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Agenda
1. 2. 3. 4. Brief Introduction of the case Brief study of Guanxi Studying the options before Howard Our solution
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Introduction
Company
Lucrative contract
What is Guanxi?
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Definition: Guanxi describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. The two people need not be of equal social status It is a network of contacts in a broader view
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Background of Guanxi- II
Cultural background: Confucianism
Benevolence Righteousness Fidelity
Shaped by
Harmony (Wulun) Tit-for-tat as a golden rule Loosing face as a worst case
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Confucius saw five major human relationships that should be governed by li, or propriety. Those relationships are: 1. Ruler and subject 2. Father and son 3. Husband and wife 4. Oldest son and younger brothers 5. Elders and juniors (friends) Shu, or reciprocity, is seen in the five relationships as follows: 1. Benevolence in rulers, loyalty in ministers and subjects 2. Kindness in the father, filial piety in the son 3. Righteous behavior in the husband, obedience in the wife 4. Gentility in the oldest son, humility and respect in the younger siblings 5. Humane consideration in elders, deference in juniors.
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Trust
Guanxi
Empathy
Reciprocity
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Howards Choices
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Pros
Guanxi near fruition Better longer term relations with the company Crisis situation a litmus test to prove that , Bad times help build good relationship.
Cons
Demotion of Pan means out of favour for a long time Question of gaining advantage from someone without any power Possibility of losing NCC business if Pan not rehabilitated. Pan himself not confident of return
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Pros
Direct contact point
Westerners may now be acquainted with the concept of Guanxi and it may be pursued
Cons
Confusion on how to pursue guanxi on Howards part Westerners may consider it as just bribery
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Pros
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Cons
Confidence on the part of Howard Time in hand to pursue Guanxi Requirement of a Guanxi contact in the future Targeting a higher authority than Pans previous position
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Our Solution
We propose that
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Option 3: Build Guanxi with an authority higher than Hans would be more preferable mainly because, 1. Imminent return of Pan not foreseeable and if more than 2 years, would jeopardise Howards company and career. 2. Longer term guanxi contact necessary in the company. 3. Position targeted higher than Pans former posting.
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Team Members
Charanya Chandran F11013 John Anthony Jose F11025 Nagesh V. Saralaya F11032 Srishty Merlin Bastian F11055 K. Vignesh F11058
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