Management Intrnational Neel

Question # 00003004 Posted By: donanorman Updated on: 10/31/2013 12:16 AM Due on: 10/23/2013
Subject Business Topic Management Tutorials:
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Example of what is to be used for this outline it is 2 parts your represent a large U.S corporation that manufactures rubber tires, and you want to begin manufacturing and distribution in another country that you think you would want to start a manufacturing plant in. Organize your paper into four sets of concerns: Chairman, Vice Chairman, Secretary and Treasure.  Cities, references, and APA format.

Expanding a U.S. Rubber Tire Manufacturing and Distribution in to China

The purpose of this analysis is to provide research and discussion concerning the expansion of a U.S. rubber tire corporation into China. Multiple departments within the organization will conduct research and provide input regarding the international environment, strategic planning and implementation, business risks, staffing management, legal issues, cross
cultural communication, trade issues and negotiation practices.

I.Chairman: Introduction
A.Preliminary Screening of the Macro Environment of China
1.Cultural System
a.Confucian based
b.Collective society
1)Family is very important
2)Respect for elders
c.High-context communication style
d.Hospitable yet reserved
2.Political System
a.Communist state, single party rule, outcome of production is collectively owned by the society
b.Only legal political party is the Chinese Communist Party (CCP)
c.National People’s Congress (2, 987 members) elects president and vice president for 5 year terms
3.Legal System
a.Civil law system influenced by Soviet & European civil law
b.Legislature retains the power to interpret statutes
4.Economic System
a.Market oriented socialistic with the government supporting the growth of the private sector
b.Economy has grown quickly since the 1990s
c.Ranks first in foreign investment followed by India and then the U.S.
d.Major U.S. trading partner
B.U.S. Tire Company International Strategy for China Operations
1.Global orientation strategy
2.Manufacturing and distribution objectives
a.Cut costs
b.Secure raw materials
c.Competitive edge
3.Demand for product in Chinese market
a.Strong competitive strength in country
b.Brand recognition
4.Improve proximity to auto manufacturers we supply
C.Corporate Social Responsibility
1.The Chinese government encourages environmental and social responsible activities in organizations
2.CSR legislature
a.Article 5 of the 2006 Chines Company Law, which requires companies to “undertake social responsibility”, while conducting business
b.Circular Economy principle (CE)
3.Building social capital in China requires high-profile CSR activities
a.Donating to major causes and/or disaster reliefs
b.Implementing environment management and procedural systems
c.Establishing and/or collaborating on foundations or programs to address in country issues such as infrastructure development, healthcare, poverty, and education
D.Management Strategy
1.Decentralize operations
a.Location will be a hub for Asian market operations
a.Host country management
3.Confucian Management Approach
E.Mode of Entry
1.Foreign Direct Investment (FDI)
a.World’s largest vehicle market
b.Government reforms to give foreign automakers government incentives has many automakers expanding within the Chinese market
c.Joint ventures have a history of being less successful
a.Initially satisfying demand in Chinese market
b.Expand to export to other Asian markets
F.Appropriate Cultural Program
1.Employee Expectations
a.Consistent product quality
b.Safe, respectful, & professional working environment
a.Identical to all company operations
b.Standardized production processes
c.Clear CSR guidelines
a.Equal treatment
c.Fair wages
d.Work injury & occupational disease insurance
e.Social insurance
a.Labor contract
b.Mutual respect, trust, and relationships
c.Safe work environment
d.Importance of work to community development and growth
a.Senior respected leaders of the organization
b.Build relationships, assist, and guide workers
c.Leadership is the decision-maker, no employee empowerment
d.Be mindful of the concept of keeping face
1)Tactful discipline
2)Modest acknowledgement of accomplishments
II.Vice-Chairman: Introduction
A.Identify the risks of conducting business in China
1.Cultural risks
a.Chinese collectivism vs. U.S. individualism
b.Language barriers
c.Exchange of favors
1.Political risks
a.Communist parties lack of transparency
b.Guanxiwang or the social network with members of the governing communist party to help get things done
c.Lack of reliable commercial codes establishing commercial interactions and obligations
2.Economic risks
a.Opaque banking
b.Undervalued currency
c.Economy is growing fast, but economic slowdown could result in problems
3.Environmental risks
a.Environmental degradation
b.Adequate water supply
c.Air quality issues
d.Local energy sources
B.International Staffing Management
1.Strategy for staffing
a.Polycentric staffing approach considering the needs of the local operation
a.National concerns for employment laws and safety laws
b.Technological concerns
c.Organizational concerns
d.Cultural concerns
e.Economic concerns
3.Employment recruitment procedures
a.Host-country national
b.Looking for fit with the entire organization
4.Performance management considerations
a.Saving face
5.Training & development
a.Because of unskilled labor in China, effective learning processes and organizational development are important
b.Collectivist learning (as a group) will be more effective
c.Background s of trainers should be similar to trainees
d.Trainer should be professional and be respected
e.Training should be well-organization, materials orderly
6.Labor relations
a.Polycentric approach
b.Group oriented
7.Management selection criteria
a.Host-country national
b.Local nationality developed for the position in their own country
c.Fit with the organizational culture
d.Production skills
e.Additional specific operations procedures, production process, safety, and quality assurance training from home country
C.Considerations if Employees Any Expatriates
1.Cross-cultural training
2.Technically competent
3.Provided with local contact
4.Culture shock
D.If Expatriate Doesn’t Work Out
1.Expatriate employment is expensive so failure could be costly
2.Take precautions to avoid failure
a.Reassure their place in the company
b.Provide assistance to help with transitional or family issues
III.Secretary: Introduction
A.Legal Issues
1.Understand U.S., Chinese, and international laws
2.Lack of intellectual property law enforcement in China
3.Trademark security: register trademarks or patents before entering China
4.Antitrust, especially corruption concerns (gift giving issues)
B.International Orientation
1.Polycentric– accept that countries are economically, politically, legally, and culturally different
2.Location to become the organizations Asian hub
3.Human resource and management to represent Chinese approach
C.Strengths and Opportunities of China
1.China is $250 billion market for U.S. firms
2.Industry concentration – 25% of world’s tire output comes from China
3.Major emerging market
4.Largest world automaker growing national automobile market
5.Large labor pool
6.Low employment cost
7.Proximity to raw materials
D.Cross-Cultural Communication
1.Communication needs to be effective
2.High-context China vs. low-context U.S.
3.Noise is not communication
4.Confucian philosophies
E.Chinese Business Etiquette and Protocol
1.Key Concepts
3.Addressing by professional title and last name
4.Business card etiquette
5.Gift giving
F.Management Issues
a.Western view of assertiveness is that it is speaking one’s mind and providing input
b.Chinese tradition prevents assertiveness
c.Relationship building is important to create open communication
2.Conflict Resolution
a.Incongruity or dispute between opposing parties
b.Chinese prefer to avoid conflict
c.Relationship building
d.Concept of saving face must be considered before moving to address conflict
3.Team Building
a.Collective society, traditionally team oriented
b.Relationship building
c.Pre-work gatherings and motivational rallies to start the day off in good spirits
IV.Treasurer: Introduction
A.U.S.Chinese Foreign Trade
1.China is second largest U.S. trading partner
2.China is third largest destination for U.S. exports
3.China is the largest source of U.S. imports
4.China is a $250 billion market for U.S. firms
a.Tension involving China not fully embracing a free market economy
b.Poor intellectual property protection
c.Inconsistent with keeping with WTO obligations
B.Entry Mode Determinants
1.Our company is seeking high-resource, high-control, investment type mode
a.Firm size
b.Country risks
c.Market potential
d.Market knowledge
e.Global synergies
f.Global industry concentration
2.Foreign direct investment
a.Serve the local market better
b.Lower– cost inputs
c.Eventually adding exporting
C.International Negotiations
1.5 stages of negotiations
b.Relationship building
c.Opening talks
d.Discussions or persuasions
e.Agreement, consensus, and/or implementation
2.Negotiation preparation
a.Plan, research, organization
b.Cross-cultural training
c.Have a negotiating strategy
d.Develop trust or relationship as much as possible prior to
e.Prepare documentation, presentations, business cards in both English & Chinese
3.Sensitive issues
a.Cultural differences
1)Concept of “saving face”
2)American need to assert authority (leave ego at home)
3)Time (be patient)
b.Political relationship
1)Relationship between U.S. and China
2)Stability of Chinese government
1)Antitrust regulations
2)Labor-management relations
1)Currency for transactions and Equity Investment
2)U.S. dollar or Reminbi
2)Good of the group
4.Conflict management in Chinese negotiations
a.Incongruity or dispute between opposing parties
b.Chinese prefer conflict avoidance
c.Harmony, guanxi, saving face
5.Chinese decision-making process
a.No quick decision-making
b.Holistic approach evaluating all components, revisiting all angles, and weigh all matters before coming to a conclusion
c.Consensus decision best serving the group
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