International Business
     Study Mission
Hong Kong & Pearl River Delta




                 Chew Aik Sian Dickson – S1002...
Research Topic 2
• Implications for Foreign Businesses
  – Chinese History
  – Business Culture
  – Local Customs
  – Etiq...
How Chinese History                How Business learn and
       creates                             adapt to




        ...
Outline
• Chinese History
  – Inferior Goods
• Business Culture, Customs and
  Etiquette
• “Guanxi” 关系
Inferior Goods?
• Sunten Electric Co. Ltd
             Guangdong Famous Brand Certificate

   – Setup 1988; Listed 1993
 ...
Inferior goods?


    Pearl River Piano Group piano?
Why is it a world’s compete with other
    “By striving to bestsellin...
Business Culture, Customs and
          Etiquette
• Appearance
• Behaviour
• Gift-giving
Business Culture, Customs and
            Etiquette
• Appearance
  – Conservative suits for men with subtle colors
  – Wom...
Business Culture, Customs and
            Etiquette
• Behavior
  – Arrive early if you are a guest
  – Acknowledge the mos...
Business Culture, Customs and
          Etiquette
– Do not point using index finger
– Avoid acts that involves the mouth
 ...
Business Culture, Customs and
          Etiquette
– Gift-giving
   • Official business policy consider gift as bribes
   •...
Main Secret to Success?
“Guanxi”
Under
Bribery?
Or even this!?
    table
  Money?
What exactly is “Guanxi”?
• Translated as
  – “networks”
  – “connections”
• Mechanism
  – Deal with social uncertainty in...
How to establish “Guanxi”?
Secret Recipe by Aztech:
 • Banks
 • Friendly lunch, brunch, dinner
 • Golf session
Importance of “Guanxi”
• Determines
  – Organisation’s long run competitive standing
• Crucial to possess right “Guanxi”
 ...
Practical Examples
• Good relationship with the village in-
  charge
  – Allocated land for Aztech’s future
    expansions...
Limitations of “Guanxi”
IBSM Presentation
IBSM Presentation
IBSM Presentation
Upcoming SlideShare
Loading in …5
×

IBSM Presentation

1,607 views
1,548 views

Published on

A Presentation to International Business students at Ngee Ann Polytechnic.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,607
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
77
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

IBSM Presentation

  1. 1. International Business Study Mission Hong Kong & Pearl River Delta Chew Aik Sian Dickson – S10026516H Lee Rong Ai Denise – S10025788K Ng Wen Song Ryan – S10024938H Ng Xhi Ween – S10027234B Tan Shi Min Evelyn – S10026481C Tay Yilin Vanessa–S10022530D
  2. 2. Research Topic 2 • Implications for Foreign Businesses – Chinese History – Business Culture – Local Customs – Etiquette
  3. 3. How Chinese History How Business learn and creates adapt to Business Culture, Customs, Examples Etiquette “Guanxi”, “Mianzi” Gift Giving affects Deal-making, Negotiate Entertainment Doing Business in China Public Behaviour Conversing
  4. 4. Outline • Chinese History – Inferior Goods • Business Culture, Customs and Etiquette • “Guanxi” 关系
  5. 5. Inferior Goods? • Sunten Electric Co. Ltd  Guangdong Famous Brand Certificate – Setup 1988; Listed 1993  ISO9001 Certificate in 1994 – Electricity equipment supplier – Great emphasis for quality  Guangdong Name Brand Product Certificate • 40% of 1500 employees University Graduates • Population Test for QC/QA • First to have R&D withinNew Technology Enterprise  Top100 State High & industry in China • Close relations to keep up with fast moving industry  Outstanding Supplier for Three Gorges Project  Top 10 Chinese Brand for Electrical Equipment Certificate  State Predominant New Product of Dry Type Transformer
  6. 6. Inferior goods? Pearl River Piano Group piano? Why is it a world’s compete with other “By striving to bestselling manufacturers that have a much longer Top-notch Quality pianos, Pearl River has history of building  Chinese manufacturer of pianos  50 yrs itscraftsmanship and management on put of employees  Superior artistry and technical sophistication notice that we will accept nothing short of  Established in 1956 in examined by  Each piano is thoroughlyGuangdong a perfection.”  Affordably priced with features of to shipment quality control expert prior expensive brands  Owns the world's largest piano times  Pianos are tuned a minimum of 7 factoryduring Zhi Cheng Tong, President Pearl River Piano Group production  Featured in “ Forbes International”  Imported German International Standards  In 1998, earned themanufacturing technology Association ISO 9001 Certification  Boasts an “Renowned Trademark” Awarded China’s ideal balance of old-world hand  1st piano company in China to receive this craftsmanship & advanced technology prestigious independent certification of quality Recommended world-wide by professionals
  7. 7. Business Culture, Customs and Etiquette • Appearance • Behaviour • Gift-giving
  8. 8. Business Culture, Customs and Etiquette • Appearance – Conservative suits for men with subtle colors – Women should refrain from revealing clothes – Jeans are not acceptable for business meeting
  9. 9. Business Culture, Customs and Etiquette • Behavior – Arrive early if you are a guest – Acknowledge the most senior person in the group first – Wait for the Chinese to offer the handshake first – As a cultural courtesy, you should taste all dishes offered – Do not use large hand movement
  10. 10. Business Culture, Customs and Etiquette – Do not point using index finger – Avoid acts that involves the mouth Eg. Biting of nails or removing food with hand – Personal contact or display of affection between different sexes should be strictly avoided
  11. 11. Business Culture, Customs and Etiquette – Gift-giving • Official business policy consider gift as bribes • Getting more common • Gifts will often be rejected at least 3 times before acceptance • Should not open immediately and express honor when being accepted. • Offered using both hands • Wrap in red paper • Avoid sharp objects like knives or scissors
  12. 12. Main Secret to Success?
  13. 13. “Guanxi”
  14. 14. Under Bribery? Or even this!? table Money?
  15. 15. What exactly is “Guanxi”? • Translated as – “networks” – “connections” • Mechanism – Deal with social uncertainty in complex social environment • http://guanxi.pbwiki.com/
  16. 16. How to establish “Guanxi”? Secret Recipe by Aztech: • Banks • Friendly lunch, brunch, dinner • Golf session
  17. 17. Importance of “Guanxi” • Determines – Organisation’s long run competitive standing • Crucial to possess right “Guanxi” – Minimise • Difficulties • Frustrations • Risks • Barriers Mr Jeremy Mun, CEO Aztech
  18. 18. Practical Examples • Good relationship with the village in- charge – Allocated land for Aztech’s future expansions • During export/import – Talk to custom officers for latest on laws and regulations to avoid brushes with authorities
  19. 19. Limitations of “Guanxi”

×