June 1, 2016

Chinese business etiquette is closely linked with country’s culture and its history.

In this article we will try to explain the philosophical base of Chinese business etiquette.

It is necessary for better understanding your Chinese partners and for evaluation of their behaviour.

Confucianism and Taoism are the two main philosophical sects in China, which have had an impact on the Chinese way of doing business for centuries, and nowadays still have been influencing and remain important.

Interpersonal relationships are the main core in Confucianism. And nowadays it has a great influence on Chinese mentality and social behaviour.

  • One of the most important aspect of Confucianism is mutual respect and interpersonal trust in society.
  • There are two main doctrines that have an impact on business negotiations: hierarchical social relations and the concept of saving face.
  • Confucianism defines the hierarchical relationships in society as follows:

Managers and followers, father and son, husband and wife, elder and younger, teacher and pupils. The first protect and guide, while the others respect and follow. In Confucianism obedience and adherence to these rules is regarded as the path to harmony in society.

In China, we can notice that the doctrine of the hierarchy is still present in many companies and management systems.

Also, in business negotiations it is important to determine a key person or a manager from your company, which will have the same status as the Chinese key person or manager.

  • There is also as a concept of saving face in Confucianism.
  • This concept is needed to create harmony in social relations.
  • There is an example of the influence of Chinese culture on the bargaring.

Suppliers from China do not refuse to reduce prices. As bargaining about the price is also a part of Chinese culture. But still they will say “NO” to your target price for the goods, in order to save your face, and also will control the negotiation process.

Understanding of Chinese philosophy of doing business will help you to achieve your business goals, and also will help you to understand actions of your business partners. However it does not mean that you can avoid misunderstandings, it will just help you to better analyze the partners, and gain a stronger position in negotiations.

Famous Chinese strategist and philosopher Sun Tzu (author of Art of War) said:

“Know the enemy and you do not have to fear the result of 100 battles.”

Of course your Chinese partners do not real enemies. But it is better to be always aware the Chinese way of doing business is still totally different from the European. China is needed to lear.…

T

rust is one of those qualities that is often elusive and must always be earned. You will never start a relationship with another person (and that applies to personal and business situations) and that person trusts you right away. It takes time and it takes a great deal of care that must go into the relationship that you are building together.

The power of the truth

The fact is that from the beginning, you need to build the foundation of your relationship with the other person. Human beings are not trusting creatures right off the bat. It takes some doing to get to that point. If you look at it from a psychological point of view, humans don’t trust because they have had experiences in the past that have taught them not to.

If a person has had an experience in which they were hurt in some way, why would they walk into a similar situation with an understanding that they will have a similar experience this time. Would you?

Although it takes quite a bit of effort to get the other person to trust you, it is far from impossible. In fact, there are some things that you can put in place that may help tremendously.

    • Create the perception that you deserve to be trusted: Perceptions go a long way. You always want to give the other person the feeling that he or she can trust you. Although you can’t control what the other person thinks, you can have an influence overturning a situation around if it seems as though it is going in the wrong direction. One way to do that is by having other people speak about you on your behalf. You can’t blow your own horn but other people certainly can. Another effective way to get that idea across is by making good use of testimonials. Testimonials can be very powerful and extremely persuasive.
    • Take baby steps: If you consider your ultimate goal, which is total trust from the other person, it may feel as though you will never achieve that. On the other hand, if your approach is simple and methodical and you take it one step at a time, it will be a lot easier to get to your goal. Once you have reached that goal, you will look back and you will probably feel that it didn’t take nearly as much effort as you thought it would. Isn’t that a pleasant surprise? There is no doubt that you are capable of achieving whatever you set out to accomplish. However, getting the other person to come along for the ride is the difficult part.
    • Proceed with caution: Nothing good ever came from rushing (in any aspect of your life). It takes time and effort to get the other person to trust you and to believe in your credibility. All relationships take that kind of nurturing. At least, the relationships that have meaning and value. Everything in life that is worth having is worth

Business security systems

Any business, big or small, is essentially exposed to many threats against possible losses due to various reasons. All business owners would naturally like to protect their businesses against any losses from the public or from their own employees.

The world renowned company ABC Malls, which has a chain of malls all over the world, has an elaborate business security system in place in each and every mall which they operate. In fact, these business security systems were an integral part of the mall’s beginning. These systems were able to help the mall recover millions of dollars in items recovered.

If we were to look at the reasons as to why they have invested in these elaborate and sophisticated business systems (which include security cameras and burglar alarms) in place at every single location, we would have an extremely long list. Below, I listed the top 7 reasons, I believe, as to why so many businesses like the chain of malls use these systems.

1. Decrease theft by employees – Security cameras lower the incidents of thefts by employees to a considerable extent. Strategically placed security cameras are a big deterrent.

2. Deter shoplifting – Some customers, no matter how rich or famous they may be, are in the habit of shoplifting small items. If they see themselves in a strategically placed camera as they enter the store, it deters them from shoplifting.

3. Increase employee productivity – Employees know that they are under constant watch and this leads to an increase in employee productivity.

4. Prevent or reduce unauthorized entry – When people know that their entry and movement within the store is not only being watched but is also being recorded, it prevents unauthorized or undesirable people from entering the store with any bad intentions.

5. Deter burglars – A good burglar alarm installed in the premises in addition to strategically placed security cameras as a part of business security systems definitely deters burglars from trying to steal at the store.

6. Reduce insurance premium – Most insurance companies offer significant discounts on monthly insurance premium payments if adequate business security systems are in place.

7. Protect against fraudulent claims – Sometimes customers or even employees have a tendency to lodge fraudulent claims. If an adequate number of security cameras are visible to such individuals, they are less likely to indulge in lodging fraudulent claims for fear of being exposed with the help of the recorded evidence.…