THE CULTURAL CHALLENGES OF MNCS INVESTING IN CHINA

THE CULTURAL CHALLENGES OF MNCS INVESTING IN CHINA IN THE 21st CENTURY Universal approaches of wariness trust that few major(ip) differences exist among managers from dissimilar social and ethnical backgrounds and that direction theories and practices end be easily transferred from one last to another (Chen, 2004, p1). This approach suggests that the corporate tillage and management systems that determine financial victory in a companys home ground volition see success in other countries. This trust is often erroneous. imputable to the difference in history, geography, civilisation, infrastructure and the applicable political environment, management systems and best prac-tises in the home countries of prosperous MNCs often troth with those in a host country. To assistant MNCs develop an good management system for the countries or part they operate in, management should instead use the cultural cluster approach which puts vehemence on how attitudinal and beh avioral differences among cultures determine man-agement tasks (Chen, 2004, p2). In examining the challenges that are confronted by western MNCs in investing in chinaware, this bear witness leave firstly knock over the meaning of cul-ture. Specifically, Hofstedes expanded concept of culture is defined, then use to il-lustrate the sharp contrast in culture and business environments that MNCs formula in China (Hill, 2003). At this point, the danger in stereotyping round Chinese culture is emphasised.

Guanxi, the unique constituent of Chinese culture, is discussed. The decisive role that guanxi plays is illustrated through examples (Chen, 2004). Furthermore, the importance of de-signin g culturally relevant employee inducement s! chemes in China is canvassed, as thoroughly as the Chinese method of conflict resolution. Then, the essay will define and historically explain the four different types of enterprise, individually with their differing corporate cultures. The challenges that different types of enterprise confront in China are considered. Finally, the essay seeks to explain why some MNCs... If you indispensableness to get a full essay, order it on our website: OrderEssay.net

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