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

Business Negotiations in China - Essay Example Kam-hon, Yang and Graham (2006, p. 623) say that family orientation is a very important value in the Chinese culture. This is demonstrated by the fact that Tom and his team were bombarded with questions about their family and personal lives. The fact that Barb Morgan was divorced must have portrayed a negative picture on the team. Because the Chinese value family bond they are usually more interested in personal information on business partners. The value of interpersonal relationships in the Chinese culture shows that the American negotiation team should have been more interested in socializing with the Chinese and make friends with them instead of paying more attention to the formal business negotiation process. Woo, Wilson and Liu assert that the Confucianism theory further explains the cultural basis of Chinese behavior as being motivated by the high values that the Chinese put into hierarchy and seniority. As a result, male business partners are considered more important in busi ness negotiations. In the Chinese culture men are considered more significant than their female counterparts and for this reason, men occupy most of the senior managerial positions in business organizations. The issue of seniority and gender in business culture is illustrated by the fact that the Motosuzhou Team talks with Barb Morgan while their eye contact was focused on Tom Sherman and Mark Porters because they were male and their opinion was thus considered of more value by the Chinese than that of Barb Morgan. This ruined the relationship of Morgan with the Chinese later during the negotiations and hence showed a negative image on the team by the Chinese who value good relationships. The American culture is very different from the Chinese culture as explained by Al-Khatib, Vollmers and Liu (2007, p. 84). Firstly, the Americans value formal relationships in business negotiations and activities and personal relationships are not considered necessary in doing business. On the othe r hand the Chinese consider business negotiations as personal interaction rather than interaction between companies or business firms. Because of these differences in culture the Electrowide team viewed the negotiations as two companies trying to strike a deal while the Chinese viewed the process as relationships between individuals. These differences must have caused disharmony between the Americans and the Chinese and hence contributed to the eventual failure of the negotiation process which was aimed at creating a joint business venture. Kam-hon, Yang and Graham (2006, p. 625) add that the western culture does not uphold physical expressions such as handshakes while the Chinese value physical expressions because they act as a sign of appreciation and respect. Question 2 According to Graham & Lam (2003, p. 82) strategic corporate plans of a company are crucial to the management decision of two companies which are trying to negotiate for a joint venture. Therefore, lack of compatib ility in two companies whi