Expansion of Serendipity Inc.

into China
Exploratory Analysis on Chinese Culture for Business Success

Group 1 China
Chinese Culture. Simplified.

Chandan Kumar | Diwakant Modi | Jigar Jatakia | Rachit Tanjeem | Vrinda Singh | Yogesh Miglani
1511239 | 1511018 | 1511175 | 1511424 | 1511294 | 1511368

Agenda
A short skit
Basic facts about China, the country
Common perceptions of Chinese culture
Business Etiquette to be followed
Hofstedes Dimensions for cultural comparison
Expatriation and HRM Issues
Ready Reckoner for Communication
Lenovo India Pvt. Ltd.
Insights from Interviews
DOs and DONTs when dealing with the Chinese
Recommendations for Serendipity Inc.

Cross Cultural Management | Group 1

Cross Cultural Management | Group 1

China The Country

Basic facts

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China The Culture

Common perceptions

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Business Etiquette to be followed

Business Relationships

Follow rules of negotiation

Respect for Time

Formal Attire

Source: http://www.commisceo-global.com/country-guides/china-guide

Business Cards

Gift Giving as a practice

Cross Cultural Management | Group 1

Hofstedes Dimensions
China vs India

Source: https://geert-hofstede.com/china.html

Cross Cultural Management | Group 1

Expatriation and HRM Issues

Business Nuances

Administration Issues

Unique challenge of
Guanxi
Losing Face
Difference in Motives
Understanding nonverbal communication

Political interference in
business
Corruption/Frauds
Censorship of Internet

Source: Gupta, Pande, Wang (2014)

Habitat Issues

Food issues
Language problem
Compensation
High Cost of living

Cross Cultural Management | Group 1

Ready Reckoner for Communication

Personal Space

Chinese like to respect

their personal space.
They dont like being
touched by strangers.

Source: Gupta, Pande, Wang (2014)

Non-verbal
Communication

Saving Face

Non-verbal
communication plays
important role since
Chinese have sense of
respect for others and
they are not used to
express them
explicitly.

Saving Face is Saving

Grace: Mianzi
Negotiations should
bring something to
both parties, win-win
situation is preferred.
No Strong Arming.

Cross Cultural Management | Group 1

The Case of Lenovo India Pvt. Ltd.

The Chinese foray into India

Hierarchical Organization

Source: https://www.lenovo.com/ww/lenovo/pdf/report/E_099220160603a.pdf

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From the Horses Mouth

Interview with Mr. Sagar Nagpal, Process Advisor at UOP Honeywell

No speaking out of turn

Small Talk on Private Matters

Sidebar communication in Chinese

Chopsticks Grin and Bear It!

Ethnocentrism?

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Other Insights
Prof. Amarnath Krishnaswamy & Prof. N. Ravi from IIMB
Mr. CV Ranganathan, IFS (Retd.), Indias Ambassador to China (1987-1991)

Entrepreneurial people, would like to work for themselves They would work to
that end from their first job, learn the business and then set it up themselves!

Frugal mindset, would like to make every penny count - They respect others who
have this value; and hence the contempt for the North Americans.

Bit quick on the draw - You need to proceed cautiously in your negotiations.
Theyd probably give it a go-bye in the first opportunity if it doesnt suit them.

Leadership style Dichotomous; Those who have dealt with the western cultures
would probably swing that way when dealing with outsiders but revert to traditional
ways when dealing with their own. (very similar to what we do too)

Very high context Chinese culture

Loss of Face negotiations must not entail loss of Face on either side
Senior positions in Organizations those who are older, experienced, can wield
considerable power at workplace; hard to imagine precocious seniority
Negotiations rather than Arm-twisting, put the ball in their court to start with

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DOs and DONTs

For conducting business in China

DOs

DONTs

Preliminary internet check for establishing

credibility of Chinese partner

Never trust a Chinese B2B website which

doesnt have a Chinese version

Insist on copies of Passport and National

Identity Cards

Advance payment through bank transfer is

highly discouraged

Check for arbitration and proof of

existence

Never trust email communications while

confirming bank details

Trade queries to be directed to Indian

Embassy and Consulate Generals

Resist from falling to offers of rock-bottom

prices

Release of balance payment only after

quality inspection is satisfactory

Guard against releasing LC before

verification of quality and quantity

Culture Only one part of the Puzzle!

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Recommendations
Serendipitys China Venture

Importance of establishing Guanxi working through a Chinese intermediary

Face-to-face meetings attended by the top brass of SI
Tread cautiously but confidently while negotiating
Attire, Dining etiquette, Gifts and Respect for their time
Watch out for non-verbal cues, read between lines
Saving Face The holy grail in negotiations with the Chinese
Chinese language interpreter a handy companion on a business trip!
Amenable to proposals/terms of the Chinese government
Working around the Chinese version of the Internet
Accept chopsticks as a way of life and learn to use them properly
Relook compensation policies in terms of the Chinese economy vis--vis Indian
Ethnocentric clashes remember an eye for an eye turns the world blind
The biggest virtue for SI in China Patience

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Thank You

Hope that you dont have to resort to Serendipity while doing business in China!

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