Assignment 4 – Coursework Example
Critical Success Factors in a Foreign Market Affiliation Critical Success Factors in a Foreign Market My selection of aforeign market is the Chinese market. Over the years, the Chinese market has increased its economic potential. Regardless of the advancements, the Chinese market has retained its market specification as influenced by its culture. In additional economic requirements also shape the definition of the market.
Firstly, the meeting with the supplier should be based on a relationship influenced more on social than business factors. In an argument by Oliver (2012) the guan xi, relationships, may be more important than the product in the transaction. In order to increase my organization’s relationship with the supplier developing a social relationship would be important. This would enhance the business transaction between the parties in regards to longevity and good partner relationship.
The concept of mian zi is also important of the Chinese business culture. The concept describes the person’s prestige and dignity than one has on their established relationship or position (Oliver, 2012). This cultural requirement acts as a sign of a bond between the two parties. The supplier needs to be ensured that the partnership is a valuable relationship before they could part of it. The concept also solves the cultural requirements that the foreign organization may have to fulfil.
Most importantly, the economic factor cannot be disregarded. Oliver (2012) is of the assumption that the Chinese market is highly motivated by money. The supplier should be provided with reasonable price quotation for their services and products. In addition, future financial transactions and requirements should be stated prior to the partnership. This increases the value of the relationship and business partnership.
Oliver. (2012). The key factors of success for a foreign company in China. Retrieved from http://marketingtochina.com/the-key-factors-of-success-for-a-foreign-company-in-china/