CULTURE DIFFERENCES IN Business enterprise RELATIONS:THE CASE OF CHINA AND AFRICA

For a company to thrive today, strategists must find ways to increase the organization's ability to read and react to industry and market changes.

The companies chosen for this task vary by industry: a famous automobile manufacturer (Ford) a bank going through a merger (Compass) and a start-up software company (DawningStreams). Emphasis must be placed on their adaptability in strategic analysis and their adaptability in strategic management of business organizations. The organization must have a strategic management model.

DawningStreams is a software company; they will need to monitor those companies who would be their competition to ensure their product offers better functionality. With help from a new generation of business strategists, companies are pursuing novel ways to hatch new products, expand existing businesses, and create the markets of tomorrow. Some companies are even recreating full-fledged strategic-planning groups. United Parcel Service expects to spin out a new strategy group from its marketing department, where strategic plans are now hatched.

Ford Motor Company – Socio-cultural

Ford Motor Company embraces the socio-cultural changes taking place to allow the company to move in the right direction with respect to attitudes in the society. The growing concern by the public for better fuel economy has influenced the company’s introduction of the Ford Escape Hybrid and Mercury Mariner Hybrid. The environmental scanning by Ford Motor Company has allowed the company to be knowledgeable of the fact that the people in the United States are buying more small cars today than any other type of vehicle segment. Ford Motor Company will continue to use the socio-cultural factors to drive the business and enjoy future success.

Ford Motor Company – Legal –

Ford Motor Company with regard to the Environmental Protection Agency adheres to the legal aspect of environmental scanning. Ford Motor Company accepted an award in March 2007 from the Environmental Protection Agency called the Energy Star 2007 Partner of the Year Award in Energy Management. Due to the environmental scanning that takes place at Ford Motor Company the company will use the information that is collected and continue in this direction.

Ford Motor Company – Technology –

Another environmental scanning tool that Ford Motor Company monitors and uses would be the technological portion. The company has invested $1 billion in the latest technology for flexible manufacturing.

The technological changes that are being embraced by Ford Motor Company through environmental scanning enables the company to experience huge cost savings through new product launches and 50 percent reductions in cycle changeovers along with waste reduction. The environmental scanning of technology that is performed by Ford Motor Company has allowed the company to have positive outcomes in efficiency while remaining a competitive company in the industry through cost savings and continuous improvement.

Compass Bank- Political -

On February 16, 2007, Compass Bancshares, Inc., the parent company of Compass Bank, announced the signing of a definitive agreement under which Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBV Madrid: BBVA) ("BBVA") will acquire Compass for a combination of cash and stock. Compass provides a broad array of products and services through three primary lines of business – Corporate Banking, Retail Banking and Wealth Management.

Compass Bank – Technology –

Ford is teaming up with a company called MECCO to implement this process and a trial run of the new system will last for 3 months. Finally, Compass Bank can learn that they need to consider what will be most cost-effective and in the best interest of the company over time. Some, if leveraged by a company within an industry before competitors use it, may even provide a competitive advantage.

Compass Bank – Competition –

Others include the more concrete assets such as available capital, the organization structure, current technologies and information technology infrastructure.

DawningStreams - Competitors –

DawningStreams – Political -

(Bureau of Industry and Security, 2007).

Cryptography is a key functionality of DawningStreams. The cryptographic layer of DawningStreams will rely on a dual public-private key system. The national security, foreign policy, and law enforcement interests of the United States are protected by encryption export controls.

DawningStreams - Technology/Intellectual Property –

The management of organizational strategy requires a comprehensive assessment of the macro environment of the business. The research implies that company size plays an essential part in the way senior management views security. Some companies are even recreating full-fledged strategic-planning groups. Retrieved March 31, 2007 from Proquest Database. Ford Motor Company (2006). Ford Motor Company. Retrieved March 2007,

from the World Wide Web, Web Site: Ford, S. (2004) Adapted from 13 Skills Managers Need to Succeed, Harvard Business School

Retrieved March 31, 2007 from EBSCOHost Database.

(2006). Ford implements advanced laser marking. Industrial Laser Solutions, 21(4), 6-7. Strategic Management: Formulation, Implementation, and Control. The McGraw-Hill Companies. Computer Security Update 8 (4). Retrieved March 30, 2007 from EBSCOHost Database. Retrieved March 27, 2007 from the Bureau of Industry and Security Website at Watson, G. (2003) Business Environmental Scans for Intellectual Property Strategy (PowerPoint Presentation). Retrieved March 28, 2007 from the Oklahoma State University website at ,1,Business Environmental Scans for Intellectual Property Strategy

Forces and Trends in Business

What does culture have to do with business? Many business majors and practitioners immersed in questions of financial forecasting, market studies, and management models have turned aside from the question of culture and how it affects business.

With the increasing importance of the China market in the world economy, many businessmen rushed to enter China to explore business opportunities. Here is how arise some issues on "how to understand China" and "how to settle business" with Chinese people.

To clarify the differences between China and Africa, I will focus on Hofstede's four cultural dimensions: power distance, individualism/collectivism, masculinity/femininity, and uncertainty avoidance and Bond's dimension about long-term/short-term orientation also called "Confucian Dynamism". In low power distance or power tolerance cultures, individuals assess authority in view of its perceived rightness. Third, Africa has higher value than China in masculinity, which indicates that Africa is medium masculinity while China is medium femininity. Cultures differ on what motivates people to achieve different goals. Cultures of the aggressive goal behavior type (masculinity) value material possessions, money, and assertiveness whereas cultures of the passive goal behavior type (femininity) value social relevance, quality of life and welfare of others. Fourth, China and Africa have higher values for uncertainty avoidance the West. Cultures are characterized as either high or low on uncertainty avoidance. Whereas low uncertainty avoidance cultures prefer positive response to change and new opportunities, high uncertainty avoidance cultures prefer structure and consistent routine. Last, Africa has a short-term orientation while China has a long-term orientation. The significant differences between Africa and China seem to affect some aspects of their business management practice.

Cultural Differences in business Strategies

As discussed above, Africa and China have a strong collectivism. In the process of cooperation, Chinese tend to pay more attention to relationships.

Cultural Differences in Conflict Management

African managers are reluctant to devote their time and efforts together in solving business conflicts. Other people's help is needed.

Cultural Differences in Decision-making Risk-taking/Risk-avoiding

Chinese managers with a high uncertainty-avoidance have a lack adventurous spirit and the sense of risks. Chinese managers or African managers have different level of participation in decision- making. In China, decisions are participatory. In Africa, managers make individual decisions.

Cultural Differences in Work-group Characteristics

In African business style which is quasi the western business style, managers focus on the deal, the possibilities, the risks and so on. There is less focus on the people they are doing business with. Chinese managers may initially focus more effort on building social and interpersonal relations (guanxi) before entering into business or contractual relationship. A good deal of time is spent exploring people's characters. A good deal of business is conducted in banqueting halls. Chinese managers are not interested in short term; they want long, life-long business relations.

Cultural Differences in Motivation Systems

; In business contexts, the motivations of employees, partners, superiors, contractees, social associates, and members of a society spring from cultural values, or what people think is important. Cooperation, interdependence, group goals that create group harmony are applied in China.

For African managers, individual achievement is important. Companies need to think outside the proverbial box when formulating their business strategies and when collaborating and forming business partnerships. As sometimes companies move to do business in other countries, a greater sensitivity to culture will be required and an understanding of cultural realities should facilitate business transactions.

Otherwise, if you know what people value and understand their attitudes, you won't unintentionally do something that offends and diminishes your chances for business success.

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