Analysing The Chinese Mobile Brand Zong Business Essay

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The first international brand of china mobile is ZONG being launched in Pakistan. The company is often cited as china mobile (Pakistan). It is meant to empower and liberate the people of Pakistan in every nook and corner of the country .So it will become a part of their heart, their minds and bring about a change in their day to day lives that every one desired, but few thought would be possible. The core essence of ZONG is to allow people to communicate at will, without worrying about tariff, network coverage, capacity issues or congestion. ZONG will be supported by ground breaking communications, trend setting customer service and an unmatched product offering which will redefine rules of the game and establish ZONG as a serious contender for the number one spot. ZONG would offer its customers with the entertaining and innovative value added services and will empower them by giving them a wide variety of of different products, SERVICES and content to choose from.

ABOUT China Mobile Pakistan.

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China mobile Pakistan is a 100% subsidiary of china mobile. The pioneering overseas set of china mobile came through acquisition of a license million to operate a GSM network all over in Pakistan .

So far CMPAK has invested more than us$700 million in the telecom sector in Pakistan and an additional us$800 million will be invested.

With ambitious plans to cater to the fastest growing Pakistani market and to win over the demanding Pakistani customers, it will be offering unprecedented coverage, voice and data services as well as a wide range of tariffs options to choose from and match up with their needs.

CMPAK `S edge comes from the experience and expertise of running the world`s largest telecom service and the commitment they make to setting quality and customer relation standards. CMPAK is geared to offer neatly packaged VAS products that will benefit the individuals, corporate as well as small businesses, led by a team of professionals from the field of cellular communication, china mobile Pakistan is determined to mark in Pakistani market and to change the way people scheduled their tariffs and communicate.

HISTORY

Recently china mobile company in Pakistan after replacing the code 0304 with 0314 now introduced its new brand in called "zong". With an introductory slogan "Say everything" or "Sub Keh Do" & started its advertising campaign at popular print & electronic media outlets. Paktel started its commercial operations in Pakistan in November 1990 as the pioneer of cellular telephone with an AMPS network which was converted to TDMA (digital) in 2003.Soon after GSM quickly gained popularity all over the world and became the technology of choice leaving AMPS/TDMA far behind and out of the competition. Paktel`s principal shareholder was announced that it had completed the sale of its 88.86% shareholding in Paktel limited to china mobile communications corporation (CMCC) which finalized millicom`s exit from paksitan. soonafter , China mobile company bought all the assts of Paktel the new management seems busy , to tie up promotional strategies , with the intention to win the telecom market in Pakistan slowly & silently. Because in Pakistan Chinese products mostly are famous due to their cheap prices and more the 90% population of Pakistan is price conscious due to their lower or medium income level , so it was a challenge for ZONG to facilitating the mobile users specially youngsters by providing lowest calling rates , cheap SMS services ,MMS services as well as GPRS (general pocket radio service) service.

Culture

(greet hofstede cited in mead,1993) says culture is the collective prigramming of the mind which distinguishes the members of one human group from another. Culature in this sense includes system of value;and values are among the building blocks of culture.

According to (Jacques ,1952 cited in martin.j,2005) suggests that culture is the ,customary and and traditional way of thinking and doing things,which is shared to a greater or lesser degree by all members,and which the nw members must learn and at least partially accept,in order to be accepted in to the services of the firm.

Accordinf to e.b taylor culture is that complex whole which includes knowledge,belief,art,morals,law,customs,traditions,and other capabilities or habits acquired by a member of a society.

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Furthermore harris.p.r states that there are many ways to identify the particular culture.one method is system approach in which culture can axamined on the basis of kindship system,association system,religious system,health systems,educational systems,economics systems,political system,recreational system,and soforth.

Further more (g.steiner,1975 cited in holdon.n,2002) describes it as the frequence and sclerotic force of clichés,of unexamined similes. Culture is a particular adaptation of life style by any group of people at any time or place.it is an human creation to an extent of creating an biological environment that contributes to social formation.after adoption of these mechanism people develop certain cognitive habits that make them different from each other .it seems a common human failing to prefer the schematic authority of a text to the disorientations of direct encounter with the human.(Edward,1995 cited in holden. N , 2002).

In this Chinese telecommunication joint venture people from different nationalities and culture performing operations from higher managerial level to the tactical level.they have their own cultural attributes and way of business dalings.

Cross culture management and culture clashes

Hall,1995 claims differences are important enough to ruin a partnership that otherwise makes perfect economic sense.as comparison of culture clash has been made to an earthquake,similar to the plates that cause earthquakes which can exist alongside each other without an effect until they move together, different culture goups can work along each otherin harmony until a change causes 'a clash' this kind of clash can have severe repercussions for the organization .(frost 2000)

It is apparent that pakistanis on this chinese joint venture are more in power to make any compromises on indivisualism,directness and time consciousness.(hofstede,1980 cited in Jackson,1995) indivisualism that acts as an tendency of being indivisual.as as china wantsto keep well informed and actions more structured rather then immediate decisions.this concerns to another hofstede's idea of collectivism and high certainty avoidance with the preference of structured situations including work rules and regulations.furthermore they need to develop deep consensus with the period of one week as far as Pakistanis are concerns they want their senior to open and end the discussion.hofstede idea of power distance fits on this Pakistani members of joint venture.power distance is the extent to which inequalities among people are seen as normal.they are willing to take more breaks and prayer time during meetings and invite other members of the department to the meeting without invitation.their seating patterens goes according to the seniority of the team member.managing ijvs may be complicated by the cultural differences that make communication,decision making,and managing personnel more challenging (child &markoczy,1993) .

Culture clas happens when people from two different cultures come into contract and to work together.sometimes the clash begins before any one has a chance tointroduce you properly,before you even open your mouth.culture clash can lead to world class fatigue or even clinical shock or depression….what are the dastardly symptoms of culture clash is it contagious?isit terminal?(seelye and seelye-james,1995:1)

The momentumof cultural clash between Chinese and Pakistanis can give an potential damage to the business which can result into the breakage of joint venture.

Training aspect

it is more important to grasp tahat many cultures facilitate communication,the sharing of experience and information.they can make their members strongly supportive of each other.(hampden-turner,1994).training,development and kills are key aspects of trade and industrylife.at the levels of the firm,training offers the hope of increased competiveness through raising skills level,productivity and value addes.training and development can enhace the skills base,equip workers with expertise and change the way that they worked(redman and Wilkinson,2006).

Training plays an important role for the development of its employees specially in multi cultural environment trainers need to adopt certain attitude & patterns to authenticate the joint venture.(smith and bond,1998,ch 6 cited in tjosvold and leung,2003:p47) suggests that cross cultural trainers in particular need to know what behaviours constitute credits across cultural lines.the research we have provided comes mostly from the study of compliments,engaging in communication repairs,etc.in short term counters.

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In contesxt of joint venturs training , motivation ,and work performance reviews have equal importance.if these aspects are not taken in to proper consideration then joint ventures success can not be guaranteed.cross culture are often complex and have the potential to communicate a disrespect for other identity and values.although there are often significant gains when people of diverse cultures work together(tjosvold and leung,2003).

(fons trompennars cited in mattock.j,1999:p 69) explains that there is a clear cut cultural border between the north west European(analysis,logic systems are rationality) and the euro-latin (most person -related,more use of intuition and sensitivity). Trompeneaars suggested polarity indivisualism is about those people who are free to contribute to collective and if they wish.

Corporate culture clashes: There are numerous definition of corporate culture,perhaps the most appropriate being the way we do things around here (deal and kennedy,1982 cited by marx.e 1999)

Even now , in the twenty-first century, cultures still clash in the corporate world,making communication and productivity a challenge.

For Chinese who work for multinational companies or for those from other countries working in china ,the term` culture clash` may seem an understatement .while there is not any one answers to help deal with the cultural differences in multinational corporations,perhaps understanding the culture behind the corporate curtain could help soften the blow.(www.isa.crg)

According to consultant KPMG'' more mergers fails, and principle reason is culture''. In the current age of radical change, failing corporate cultures directly contributed to more business failures then anytime in the past. Joint ventures take considerable investments of capital, time, and trust, so the possibility

of failure is of considerable concern. (Park and Ungson, 1997) found that joint ventures and mergers/acquisitions have failure rates of around 50 to 70 percent. One study (Harbison and Pekar, 1998) found that alliances count for as much as 21% of the revenue of the US's 1000 largest firms, making the high failure rate a significant threat to firm revenue. With joint ventures requiring large commitments of resources and experiencing a high failure rate, it is crucial for firms to find ways to reduce the probability of failure. Examining the causes of

relationship dissolution will aid companies to more carefully form and successfully maintain international joint venture relationships.

Recommendations to overcome cross culture difficulties:

As people in Pakistani joint venture belongs to different back ground and cultures. It is important to establish effective way of communication between them. Importance of understanding each other culture will increase the productivity of the joint venture.

Improved communication is the tool that can play an significance role when it comes to bring everyone close from different background and culture. For this purpose seminars and open discussions need to be conducted where people from multicultural background can share their views about the ongoing joint venture. They can pinpoint issues an flaws within the company.

( Mead, 1993) describes communicating across cultures is often difficult, Cross-cultural relationships do impose stresses and strains; but they also present opportunities to gain insights from the other culture and to develop one's own experience. They can be intensively creative.

Partnerships create a new form of accountability between their members which rests primarily on trust. Where there is mistrust or hostility between some or all of the partners, then the effective operation of their partnership may be difficult to achieve (Bennett et al., 2004). It is vital for any joint venture to keep good momentum of trust between its groups. All cultural groups need to understand each others background without mistrust. JV managers must learn to conduct business in a country that is foreign to at least one of the partners, and also how to work with a local partner (Barkema, Bell,

& Pennings, 1996).

(Beamish et al, 2009) states that to avoid the further cultural clash within corporation. Joint venture partner, managers of each parent firm should observe the internal environment of the other parent firm closely to assess the fit with their own. If it is not a close match, this should be addressed before proceeding with further negotiations. As innovation in each product lines often require several specialized distributions and information channels, the number of these interactions required to coordinate between collaborative partners will increase at a geometrical rate with the growing number of product lines.( Mahmood and weiting, 2005).

By adopting this line of action each group of joint venture will share their understanding of culture diversification and communication. This will create a new culture which will ensure productivity and growth of this joint venture on durable basis.

Conclusion:

The JV structure continues to evolve, as evidenced by increasing numbers of partnerships formed between nontraditional partners. Just as the global business environment continues to evolve, so too does the role and importance of the JV as firms increasingly work together to create value. We

live in a time when the global economy is increasingly integrated. Neither countries, nor firms, nor managers can go it alone without sacrificing the

advantages of good partnerships. Equity JVs will continue to matter.

(Beamish et al, 2009)