Chinese Culture Essay

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Chinese Culture
In order to be successful in the world market or even in the local market, a company needs to assess the requirements of the market place and the behavior of consumer to get success. Any economy cannot outweigh other economies until and unless it gets itself aware of the demands of the customers to which it is making offers. China must act upon the phrase i.e. think globally and act locally. It is essential because Chinese companies made the product as per their local market and consumers and direct them towards international consumers whose needs do differ from Chinese people.
Chinese companies are striving to be the world’s market leaders and hold complete control over world consumers however they often lack in their efforts. Not only customers but government of china does also think in the local way as it banned the ad of McDonald in which it showed the Chinese to beg for the discount from the sales man to save money and eat McDonalds. If we see it is nothing but international ad to create humor and a tool for the ad attraction. Therefore it is important for the MNC’s that prior to take any step they must act locally in order to assess the Chinese’ requirements. The MNC’s must avoid double standards and do not use the same ingredients in the Chinese food or personal care items as they use in British because Chinese regulations have some limitations in the use of some items in the products they are offered.
MNC’s must possess the complete knowledge of the Chinese law because ignorance of the law can put ban over the companies. It is important to highlight that if the MNCs try to modify the Chinese law as per their needs and to best fit their practices in it, then Chinese government snatch the license of the company and the company also lost the first mover advantage as well. The companies must make appropriate strategies before undertaking symbolic acquisitions because it may result in the government perception that company is trying to have monopolistic behavior and making endeavors to capture the whole market. MNC’s must recruit and train management time by time to be engaged with all the stakeholders because if this do not practice the Chinese people and government consider it as the company have negative relationship with consumers and do not practice its corporate social responsibility. MNC’s must not show the attitude which shows that they have entered into the China to test the market. Chinese government is very strict about it and is perceived by government as taking much out of economy without giving back anything to China.
Germany & Wal-Mart:
Wal-Mart is one of the well known and profit generating store in the world market. It has been operated in Germany since November 1997, and no one can think that it is suffering losses in Germany instead of earning traditional profits. Its 92 stores are suffering heavy losses, since its establishment in Germany. The article states the two reasons behind this loss:
1. The culture of Wal-Mart and German customer values are quite different from each other.
2. The Wall-Mart is competing with Aldi in Germany that is highly discount offering store.
The article made an attempt to explore the aforementioned reasons in the context of Germany by undertaking the survey based research. In the survey 300 customers took part from Aldi store. This store is considered as the store with lowest price, highest discounts and special offers. This strategy is highly liked by customers. The survey results indicated that people do not prefer Aldi when they
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