Unsuccessful Business Strategies
Show Starters should avoid a number of pitfalls to succeed in entering and maintaining business in China. Ryland (2008) explains that lack of patience and ineffective preparation are downfalls in doing business in China. It takes time to establish relationship with Chinese business counterparts or hurdle bureaucratic processes (Andrews & Burgess 2008). Rushing is likely to speed up the failure of the venture in China. Underestimation of the value of communication (Jagersma & van Gorp 2003) and of the issue of language barrier (Gome 2006) also leads to unsuccessful conduct of business in China.
Effective communication is more than just the use and exchange of words but the entirety of appropriate verbal and non-verbal cues in a given context of people and situations. Ignoring any of these elements could lead to business failure. Complete reliance on Chinese counterparts (Gome 2006; Ryland 2008) is also another unsuccessful business strategy in doing business in China because it weakens control and increases the actualization of business risks.
Ineffective prioritization of focus in the highly competitive Chinese market (Andrews & Burgess 2008) also comprises a poor strategy because establishing a business in China requires consideration of opportunities relative to the strengths and weaknesses of the firm
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First strategy is for Show Starters to develop its own expertise (Ryland 2008) in China by not relying solely on Chinese business partners and considering a hands-on approach (Gome 2006). This is necessary preparation in entering China, with a highly homogenous culture and rich business tradition. Second strategy is to build personal and social relationships with business partners (Ryland 2008). This constitutes a necessary means to succeed during negotiations and ensure long-term business relationships, especially with suitable and effective business partners.
Third strategy is to develop effective communication competencies (Gome 2006; Ryland 2008) with Chinese business partners encompassing the message or content, manner of expression including verbal and non-verbal cues, and situational context. Fourth strategy is to overcome cultural barriers (Mavondo & Rodrigo 2001; Andrews & Burgess 2008) by prioritizing cultural integration to evolve into a hybrid organization integrating the best features of western and Chinese business traditions (Jagersma & van Gorp 2003). This requires consensus building or compromise (Gebauer & von Zedtwitz 2007).