China Practice: Guanxiwang PDF

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Case Study: Chinese Business Practice - Guanxiwang...

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1. There are various restrictions in China as well as privileges offered to people specifically prioritized over the others. One can gain advantage over the others and quickly progresses due to connections, thus, cultivating guanxi and guanxiwang is significantly helpful in ascending a business. With right relationships and connections that will boost the company’s performance, it is an indispensable asset.

2. Guanxiwang is how they do business in China. Following Mintz strategy engaging in Wu and Xiao who have connections with the government and other prominent authority figures, his business was granted control and entitlement even to the most forbidden areas in China as it evidently plays a major role in the performance of DMG having an edge among his competitors. A business who only obeys what rules and regulation presented upon them do not have what it takes to rise. DMG took an initiative in a quick and clever way for the sake of its business performance and in result, it has been deemed as one of the China’s fastest growing advertising agencies. Those who have not and failed to take this initiative will wait a long time for their business to be acknowledge.

3. Since guanxiwang is a relationship network which requires reciprocity of favors in both parties, performing these might have ethical issues upon the subject or goal that needs to be performed for the sake of achieving a great guanxiwang such as bribery in returning the favor. That being said, in western businesses which are mostly highly committed towards their ethical standards and professional conduct, makes it difficult to have a great foundation of guanxiwang....