Starbucks in China

7 July 2016

Three major cultural differences between USA and China Julio A. Escalante de la Piedra JIU University February 7, 2014 Author Note Julio A. Escalante de la Piedra, Global Strategies, JIU University. This analysis is supported by three references cited on the reference list at the end of this document and the author`s personal experience. Correspondence concerning this article should be addressed to Julio A. Escalante de la Piedra. E-mail: Julio. escalante. [email protected] com SECTION 1: CULTURAL DIFFERENCES

The next table shows three major cultural differences between Starbuck`s home country (USA) VS the host country analyzed (China) and how these differences can represent a problem. (Li Qing, 1995) Chinese American Problem Conception of the Self Collectivist: Higher value placed on group cooperation and individual modesty. Individualist: Higher value placed on self-reliance. Self-promotion is more accepted. High value placed on “freedom” from externally imposed constraints. It may be difficult to approach a high-status Chinese executive if you ignore this difference of conception.

Starbucks in China Essay Example

Role of laws, rules, and regulations More faith in personal relationships than in written rules and procedures for structuring interactions. Written rules presumably apply to everyone and are assumed to produce fair, reasonable procedures and decisions. The firm might trust China`s rules without knowing that relationships are more relevant. Time Consciousness Relatively more attention to the past and to the longer-term future. Less interested in the past; eye on near-term future. The firm needs to focus on a long-term relationship instead of a short-term profit. SECTION 2: VALUE OF CULTURAL KNOWLEDGE

It is extremely important for Starbucks to be aware of the cultural differences mentioned in section one. Not being aware of them may result in business failure. The value of knowing these differences is enormous. Starbucks needs to understand the importance of socializing and getting to know the counterparts before a deal is signed (Rachel Bennett, 2010. ). That relationships are more relevant that laws and that a long-term business and personal relationship is essential. With this knowledge, Starbucks will create better strategies to be accepted in China. SECTION 3: STRATEGIC PLAN 1.

Build personal relationships with possible business partners and their families. 2. Hire Chinese high executives to run the company in China along with American executives to learn how they create group cooperation. 3. Make a press conference reaffirming Starbuck`s long-term compromise with the Chinese culture (clients, employees and communities). 4. Prepare a plan to find aspects that converge American culture aspects with Chinese culture aspects. 5. Promote teamwork in the company and give promotions to whole teams instead of individual people. 6. Invest in long-term projects that aren`t focused on immediate profit.

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