Особенности ведения бизнеса в Китае (The peculiarities of marketing strategy development in China) — страница 4

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competitors againist each other so that that enables to hook out information . Technology Foreign firms are quite concerned about measures to protect technology and parents.For Chinese,the acqusition of technology by a state-owned enterprise,through licensing and joint –ventures means as the profileration throughout the country. According to one Western executive,it is very difficult to make the Chinese understand the total cost of research and development incurred by the selling firm with respect to a particular technology . The Chinese are also quite concerned about the Western firms willingness to transfer the techology and the following process of training . Terms of payment and financing In the formal session,the financial issues such as terms of payments,counter-trade,and

how it would influence the terms of payment.If a part of the production is to be imported into the seller’s country,the percentage or amount has to be agreed upon. Implementation Our observations reveal that the real problems begin after the formal negotiations and during the contract fulfilment.As a rule the Chinese want to adhere to broad principles and general policies and keep the details rather ambiguous. During the negotiations they tend to be flexible and leave the matter half-settled whereas the Western companys want the issues sharply defined make the mutual responsibles clear. During implementation of the contract there are the problems that may crop up . For example,in one case where a Swedish firm entered a joint-venture agreement with Chinese there had been the

case of misunderstanding for the Chinese refused to provide a Swedish managing director with the Western-standart office.The Chinese in its turn just offered a common Chinese-standart residence equal to other Chinese executives .Western standart for the office was stipulated in the contract so the Chinese got out of the contract. The conflict was so serious that the firm started to calculate the consequences of nonful- fillment. MANAGERIAL IMPLICATIONS Priority In the late 70s and early 80s,when a number of Western firms were negotiating with China due to newly spread „China fever“,many of them were greatly disappointed. After negotiating for months or years,they realised that foreign was not available for firms.Even for the Chinese authorities it was a great problem as they

were losing face and credibility among the investors.As a result ,as long ago as in August 1985 the Chinese authorities announced four categories of priority projects to attract foreign investors:Energy and mineral recources ,high technology,medical equipment and food- processing,and construction projects. During this spell of „China fever“-1993-1994 things improved in China.The decentralisation of decision making and the independence were given to provinces facili- tated business activities and the process of negotiating. Basically the Chinese government selects the projects carefully and the priorities change from time to time.But the culture of standing by agreement leaves much to be desired. Even the authorities are enable create obstacles such as unnecessary delays. On

the other hand,if the project goes with the categories mentioned above the firms are in the better position in negotiation and implementation.As a rule the foreign exchanges are approved by financial authorities.It is also important to gather information of Chinese negotiators . Time and patience is the most important assets of foreign firms exercising negotiating process in China.Many potential investors get frustated since the Chinese ,sometime,are slow in signing of a contract even if the everything has been settled.The Westerners get impatient waiting for final agreement .Probably it is rather incommodious participating in many stages of negotiating processes for several months. For swedish Ericsson it took more than two years to conclude an agreement a telecom- munication

contract while for Otis it took 5 years to establish a joint-venture.And the story of the French businessman who went insane is quite well known: After about one year of discussions and travelling back and forth between different departments ,he was told by the Chinese that they were willing to buy his technology. He telegraphed his office that the contract of $500 million has been concluded. The chief executive wired back immediately that he was on his way to sign the formal contract .And the next morning a high ranking official from the Ministry of Foreign Trade and Economic Relations approached to him and said,“Now that we are willing to buy your technology we can start negotiations“. The negotiators,therefore should have a plenty of time,patience and strong nerves.Many of