Amity Business School

CULTURAL CLASH IN BUSINESS

Shanti Pandey Megha Kangan Pratima Nikita Sharma Akanksha Kajal Shah Priyanka Bhatnagar Tarang Kochar Harmeet Kaur

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CASE FACTS
Discussion on Business Venture and Ethical Business Practices Differences in European and Chinese Business Standards China is Europes future market and known for Service and Business relationships Chinese Business enterprise wants the Almond company to abide by their rules. There is a refusal of compromises over ethical business practices by China. Almond demands them to be more flexible and grant them commission and safety standards instead of offering bribes and trips/dinners as benefits.

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ISSUES INVOLVED
There were KEY ISSUES that influenced the joint venture meeting in
the board room : Cultural clashes in European and Chinese standards.

Is Business more important than Ethics?

Benefits to oneself than others can spoil future business relations. How to deal with expenses, spending on software and demands of the customer. Question of status, brand and reputation.

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LIUs RESPONSE
We might loose some clients due to refusal to give kickbacks but we also know that ethics are important for business.
Though it is right to comply with the safety standards as they would be beneficial for future business in China but, bending towards hidden rules and motives might case a long-term failure to China.

Since there is a clash between REASON and EMOTION, Business must stand over Functional Relationships, Laws and Ethics and not on COMPROMISES of the same.

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RECOMMENDATIONS BY US
If Liu remembers that he must persuade the Chinese side with EMOTION, and German side with REASON, his job of mediating a resolution will be far easier.
Without adherence to safety Protocols, Chinas economic success cannot be sustained, and so China must abide by the rule of Safety Standards. Yet the host company shouldnt not compromise over their ethical values as they hold a position and succeeding foundations of Business globally.

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They must identify the loopholes in their product and service offering rather than adhering to provisions for commissions and other demands.

Qualitative and expertise approach is more beneficial than bending of norms and values. Business is a functional relationship and not a COMPROMISE. Customer satisfaction is the ultimate feedback and factor of consideration.
The company must follow up with the Headquarters regarding the rules and regulations and take further step/decision after a halt. No immidiate action required, but smart working of reasons and business ethics. SACRIFICING SHORT-T TARGETS FOR LONG-TERM GAINS IS WORTHWHILE.

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THANK-YOU!