Guanxi – Ties That Bind
By: Peer Aakif
Roll No: ISU14UK05
Culture is a system of values and norms that are shared
among a group of people and that when taken together
constitute a design for living.
Values are bed rock of a culture ; general beliefs what is
good and bad includes justice, freedom, democracy ,truth ,
Norms are social rules or guidelines that govern peoples
action towards one another.
Folkways and Mores
Differences in culture
Substantial differences among societies arise from cultural
Culture differences are related to social structure, religion,
language, education, economic and political philosophy
“Culture” and workplace values are related
Culture changes over time…influenced by economic
advancement, technological change, globalization
Differences in national culture influence the conduct of
Guanxi is one of the most powerful forces in Chinese
culture. Though the direct translation of "Guanxi" is
"relationships", the concept as it is used and applied in
Chinese culture is much richer and encompassing.
Guanxi does express the relationship of one person to
another, or one party to another. However, more
importantly the term also expresses an obligation of one
party to another, built over time by the reciprocation of
social exchanges and favours
The system of social networks and influential relationships
which facilitate business and other dealings (in china).
Guanxi – ties that bind
McDonalds' opened their largest restaurant in china
Within two years sales surpassed all expectations
Beijing officials abruptly informed McDonalds to vacate
the location to make way for commercial , residential
complex planned by li ka-shing.
McDonalds' took officials to court but eventually lost the
What McDonalds did wrong
Guanxi means relationships , McDonalds lost its lease in
Beijing coz it lacked the guanxi enjoyed by Li Ka Shing .
They could have accepted the decision and moved on .
They filed a lawsuit that only reduced the gaunxi.