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China Myths China Facts Case Solution

Solution Id Length Case Author Case Publisher
1262 1092 Words (4 Pages) Erin Meyer, Elisabeth Yi Shen Harvard Business School : F1001B
This solution includes: A Word File A Word File

The prevalent myths about the Chinese business culture are collectivism, long-term orientation, and risk aversion, which are opposed to the case study with different instances and experiences of the research’s respondents. The respondents have worked in the Chinese business culture for years, and the experiences that they have shared, strongly oppose the myths. The case study has unveiled the realities of the Chinese culture, that it is individualistic, short-term decision orientation, and risk-taking. Although the myths are the general perception of the Chinese culture in the world, the research outcome verifies that the general perception about the culture is wrong and the reality is different.

Following questions are answered in this case study solution

  1. The Problem Statement

  2. Analysis

  3. Justification of the Solution

  4. Summary

Case Analysis for China Myths China Facts Case Solution

2. Analysis

The case study identifies three myths which are pertinent to the Chinese Business Culture. One of the myths is that the Chinese culture is collectivistic rather than individualistic. Secondly they take a long-term decision rather than short-term decisions, and thirdly Chinese are risk averse rather than risk takers. However, the instances and experiences of the respondents, who are working in China, do not support the myths.

One of the interviewees asserted that there is intense self-interest in China and they value individualism more than the company or the nation, which implies that the individualism is prevalent is Chinese culture. The case negates the myth about the collectivism and asserts that the Chinese culture is individualistic. The employees prioritize self-interest, and they even compromise the interest of the company and nation. Primarily, the reason remains in the one-child policy and emergence of nuclear families.

Geert Hofstede cultural dimension indicates that the score for China for Long-term orientation is 118, which is the highest (Clearly Cultural, 2016). The score shows that the business decision making in China is based on the long-term orientation that is they tend to be persistent, perseverant, and dedicate time, no matter how long it takes. On the other hand, the case study suggests that the Chinese culture is extraordinary ahead of West regarding making short-term decisions. Chinese people do not waste time to evaluate the outcomes of the decision and implications in future rather they take the decision unplanned, and they turn out to be fine, mostly.

Lastly, the risk taking behavior is also supported by the instances of the respondents. The case study suggests that the risk taking behavior has emerged due to the economic growth in the country. Entrepreneurship is increasing thus the level of risk taking is also increasing, and the people are comfortable in taking the risk.

Selected Solution

Chinese people do not like to be proclaimed individualistic, since it signifies selfishness in Chinese culture, and they claim to be collectivistic (Jia-xue, 2009). In reality, the Chinese culture is individualistic. One suggested a solution for encouraging collectivism among employees is the remuneration system. The bonuses or financial rewards are given to the employees should be by quality, diligence and team work, not on individualistic performance (Khairullah & Khairullah, 2013). If the rewards and bonuses are only given to some employees for their individualistic performance, ultimately it will encourage independence, individualism and competitiveness among the employees. 

Along with the individualism, short-term orientation is the reality discussed in the case study. The case study asserts that the decision making in Chinese business culture is a short-term or quick reaction rather than long-term and planned decisions. Primarily, the contributing factor is the economic growth which has transformed that way of thinking and people have become indifferent to evaluate the decisions. Primarily, the reason behind the short-term decision process is the directive management style rather than the conceptual style (Martinsons, 2001). Companies can consider switching to the conceptual management style to encourage long-term stable decisions and not the one taken haphazardly.

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