26 apr 07 pai ltd the influence of china and uks’ cultures on doing business 24 th april 2007...

26 Apr 07 PAI Ltd26 Apr 07 PAI Ltd

The Influence of China and The Influence of China and UKs’ Cultures on Doing UKs’ Cultures on Doing

BusinessBusiness

2424thth April 2007 April 2007

Melville Petrie MA MBA FCIL FCILTMelville Petrie MA MBA FCIL FCILTBusiness Development and Inter-cultural Training for Business Development and Inter-cultural Training for

ChinaChina


Part OnePart One

Introduction to The United Kingdom – Introduction to The United Kingdom –

The Country, The Geography, The History and The Country, The Geography, The History and The CultureThe Culture

The Role of Government in business in UKThe Role of Government in business in UK

Foreigners in The UKForeigners in The UK

Working with the BritishWorking with the British


Part 2Part 2

Introduction to ChinaIntroduction to ChinaThe Geography, The People, The History and The The Geography, The People, The History and The

CultureCultureThe Role of Government in business in ChinaThe Role of Government in business in China

Expectations of Chinese professionals coming to Expectations of Chinese professionals coming to UKUK

Working with the ChineseWorking with the Chinese


Part OnePart One

Introduction to The United Kingdom – Introduction to The United Kingdom –

The Country, The Geography, The History and The Country, The Geography, The History and The CultureThe Culture

The Role of Government in business in UKThe Role of Government in business in UK

Foreigners in The UKForeigners in The UK

Working with the BritishWorking with the British


United Kingdom – United Kingdom – Geography, History and Geography, History and

Place in EuropePlace in Europe


United Kingdom - United Kingdom - GeographyGeography

Small group of western European islandsSmall group of western European islands

Geologically ancient in North West of Scotland - TorridonianGeologically ancient in North West of Scotland - TorridonianRange of rocks include alluvial valleys and sandy heaths in east make Range of rocks include alluvial valleys and sandy heaths in east make

for wide range of landscapes in a small areafor wide range of landscapes in a small area

Longest road journeys only about 800 milesLongest road journeys only about 800 miles

Major centres of population - London, Birmingham, Manchester and Major centres of population - London, Birmingham, Manchester and GlasgowGlasgow

Industry becoming increasingly service rather than manufacturing Industry becoming increasingly service rather than manufacturing based.based.

59 Million People - continuing immigration over past 2 thousand years59 Million People - continuing immigration over past 2 thousand yearsEngland, Scotland, Wales and Northern Ireland all have separate England, Scotland, Wales and Northern Ireland all have separate

identitiesidentities

Universal suffrageUniversal suffrage


United Kingdom - HistoryUnited Kingdom - HistoryLittle contact with outside world until 1st Century BC - Roman InvasionLittle contact with outside world until 1st Century BC - Roman Invasion

Successive invasions from Europe 5th to 10th Centuries ADSuccessive invasions from Europe 5th to 10th Centuries AD

Frequent wars in Europe 10th to 20th CenturiesFrequent wars in Europe 10th to 20th Centuries

Britain strongest country in Europe in 19th Century with vast empireBritain strongest country in Europe in 19th Century with vast empireenabled by a powerful navyenabled by a powerful navy

No longer colonial or world power nor yet fully part of EuropeNo longer colonial or world power nor yet fully part of Europe

Historically a monarchy, the UK’s democracy now increasingly Historically a monarchy, the UK’s democracy now increasingly governed from Brusselsgoverned from Brussels


United Kingdom - Place in United Kingdom - Place in EuropeEurope

Public opinion on Britain’s membership of European Union deeply Public opinion on Britain’s membership of European Union deeply divided.divided.

Mistrust over possible loss of the British pound and joining Euro. This Mistrust over possible loss of the British pound and joining Euro. This has major implications for international trade.has major implications for international trade.

Great national pride that British economy is performing better than Great national pride that British economy is performing better than European nation’s economies.European nation’s economies.

UK’s wars with and in Europe strengthen the people’s view of being UK’s wars with and in Europe strengthen the people’s view of being ‘British’.‘British’.

Recent history in Middle East has increased mistrust of USA and made Recent history in Middle East has increased mistrust of USA and made people more open to European neighbours.people more open to European neighbours.

‘International’ in UK can mean ‘European’.‘International’ in UK can mean ‘European’.


Cross-cultural IssuesCross-cultural IssuesTo many people in Britain, the game of cricket To many people in Britain, the game of cricket

is synonymous with their view of British is synonymous with their view of British culture.culture.

Professor Geert Hofstede of the University of Professor Geert Hofstede of the University of Limburg in Maastricht defined culture asLimburg in Maastricht defined culture as

the collective programming of the mind which the collective programming of the mind which distinguishes the members of one group of distinguishes the members of one group of

people from anotherpeople from another


Cross-cultural IssuesCross-cultural IssuesHofstede’s Four ConceptsHofstede’s Four Concepts

Power DistancePower Distance - the social distance between individuals - the social distance between individuals at different levels within a hierarchyat different levels within a hierarchy

Uncertainty AvoidanceUncertainty Avoidance - greater or lesser need to avoid - greater or lesser need to avoid uncertainty aboutuncertainty about the futurethe future

Individualism versus CollectivismIndividualism versus Collectivism - the relationship - the relationship between the individual and the between the individual and the blood-family/group/communityblood-family/group/community

Masculinity versus FemininityMasculinity versus Femininity - the division of roles and - the division of roles and values within a societyvalues within a society


What makes UK what it is?What makes UK what it is?

Small, crowded islandSmall, crowded islandIsland RaceIsland Race

Views of ‘foreigners’Views of ‘foreigners’MulticulturalMulticultural

IndividualisticIndividualisticTime-oriented Time-oriented Work orientedWork oriented

Work-Life balanceWork-Life balanceSuccess-orientedSuccess-oriented

Respect for traditionRespect for traditionEducationEducation

Society in transition?Society in transition?Economy in transition?Economy in transition?


British Business CultureBritish Business CultureDirect approach to businessDirect approach to business

Establish relationshipsEstablish relationshipsSelf-effacingSelf-effacing

UnderstatementUnderstatementHumourHumourMeetingsMeetingsDeadlinesDeadlines

Respect for management and the right to challenge and interruptRespect for management and the right to challenge and interruptPolitical CorrectnessPolitical CorrectnessWomen in businessWomen in business

CVsCVs


British Business CultureBritish Business Culture

The British have a good regard for Chinese and respect their business skillsThe British have a good regard for Chinese and respect their business skillsThe British are analytical and think in abstract termsThe British are analytical and think in abstract terms

In negotiation they believe only objective factsIn negotiation they believe only objective factsUnderstatement and humour hide real seriousness and achievementUnderstatement and humour hide real seriousness and achievement

Individual initiative and individual achievement are prizedIndividual initiative and individual achievement are prizedThe British take pride in working for respected companiesThe British take pride in working for respected companies

The British get anxious about meeting deadlines and achieving resultsThe British get anxious about meeting deadlines and achieving resultsThe British are self-critical but it is not a good idea to criticise them as wellThe British are self-critical but it is not a good idea to criticise them as well

Do not be offended if the British are direct in their comments or challenges - Do not be offended if the British are direct in their comments or challenges - offence is not meantoffence is not meant

Short-term results are preferred to long-term resultsShort-term results are preferred to long-term resultsThe working day is Monday to Friday 9.00 a.m. to 5.00 p.m. generallyThe working day is Monday to Friday 9.00 a.m. to 5.00 p.m. generally

Lunch is between 12.30 and 1.30 p.m. usually/often eaten in the officeLunch is between 12.30 and 1.30 p.m. usually/often eaten in the officeThe British do not like to be made to take decisions quicklyThe British do not like to be made to take decisions quickly

Gifts are not a normal part of business in BritainGifts are not a normal part of business in Britain


Part 2Part 2

Introduction to ChinaIntroduction to ChinaThe Geography, The People, The History and The Geography, The People, The History and

The CultureThe CultureThe Role of Government in business in ChinaThe Role of Government in business in China

Expectations of Chinese professionals Expectations of Chinese professionals coming to UKcoming to UK

Working with the ChineseWorking with the Chinese


The LandThe Land

9.6m sq.. km9.6m sq.. km 1.3 bn population1.3 bn population Coastline 14,500 kmCoastline 14,500 km Land boundaries 22,147 kmLand boundaries 22,147 km

AfghanistanAfghanistan BhutanBhutan Hong Kong Hong Kong Kazakhstan Kazakhstan LaosLaos

MacaoMacao MongoliaMongolia MyanmarMyanmar NepalNepal North Korea North Korea PakistanPakistan RussiaRussia TajikistanTajikistan VietnamVietnam


The LandThe LandGeographyGeography Mountains, high plateaux, deserts, plains, deltas, Mountains, high plateaux, deserts, plains, deltas,

hills, huge and small rivershills, huge and small rivers

EnvironmentEnvironment Greenhouse gases - Shanghai revoltGreenhouse gases - Shanghai revolt

DeforestationDeforestation

DesertificationDesertification

Endangered speciesEndangered species

ClimateClimate Extremely diverse subarctic in North and tropical Extremely diverse subarctic in North and tropical in South in South

WestWest

CultureCulture 4,500 years of recorded history - Confucianism, 4,500 years of recorded history - Confucianism, Legalism, Legalism, DaoismDaoism

50 years of Communism50 years of Communism

15 years of Capitalism15 years of Capitalism


National PoliticsNational Politics

Executive - headed by President and Gen Sec of CCP including Standing Committee of Politburo and Executive - headed by President and Gen Sec of CCP including Standing Committee of Politburo and State CouncilState Council

Five main functions - Five main functions - LegislatureLegislatureJudiciaryJudiciaryMilitaryMilitaryState Council – highest administrative body – the real powerState Council – highest administrative body – the real powerNational People’s Congress – ‘parliament’National People’s Congress – ‘parliament’Chinese People’s Political Consultative Conference – undemocratic and Chinese People’s Political Consultative Conference – undemocratic and

answerable to no-answerable to no- oneone

Key personalitiesKey personalities Hu Jintao- President and General Secretary of CCPHu Jintao- President and General Secretary of CCPWen Jiabao – Premier/Head of GovernmentWen Jiabao – Premier/Head of GovernmentHuang Ju – Executive Vice PresidentHuang Ju – Executive Vice PresidentHui Liangyu – Vice PresidentHui Liangyu – Vice PresidentZeng Peiyan – Vice PresidentZeng Peiyan – Vice PresidentZeng Qinghong – Vice PresidentZeng Qinghong – Vice President


Local PoliticsLocal Politics

Local Government – Local Government – 23 Provinces – 23 Provinces – Anhui, Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei, Henan, Anhui, Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei, Henan, Heilongjiang, Hubei, Hunan, Jiangsu, Jiangxi, Jilin, Liaoning, Qinghai, Shaanxi, Heilongjiang, Hubei, Hunan, Jiangsu, Jiangxi, Jilin, Liaoning, Qinghai, Shaanxi, Shandong, Shanxi, Sichuan, Taiwan, Yunan, ZhejiangShandong, Shanxi, Sichuan, Taiwan, Yunan, Zhejiang

5 Autonomous Regions – 5 Autonomous Regions – Guanxi, Inner Mongolia, Ningxia, Tibet, XinjiangGuanxi, Inner Mongolia, Ningxia, Tibet, Xinjiang

4 Municipalities – 4 Municipalities – Beijing, Chongqing, Shanghai, TianjinBeijing, Chongqing, Shanghai, Tianjin

2 Special Administrative Regions – 2 Special Administrative Regions – Xianggang, Aomen Xianggang, Aomen

The Local MayorThe Local Mayor

Local Party OfficialsLocal Party Officials


Industry & EconomyIndustry & Economy

EconomicsEconomics China keeping West afloat last few years - ?China keeping West afloat last few years - ?GBP 10.5% growth (2006)GBP 10.5% growth (2006)

GDP (purchasing power parity) US$10 trillionGDP (purchasing power parity) US$10 trillionGDP – Per Capita (purchasing power parity) US$7,600 (2006) (US$460 (1979))GDP – Per Capita (purchasing power parity) US$7,600 (2006) (US$460 (1979))

Overheating?Overheating?Corruption?Corruption?Foreign investment still hazardous - banking and railroadsForeign investment still hazardous - banking and railroadsProduction to foreign investment/acquisition, IBM/Lenovo, MG/Nanjing Production to foreign investment/acquisition, IBM/Lenovo, MG/Nanjing

AutoAuto

The FutureThe Future 19th Century - UK’s19th Century - UK’s20th Century - USA’s20th Century - USA’s21st Century - PRC’s?21st Century - PRC’s?


The PeopleThe People

The change in their daily livesThe change in their daily lives

Almost total Personal freedom - education, Almost total Personal freedom - education, clothes, business, employmentclothes, business, employment

Little political freedomLittle political freedom

Party MembershipParty Membership

Increased personal wealthIncreased personal wealth

Limited Consumer goodsLimited Consumer goods

East-West divideEast-West divide

Increasing overseas engagementIncreasing overseas engagement


It is a man’s social being that It is a man’s social being that determines his thinking. Once the determines his thinking. Once the correct ideas characteristic of the correct ideas characteristic of the advanced class are grasped by the advanced class are grasped by the

masses, these ideas turn into a masses, these ideas turn into a material force which changes material force which changes

society and changes the world.society and changes the world.

Chairman Mao ZedongChairman Mao Zedong


What Really Makes China What Really Makes China What It Is?What It Is?

4,500 years of civilisation and 600 4,500 years of civilisation and 600 years of the Westyears of the West



Confucianism: Confucianism:

12th Century philosophy that still 12th Century philosophy that still matters todaymatters today



The Dragon awakes The Dragon awakes

- 50 dramatic years- 50 dramatic years

- from Revolution to Capitalism- from Revolution to Capitalism


Communicating EffectivelyCommunicating Effectively

When to use Chinese and when to use EnglishWhen to use Chinese and when to use English

A few well-chosen and well-spoken phrases A few well-chosen and well-spoken phrases are received with tremendous natural good are received with tremendous natural good

grace - please learn a few!grace - please learn a few!The Chinese become very suspicious indeed The Chinese become very suspicious indeed of foreigners who speak Chinese too well. of foreigners who speak Chinese too well.

There is a real anxiety about foreigners There is a real anxiety about foreigners getting too close to the Inner Circle.getting too close to the Inner Circle.

Even if a foreigner speaks good Chinese, he Even if a foreigner speaks good Chinese, he or she must be very confident to negotiate in or she must be very confident to negotiate in

Chinese unsupported.Chinese unsupported.


Questions and AnswersQuestions and Answers

Thank you for your attention.Thank you for your attention.

Have you any questions?Have you any questions?

26 apr 07 pai ltd the influence of china and uks’ cultures on doing business 24 th april 2007...

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