Joint Venture Negotiations in China Essay Example | Topics and Well Written Essays - 1500 words

Joint Venture Negotiations in China - Essay Example This culture highly values personal relationships to an extend that, it is the basis on which long-term business relationships are formed. They get involved in an individual’s personal live prior to doing long-term business with them. At a social level, formal and informal relations make a big difference when it comes to business relationships. The Chinese culture would rather one pretends than to express an honest opinion or individualism if it will hurt or discredit another person’s feelings. Emotions are a private matter not to be shared in public. At social functions, there are certain rules that have to be observed failure to which a guest is deemed as disrespecting to the host. This etiquette at social functions control interpersonal relationships. Universally, smiling and laughter are used to express pleasure and humour but the Chinese culture also uses this as a response to negative occurrences. In the American culture, long-term business relationships are not n ecessarily determined by how well people know each other’s personal live. As long as objectives of both entities are met, business proceeds. At the social level, Americans freely express their emotions, opinions and individualism unlike the Chinese. Smiling and laughter in the American culture is for expressing humour and pleasure and sad emotions are also freely expressed. The Chinese businessmen place a great importance on personal relationships and social traditions when conducting business with one another unlike the Americans who place great importance on business issues. The political environment in China is not so friendly to foreign investors. Some political measures in place such imports being controlled by the government, their courts not enforcing contracts and holding back tax preferences for foreign investors delay businesses and cause mistrust to the foreign investor. In conclusion, culture is important since it allows members of a given society to function with one another without the need to negotiate meaning at every moment. Negotiations between Electrowide and Motosuzhou failed because four key criteria for the selection of a Joint Venture partner were not met as outlined below. Strategic complementarily Strategic objective is broad goal that an organization must attain for it to be successful in its strategy. Strategic complementarily implies that the strategies of the two organizations must complement each other. Electrowide’s strategic objective is to become a major, aggressive player in Asia. On the other hand, Motosuzhou’s objective is to team up with a foreign venture that will harmoniously work with government’s policies. This means that the ultimate direction comes from the municipal. This doesn’t complement Electrowide’s strategy and therefore, negotiations on a joint venture cannot work. Compatible operating policies Policies are rules and guidelines adopted by an organization to reach its l ong-term goals. They influence and determine all major decisions and actions in an organization with all activities taking place within the boundaries set by them. The two entities differed in their employment policies. For example, China still discriminates against women workers by placing them in lower positions with little wages which the counterparts, the U.S, have affirmative action policy where they don’t discriminate. Communication Communication is the sharing of ideas and information from a sender to a receiver. For it to be