Transcript United Kingdom

The Influence of China and
UKs’ Cultures on Doing
Business
th
24
April 2007
Melville Petrie MA MBA FCIL FCILT
Business Development and Inter-cultural Training for China
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Part One
Introduction to The United Kingdom –
The Country, The Geography, The History and The
Culture
The Role of Government in business in UK
Foreigners in The UK
Working with the British
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Part 2
Introduction to China
The Geography, The People, The History and The
Culture
The Role of Government in business in China
Expectations of Chinese professionals coming to UK
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United Kingdom –
Geography, History and Place
in Europe
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United Kingdom - Geography
Small group of western European islands
Geologically ancient in North West of Scotland - Torridonian
Range of rocks include alluvial valleys and sandy heaths in east make for wide
range of landscapes in a small area
Longest road journeys only about 800 miles
Major centres of population - London, Birmingham, Manchester and Glasgow
Industry becoming increasingly service rather than manufacturing based.
59 Million People - continuing immigration over past 2 thousand years
England, Scotland, Wales and Northern Ireland all have separate identities
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Universal suffrage
United Kingdom - History
Little contact with outside world until 1st Century BC - Roman Invasion
Successive invasions from Europe 5th to 10th Centuries AD
Frequent wars in Europe 10th to 20th Centuries
Britain strongest country in Europe in 19th Century with vast empire
enabled by a powerful navy
No longer colonial or world power nor yet fully part of Europe
Historically a monarchy, the UK’s democracy now increasingly governed from
Brussels
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United Kingdom - Place in
Europe
Public opinion on Britain’s membership of European Union deeply divided.
Mistrust over possible loss of the British pound and joining Euro. This has major
implications for international trade.
Great national pride that British economy is performing better than European
nation’s economies.
UK’s wars with and in Europe strengthen the people’s view of being ‘British’.
Recent history in Middle East has increased mistrust of USA and made people
more open to European neighbours.
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‘International’ in UK can mean ‘European’.
Cross-cultural Issues
To many people in Britain, the game of cricket is
synonymous with their view of British culture.
Professor Geert Hofstede of the University of
Limburg in Maastricht defined culture as
the collective programming of the mind which
distinguishes the members of one group of people
from another
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Cross-cultural Issues
Hofstede’s Four Concepts
Power Distance - the social distance between individuals at
different levels within a hierarchy
Uncertainty Avoidance - greater or lesser need to avoid
uncertainty about the future
Individualism versus Collectivism - the relationship between the
individual and the blood-family/group/community
Masculinity versus Femininity - the division of roles and values
within a society
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What makes UK what it is?
Small, crowded island
Island Race
Views of ‘foreigners’
Multicultural
Individualistic
Time-oriented
Work oriented
Work-Life balance
Success-oriented
Respect for tradition
Education
Society in transition?
Economy in transition?
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British Business Culture
Direct approach to business
Establish relationships
Self-effacing
Understatement
Humour
Meetings
Deadlines
Respect for management and the right to challenge and interrupt
Political Correctness
Women in business
CVs
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British Business Culture
The British have a good regard for Chinese and respect their business skills
The British are analytical and think in abstract terms
In negotiation they believe only objective facts
Understatement and humour hide real seriousness and achievement
Individual initiative and individual achievement are prized
The British take pride in working for respected companies
The British get anxious about meeting deadlines and achieving results
The British are self-critical but it is not a good idea to criticise them as well
Do not be offended if the British are direct in their comments or challenges - offence is
not meant
Short-
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Part 2
Introduction to China
The Geography, The People, The History and The
Culture
The Role of Government in business in China
Expectations of Chinese professionals coming to UK
Working with the Chinese
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The Land
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9.6m sq.. km
1.3 bn population
Coastline 14,500 km
Land boundaries 22,147 km
Afghanistan
Macao
Russia
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Bhutan
Mongolia
Tajikistan
Hong Kong
Myanmar
Vietnam
Kazakhstan
Nepal
Laos
North Korea Pakistan
The Land
Geography
Environment
Climate
Culture
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Mountains, high plateaux, deserts, plains, deltas,
hills, huge and small rivers
Greenhouse gases - Shanghai revolt
Deforestation
Desertification
Endangered species
Extremely diverse subarctic in North and tropical in South
West
4,500 years of recorded history - Confucianism, Legalism,
Daoism
50 years of Communism
15 years of Capitalism
National Politics
Executive - headed by President and Gen Sec of CCP including Standing Committee of Politburo and State Council
Five main functions -
Legislature
Judiciary
Military
State Council – highest administrative body – the real power
National People’s Congress – ‘parliament’
Chinese People’s Political Consultative Conference – undemocratic and answerable to noone
Key personalities
Hu Jintao- President and General Secretary of CCP
Wen Jiabao – Premier/Head of Government
Huang Ju – Executive Vice President
Hui Liangyu – Vice President
Zeng Peiyan – Vice President
Zeng Qinghong – Vice President
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Local Politics
Local Government –
23 Provinces – Anhui, Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei, Henan, Heilongjiang,
Hubei, Hunan, Jiangsu, Jiangxi, Jilin, Liaoning, Qinghai, Shaanxi, Shandong, Shanxi, Sichuan,
Taiwan, Yunan, Zhejiang
5 Autonomous Regions – Guanxi, Inner Mongolia, Ningxia, Tibet, Xinjiang
4 Municipalities – Beijing, Chongqing, Shanghai, Tianjin
2 Special Administrative Regions – Xianggang, Aomen
The Local Mayor
Local Party Officials
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Industry & Economy
Economics
China keeping West afloat last few years - ?
GBP 10.5% growth (2006)
GDP (purchasing power parity) US$10 trillion
GDP – Per Capita (purchasing power parity) US$7,600 (2006) (US$460 (1979))
Overheating?
Corruption?
Foreign investment still hazardous - banking and railroads
Production to foreign investment/acquisition, IBM/Lenovo, MG/Nanjing Auto
The Future
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19th Century - UK’s
20th Century - USA’s
21st Century - PRC’s?
The People
The change in their daily lives
Almost total Personal freedom - education, clothes,
business, employment
Little political freedom
Party Membership
Increased personal wealth
Limited Consumer goods
East-West divide
Increasing overseas engagement
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It is a man’s social being that
determines his thinking. Once the
correct ideas characteristic of the
advanced class are grasped by the
masses, these ideas turn into a material
force which changes society and
changes the world.
Chairman Mao Zedong
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What Really Makes China
What It Is?
4,500 years of civilisation and 600 years
of the West
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What Really Makes China
What It Is?
Confucianism:
12th Century philosophy that still matters
today
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What Really Makes China
What It Is?
The Dragon awakes
- 50 dramatic years
- from Revolution to Capitalism
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Communicating Effectively
When to use Chinese and when to use English
A few well-chosen and well-spoken phrases are
received with tremendous natural good grace please learn a few!
The Chinese become very suspicious indeed of
foreigners who speak Chinese too well. There is a
real anxiety about foreigners getting too close to
the Inner Circle.
Even if a foreigner speaks good Chinese, he or she
must be very confident to negotiate in Chinese
unsupported.
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Questions and Answers
Thank you for your attention.
Have you any questions?
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