A Presentation to International Business students at Ngee Ann Polytechnic.

1. International Business
Study Mission
Hong Kong & Pearl River Delta
Chew Aik Sian Dickson – S10026516H
Lee Rong Ai Denise – S10025788K
Ng Wen Song Ryan – S10024938H
Ng Xhi Ween – S10027234B
Tan Shi Min Evelyn – S10026481C
Tay Yilin Vanessa–S10022530D

2. Research Topic 2
• Implications for Foreign Businesses
– Chinese History
– Business Culture
– Local Customs
– Etiquette

3. How Chinese History How Business learn and
creates adapt to
Business Culture,
Customs,
Examples
Etiquette
“Guanxi”, “Mianzi”
Gift Giving
affects
Deal-making, Negotiate
Entertainment
Doing Business in China
Public Behaviour
Conversing

4. Outline
• Chinese History
– Inferior Goods
• Business Culture, Customs and
Etiquette
• “Guanxi” 关系

5. Inferior Goods?
• Sunten Electric Co. Ltd
 Guangdong Famous Brand Certificate
– Setup 1988; Listed 1993
 ISO9001 Certificate in 1994
– Electricity equipment supplier
– Great emphasis for quality
 Guangdong Name Brand Product Certificate
• 40% of 1500 employees University Graduates
• Population Test for QC/QA
• First to have R&D withinNew Technology Enterprise
 Top100 State High & industry in China
• Close relations to keep up with fast moving industry
 Outstanding Supplier for Three Gorges Project
 Top 10 Chinese Brand for Electrical Equipment Certificate
 State Predominant New Product of Dry Type Transformer

6. Inferior goods?
Pearl River Piano Group piano?
Why is it a world’s compete with other
“By striving to bestselling
manufacturers that have a much longer
Top-notch Quality pianos, Pearl River has
history of building
 Chinese manufacturer of pianos
 50 yrs itscraftsmanship and management on
put of employees
 Superior artistry and technical sophistication
notice that we will accept nothing short of
 Established in 1956 in examined by
 Each piano is thoroughlyGuangdong a
perfection.”
 Affordably priced with features of to shipment
quality control expert prior expensive
brands
 Owns the world's largest piano times
 Pianos are tuned a minimum of 7 factoryduring
Zhi Cheng Tong, President
Pearl River Piano Group
production
 Featured in “ Forbes International”
 Imported German International Standards
 In 1998, earned themanufacturing technology
Association ISO 9001 Certification
 Boasts an “Renowned Trademark”
Awarded China’s ideal balance of old-world hand
 1st piano company in China to receive this
craftsmanship & advanced technology
prestigious independent certification of quality
Recommended world-wide by professionals

7. Business Culture, Customs and
Etiquette
• Appearance
• Behaviour
• Gift-giving

8. Business Culture, Customs and
Etiquette
• Appearance
– Conservative suits for men with subtle colors
– Women should refrain from revealing clothes
– Jeans are not acceptable for business
meeting

9. Business Culture, Customs and
Etiquette
• Behavior
– Arrive early if you are a guest
– Acknowledge the most senior person in the
group first
– Wait for the Chinese to offer the handshake
first
– As a cultural courtesy, you should taste all
dishes offered
– Do not use large hand movement

10. Business Culture, Customs and
Etiquette
– Do not point using index finger
– Avoid acts that involves the mouth
Eg. Biting of nails or removing food with hand
– Personal contact or display of affection
between different sexes should be strictly
avoided

11. Business Culture, Customs and
Etiquette
– Gift-giving
• Official business policy consider gift as bribes
• Getting more common
• Gifts will often be rejected at least 3 times before
acceptance
• Should not open immediately and express honor
when being accepted.
• Offered using both hands
• Wrap in red paper
• Avoid sharp objects like knives or scissors

12. Main Secret to Success?

13. “Guanxi”

14. Under
Bribery?
Or even this!?
table
Money?

15. What exactly is “Guanxi”?
• Translated as
– “networks”
– “connections”
• Mechanism
– Deal with social uncertainty in complex social
environment
• http://guanxi.pbwiki.com/

16. How to establish “Guanxi”?
Secret Recipe by Aztech:
• Banks
• Friendly lunch, brunch, dinner
• Golf session

17. Importance of “Guanxi”
• Determines
– Organisation’s long run competitive standing
• Crucial to possess right “Guanxi”
– Minimise
• Difficulties
• Frustrations
• Risks
• Barriers
Mr Jeremy Mun, CEO Aztech

18. Practical Examples
• Good relationship with the village in-
charge
– Allocated land for Aztech’s future
expansions
• During export/import
– Talk to custom officers for latest on laws and
regulations to avoid brushes with authorities

19. Limitations of “Guanxi”