Analysis Of Intercultural Construction In China Commerce Essay

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Thesis statement: The goal of this paper is to provide some suggestion of cross culture to make the interrelated people know more about international competitive environment in order to avoid unnecessary mistakes in the process of international communication.

1. Introduction

2. Culture and Communication

2.1. Culture of China

2.1.1. The classic culture of China Confucianism Taoism

2.1.2. The important elements impacting on the business

2.2. GH's cross culture analysis

2.3. FT's cross culture communication

3. Facts analysis and negotiation

3.1. Facts analysis

3.1.1. IBA and Lenovo

3.1.2. The challenge of integrative period

3.2. Negotiation simulation

3.2.1. Reparation

3.2.2. Content of negotiation simulation

4. Business construction and corporation cross culture

4.1. Business structure

4.2. Corporation cross culture

5. Conclusion

An Analysis of Intercultural Construction in China

杨洋 200705121229

School of Foreign Language, CWNU, Nanchong, China, 637002

Abstract: This paper makes a brief analysis on cross culture. In the first part some important information of the aimed country China will be introduced, which is a basic element for the following analysis. Then taking the fact of Lenovo and IBM merger is illustrated as an example to extend some cross culture conflicts in practical. In addition, by the end part, the negotiation simulation skill is shown in the essay, in the end part, the organization under the cross culture should be different from the style previously. The essay also makes a comparison in the different organization construction. The light of this essay exist in the recommendation of the culture construction.

Keywords: cross-culture, communication, intercultural corporation, construction, business structure

1. Introduction

Nowadays, with globalization is the worldwide trend of businesses expanding beyond the domestic boundaries, international Corporation is not a common term in china. Maybe you haven't pay much attention to these changes. Or maybe you just have noticed the variations but have little understanding to the internal influence of these multinational enterprises. Soon we will step out from university to society and the colleague will be the most important group for us to communicate with. Which country they will be from? How greatly the diversity of cultures will be? How much effort I make could let the colleagues get along with each other harmoniously? Specially, it will be even a greater challenge for us to live together with the leaders of these international groups. They must make an good effort to construct a suitable bridge for culture in which all kinds of cultures are taken in account completely. That it to say, the cross culture has been on a agenda nowadays. The goal of this paper is to analyze some problems existing at present in cross culture.

In this paper it is assumed that these enterprises have been spread in an amazing speed while the current domestic market has been insufficient to develop well. Obviously the international market is an ideal opt for those companies. Every country has its own distinguishing feature, if the uniform management style is removed to the foreign branch, the failure will be there without question. This essay is providing some suggestion of cross culture to make the interrelated people know more about international competitive environment to avoid unnecessary mistake in the process of international communication.

It is worldwide known that Chinese economic is developing in a marvelous speed . More and more famous international corporations become interested in the market of China to share the piece of cake. Even someone said that maybe that failure of china will make them lose the whole game. In the related research China is definite to be the aim market.

2. Culture and Communication

2.1 Culture of China

With a long history of 5000 thousand years, china is an ancient nation. Walking in the long river of the history there are so many legends and Cultural Celebrities, such as Confucius, folklore, philosophy of religion. The great country is definite to has a rather peculiar culture on the base of the long-standing history. In this essay the primary culture is present in this part, which aims at helping the analysis of the corporation to expand.

2.1.1. The classic culture of China Confucianism

Confucius (K'ung Fu-tzu, 552-479 BC) broadcast a philosophy of sympathetic and harmonious social relationships, moral standards and ethical behavior in public life. And humanity, ritual, loyalty and filial piety are the cores in Confucianism. Also the later believers including Mencius (Meng-tzu, 374-289 BC) and Hsu¨n-tzu (298-238 BC) has an assistant effort to strengthen his stupendous influence in china and else where in East Asia. The Analects and the Book of Mencius are Confucianism's main famous texts, formed most on the basis of the civil serviced as an examination system in China until the early 20thcentury. (T.N. Jenkins 2002) Taoism

Taoism refers to a variety of related philosophical and religious traditions that have influenced Eastern Asia for more than two millennia and have had a notable influence on the western world particularly since the 19th century and also the most important elements probably impact the business behavior.

Taoist propriety and ethics emphasize the Three Jewels of the Tao: compassion, moderation, and humility, while The basic ideas of Taoism are Changsheng(long living),Shen(god), and Xian(immortal) and wu wei (action through inaction), which is thought to produce harmony with the Universe. (Kirkland Russell 2004), and its doctrine has evolved from the academic thought of Taoists in the Spring and Autumn, and Warring States Period (770-256 BC).

2.1.2. The important elements impacting on the business

Family culture is an important factor, both relationship of individual and group have been affected deeply by it. It is the soil to growth for every company which is dedicated to open vast vistas. The specific characters of family culture are introduced as following.

In general, Confucianism is the dominate factors in the whole culture. The typical performance is the moral of three cardinal guides and five constant virtues, such as "let the ruler be a ruler, the subject a subject, the father a father, the son a son". This moral affects Chinese people inveteracy.  At home the father is the president control right from entrance、employment 、marry even all the critical individual affairs. All these are different from the western country, in which the children are an independent after their grown-up. In workplace the president is the first man who is considered the father of the company. This is the saying that listening to parents and listening to leaders in work. Influenced by the family culture the relationship order is shaped on the light of blood. Almost it is arranged like blood、classmate、fellow-townsman、colleague. The order determines the style of operation which should conduct according to the principles.

Group consciousness is one of the characters of Chinese culture. It does not exaggerate the reflection can be found from even Chinese. It is survey that no one put vote in the making-decision. It does not mean their disagreement with it otherwise neutral of almost people. In other word, Chinese does not want to be the highlighted man. It is different from the purchasing of individual of western people.

Small group maybe more prevail in Chinese enterprise. The origin of the culture exists in the family culture. People used to searching some group likewise home feelings. A series of small groups is formed in these backgrounds. It is a challenge for the formal structure of the company.

The lack of faith is a vital aspect for enterprise. It is opposite to the traditional culture which said individual quantity should consist of loyal、faith、benevolence、righteousness、brave. In the rapidly economic development today, the profit becomes the only standard to purchase, which result in the loss of faith. Also it is an oversight during inheriting traditional culture.

2.2 GH's cross culture analysis

Greet Hofstede(GH) include four dimensionalities which affect the culture differences deeply after surveying 11.6millionpeople of almost 40 countries and areas. They are power distance、individual/collectivism、masculinity/femininity and uncertain avoidance. This essay used the modules to analyze the culture of aimed country China. (Greet Hofstede 2004)

Chinese culture dimensionalities criteria score and ranking



criteria score


Sample quantity

power distance


12-14(paralleling with Arab and Bengal)




56-61(paralleling with Singapore、Thailand、Vietnam and West Africa)




11-13(paralleling with German and England)


uncertain avoidance


68-69(paralleling with Vietnam)


Long-term orientation/short-term orientation




Observing from the chart above, it is clear to find that Chinese culture has the following characters:

1.High power distance

2.More oriented to collectivism

3.Masculinity is more obvious

4.Lower uncertain avoidance

5.The longest Long-term orientation

2.3 FT's cross culture communication

Fons Trompenaar(FT) is one of pathfinders and initiators of cross culture. He developed his model with seven dimensions and through the seven factors analysis he got four different styles of cultures. They are family culture, foster-mother culture, missile culture and Eiffel Tower culture.

The seven dimensions are:

1. Universalism vs. particulars (What is more important, rules or relationships?)

2. Individualism vs. collectivism (communitarians) (Do we function in a group or as individuals?)

3. Neutral vs. emotional (Do we display our emotions?)

4. Specific vs. diffuse (Is responsibility specifically assigned or diffusely accepted?)

5. Achievement vs. ascription (Do we have to prove ourselves to receive status or is it given to us?)

In addition there is a different way in which societies look at time.

6. Sequential vs. synchronic (Do we do things one at a time or several things at once?)

The last important difference is the attitude of the culture to the environment.

7. Internal vs. external control (Do we control our environment or are we controlled by it?) (Trompenaars, F & Hampden-Turner, C 2001)

In conclude, Chinese is character with the family culture, which many specific performances are dated from it. In other word, family culture is the source of Chinese culture. 

3. Facts analysis and negotiation

3.1.Facts analysis

3.1.1. IBA and Lenovo

Lenovo claimed to make acquisition of IBM PCD.  The cross culture between them became the focus of public. Maybe it is the decisive factors of this acquisition. How the managers of the two companies deal with the culture reshape.

The formulation of core value

To begin with the ideas and culture, a temporary leadership team called"T&T" (Transition and Transformation)team is established to construct the cross culture. The function of the team is to communicate with each other, learn the advantage of peer, and take the understanding of the culture of different nations. Although it is certain there are many conflicts in the new Lenovo. The common vision is formed between colleagues, which indicate there are spaces for the formulation of common culture. in addition, the principle that loyal、respective and compromise is proposed and it is the core value of culture.

3.1.2. The challenge of integrative period

The task of HR is so arduousness that so many difficulties will surface. How to make colleagues work smoothly under the different background? How do the employees suit the work style which is changed from the previous way? This essay considers the communication as the important method to improve the potential problems. Some regular communication should be organized between the top managers and plain employees.

3.2 Negotiation simulation

How to make a smooth communication with enterprises especially with the foreign ones? Negotiation simulation is a necessary skill for multi-corporations. The main skills are introduced in the essay.

3.2.1. Reparation

Firstly, a market research is required for a successful negotiation simulation.

Secondly, the aimed objective information must be collected before the meeting with the peers, which is so-called "Know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat".

Then, the leading character maybe the key criteria of the whole progress. Different people have different skill and the result is sure different.

At last, it is saying that everything is pre-legislation, while not pre-waste. The plan of negotiation simulation must be prepared ahead of schedule.

3.2.2. Content of negotiation simulation

On the one hand, atmosphere is the important aspect but the easy neglecting factor. A suitable surrounding is helpful to the positive result. On the other hand, the negotiators should be training to master the skill of gaming with the opposite side. In addition, the clear presentation is also important. Recommendations Learn deeply the deadline of the aimed enterprise to control the possibility of negotiation simulation. Learn the true objective and profit behind the opposite side. Make market research to enhance the chip of negotiation simulation.

4. Business construction and corporation cross culture

4.1 Business structure

Many years ago Lipton and Lorsch state that the best structure of a company board should be controlled in the range of ten. A level below ten is optimal style. Not only the quantity control can reduce the human cost but also the work efficiency is performance well in this level. Especially in the process of expanding to the international market, the cost control is the key success criteria for a foreign enterprise. (Alexander Dehaene, Veerle De Vuyst & Hubert Ooghe 2001)

Cross culture problem also demands a unique business structure. To construct a common value in the company the communication plays a primary role in it. Most helpful structure for communication is the best choice for company. 

It is surveyed that the flat organization structure is best to communication. The essay presents the character of in the way of comparison with the Bureaucracy structure.



Bureaucracy structure

flat organization structure

Levels and range

Many levels and narrow range

Less levels and broad range

Power structure

The power of the whole organization is focus on a single person

Diversity and scatted

Class differences

There are big differences between different classes

There are big differences between different classes

Communication style

The communication distance is longer among the manager and employees

More sorts of style of communication such as crosswise and lengthways communication


The specific department is charge of the concrete task

The responsibility is shared by many employees

Contact method

Traditional method is used

Modern communication method is used between colleagues


It is according to the principle of enterprise to deal with the conflict in daily work

The communication directly with people is paid attention


Oriented to a solid model

Advance with the time


More steady

Change rapidly and greatly

Force of enterprise

The force is come from the call of top manager

Market demand is the force source4.2 Corporation cross culture

After the whole analysis of this essay, the essence of cross culture is surfaced clearly. In the end of the content the essay is to conclude some key cross culture which the multi-corporation should add to their culture structures. (Lawrence M 2008 )

Firstly, communicate directly and be good at communication. Secondly, a good environment suitable to communication is important for the cross culture construction. Another perspective should focus on is encouraging the individual of employee, especially the Chinese person. Maybe there is a little difficult to do this for them. It is the challenge for HR to improve their employees' innovations. At last, if the manager could help plan the career development for their employees, it is a motivation for them. And in return more Sense of Identity could profit to the enterprise.

5. Introduction

In conclusion, cross culture is vital for a company which is planned to share a piece of cake in the international market. For every enterprise it is necessary to make the relevant training about the aimed country culture. Only do this can the enterprise make a correct strategy and do the right thing. Otherwise it is certain a disastrous defeat in the international market.