Chinese business negotiation process
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Review the case study of Ericsson's negotiations with the Chinese telecommunications organisations. Drawing on the topics and theories that you have studied in this course, write a Discussion posting that describes what Ericsson did that was effective and what it did that was ineffective in its approach to cross-cultural management. In explaining your answer, make specific reference to at least two of the following cultural dimensions: communication, ethics, relationships, marketing, human resource management, and cultural characteristics (using any of the models that you have studied) specific to the Swedish or Chinese culture.
Please see the link below to the TI corruption index which should help with the DQ in this final week.
http://www.transparency.org/policy_research/surveys_indices/cpi/2010
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Solution Summary
Review the case study of Ericsson's negotiations with the Chinese telecommunications organisations. Drawing on the topics and theories that you have studied in this course, write a Discussion posting that describes what Ericsson did that was effective and what it did that was ineffective in its approach to cross-cultural management. In explaining your answer, make specific reference to at least two of the following cultural dimensions: communication, ethics, relationships, marketing, human resource management, and cultural characteristics (using any of the models that you have studied) specific to the Swedish or Chinese culture.
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One of the most effective things that Ericsson did in the pre negotiation stage is strong lobbying and very effective presentations to Chinese government and related authorities. Ericsson ensured that the initial impression of the company to Chinese authorities was very impressive and customized its presentations to suit the preferences of Chinese government. For example, it translated its presentations to Chinese language to suit the Chinese government leaders and representations that only knew Chinese. As Chinese authorities show keen interest in ascertaining the capabilities of the companies in the initial stage, it is very important for companies to provide a very strong first impression about the capabilities, willingness to do business as per terms and conditions of Chinese government and capabilities for longer term relationship with China.
Ericsson understood this requirement clearly and made sure that its initial impression on the Chinese government was very strong. In other words, it adhered to the principle that "first impression is the last impression" for Chinese government and made sure that its capabilities ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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