the left
B:
Move 1 space to the right
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Explanation Often gifts will be refused 3 times
then accepted Gifts are not opened immediately
It’s the thought that counts If refused 4 times, graciously put it
away Just like American’s not being allowed
to accept gifts
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Gift Giving Avoid black, white or blue paper Value should match recipient’s
level Quality writing pens are good Avoid sharp objects, or pens with
red ink 6 and 8 are lucky, 4 is not
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Q3: During the first couple days of meetings, the American and Chinese teams should:
B: Maintain strict
compliance with a joint-approved meeting
agenda and work together as a single
monolithic team.
A:Break into smaller teams
based on seniority and shared personal interests to
recreate and socialize together in a non-business setting. Schedule an extra
couple of days to accommodate these
activities.
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Q3: During the first couple days of meetings, the American and Chinese teams should:
B:
Move 1 space to the right
A:
Move 1 space to the left
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Explanation
Show you value and respect relationships Understand corporate values and
objectives – don’t waste each others time Respect for social hierarchy Efficiency and depth of diligence; Easier to
point out weakness or disagreement Seize every opportunity to give mainzi
(face)
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SGE Example Intercultural supply chain SNAFU:
Marketing pressure Lost incumbent relationship Poor communication Lack of ownership Loss of tacit knowledge and corporate
sponsorship Ignorance about relationships – go for quick fix Technical communications can be very difficult
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Q4: The business meeting has come to an end and it is time to say goodbye.
A: You stand up, bow, shake hands, and
then leave.
B:You stand up, shake
hands, and then leave.
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Q4: The business meeting has come to an end and it is time to say goodbye.
A:
Move 1 space to the right
B:
Move 1 space to the left
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Explanation
Bowing in China is reserved for formal occasions such as funerals or ancestor worship
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Meeting Expectations Start meeting with small talk Do not mention deadlines Be prepared for Q&A in Chinese
Bring your own translator Escorting guests out is respectful Don’t refuse invitations for going
out
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Q5: Which one is the best subject for small talk in Beijing?
B: Economics and current stock
market
A:History and culture
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Q5: Which one is the best subject for small talk in Beijing?
A:
Move 1 space to the left
B:
Move 1 space to the right
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Explanation Beijing is the capital of History and
Politics Shanghai is the capital of economy
Beijing people emphasize history more than actual profit More related to Mianzi (face)
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Relationship Building Guanxi: “The age-old practice of
continuously cultivating and valuing relationship”
How to build Guanxi? Being friends with business partner Doing something together outside the
office Emotional bonding
Guanxiwang: New phenomenon
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Q6: During a post-meeting dinner banquet, do you…
A: Seat all of the Chinese company’s attendees
on one side of the table, facing all of your
company’s attendees
B:Intersperse everyone
so that each person sites next to
individuals from the other company
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Q6: During a post-meeting dinner banquet, do you…
A:
Move 1 space to the right
B:
Move 1 space to the left
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Explanation Importance of relationships Opportunity to build relationships One-on-one conversations
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Hierarchy & Guanxi Guanxi relationships Hierarchy
Send matching seniority levels Order matters -- enter in order of
seniority
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Q7: If you are full what should you do with the food that is still left in your dish.
A: Finish everything in
the dish
B:Leave some food in
your dish
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Q7: If you are full what should you do for the food that is still left in your dish.
A:
Move 1 space to the right
B:
Move 1 space to the left
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Explanation A clean plate indicates you are still
hungry and it is the host's responsibility to see that you are continually served food and drink
Dinner ordering
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Dinner Etiquette Don’t start eating or drinking before
your host Try every dish offered
There may be several courses Sample size portions are recommended
Chopsticks Don’t push business during meals
Let the Chinese bring up the subject first
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Q8: You are the guest at a social function, it’s getting late and you wish to leave. Do you…
A: Start telling your business partner
it’s late, keep sipping beer and
restate for another hour before
leaving
B: Tell your Chinese partner it’s late and
you need to go soon, then leave in
a few minutes.
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Q8: You are the guest at a social function, it’s getting late and you wish to leave. Do you…
B:
Move 1 space to the right
A:
Move 1 space to the left
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Explanation Guest usually initiates the end to
social functions Host will remain until guest leaves Should inform host several times Don’t stop drinking unless you have
a face saving excuse
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Explanation Chinese generally feel that in a formal
business setting, people put up an artificial impression that hides the person’s true inner self.
Through enjoying social alcoholic drinks together, they believe one can attain a better understanding of a person’s true character. Based off that understanding, they can build business relations through a deeper sense of mutual understanding and trust.
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Party Basics If the Chinese side invites its guests to
social drinks after a formal dinner, it would be rude to refuse, and potentially death to the business relationship.
On entering the bar, the host should enter the bar first and then get the waiter.
It is important to let the most senior members sit first and juniors sit afterwards in the remaining seats.
The group that makes the invitation to go drinking pays for the bill.
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Extra
Use formal titles and last names Avoid large hand gesture Don’t talk too much Don’t brag or flaunt – promote
your virtues inconspicuously
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Extra
No jokes or insults of others Speak in short simple sentences Avoid slang and technical terms
when possible
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Next Steps If you ended up in the United States
end of the board... You need to invest in building
credibility with your Chinese partners Learn about the culture and how to do
business in China – hire an expert to help bridge the cultural differences between companies
Set up a meeting (in person is best) to apologize and discuss next steps with the most senior person who attended the meeting – show respect and a commitment to change
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Next Steps Between start and the US end...
It could have been worse, understand what went wrong and build a corrective action plan
Plan another meeting in China, asking for help from an expert
Show commitment to the relationship Between start and the China end – good
job! You have established some credibility – part of
the way there to having the required interpersonal foundation for business negotiations
Schedule another meeting in China to continue to grow the relationship, you may be able to obtain some feedback
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Next Steps If you reached the China end of the board –
CONGRATULATIONS! You have good basic skills and led a
successful meeting that will form the basis of a strong working relationship
Grow on your success by working with your business partners to set up the next meetings where more information can be obtained and specifics on the contract can be discussed
Don’t take the relationship for granted Just because you think you have a good
relationship, that view may be one-sided – continue to think of ways to deepen and expand this foundation
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Summary In all cases, professional follow-up is key
to success Updates, timely completion of action items,
remembering personal information your new contacts shared with you
Business in Beijing is competitive and complex, and your business’ priorities may not be the same as China’s
Investment in learning the culture and diligent meeting preparation will pay off