This assignment will assess competencies 5. Develop an effective entry strategy and organizational structure for new ventures in a multinational organization and 6. Predict the political, legal and ethical challenges of international management, decision making and control in an international environment.
The due diligence analyses on the three countries (listed below) will continue in this LP with the exploration of management decision making processes. For each of your countries, you will create a roadmap for your entry strategy into the country with which type of ownership structure you would use, providing examples of why this would be the best choice. You will discuss whether there are regulations with regards to trade in moving into this country.
Provide a SWAT analysis of the government and political issues you will be encountering during the entry process. Finally, discuss all the legal and ethical challenges you foresee in moving into this arena. A minimum of two pages per country is required and you will follow APA (6th edition) formatting (no abstract is required for this milestone) with title and reference pages, indented paragraphs and a minimum of four APA formatted references and associated in-text citations.
FOR REFERENCE ONLY: This is the Previous Assignment with three countries (these are the ones that should be used in above assignment):
Cultural diversity exists in every country and should be respected. Besides having similar factors that include culture, there is often a difference on how to handle them depending on the country. In this era of globalization, international business is unavoidable. While doing business communication is a key tool to strike a balance. There are also ongoing negotiations among other activities the two countries engage to ensure that each country is left better off from the dealings. It is therefore important to have cross-cultural communication skills and prior knowledge of the strategy to enter each country. This research will focus on business between the US with Canada, China, and South Africa as developed, emerging, and developing countries respectively.
Prior to doing business, it is important to realize which part of the country your business partner is. This affects their behavior even in business negotiations. Ontario, which is Canada’s business district, has inhabitants who are conservative and businesslike. People from the Northern provinces possess strong pioneer spirit while those from Quebec who have adopted the French culture are very independent. Those from west of Canada including Alberta and Saskatchewan are often friendly, relaxed and open .This is contrary to those from Atlantic provinces like Nova Scotia and Prince Edward Island. They are a bit reserved and local. British Columbia, which is hyped to be the future of the nation, has inhabitants who are unconventional (McMahon, 2012).
When having a business meeting most Canadians will opt for it to be concise. There is hardly room for small talk in the beginning of the meeting. Their greetings are to some extent informal which illustrates their belief in equality. When engaging in business with a Quebec resident there will be need to spend a bit more time to cultivate a relationship .Anglophones are very democratic while Francophone will hardly involve low level employees in meetings. When communication, one should state information-using words like ‘think’ rather than ‘feel’. In business feeling are not considered significant. For credibility in your communication, it is important to maintain eye contact throughout the conversation (McMahon, 2012).
When it comes to negotiations, Canadians have no problem in being direct and saying “no”. However, they are very modest while disagreeing. They use diplomacy and tact to uphold a discreet demeanor. In most cases, they strive to make compromises by engaging in debate issues. Arguing with an informed opinion, earns you respect. Throughout the negotiations, the communication style is rational using common sense as opposed to aggression. It is therefore strategic for a businessperson to use a soft tone and demeanor in negotiating to avoid appearing as a threat (McMahon, 2012).
China’s business culture highly relies on these two stratagems namely Confucianism and Taoism. Confucianism is a moral ethics that emphasizes on doctrines in interpersonal relationships. In negotiation, its perspective includes values such as respect for the seniors and authority, avoidance of conflict, importance of interpersonal relationship among other core values. Taoism stresses on the importance of creativity that is in harmony with nature. It emphasizes on finding a middle ground in the positive and positive phenomenon. This compromise helps to promote unity between opposites. These two governing concepts aim at finding the best way that works for all rather than the truth (James K. Sebenius, 2008).
China has been undergoing rapid changes that have been a major influence on its business culture and negotiation style. Its traditional philosophies have determined the core values Chinese adopt in their business demeanor. For example, patience, a popular Confucian virtue is portrayed in negotiation. Taoism, advocates for harmonious relationship even in business settings. Due to the foreign exploitation, the Chinese tend to distrust foreigners especially from the west. Their win-lose tactics in negotiation is influenced by the nationalistic emotion as payback for their ancestor’s liability. They are also very aggressive on businesses that promote them in science and technology .This is due to their lagging behind yet they want to be an emerging country in economic and social development (James K. Sebenius, 2008).
Business deals grow out of previous relationship and the interpersonal contact between businesses partners help in resolving any business issue. Their warm friendship tends them to call a business counterpart as ‘old friend’ even though they have newly met. Lack of a friendly reciprocal to this gesture results to them concluding on one’s unwillingness to commit themselves. They hesitate to further engage in any negotiations. In case of any business dispute, there will be social pressure to settle the case through a third party instead of filing a lawsuit (James K. Sebenius, 2008).
Business protocol in South Africa is very similar to that of the States. There are however some differences that are key in business and negotiations. When getting into a business meeting, there is hardly any need to spend a lot of time in building personal relationships. In person meeting are preferred with English as the business language. However for documentation, written material should be both in Afrikaans and English (ExpatFocus, 2017).
Networking is important especially for foreigners. A business deal is often won when the foreigner is introduced by a South African citizen. A common gesture of greetings involves shaking hands and salutation is by Mr. /Mrs. /Ms. Followed by their surname. Business attire is relatively informational though should be smart and conservative. Business meetings are moderately relaxed and refreshments provided. Maintaining eye contact is a sign of sincerity in the business dealings (ExpatFocus, 2017).
One should be keen on the proposal timing when making appointments. Most South Africans take a holiday during the festive season including Christmas and Easter period. Normal working hours are from eight to five and punctuality is a good work ethics. There is exchange of business cards and giving gifts is an abnormal practice in business. South Africans avoid direct confrontation and prefer getting to a mutual agreement. Some of the practices they dislike are high pressure as a selling strategy, raising your voice while negotiating or disrupting someone while they talk. Senior level managers make decisions after they have consulted with necessary stakeholders. This often makes it a length process (ExpatFocus, 2017).
International business dialogues on issues of common interest are influenced by their national experience. For there to be a conclusion, they ensure that the research values diversity and aims at developing cooperative results. There is in need for the counterparts to engage in reflexivity and self-reflection in the dialogues. South African relies on teamwork from both parties involved in resolving the inevitable business conflicts. This promotes the win /win agreement attitude. Maintaining good relationship even after business may help to win another goal though not mandatory. In rare cases of a win/lose negations scenario it is coupled by top-down agreement. It also necessitates to having a specific agreement form (Sharron K. Jedkins, 2008).
ExpatFocus. (2017). South Africa-Business Culture. Country Studies.
James K. Sebenius, C. (2008). Cultural Notes on Chinese Negotiating Behavior. Boston: Harvard Business School.
McMahon, T. (2012, July 20). Diong Business with Americans? HSBC Has Some Hilarious Cultural Advice. Macleans.
Sharron K. Jedkins, J. R. (2008). The Influence of Culture On Negotiations In South Africa: An Attempt To Promote International Collaborative Dialogue and Research. Mediate.com.