Media Report: Individual written analysis of a media article

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1831

4Media Article Analysis

MEDIA ARTICLE ANALYSIS

Code + Unit name

Table of contents

1.0 Article link …………………………………………………………………………………………………………. 2

2.0 Introduction ………………………………………………………………………………………………………… 3

3.0 Cooperate social responsibility ……………………………………………………………………………… 3

3.1 Profits and shareholder theory ……………………………………………………………………………. 4

3.2 Triple bottom line ……………………………………………………………………………………………. 4

4.0 Working model required by organizations working in China ……………………………………. 5

4.1 Individualism versus communalism globalization ……………………………………………………… 5

4.2 Globalization ………………………………………………………………………………………………………. 6

4.3 Cultural difference in China……………………………………………………………………………………. 6

4.4 Moral change and Universalism ……………………………………………………………………………… 7

5.0 Conclusion …………………………………………………………………………………………………………. 8

6.0 References …………………………………………………………………………………………………………. 9

1.0 Link to the article:

http://landor.com/thinking/why-western-businesses-need-a-profound-rethink-on-china

2.0 Introduction

Many organizations nowadays are seeking market across borders. They are seeking new markets for their products and services among people with different cultural behaviors. Understanding the culture of people is not even essential but mandatory for an organization to successfully sell or offer services to them. It requires companies to apply certain theoretical principles and tactics. They need to inculcate some sought of social responsibility and have operations which are ethical. This report attempts to explain and discuss and an article that gives some sought of study on people’s culture to enable organizations to sell out their services and products. This is an article explaining the culture of the population of China that directly affects the marketing strategies of an organization. The article is of great help to those planning to start the business in China or those who are already in business. It will help an organization to develop effective marketing tactics which heavily considers the culture of the Chinese people. Therefore, this means marketing strategies that can lead to sustainability and development of an organization.

3.0 Cooperate social responsibility

This refers to the deliberate action by a company to incorporate the interest and opinions of the public. It’s particularly important for organizations seeking new markets in the developing countries. Organizations planning to extend their businesses into China must consider the culture of Chinese people. They have unique characteristics which entrepreneurs must understand. For instance villages, there has an equal importance as the cities. This means that organizations conducting their businesses there must bear in mind this particular aspect and be very cautious. They need to involve all people from both the village and the cities. Their decisions should be an outcome of both the people from the villages and those from the towns. In general, cooperate social responsibility demands that organizations should take responsibility for ensuring that the public at large benefit from their business (Christopher &Deresky, 2012).

3.1 Profits and shareholder theory

This theory states that the most crucial result of an entrepreneurial venture is maximizing on the shareholder’s benefit. Companies planning to conduct their business in China should ensure that it has enrolled some locals as shareholders. By doing so, the companies will show that they are practicing some level of cooperate social responsibility. This will not only increase the people’s confidence in the organization, but also it will increase the organization’s sales and consequently the consumer base. As explained by Fleisher, &Benoussan, (2003), shareholders will help the company’s management to understand the culture of the locals, something crucial for the company’s growth and development. Companies should make an effort of ensuring that their shareholders get the highest profits possible. Businesses that fail to take into account the interest of their stakeholders are bound to fail since shareholder’s satisfaction is vital for a company’s smooth operations.

3.2 Triple bottom line

This refers to the people, profit made by an organization and the planet. This is a theory incorporated by CSR. It is a model used by companies to gain not only growth and profit but also other achievements like the development of the local people. The theory evaluates the environment in which the business is based and the impact it has on the people. Organizations planning to establish businesses in China should take into consideration the use of this theory. It’s key for organizations growth and development. Companies should train to meet all the three dimensions of its success (Porter, 2008). The company’s management in should strive to become more and more aware of the Chinese culture through the implementation of the various forms of CSR.

4.0 Working model required by organizations working in China

Organizations operating in China need to create unique and working businesses models that can enable them to sell their products and services. This operation of activity model should consider key aspects of the people of China. The Chinese millennial attitudes which have taken a quantum leap. The article research shows that a significant shifting regarding the people of China views about their country. The customers born before the 1980s associate their country with a negative opinion while those born after associating their country with an active image. The opposing views of the Chinese people are noticeable in their attitudes towards different products and services. According to Sheila (2002), organizations planning to set their businesses in China should, therefore, be keen and have tactics which can handle these different groups of customers. Another important aspect of the Chinese people is that in China, villages are as important as cities. Organizations seeking the new market in China need to not only venture in the China’s major cities but also in the rural areas. Organizations may be disadvantaged when they try to get to the Chinese second class population because of the standard traditionally oriented approach to the major markets.

4.1 Individualism versus communalism globalization

According to Max (2012), the Chinese women tend to focus on sisterhood and nationalism. There is a huge difference among the Chinese by gender. Nowadays, companies trying out new markets in China should understand that the women had new opportunities different from the past when they had constraining old age attitudes. They have greater economic independence than in the past. Many women across the world tend to be individualistic while the Chinese women tend to have a great passion for their country. The last aspect which is critical for organizations venturing into the Chinese market is the rising of self-expression among the Chinese people. Traditionally, foreign organizations treat the Chinese in a conservative and formal manner. In contrast, the Chinese now needs anything which is eye-opening, something which is not conservative. Either negative or positive, they embrace it. For instance, there is a new law legalizing the usage of superlatives in their marketing strategies (Landor, 2016).

4.2 Globalization

People across the world are now interconnected than never before. Someone in China can communicate with someone in Europe as if they are with each other one on one. Marjorie (2005) said that this is achieved through the use of the various technological networks such as mobile phones, Facebook, Whatsapp, and Skype. Organizations seeking the new market for their products in China can take this advantage and use this facilities for marketing. With proper strategic marketing strategies, organizations can do very well in China since the country has well advanced in the field of technology.

4.3 Cultural difference in China

The culture of the people of China is quite different from the culture of other countries across the world (Tian, 2005). Organizations seeking the new market in China need to identify various ways through which they can minimize their production costs especially by looking at the Chinese cultural dimensions. Partnerships with the locals can also be of great help. The Chinese people have a characteristic of making enough good collaborations. In China, organizations have a very high distance in power meaning that the supervisors and the managers are highly segregated. The employees are prone to poor working conditions which are below standards. Employees just agree to the orders given by the management. New organizations venturing into the Chinese market should take this as an advantage and start offering real and reasonable working conditions. By so doing, they will attract high trust from the employees who most probably are the locals. This will come with significant advantages such as having the proper reputation of dealing with the employees among the locals.

Organizations looking for the new market in China should take to their advantage the difference in culture among the locals regarding the employees working conditions. By Cultural Relativism the variation in the society regarding beliefs and norms are most likely affected by the culture of the people (Lindgreen, &Swaen 2012). Organizations planning to enlarge their business in China need to aim at that culture which has more lax moral instincts in the basis of the rights of people. This can greatly help them to cut down their overall tasks including labor and marketing cost.

4.4 Moral change and Universalism

Organizations seeking new customers in China must practice high levels of CSR. They must act in a human manner that is line with ethics. This will be of great help as it is a show of good examples to other organizations which most likely don’t practice the same (Paul & Dean, 2015). It can help others change their mind and start working in a way that promotes social responsibility. Companies can achieve all this by just putting in place measures and rules which are very vibrant for instance including the CSR goals in their strategic plan. After all, CSR will, at last, be of great help to them. It will help them gain a good reputation among the locals.

5.0 Conclusion

In conclusion, it’s clear that China has great entrepreneurial opportunities. Foreign organizations need to take the chance and introduce their new brands into the vast market. They need to take into consideration all the points analyzed in this report for their success. Practicing CSR will also be something vital in their businesses. As seen, it will largely contribute to their growth regarding gaining good consumer reputation and consequently large market base. An organization without CSR, it’s reasonable to argue that the company is meant to fail (Christopher &Deresky, 2012).

References

Christopher, E. &Deresky, E. (2012), ‘International Management -Managing Cultural Diversity,’ Pearson Education, Frenches Forest

Fleisher, C.S., &Benoussan, B.E. (2003), ‘Strategic and competitive analysis: methods and techniques for analyzing business competition,’ Prentice Hall Upper Saddle River, New Jersey.

Lim, S, & Phillips, J 2008,‘Embedding CSR Values: The Global Footwear Industry’s Evolving Governance Structure’, Journal of Business Ethics, vol. 8, no. 1, pp. 143-156.

Lindgreen, A, &Swaen, V 2012,‘Corporate Social Responsibility’, International Journal of Management Reviews, vol. 12, no. 1, pp. 1-7.

Marjorie. M, (2005). Global citizens: social movements and the change of globalization. Zed book publishers.

Max. W, (2012). The Protestant ethic and the spirit of capitalism. Courier Corporation.

Paul Sweeney & Dean McFarlin, 5th edition, 2015: International management, strategic opportunities and cultural changes, Published by Routledge Publishers.

Porter, M.E. (2008), ‘The five competitive forces that shape strategy,’ Harvard business review, vol. 86, no. 1, pp. 25-40.

Sheila. O, (2002). Labor relations in Chin’s socialist market: adapting to the global market. Greenwood publishing group.

Tomislaw. D, (2007).Globalization of marketing strategies in the light of segmentation and cultural diversity. Grin publishers.

Tian. Y, (2005). The Chinese model of modern development. Psychology Press.