Hofstede’s model of national culture

Mary, an Australian always knew that she would have a career to do with food, because her parents having worked as chefs, were continuously experimenting with new recipes for sauces and condiments, and bottling them for gifts. Growing up around this food loving way of life is what led Mary to start a small home business manufacturing a variety of condiments.

Today, Mary owns ‘The Aroma Shop’ and a small factory in Wagga Wagga. Her products use organic ingredients, and are guaranteed to not make the use of preservatives Mary now wishes to expand her business to China as she is certain that her products will be popular, which include chilli sauces, pastes, chutneys and jams. She believes that the best way forward is to fly to China to meet the manager of a popular store – Mr. Lau a fifty five year old Chinese man. Conversely, one thing Mary is not so certain of is how to conduct business with the Chinese, and especially how to proceed with a first meeting.

You are to prepare a formal analytical essay of strictly no more than 1500 words on Chinese business etiquette and steps that Mary can use to make a favourable first impression when she visits China to meet with Mr. Lau.

In the recent times, the business owners aspire to expend their business so that maximum profit can be achieved. It is important for an individual to know all the major consequences and result beforehand to do business in another country. Mary, an Australian owns ‘The Aroma Shop’ that deals with chili sauces, chutneys, pasta and jams. It is important for Mary to know about the business etiquettes of China to expand the business overseas. Each and every country has their own culture, which makes it distinct from other countries. China is one of the second-largest consumer markets in the world. The essay will discuss the difference in cultural dimensions between the two country Australia and China, which will help Mary to understand whether she can establish her condiment business in China  The country has massive population of consumers that have very little debt and huge cash to spend. Various organizations of different countries have proved to be highly popular by doing business in Chinese market (Beugelsdijk, Maseland and Hoorn 2015). There are several and cultural factor that is to be kept in mind before making a strategy and operate in the country’s border.

Power Distance Index

With the help of Hofstede’s model of national culture the distinction between two countries can be easily known. The cultural dimensions generally represent the independent preferences of relating to one state of affairs with other that distinguishes the nation (Kim 2017). The scores of the countries on dimensions are relative in nature as humans are highly unique. The difference in culture can be used meaningfully in comparison. This Hofstede’s model of culture includes six major dimensions. This includes power distance index, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance index, normative orientation and indulgence versus restraints.

The power distance index (PDI) deals with the vital fact that all the individuals present in the society are unequal. Power distance is the extent to which the low or less powerful individuals of an organization in the country accept and expects that power is unequally distributed. In china the rate of PDI is very high as the Chinese society believes that the inequality among the people is normal and acceptable. The subordinate and superior relationship is polarized and no defense is made against the power that is abused by the superiors. In China people are highly influenced by sanctions and formal authority. People in China also attend the meeting room in a very hierarchical order; the senior members are given high respect. The first person to walk in for the meeting is always the head of the delegation. Whereas in Australia, the PDI score is low and superiors within the organization are accessible. Mangers mostly rely on the employees and individual teams for expertise (Nyambegera, Kamoche and Siebers 2016). The communication within the organization is direct, informal and participative. Therefore Mary is advised to show respect as people are not called by their names directly Mr. Lau should be called with due respect and integrity. While doing in china, titled of courtesy is given to the people as regards. The people there should be addressed with a title in due respect that is to be followed by their last name. Mary should be careful for not using words like ‘comrade’ unless the clients are committed communists. Chinese people often appreciate if the clients from foreign countries use a couple of Chinese words. This makes the business process more cordial and smooth.

Individualism is referred to the degree of interdependency that the community maintains among themselves. Whereas, in collectivist environment, people are defined in terms of groups that guides each other in and creates loyalty. In China, there is a high collectivist culture comparatively to Australia, where individualism rate is higher. The employee commitment towards the company is relatively low. Personal relationship is given more importance over the company and the task. At the present score of 20, China is the country of high collectivist culture. Whereas, in Australia, there is score of 90 with a high individualist culture and the individuals are also expected to be self-reliant and showcase initiative in the business world. Mary should lay more emphasis on the group interest rather than the individual’s interest. It is highly significant to maintain composure while dealing business with Chinese people. Mr. Lau, a fifty year old man is expected to be very sophisticated and disciplined. It is important to be well-prepared for the meeting to make it successful. It is important to use kind words and should be polite with a faint smile. Gifts are also not positively accepted by the Chinese businessman and they do not receive with joy. Mary should ensure to carry at least 20 copies of the proposal ready for the new business before the meeting. The material for the business presentation should be made in only black and white and adding colors to it should be avoided (Engle and Nash 2015). It is important to do small talk before commencing the meeting.

Individualism versus Collectivism

High masculinity score on this particular dimension showcases that the society is mainly drive by achievement and success (Mazanec et al. 2015). Low score on feminine approach means quality of life and caring for other people is highly important. In this society quality of life matters the most and chaos or confusion is not considered admirable. China is a Masculine society with a score of 66 and is highly success oriented.  In China, people give much importance to their work and leisure time is not considered very important. In Australia, the score is 61 and the people there are also are proud of their achievements and success. The people resolve the conflicts at individual level and the main goal is to win. In both the country’s the scenario is almost the same, therefore it would not be much problem for Mary to deal with Mr. Lau as the masculinity score is high in both the countries.

Uncertainty avoidance is the way in which society tacts with the vital fact that future can never be easily known. The extent to which the people of respective culture feels threatened by unknown or ambiguous situations and also created beliefs that should be avoided and is reflected by the uncertainty avoidance score. China has a minimum rate of uncertainty avoidance at 30. Chinese people are comfortable with ambiguity and the meaning is quiet difficult for the people from west to follow. Majority of businesses in China are entrepreneurial and adaptable in nature and their businesses tend to be most family owned and small to medium sized in nature. On the other hand, Australia has a score of 51 on this particular dimension. The business hours are usually from a specified time in the morning to evening from Monday to Friday. Moreover, the workers in China takes a mid-break for two hours and during that time period everything stops from phone services to lifts. It is also be beneficial for Mary to schedule her business appointment between April to June or else in September to October. Greetings are to be made in a very polite manner in the respective country. Handshakes are common in China but it is important that the gesture should be initiated by the Chinese counterpart. Mary should wait for Mr. Lau to initiate the business dealings.

Long-term orientation is the process by which society maintains some link with their past and also deals with the present and future challenges that is to be faced. Normative society have very low score on the cultural dimensions and related to the country maintaining time-honored norms and traditions that views the change in society with suspicions (Vitell et al. 2017). Whereas, those with high cultural score follows a pragmatic approach and encourages effort and thrift to prepare for the future. China practices pragmatic orientation with a score of 87. This shows their ability to adapt the nation’s traditions as per the required conditions. Australia has a normative culture and score 21 on the dimension and people are normative in their thinking that focus on achieving quick result and exhibit high respect for future. Mary should be careful enough while setting the business in China as the country follows pragmatic approach and adapt the tradition of the nation as per required condition. Mary should be careful not to use strong negative statement as this can create unfavorable impact on the business. Instead of using the word ‘no’ the client should use alternatives like ‘maybe’, ‘later on’ and ‘think about it’. In the same manner, if the Chinese client comments about the problem not being serious. This means that there are still problems that are to be immediately sorted (Laitinen and Suvas 2016).

Masculinity versus Femininity

Indulgences are the degree to which the individuals try to control their impulses and desires. Presence of weak control in the society is known as ‘Restraint’, hence the cultures is described as Restrained or Indulgent (Putnam and Gartstein 2017). China has a restrained society with a low score of 24 in this dimension of culture. A restrained society generally does not focus on free or leisure time but instead control the gratification of their desire. With a high score of 71, Australia is an indulgent country. The individuals in the country lay more importance on leisure time and spend money or acts according to their wish. Therefore, Mary while doing business in China, it is important to maintain a calm, controlled and firm body language. The Chinese are always attentive and formal in form that showcases their respectfulness and self-controlled attitudes. Mary should be punctual enough as in China punctuality is very important. According to the Chinese business culture, being late is a very serious offense. The dress code should also be conservative’s suits and bright colors should be avoided as it is considered very inadequate. It is a common practice to exchange business cards so it should be present in a large amount. The card should also have one side printed in Chinese language and the other side in English. The professional title should be included in the card and while giving the card it must be ensured that the Chinese side is upward facing. Presenting gifts to the business clients is highly forbidden.

In china, people prefer to set and maintain a strong and cordial relationship before closing the deal. Before achieving the ultimate objective Mary have to arrange for many more meetings with Mr. Lau. It is crucial to maintain composure while making the meetings to create a positive impression. Showing too much emotion can lead to creating a negative impression on the business meeting and cause embarrassment for the clients. Therefore, the essay successfully discusses that Mary should take proper measures and prepare beforehand for setting the business in China. Patience is the key element to make the business in China as it is highly appreciated by the people. The people living there extend the agreed deadlines so that they can achieve some competitive advantage.  It is therefore necessary to be prepared from the start to accept such delays and deadlines should not be mentioned. Regarding making the business decisions, the Chinese usually extend the negotiations for the deal. Therefore, it is important for Mary to maintain a cordial relationship with Mr. Lau. As the cultures between the two countries are completely different, smooth business communication is highly significant.

References:

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