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DMG-Shanghai Case Study Summary

Guanxi is the term, it is the long-term relationship which is influenced by the Chinese society to gain the benefit. They use guanxi in business relationships. China has taken the perspective of foreign parentDMG-Shanghai Case Study Summary company, which is against the culture of china. The Western and Chinese business, especially companies has accepted the importance of guanxi and guanxiwang. Guanxi is based on reciprocity; higher authorities are accepting that for the future growth of china it is important. There are many benefits of guanxi; the importance has been realized. It is the personal connection between individuals, who are bounded to understand tar social norms of guanxi by psychological contract. For the long-term equity, the relationship of guanxi could be helpful in establishing connection with the people to perform the better job, and for the understanding of the rules. The society of the china is lacking the rule based legal traditions, this is the reason guanxi and guanxiwang is becoming necessary for the future growth of china. China will successfully build the business relationship for long term if they keep on following guanxi. There are laws in china that without guanxi no business can take place and no business can flourish. If one implements the guanxi in business, the resources and opportunities will come to him and he will be successful.

China is very careful about its culture, chinless give respect to their culture they don’t want any other culture to take place in their society, the Chinese history tell that DMG has noticed that western culture is taking place in the china while conducting business there. Chinese have learnt lot of them. Foreign and domestic business is bounded by guanxi and guanxiwang, DMG noticed that everybody who have to start business in china have to follow the guanxi. DMG has emerged as one fastest growing advertising agency in China, for their growth and according to the Chinese trend; as they assess future resources due to guanxi. They have faced legal and ethical issues in China, character films were banned in china as their society don not accept some film and print ads. Ethical issues like bribery, property rights and unfair competition take place in china while using guanxiwang. As they face many problems while doing the business. The managers before launching any business should know all the cultural values of the country if they want future growth and success, for the competitive market, they should have the knowledge of cultural aspects.

Western struggles to gain success in china, and the relationships between two parties, faced problems. The problem could be solved if they consult the multi-cultural research team. The Chinese organization is encouraged to use guanxi and for the success, it is important. Chinese business practices are old fashioned and they are taking steps towards implementing western business. It will be beneficial for them and soon they will show business efficiency and effectiveness. Guanxi is concerned with personal connections, which can affect one’s business. The economic reforms in china and the future progress in the market economy are due to strategies of guanxi. Some people think that guanxi is less important in china, because cultural values of china are dominant. Some business fails in china as they followed guanxi and they got experienced through this. People do accept as they have conservative attitude, but the thinking should be change if China want success in near future. The British and Chinese firm should fully know the importance of guanxi, in my point of view UK-Chinese joint venture relationships should not be ignored and should be given importance.

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