Intercultural Competence of Foreign Companies
University: University of Chester
Question :
The objective of this report is to evaluate cultural practices that can create intercultural competences for foreign companies. The discussion of such are based on working culture of china.
- Explain the term culture, its characteristics and functions.
- Identify intercultural competences.
- Evaluate the business culture of china
Answer :
INTRODUCTION
Intercultural competence can be understood as scope of psychological feature, emotional, and behavioural accomplishment which helps business firms in doing communication in an appropriate manner with the other companies or members who are following a whole antithetic culture (Briscoe, Tarique and Schuler, 2012). On the other hand, China's culture is being stated as 5000 years old where most of Chinese people do follows Confucianism, Taoism and Buddhism. It has been located that economy of China always stayed at a booming position and can be stated as sort of magnet for foreign companies who are looking forward to expand their business so that to enhance profitability.
China is a developing economy which is one of leading country over the world; its a magnet for foreign investors. Its a multi racial nation which consider 56 ethnic groups. In order to gain sustainable development, all economies are joint hand together for developing a great cultural of China and also boom up its economic development. In this aura, international business associations found China is a beneficial and wealth generated country due to its high population, however there are certain cultural changes which are taken into consideration so as to avoid misunderstandings, disputes and substantial costs to the organisations. The report has stated that many foreign companies are willing to do their business in china so as to accomplish high competitive edge (Jiang and et. al., 2011). German are directed express their views and opinions whereas Chinese people tend towards feel some kind of hesitation while giving their views.
There are several benefits to do business in China as it can ensure success of international business venture as well as improve economic growth of the nation and business cultural also. It will also provides clear understanding of cultural of the country and recognising all internal and external factors which will affect foreign companies in direct and indirect manner.
According to Fang and Faure, (2011), there are ample number of problems which can be faced by foreign companies who are trying to expand their business in China. Here, it has been critically analysed that the major problems that can be faced by alien firms in China is culture, technology, laws and language. If German companies like Deutsche Bank, Bosch are looking forward to expand their business in China it is may be possible that they may face issues because German culture is totally different from China. Along with this, legislations, rules and regulations that has been made by government of China stays strict for alien companies which can be stated as another issue that can be faced and may put impact on decisions of managers and leaders of these organisation. The thesis is based upon how intercultural differences can affect business growth and success of the foreign companies so as to gain high cutting edge. The concept of joint ventures has also raised in this present scenario, it helps in growth and expanding business at global level (Tian and Borges, 2011).
Along with this, while doing businesses in other countries like- language barriers, needs and wants of customers, climate changes etc. at this time firms are required to analyse these factors so as to make necessary business decisions. Normally the companies have their own objectives which will be different than the JV objectives. Imbalance in levels of expertise, assets and investments will lead to a poor integration and co-operation. Different culture and management styles will also lead to poor performance and co-operation.
There are several cross cultural training programmes should be provided to businesses as they can doing business in China; it increases awareness and understanding towards the cultural of the nation.
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