Political, Legal, Social, Cultural factors

1. COUNTRY ANALYSIS AND MARKET
ENTRY STRATEGY

3. Country Of Study : China
BUSINESS ENVIRONMENTS
POLITICAL ENVIRONMENT
LEGAL ENVIRONMENT
ECONOMIC ENVIRONMENT
CULTURAL ENVIRONMENT

4. Political Environment

5. Political
Risk
Bribery and
Corruption
Unstable
Government
Communist
Party-led
State

6. Economic and Business Environment

7. POPULATION
1.

8. 2. GROWTH RATE

9. 3(A) DISTRIBUTION OF POPULATION - AGE GROUP

10. 3(B) DISTRIBUTION OF POPULATION - RURAL VS URBAN

11. 4. PER CAPITA INCOME

12. 5. EXPORTS AND TRADING PARTNERS
Tea
05
04
03
02
01
Petroleum Gas
Plywood
Cotton
Refined Petroleum
$13.7 billion
$4.79 billion
$1.95 billion
$1.67 billion
$31.2 billion

14. TRADING
P
A
R
T
N
E
R
S

15. 7. BUSINESS ENVIRONMENT
02
01 03
GOVERNMENT
ATTITUDE TO
FOREIGN
INVESTMENT
AND TRENDS
EASE OF
DOING
BUSINESS
TRADE
REGULATIONS

16. 8. INFLATION LEVEL AND CURRENCY EXCHANGE RATES

17. 9. EDUCATION AND LITERACY LEVEL

18. 10. LABOUR
11. LEGAL SYSTEM
Protection Of Intellectul Property Rights
Enforcement of Contracts

19. Cultural Environment

20. Basis Of Cultural Dimension Of China
CORE CULTURAL VALUES
Chinese culture is collectivist oriented. The group, rather than individual, is honored.
COLLECTIVISM
It promotes the idea that relationships between people are unequal and that everyone should have
defined hierarchical roles.
CONFUCIANISM
EThe word ‘guanxi’ is a general term used to describe relationships that may also result in the
exchange of connections or favours that benefit both people
GUANXI
It represents a person's reputation, influence, dignity and honour
FACE
1
2
3
4

21. HOFSTEDE’S
MODEL OF
CULTURAL
DIMENSIONS
It is a framework is a measure for assessing
the impact of cultural values on the workplace
behavior and gauging how much the cultural
mores and attitudes influence the people at
their work.

22. INDIVIDUALISM VS COLLECTIVISM
MASUCULINITY VS FEMINITY
UNCERTAINITY AVOIDANCE
TIME ( ORIENTATION)
2
3
4
T
1 POWER DISTANCE

24. UNIQUE
BUSINESS
ETIQUETTE
Let’s highlight some unique business
antique, one should learn or follow, while doing
business in China.

25. Handshakes are the
standard, casual greeting
The grip tends to be lighter than the Western handshake
and is also sustained for longer.
Do not bring presents!
The official policy in Chinese business etiquette
forbids gifts. The gesture is considered bribery, which
is illegal in the country.
Be careful about what you
do with your hands
putting your hands in your mouth, biting your nails,
removing food from your teeth and similar practices are
considered rude.
Body posture
Body posture should always be formal and attentive
as it demonstrates self-control and respectfulness.
Carry Business Card
Exchanging business cards is common practice, so
make sure to bring plenty.
Maintain composure during
meetings
Causing embarrassment or showing too much emotion
could have a negative effect for a business negotiation.

26. MARKET ENTRY
STRATEGIES

27. SUITABLE FOR ENTERING CHINESE MARKET
MARKET ENTRY STRATEGIES
REPRESENTATIVE
OFFICES
Some regulated
industries, Including the
finance industry, require
the setup of a
representative office first
before undertaking other
forms of investment in
China
Somewhat limited by the
fact that they are not legal
business entities.
FOREIGN
INVESTED
COMMERCIAL
ENTERPRISE
(FICE)
The China FICE can
distribute either imported
or locally manufactured
products for their
wholesale, retail and
franchise systems
They cannot, however,
change the nature of the
product
WHOLLY
FOREIGN- OWNED
ENTERPRISES
(WFOEs)
WFOEs are the preferred
vehicle for businesses
with an established
product or service that
can be easily imported
and sold in China.
Establishing a WFOE is
becoming a leading
option for investors.
Under the regulations of
the People’s Republic of
China (PRC), any joint
venture partner has the
right to sell their
ownership interest to a
third party, without the
partner’s consent.
Establishing a joint
venture is time
consuming, and plans
may go off track
JOINT VENTURE
1 2 3 4

28. STORIES OF
MULTINATIONALS WHO
ENTERED CHINESE
MARKET

29. Linkedin entered China as a joint
venture with Sequoia and CBC
Capital
is an interesting move because CBC have
had success in the Chinese market with
several online firms
1
2
So having a well connected Chinese partner fighting your
corner is always a smart move as long as there is full trust
between the different parties.
Opening an office in China was a
logical step
It helped LinkedIn in growing their brand
awareness in the Chinese market.
LinkedIn- A
story of sucess
L
I
N
K
E
D
I
N

30. Even before the Joint Venture was
set up, problems started to erupt
ithe marketing director resigned, even
before the JV was founded, gave hints of
the first scandal.
1
2
Groupon announced to use an
aggressive strategy
This included offering employees from
competitor’s huge salaries to come and
work at Groupon.
Groupon- A
story of failure
G
R
O
U
P
O
N

31. Market Opportunity Analysis

32. CHALLENGES OPPORTUNITIES
1. Capital investment
2. Market access
3. Competition
4. Government challenges
5. Human resource management
1. Cheap labor
2. Increase mobile usage
3. Innovation
4. Increased GDP

33. CURRENT PRODUCT
USAGE HABITS
1. Introduction Of LIAC
2. Primary And Secondary Education
3. Tertiary Education

34. MOBILE ADVERTISING VIDEO ADVERTISING
MAJOR ADVERTISING MEDIA USED IN THE COUNTRY

35. TARGET MARKET

36. CONCLUSION
China has a growing market infused with rapid industrial
development and economic growth. As the world’s third
largest trading nation after the United States and Germany,
China will continue to be an important business partner of
the United States.
US business people and organizations must understand the
differences in the economic, political, and cultural
environment of the country as these can be difficult to
manage and may hinder business development. Especially
important is to learn about cultural and political differences
and their impact on business practices and business
conduct.

37. Thank you!
CHINA
COUNTRY ANALYSIS
(*OPEN FOR FEEDBACKS*)

38. SUBMITTED BY:
Kavita Mishra
Soumya Singh
Ayesha Ahmed
SUBMITTED TO:
Prof. Shivani Aggarwal