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Elibert Hernandez

on 25 February 2014

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Transcript of China

By: Elibert Hernandez-Granados, Leon Xie, Hong Yang
Population Demographics
-Population over 1344million
-Income distribution: ~1450$CAD per capita
-Employment statistics: 760 million people economically active
-Family size : 3.1 per family due to 1 child rule

Cultural Issues
-Many religious beliefs mainly derived from Traditional Folk Religion, Buddhism and Taoism.
-2 Important religions : Buddhism (18%) and Taoism (30%)
-Language : Mandarin and Cantonese (southern part) + 54 other minor dialects
-Literacy in China is 95.1% of the population

Business customs
-Importance of trust
-Faith in personal contacts
-Seniority is regarded ++, respect of age
-Chinese = risk takers
-Business in person rather than phone
Buyer Customs
-Bargaining = taken very seriously.
-Believe that western product is more high quality
-Preference for foreign brand especially in luxury product

The importance of family is regard as the highest value in the social interaction and hold a prominent value in the Chinese culture
Elders are revered for their wisdom and the most respected and honored in the family
The Family
Business Meeting Etiquette
Make an appointment in advance
Arrive at the meeting on time or slightly earlier
Late is considered as an insult and affect negatively business
Do not use large hand movement. (views as distracting)
Shake hand with both hand
lend presentation card with both hand
Never write on the card (disrespectful)
Paying attention while listening others agenda
Dress Etiquette
Nowadays, Chinese wears western style suit for business purposes
Men wear dark colored business suits
Women wear conservative business suit as well with high neckline (also wear flat or low heels shoes)
Avoid bright colors for both
Business negotiation
Seniors are the only spokesman in the team during negotiation
Address to the Senior or to the appropriate person
Occurs at slow pace
Decision are long to take for careful review and consideration
Should never loose temper while negotiation or else it could lose face
Do not use high-pressure tactics
Starting price should leave room for negotiation
After meeting, the spokesman is expected to leave first
Canadian manager in China
Chinese managers do not compliment or chastise their employee publicly (avoid losing face). Instead they use an intermediary to communicate with them.
Time is limited as well as task deadlines. Chinese employees use strict standards in order to fit everything into their schedules. (Time management)
Managing in a department of a same company could be competitive since they work quite independently.
Collaborations between every employee is the heart of success
How business is conducted in China
-Grows as a World trade organization
-Requirement to build a successful business

Importance of keeping face
1- Diu-mian-zi
2- Gei-mian-zi
3- Liu-mian-zi
4- Jiang-mian-zi

Rule #2
1- Ruler and subject
2- Husband and wife
3- Parents and children
4- Brothers and sisters
5- Friend and friend

Rule #3

1- Rely on facial expression, tone of voice
2- Maintain an impassive expression when speaking -> considered disrespectful to stare into another person’s eyes.
3- Avoid eye contact to give themselves privacy.

Rule #4
Building Relationships
1- Formal
2- Avoid humor
3- Act as an intermediary -> Someone useful

4-Gift Giving Etiquette
5-Meetings and Negotiations
6-Meeting & Greeting

Hofstede’s findings
-China = Collectivist (Group and family goals over individual desires and needs)
-One of the highest ranks in power distance (believes that inequality amongst people are acceptable.
-Low uncertainty avoidance (Chinese are adaptable and entrepreneurial )
-Masculine Society (many Chinese will sacrifice family and free time priorities to work)
Full transcript