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Requirement
Assignment based on CULTURAL DIFFERENCES BETWEEN CELANESE CORPORATION AND CHINA NATIONAL TOBACCO CORPORATION
Solution
In this world, there is huge difference exist between the culture of America and China because of different assumptions, economic conditions, business policies and ethics, a level of knowledge and influences from their history. So, all these differences give birth to powerful challenges for achieving outstanding performance in business negotiations. In this assignment, we will study about the cultural differences between Celanese Corporation of U.S and Chinese counterpart, China national tobacco, a corporation as they both are related to business negotiations, and identify differences between their negotiation style and their practices.
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Chinese joint venture which is always studied is the joint venture of Celanese Corporation of US and China national tobacco corporation. Celanese Corporation is engaged in producing value-added chemicals or CNTC engage in producing, fluffy synthetic fiber in cigarette filters. When China national tobacco corporation decided to growth in their production than it was looking for international raw material suppliers, then all suppliers of tow refusing to sell their methods to China, then China national tobacco corporation approached to Celanese, which is a reputed tow producer, with a motive of establishing joint venture. When they came in Front of each other, they make face to face interactions, negotiations, and discussions. The difference arises during their communication before they reach their target, arising due to a language used and the legal requirements. The main problems are following which are occurring during their communication:-
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All Chinese people insisted on a holistic culture approach; these asked US team to give their consent on a macro consent for establishing the new venture. At the same time, US party said that they are agreed on all the facts regarding new venture after making an agreement between them.
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Chinese peoples focused on creating a longtime relationship by developing friendship or harmony, in the other hand U.S persons are blunt for their demands which are for openness and confident in all differences.
Chinese negotiators reject the US company proposal because they demand lawyers in their discussions.
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Language difficulty: - The biggest problem arising during negotiation between China and USA is the unawareness of different culture languages. In many situations, we are not able to understand the peoples directly. Then, it is necessary to have an interpreter, to effectively communicate with that person. They help you to overcome all existing cultural differences. Instead of English is a common language yet some people speak different English, with different English vocabulary, it is necessary to make a struggle to understand their language.
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Physical cues: - Physical cues are also different between China and US as per difference in the country. For example, U.S, EUROPE, and the UK eye contact are considered as a symbol of strength. In other places like America, it is considered a symbol of trust.
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Behavior and human nature: - These are considered as an important barrier of negotiation. The culture of China and US corporations impacts personality of a person which changes his way of thinking and behaving. For example, those persons who are egoistic in nature communicate less with others people.it can always see that difference in personality leads to the difference in communication.
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Religion: - Difference in religion or caste also lead cultural differences during negotiation between China and US. Sometimes it may be possible that some persons are feeling uncomfortable while talking to the persons from another religion. All these differences just arise due to a difference in the beliefs of both country peoples. All religious views impact the way of one thinking, and this gives birth to differences during negotiation.
For example, LEC, which is respected by both Chinese and US peoples, was in China hand, help all US and Chinese peoples in resolving their issues and built an environment of trust, so that negotiation can be reached at its final stage.
For reaching a conclusion, it is necessary to have some efforts from both the parties to resolve their conflicts. These can be resolved by following ways:-
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Before any negotiation, both people should learn about the language, norms or customs of each other. This leads a smooth negotiation between both parties
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It should be necessary for both the parties to have knowledge about problems of cross-cultural negotiation and should take steps to avoid them.
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Active listening should be done towards both the parties so that they can avoid any misunderstanding.
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Singh, N., Zhao, H., & Hu, X. (2005). Analyzing the cultural content of web sites: A cross-national comparision of China, India, Japan, and US.International Marketing Review, 22(2), 129-146.
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Cui, G., & Liu, Q. (2000). Regional market segments of China: opportunities and barriers in a big emerging market. Journal of consumer marketing, 17(1), 55-72.
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Lee, S. M., & Peterson, S. J. (2001). Culture, entrepreneurial orientation, and global competitiveness. Journal of world business, 35(4), 401-416.
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