Jun 15

Top Tips for Doing Business in China

Cross Cultural Training, Culture, Culture training for Business & Management No Comments »

China has seen massive economic development during the past quarter of a century and its economy is now the second largest in the world. With the recent agreements to increase UK – China trade, the 2008 Olympic Games in Beijing and China’s Sovereign Wealth Fund earmarked for outward investment, it is clear that China is a nation of ever increasing opportunity for western business.

Chinese laterns 3 tom hall i Top Tips for Doing Business in China

© istockphoto.com/Tom Hall

The western visitor to modern China will observe many outward indications of cultural difference such as eating rituals and gift giving. However, it is an understanding of the underlying values and attitudes, often underpinned by age old traditions and many years of history, that can really help you to get to grips with Chinese culture when doing business in China.

Good relationships are absolutely vital when doing business in China. A central concept in Chinese culture is ‘Guanxi’ (loosely translated as ‘relationships’ or ‘connections’). Guanxi is a network of elaborate relationships promoting trust and cooperation. Establishing a sincere, supportive relationship based on mutual respect is a fundamental aspect of Chinese culture. In business, having the right guanxi is crucial for minimising the difficulties and frustrations that are often encountered when doing business in China.

The following tips will help you ensure that you maximise your opportunities for doing business in China.

Remember that good working relationships are absolutely vital in China. Long-term relationships are valued much more than hurried transactions.

  • Show interest in Chinese history and culture. A little knowledge will go a long way.
  • Never criticise a Chinese colleague in front of someone else or do anything else to cause them loss of face or ‘mianzi’.
  • Always refer to your Chinese counterparts by their titles and family name, unless instructed otherwise.
  • Chinese business people tend to enter a meeting room in hierarchical order. You should always try to do the same, and where uncertain ask or observe first.
  • Take time to listen attentively to your Chinese counterparts and resist the temptation to interrupt or ask too many direct questions.
  • Have your business cards printed in English on one side and Chinese on the other. Always present it to your Chinese counterparts with the Chinese side facing up.
  • Be aware of your body language and that it might communicate a different message to what you intend. Learn about the appropriate and inappropriate gestures before doing business in China to avoid causing offense or misunderstanding.
  • Try to keep negotiations calm and impersonal. Excessive displays of emotion are usually not respected in China.
  • Avoid making political comments about Chinese national or foreign policy.

Considering and respecting the top tips for doing business in China above is the first step towards building effective relationships with your Chinese counterparts. Participating in a cross cultural awareness training course such as Doing Business in China will give you a deeper insight to the cultural differences you may find in China and the ability to anticipate and manage them effectively.

© Communicaid Group Ltd. 2011

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Feb 01

The Year of the Rabbit – Beliefs and Superstitions when Doing Business in China

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Are you doing business in China and wondering what all the interest is right now around the new year of the rabbit? Or perhaps you’ve noticed that there are good offers on Chinese foods in the supermarket this week? Maybe you’ve heard of Chinese New Year, but do you know what it is and why it’s celebrated now and not in January?

Chinese people around the world are getting ready to welcome their New Year on Thursday February 3rd. For about 15 days Chinese will celebrate, focus on certain practices and reflect on their lives. Anyone doing business in China or working with Chinese counterparts during this time should be aware of the Chinese New Year and how it might impact you.

Chinese laterns 3 tom hall i The Year of the Rabbit – Beliefs and Superstitions when Doing Business in China

© istockphoto.com/ Tom Hall

The Chinese calendar is a lunar one, just like the Western calendar, with the start of each year coinciding with a new cycle of the moon. A full cycle lasts 60 years and is divided into five further cycles, each lasting twelve years. Each year is named after an animal. Much like Western zodiac signs, each animal in the Chinese calendar has particular characteristics that many Chinese believe will influence the lives of those born under its sign.

This year 3 February will see the end of the year of the Tiger and the beginning of the year of the Rabbit. The Rabbit is considered as calm and sophisticated, a kind of classy peacemaker who likes artistic ventures as well as the tranquillity of home. Those who are born in the Year of the Rabbit are often described as strong, relaxed and friendly as well as compassionate and creative. In terms of careers, Rabbits are believed to make good philosophers, politicians or doctors.

Knowing what year it is in the zodiac calendar and what sign you are can be a nice way to start a conversation and build a relationship when doing business in China. If you’re not sure what Chinese zodiac sign you are, take a look at the following table:

Rat 1924 1936 1948 1960 1972 1984 1996 2008
Ox 1925 1937 1949 1961 1973 1985 1997 2009
Tiger 1926 1938 1950 1962 1974 1986 1998 2010
Rabbit 1927 1939 1951 1963 1975 1987 1999 2011
Dragon 1928 1940 1952 1964 1976 1988 2000 2012
Snake 1929 1941 1953 1965 1977 1989 2001 2013
Horse 1930 1942 1954 1966 1978 1990 2002 2014
Sheep 1931 1943 1955 1967 1979 1991 2003 2015
Monkey 1932 1944 1956 1968 1980 1992 2004 2016
Rooster 1933 1945 1957 1969 1981 1993 2005 2017
Dog 1934 1946 1958 1970 1982 1994 2006 2018
Pig 1935 1947 1959 1971 1983 1995 2007 2019

Someone with a Western and perhaps more scientific or rational viewpoint may be reluctant to consider such ideas as anything more than superstition. As China is home to an ever growing and modernising middle class, it is becoming increasingly difficult to measure the influence of such old traditional ideas on Chinese society. But while China’s rise is undoubtedly a modern phenomenon, Chinese society remains rich with trends and traditions that have roots going back millennia.

Understanding the intricacies of such a reality requires a clear understanding of how traditional values influence modern day Chinese behaviours, both in business and in everyday life. Anyone doing business in China should take a cultural awareness training course to develop the required understanding, skills and strategies to effectively navigate the complexities of Chinese culture. Showing an appreciation for and understanding of traditions like Chinese New Year will go a long way towards building effective and long-term relationships when doing business in New Year.

In the meantime, don’t hesitate to send a friendly greeting to your Chinese counterparts this Thursday. Or as in the traditional Chinese custom on New Year, you could give them a small gift wrapped in red paper or in a traditional Chinese red envelope.

May the year of the rabbit bring you much success and happiness!

© Communicaid Group Ltd. 2011

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Dec 06

Fortnum & Mason is Headed to China – The Risks and Benefits of Doing Business in China

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According to the London Evening Standard, the renowned British grocer Fortnum & Mason, often branded as the “Grocer of the Royal Family”, is currently looking at opportunities to do business in China, India and the Middle East. This international development has come to light after Fortnum & Mason posted their first profits since 2005. According to Beverly Aspinall, Managing Director of Fortnum & Mason, doing business in Chinais part of a long term strategy to promote and sell the company’s luxury products on new markets.

Chinese tea CtPaul i Fortnum & Mason is Headed to China – The Risks and Benefits of Doing Business in China

© istockphoto.com/ Ct Paul

China is probably one the most attractive destinations for Fortnum & Mason, mainly because of the country’s tea-drinking culture and the interest in their luxury products. Fortnum & Mason is already selling its famous tea, jams and other delicacies in Japan and in the US, and it sells its products to the countless tourists visiting London from around the globe.

This move to China will be an important event as it will be the first time Fortnum & Mason tries to settle outside the UK since the short lived attempt to open a store in New York City in the early part of the 20th century. Some may wonder how this archetypal British institution will overcome the huge differences that exist between the two countries and adapt to the Chinese cultural and business environment.

Doing business in China can be challenging for unprepared organisations. The presence of really strong Chinese cultural values like the importance of relationships, the constant search for harmony, the obsession of keeping “face” and the predominance of the group over individuals can create cultural pitfalls and challenges for a western company doing business in China. Organisations like Fortnum & Mason doing business in China must understand and respect the unique cultural preferences and expectations of Chinese customers to avoid costly faux pas, poor customer service or cultural misunderstandings that would potentially harm the company’s brand image.

Despite the potentially challenging cultural differences a western company like Fortnum & Mason may face, China remains an attractive market with lots of potential. Cross cultural awareness training courses like Doing Business in China can help Fortnum & Mason harness the true potential of the Chinese market by giving them the knowledge and skills they need to adapt their products and customer service to the expectations of their Chinese customers.

Cross cultural awareness courses can help Fortnum & Mason take the right first step and make the best impression when doing business in China. With the right cross cultural training and support, Fortnum & Mason should find success in the Chinese market and the Chinese will be able to enjoy the authentic and fine taste of British culture through Fortnum & Mason luxury tea and products.

© Communicaid Group Ltd. 2010

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Sep 14

Cross-Cultural Differences – Chinese Audience Gives Two Thumbs Up

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for the Public sector No Comments »

A recent survey showed that Chinese and American film reviewers had rather different responses to the same or similar films. Chinese comments were more subtle and kind towards mediocre productions, while American comments were more open and critical. Does this mean that Chinese audiences are more easily satisfied or is this simply a matter of different communication styles? Or perhaps Chinese audiences like different things than American audiences?

Chinese laterns 3 tom hall i1 Cross Cultural Differences – Chinese Audience Gives Two Thumbs Up

© istockphoto.com/ Tom Hall

 

Some argue that this finding could be linked to the distinction between collectivistic and individualistic societies. For example, in a collectivistic culture there is more importance placed on group cohesion and harmony than individual actions and competition. Asian countries in particular reflect this collectivist attitude so they tend to prefer constructing messages in an ambiguous way. This helps them to avoid causing conflict in the group or losing face in case a specific request is ignored or denied.

Conversely, many countries in northern Europe and North America are more individualistic and therefore tend to focus more on the individual and personal achievement. Individualistic cultures tend to value sincerity and openness when communicating, while veering from the subject can be seen as an effort to hide something.

People from individualistic cultures therefore tend to be more open and honest when communicating their preferences, while people from collectivistic countries are more reserved in expressing their views because they are more concerned with maintaining harmony rather than saying exactly what they think. This could explain the different film ratings and comments by Chinese and Americans.

Understanding that different cultures have preferences for different working styles and business values shows the importance of being able to adjust your style when doing business in an international environment. Differences in views and how they get expressed can have significant implications for any organisation that is launching a product in a new market, working on a cross-cultural M&A or implementing a global matrix structure.

Cultural awareness and flexibility should therefore inform not only the business side of your company, but also the marketing research and planning. Sometimes marketing tools like a simple survey might provide you with misleading data if used in a culture where people are not used to or comfortable with expressing their opinions openly.

For instance, when dealing with collectivistic cultures, basing market predictions and strategies on findings from an online poll might give you the wrong perspective and hinder your desired results. cross cultural training courses can provide you with a set of cultural knowledge and tools that will help you make the right decisions and adapt your approach effectively when marketing a service or product in another culture.

Many organisations have successfully adapted their product to suit another market. Kraft, for instance, modified their Oreo cookie recipe to a less sweet formula to accommodate the Chinese taste. Similarly, Tesco’s new CEO Philip Clarke adapted Tesco stores in China to include live fish in big tanks so Chinese customers could pick what they want and be assured of its freshness. These small changes adapted to the expectations and cultural preferences of the market and resulted in a successful product.

Other organisations have been less successful adapting their approach or product to the cultural preferences and expectations of customers in another country. PepsiCola is one example of an organisation who failed to do their research and adapt their product accordingly. When they changed the colour of its vending machines and coolers from deep “Regal” blue to light “Ice” blue in Southeast Asia PepsiCola lost its majority share in the market to Coca Cola. What they failed to realise was that light blue is a colour associated with death and mourning in Southeast Asia so the change did not create the desired effect and in fact hurt their profit.

Failure to understand the culture you operating in can have serious implications on any business. Anyone who wants to ensure that their marketing planning, strategies implementation and business as a whole gets a real thumbs up needs to pay extreme attention to what their international customers expect and want.

© Communicaid Group Ltd. 2010

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Jun 24

Cross Cultural Communication: The Magic of a Smile

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

In the international business world the first face-to-face meeting with business counterparts can significantly influence the success of the relationship, negotiation or contract. Many people underestimate the impact of first impressions which can either unite or alienate people forever.

Psychologists studying the phenomenon of ‘first impressions’ suggest that if the person wants to be accepted and trusted by his or her peers, all verbal and non-verbal messages should complement each other. Practically, this means that none of the sent signals should go into conflict with another signal sent at the same time.

Team businessYuri Arcurs i Cross Cultural Communication: The Magic of a Smile

© istockphoto.com/ Yuri Arcus

 

For example, a British person saying ‘yes’ while rubbing their head and raising their eyebrows may not give the message of ‘yes’ to the other person but rather a message of ‘I’m saying yes but I’m not really sure’. While the person receiving the message understands something different than what the sender intended, the sender does not often realise that the receiver hasn’t understood their message in the first place.

Examples of where people use conflicting verbal and non-verbal signals increases significantly in intercultural interactions. This is primarily because a non-verbal signal such as gestures or facial expressions in one culture can often mean something completely different in another, frequently resulting in misunderstandings and confusion.

Smiles are something that can easily be misinterpreted by people from different cultures. Smiling in North America is usually a sign of happiness and confidence as well as an effort to build rapport. In Russia, people often smile when they are happy or when something really funny takes place but you may find they do not smile quite as much as their counterparts in North America. Meanwhile, in many Asian cultures, smiling is often a signal that they are embarrassed or uncomfortable.

Take the example of an American manager who was once visiting some business counterparts in China to celebrate the opening of a new factory. The Chinese wanted to be sure everything was perfectly organised to really impress their new manager so they booked the American manager in a nice hotel and organised lots of social events in the evening. The morning after the first evening, the American manager woke to find no hot water in the hotel. He went down to the reception to complain but was greeted with a smile. He was already frustrated about the situation and felt even more frustrated by the smiling response from the receptionist. He later mentioned the situation to his Chinese counterparts in frustration and they too, smiled in return, and gave a small apology. This situation did not significantly hurt the visit or relationship, but it did leave the American manager feeling very confused about their reaction.

This is an example where a simple smile was completely misinterpreted. The North American may have thought the Chinese receptionist was smiling as they thought the situation was funny but the Chinese receptionist most likely felt uncomfortable and did not have a solution for the situation so was therefore trying to prevent loss of face.

This is a very basis example of where a simple smile can easily be misinterpreted and change the perception people have of each other. This kind of communication breakdown can be more effectively anticipated and understood by taking part in a cross cultural training course such as Doing Business in China. Intercultural Training China programmes such as this can help business people understand Chinese values such as face as well as the different communication styles and non-verbal gestures such as smiling to ensure they correctly interpret and understand any interactions with their Chinese counterparts. By accentuating the differences between cultures, intercultural training can help anyone doing business internationally pay more attention to the details and suggest strategies to overcome any possible cross cultural miscommunication.

© Communicaid Group Ltd. 2010

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May 26

Seeing Eye-to-eye across Cultures

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

 

Face-to-face meetings have a tremendous importance in the global business world. It is during these occasions that important matters are discussed and contracts are signed. Face-to-face encounters can sometimes be difficult to handle, however, especially when meeting people from different cultures where the risks of intercultural misunderstanding can jeopardise business opportunities.

One benefit of meeting international counterparts face-to-face is the ability to communicate directly without relying on virtual communication that can result in misunderstandings and confusion. While direct communication is channelled mainly by words and sentences, the major part of our message is delivered through our body language.

 

Business Woman shaking hands i Seeing Eye to eye across Cultures

© istockphoto.com/ Neustockimages

Let’s take the example of how we look at people during a conversation. In most western cultures, looking at someone in the eyes when talking is regarded as a sign of respect and truthfulness while the lack or absence of eye contact is perceived negatively as shyness or lack of attention. This perception is not shared by everyone however.

In many Arabic and Asian cultures, for instance, looking directly into someone’s eyes can be seen as disrespectful or challenging and should therefore be avoided, especially during important meetings. A French team leader and Chinese executive may experience difficulties when communicating face-to-face because of their different expectations and interpretations of eye contact. The French team leader will likely make efforts to look at the Chinese executive to build trust and establish credibility. Meanwhile, the Chinese executive may expect more indirect eye contact as this shows respect to more senior individuals. The different interpretations of eye contact can end up damaging the relationship and create misunderstanding.

This kind of cultural misunderstanding can be common without intercultural training. By participating in one of Communicaid’s Intercultural Training courses, you can increase your understanding of when and how eye contact is appropriate or not, reducing the potential for miscommunication and negative perceptions. Communicaid’s Living and Working in France or Doing Business in China cross cultural awareness training courses can help you and your organisation to gain a better understanding of your international counterparts and help you to face the challenges rising from cross cultural situations.

© Communicaid Group Ltd. 2010

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Apr 28

Intercultural Business Etiquette: Knowing When to Socialise and When to Get Down to Business

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

As more and more people work in the global marketplace, the challenges of working across cultures are being increasingly recognised. How to lead successful global negotiations, how to communicate effectively with international counterparts and how to lead across cultures have become key concerns for international businesses.

While it is extremely important to understand the above business elements of working effectively across cultures, we cannot forget about the social aspect of international business. The ability to socialise in an intercultural environment is crucial to the success of many international business endeavours, particularly in cultures where relationships are essential.

Businessdinner2 i Intercultural Business Etiquette: Knowing When to Socialise and When to Get Down to Business

© istockphoto.com/webphotographeer

 

Socialising as a professional activity might sound pretty simple to anyone with experience of doing business. However in many cultures, the first step of finding the right time or place to socialise can already be an issue if you are not familiar with the culture. In some cultures, for example, you might be expected to build relationships with your counterparts in the professional environment while in other cultures you might be expected to spend some time outside of work socialising in order to build trust.

For instance, when doing business in Panama or living and working in Saudi Arabia, you will often find that your counterparts do not make a clear distinction between their professional and personal relationships. You may hear conversations vary from business to personal or you might receive an invitation from a colleague to attend a family event, which you should kindly accept. On the contrary, when doing business in Germany or Belgium you might find that your counterparts prefer to keep their private sphere separate from their professional environment. Conversation rarely touches on any personal issues and most people will go their separate ways at the end of the day.

The impact of socialising on business negotiations can be quite significant in some cultures. Even though your Belgian counterparts might restrict your relations to the professional sphere, they will still appreciate getting to know you before discussing any business negotiation. When doing business in China, you will often be expected to spend time outside of work socialising with your Chinese counterparts to build trust and a relationship before discussing business. This is particularly true if you are doing business in China as they will want to show you an immense amount of hospitality as their guest.

No matter where you are doing business, it’s important to understand when, where and how to socialise with your international counterparts. Cross cultural awareness training can help give you an understanding of what topics are appropriate, how to greet people or when to socialise with your international counterparts. Programmes such as Intercultural Training Japan or Cross Cultural Training India will give you the knowledge and skills you need to make the right impression, avoid embarrassing faux-pas and take advantage of valuable opportunities to build trust with your international counterparts.

© Communicaid Group Ltd. 2010

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Mar 16

China: Business Goldmine or Cultural Minefield?

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Ever since details of Marco Polo’s adventures in Medieval China began to reach Western shores, China’s image grew in the imagination of early Europeans as a land of riches and opportunities awaiting whoever was courageous enough to make the long journey there.

Now, in the twentieth century, things are not too different. Since the communist regime in China opened the country’s borders to trade, Western companies have gone to great lengths to establish business ties there.

Results, however, have been mixed, and what was often idealised as a goldmine revealed itself to be a cultural minefield. While there are of course a number of cases where Western businesses have performed successfully in China,  there are others where organisations have encountered many challenges doing business in China, ranging from logistical to linguistic or cultural.

Game dice China i China: Business Goldmine or Cultural Minefield?

© istockphoto.com/Tigress

 

When China first opened its economy to international trade and business in the 1980s, much of the debate in the West centred on the most effective way of gaining a stronghold in what was a new and unknown market. The majority of international companies doing business in China opted for Joint Ventures (JVs) with Chinese counterparts which ended in mixed results.

The different experiences of Western companies doing business in China shows success and failure factors vary greatly, from purely technical reasons such as low quality and uncompetitive products, to serious cultural misunderstandings as to how to work with Chinese colleagues and potential Chinese partners.

Maytag’s case in particular is one example of Western-style management gone wrong. Once the third largest manufacturer of large home appliances in the US and a company that prided itself on the use of modern management methods, Maytag entered the Chinese market through a JV with the Rongshida Group.

This had developed from a small, collectively owned enterprise and had a corporate ethic of ‘harmonious business’, so when Maytag decided to launch a restructuring programme in the face of increasing competition by other Western companies, the relationship between the JV partners eventually collapsed leading Maytag to eventually withdraw from China.

However dynamic and increasingly modern, China remains a heavily traditional society where relations – whether in business or in everyday life – are heavily dependant on a system of ‘face’ and ‘guanxi’, a term which can be translated as “relationships” or “connection”. A principle that binds friends and associates in relationships promoting trust and cooperation, ‘guanxi’ commits a friend to do what he can for another friend when called upon and violating this implies a loss of face and reputation.

Despite the many challenges of doing business in China, many companies have discovered ways of not only dealing with Chinese cultural differences but harnessing them to create very successful business ventures and opportunities in China. One of the most effective is to pre-empt any issues related to business practices and customs by providing international staff and management with cross cultural training programmes such as Communicaid’s Doing Business in China.

Maytag Case Study Source: China & World Economy (67-79, Vol. 12, No. 5, 2004)

© Communicaid Group Ltd. 2010

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Mar 10

Challenges of Doing Business in China

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Chinese businessman 4 hfng i1 300x199 Challenges of Doing Business in China

© istockphoto.com/hfng

China’s booming economy, one of the largest in the world, is a magnet for foreign business investment. According to the China National Tourist Office (CNTO), China is a multi-racial country with over 56 ethnic groups. In the long course of its development, all the nationalities have joined in the effort to create the great culture that China represents.

The earth’s most populous and third largest country is often thought of as synonymous with ceremony, etiquette, ancient history and culture. International organisations will find a wealth of benefits to doing business in China however there are a few cultural challenges that must be taken into account to avoid misunderstandings, conflict and substantial direct and indirect costs to the organisation.

Cross-cultural training programmes for business and management such as Doing Business in China increase an organisation’s awareness and understanding of any potential cultural stumbling blocks to ensure that all involved create strategies for drawing benefits from these differences. The following are six of the key cultural concepts international organisations face when setting up or doing business in China.

Rules and Etiquette – Many aspects of Chinese society still strongly adhere to rules of etiquette. Elements of Chineses business etiquette code include rituals of gift giving and receiving (“songli”), accepted practices with regards to personal space and rules regarding dealing with older people or people in important positions. Various conventions also exist with regards to body language. For example, it is considered rude to point with just one finger and therefore Chinese people tend to indicate with an open hand.

Mianzi – When doing business in China, it is important to pay attention to the protection of “mianzi” or “face”. Face is entwined with personal pride and forms the basis of an individual’s social status and reputation. Damaging face through overt confrontation or criticism threatens the foundation of Chinese hierarchy and can be disastrous for business relationships in China.

Hierarchy – The strong influence of Confucianism is still evident in many Chinese attitudes and actions. The Confucian philosophy emphasises the importance of responsibility to one’s community, harmony and deference to authority. This is evident, for example, in China’s hierarchical system which tends to link respect, responsibility and authority to age, status and gender. When doing business in China, greet another person with a slight bow or a nod of the head and a firm handshake. Dress tends to be quite formal in the workplace, with men usually wearing a suit and tie and women in dress suits. When addressing other people, the last name should be used preceded by “Mr.,” “Mrs” or another relevant title.

Chinese businessman 4 hfng i1 300x199 Challenges of Doing Business in China

© istockphoto.com/hfng

Communication Style – Differences in ways of communicating can often be a source of misunderstanding. As a result, international organisations doing business in China are sometimes left confused and struggle to achieve their business objectives if they don’t possess the required information. Chinese have a preference for indirect, high context communication. In other words, Chinese people often imply and infer rather than verbalise directly. Chinese also place a high importance on the impact of body language, relationships, emotion and other non-verbal communication. Conflict is best dealt with in private and indirectly. Equally, it would be wise to note that smiling is not necessarily a sign of happiness but can also result from worry or embarrassment.

Guanxi – meaning “relationships” or “connection” is a fundamental aspect of Chinese culture. Guanxi translates to a principle that binds friends and associates in relationships, promoting trust and cooperation, committing a friend to do what he can for another friend when called upon. To violate guanzi is to risk losing face and reputation (or that of another’s) and honouring it has been the main way of accomplishing every day tasks in China for centuries.

Communism– China is governed by a communist party which pervades into many aspects of life, including the economy and religion. The country is officially atheist. Topics such as politics and religion are best avoided in conversation when doing business in China until you have become well acquainted with your colleagues.

Recognising the cultural differences which exist when doing business in China is only the first step. International organisations must also understand the reasons behind these cultural challenges of doing business in China to develop strategies for maximum effectiveness. A Doing Business in China cross cultural training programme will help you turn challenges into benefits and maximise the potential of doing business in China. Moreover, it will contribute towards the development of an interculturally competent workforce, a huge advantage in today’s fiercely competitive global world.

© Communicaid Group Ltd. 2010

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Mar 05

Cross Cultural Preferences: Individual or Group?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Have you ever considered why in some cultures it’s best to praise a team for their efforts rather than an individual?  Or why connections and networks are more important when doing business than individual achievement?  Or in education, have you noticed that in some cultures children are encouraged to participate and show individual creativity while in others the expectation is for children to recite lessons as a group?  There are many differences like these that can often be explained by a predominant tendency in a culture to place more importance on individuals or groups.

This distinction is often referred to as individualism and collectivism, the degree to which a society reinforces individual or group achievement and interpersonal relationships.  This concept, one of Geert Hofstede’s five cultural dimensions, helps explain many cross-cultural attitudes, behaviours and communication styles.

Societies which emphasise collectivism are those where people’s main concern is their in-group or community rather than their individuality.  Extended families and networks where everyone takes responsibility for fellow members of their group are typical of collective cultures such as China, Mexico and Greece.

Individualism refers to describe societies that are characterised by the importance of individuality and individual rights. In individualistic cultures such as the US or Germany, the self and immediate family come first while social bonds tend to be loosely tied.

Below is a table which summarises the key differences between the cross-cultural preference for individual or group.

Collectivism Individualism
‘We’ conscious ‘I’ conscious
Group comes first Self and immediate family come first
Focus on tradition and precedent Focus on growth and progress
Collaborative Competitive
Success and position are ascribed Individual achievement earned and rewarded

Understanding whether a culture places more emphasis on the individual or the group will help you maximise doing business in that country. These concepts are covered on cross-cultural training programmes such as Communicating Effectively across Cultures as well as cross cultural training for business and management programmes such as Doing Business in India.

© Communicaid Group Ltd. 2010

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