Office Design Partners

Table of contents

Office Design Partners (Thailand) Ltd is an office furniture manufacturing and sales company established in the year 1992. The company traced its origin to Office Systems Limited, a Taiwanese based multinational organization dealing in steel office furniture, panel-based systems and office automation equipment. ODP teamed with Metropolitan Finance and Thai Enterprise Group, two influential business groups in Thailand to set up its manufacturing and sales unit in the country. Executive Designs, one of the largest manufacturers of office furniture also joined hands to form a partnership in Thailand.

The Thai companies had 25. 5 percent share each, while Office Systems owned 29 percent shares and Executive Design owned the remaining 20 percent shares. The company targeted the South East Asian market with Thailand as its base. Thailand was chosen because of its strong economic growth and its strategic location that provided easy access to the markets of Indonesia, Singapore, Malaysia, Taiwan and Philippines. Case Analysis The partnership was successful in capturing 25 percent market share in office furniture segment in Thailand.

The export sales of the company accounted for nearly 10 percent of its total sales value. However, this joint venture was soon falling apart owing to cultural differences and gross inadequacy of the management to deal with operational difficulties. In the year 1996 Executive Design wanted to end the joint venture agreement with ODP. A detailed study of the case history revealed some of the strategic issues facing the company. he cultural differences between the Thai, Taiwanese and American managers led to conflicts. Perception and communication was one of the major issues facing the company at all levels.

The Taiwanese management style did not work in Thai environment and the workforce reserved strong opinions on the way management functioned. This created animosity and dissatisfaction that affected productivity. The company lacked direction in setting common goals and objectives. The four partners had come together to pursue individual gains. The 25. 5 percent share owned by each of the Thai companies combined to provide a 51 percent local ownership that facilitated the establishment of ODP in Thailand. The Thais were not much involved in the daily operations of the business.

Executive Design had an advisory role in the company; hence the company management was overseen by Alex Chen and Robert Chang, both from Taiwan. The company management had not created distinct lines of roles and responsibilities for their managers. Job responsibilities and accountability shifted in tune to the involvement of partners in the execution of projects. This led to confusion and misunderstandings in interpreting management instructions. The interactions between the employees were restricted owing to the language barrier between the Thais, Taiwanese and Americans.

Inability to understand the language and cultural conflicts led to communication problems within the workforce.  The company also faced a high rate of attrition that is a result of increasing job opportunities in the country facing high economic growth. Trained personnel quit within few months lured by higher wages offered by other companies. The above issues highlight the inadequacy of the management to understand cultural differences and resolve managerial conflicts. The withdrawal of Executive Design from the joint venture agreement has many implications on ODP’s business strategy.

These implications are listed as follows:

  • Office Systems and Executive Design had setup sales office and furniture showrooms in Hong Kong and Singapore. Executive Design’s withdrawal from the joint venture agreement meant that the showrooms will now be the responsibility of Office Systems alone.
  • Executive Design would sell its 20 percent stake to Office Systems that will raise the ownership of the Taiwanese to 49 percent.
  • ODP will lose on the expertise of Executive Design on manufacturing American style of furniture that is in great demand in Thailand and other South East Asian countries.

Case Recommendations

Based on the analysis of issues and challenges faced by ODP, the senior managers Alex Chen and Robert Chang have decided to re-design their managerial strategy in resolving cultural conflicts and ensure effective management of operations. The management feels that focusing their attention on human resources and cultural issues is one of the most critical factors that could make this trans-cultural business venture work successfully. In light of the issues facing the company the following steps are recommended by the management:

  • Establish company mission and vision statements
  • Appoint a strong management team comprising of individuals having persuasive leadership skills.
  • Introduce personnel development plans to review talent and help employees to grow within the company in accordance to their personal strengths and weaknesses.
  • Conduct regular training and development programs that are aimed at promoting team work, increased level of coordination and cooperation, improving effective communication, and promoting group activities.
  • Introduce regular briefings on projects, one-to-one interactions, team meets and updates on procedural and operational front to promote communication and cultural cohesion.
  • Promote Thai employees to key positions to promote increased cooperation and understanding in case of cultural conflict.

Establish company mission and vision statements The primary task of the management will be to establish the company’s mission and vision statements that reflect its core ideals. This will provide its workforce with specific goals and objectives that need to be identified in the short term or long term operations. It helps in building an organizational culture that instills a sense of pride among its workforce. Appoint a strong management team comprising of individuals having persuasive leadership skills

The senior management will appoint or promote people having strong leadership qualities at key positions to help the management in resolving operational and business issues. Organizations are rapidly moving towards persuasive style of leadership that is more effective in building management-employee relationship and promoting trust within individuals. This form of leadership is also advantageous in situations that require tactful handling of human resources. Introduce personnel development plans and conduct regular training and development programs

Retention of talent is one of the main focal point in the strategic revamping of company management. The management will have a separate human resource department that will be responsible for nurturing talent through effective personnel training and development programs. The training team will roll out personnel development plans that will assist the staff in defining their professional goals and objectives, analyze their strengths and weaknesses, and placing them in business processes that meet their individual capabilities. This will ensure proper utilization of talent and the individual will also have greater sense of job satisfaction.

Based on their individual training requirements, the staff will attend regular training workshops on team work, communication development and leading and managing people. Working as a team and taking initiatives at work front will induce enthusiasm and motivation at work. Promote communication Promoting effective communication and resolving cultural conflicts will require team building efforts from the line managers. Regular team meets, group activities, and interactive sessions with the management will facilitate a better understanding amongst the workforce and create an encouraging atmosphere to work in.

The management will take initiatives to reduce the communication and cultural barriers between the Thais and Taiwanese workforce. Promote Thai employees Thai managers will be appointed in key positions to promote better understanding and cooperation between the two cultures. Among other steps the management plans to roll out regular feedback sessions, one-to-one interactions between workforce and line managers, and project briefings at the initial stages of the project start-up to define the project milestones, details of operations, and identify individual roles and responsibilities.

These steps will ensure smoother communication between the various levels of management, help in identifying problems and limitations existing within the operations, and provide specific guidelines on the work processes. Summary The implementation of the recommended measures will bring about a transformation in the existing work and cultural environment within ODP. The management needs to ensure effective planning and leadership practice to successfully resolve the existing issues and challenges.

References

  1. Harzing, Anne Will. 2004. International human resource management: managing people across borders. SAGE publication.

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Business, Government and Technology in China

Introduction

China can be referred to as a cultural region and an ancient civilization with a national or multinational entity, and occupies a portion of land within the East Asia region ( Lynch, M .1998).

Geographical location

China as a country has geographical features that range from the plateaus and mountains in the west, to the lower lands in the Eastern side.  Across the East Asian landmass, China stretches for 5,026 kilometers across and has a landmass that comprises of changing configuration of broad plains, mountain ranges, deserts and large areas of inhospitable terrain.  The fertile lowlands make up the eastern half of the country, plus the fringed seacoasts, deserts, foothills and mountains, steppes and the subtropical areas.

In addition, China’s location in East Asia enables it to border the East China Sea, the Korea Bay, South China and the Yellow sea.  China’s enjoys a central position due to its geographical location and has the geographic coordinates  35000’N, 105000’E. China has total area coverage of 9,596,960 square kilometers with total land area covering 9,326,410 square kilometers, while water covers 270,550 square kilometers.   This has made China rank third in the world in the category of countries with the largest total area, after Russia and Canada.  By land area, it ranks second.

Some of the physical features that China has included; rivers, mountain ranges, hills and deltas.  The rivers can be found from the west to the east and include; the Yangtze, Huang Ho, Pearl River, Mekong River and Brahmaputra.  The majority of China’s rivers flow into the Pacific Ocean, with two of China’s major rivers in the central east having deltas; the Huang Ho and Yangtze rivers.

History

China’s history can be traced back to the historical records of the Three sovereigns and five emperors back 5,000years ago.  All over the world, China is seen as one of the world’s continuous civilization.  China’s civilization was born from the establishment of the Yellow-River valley city states, and the year when China is seen as to have become united under a large empire being 221 B.C. The control of the large territory in China resulted from the bureaucratic system in China’s successive dynasties.

China’s first union was encouraged by Qin Shi Huang in the 221 B.C. Occasionally; conquests by foreign people plus China’s alteration between political unity and disunity periods were experienced.  The Chinese culture grew from the cultural and political influence from other Asian regions through successive waves of immigration, assimilation and expansion and some of the well known Chinese dynasties include, Xia, Western Zhou, Qin, Western Jin, Sui, Yuan and Qing.

The dynasty rule ended with the establishment of a republic in China, after many years of the Imperial rule. The Imperial rule in China ended in 1912, after the signing of the abdication decree by Empress Dowager Longyu.  China was then established as a republic on January 1, 1912 ending the Qing dynasty.

Culture, Language and Religion

In China, the Confucianism was used as the official philosophy, and is considered to have been the primary criterion for imperial bureaucracy and it even acted as the origin of China’s traditional values.  Examples of some of the Chinese culture included, music, cinema, paper art, Chinese painting and calligraphy.

China is estimated to have about 29 ethnic groups with most spoken languages originating from the Sino-Tibetan language family with the Mandarin dialect being the most spoken.  In ancient times, the panentheism system is said to have been the faith system and then later came the Confucianism and Taoism, and the introduction of Christianity and Buddhism.  Islam and Judaism can also be found in China.

Political overview

The Qing dynasty end led to the establishment of the Republic of China in January 1, 1912, and Sun-Yat-Sen proclaimed the republic’s provisional president and the implementation of full or multiparty representative democracy beginning in late 1970s. In the modern world, China has an active political participation in the society’s sectors.  The People’s Republic of China (PRC) represents China’s mainland, while Republic of China (ROC) still continues to exist in Taiwan.  The Chinese communist party which is the one party system in China governs the PRC.  On the other hand, the ROC has attempted to adopt a democratic government.

Thesis Statement

China apart from being considered as one of the world’s continuing civilization is seen by many as a modern business giant that leads when it comes to the fastest developing economy in the world. This business giant is seen to owe its success on the business industries, factories and cultural experiences in the country.

The government and technological advancements in China have no doubt influenced the growth of China as one of the world’s fast growing business giant.  The economic reforms in China which began in 1978 made China’s economy mixed and since then, the standards of living in China have been improving.  China’s fast economic growth can be seen when its Gross National Production (GDP) by 2030 is estimated to equal that of the United States.

A summer business study tour in China’s business and cultural sites was very crucial for me.  Being a business student, it was very beneficial to understand how China has grown into a business giant over a very short time.  In this report, China’s infrastructure and how its economy functions will be looked at and an in-depth discussion of how business, factories and cultural experiences have worked together to form the modern China will be given.  China’s government and technology as seen during the study tour have influenced greatly the making of China as a modern business success.  The paper based on the business tour will give an insight of modern China and how it has grown.

Main discussion

Business in China

China has managed to succeed as a business giant due to the great business opportunities it offers.  The traditional business practices in China in the nineteenth century are said to be one of the root reasons why China’s economy lagged behind which in turn made industrialization in China very slow.  Some of the reasons that hindered China’s business growth at that time included lack of China’s exports to compete effectively.  For instance, at that time, the Chinese sugar was out competed by the Javanese sugar in the market and China’s long-established silk-reeling industry could not compete well with the Japanese industry.

Other problems that China earlier experienced include, heavy foreign debt by the 1960s when the Chinese people were setting up factories within or near the major cities and the collapse of the Chinese currency system only made worse.  In addition to all the above stated problems, lack of an effective central government after the fall of the Qing dynasty in 1911 undermined the business growth in China since the warlords promoted constant internal wars in China.  The traditional business practices were observed in almost every part of China; in the local markets, through hawking and even rural produce- selling stores.

In the workshops, goods such as farm tools and electrical torches were produced by the 1930s and the modern business practices in China developed from the traditional practices.  New demands made it necessary for the Chinese labor force to adapt, which promoted the importation of new technologies.  China’s company law of 1904 was able to redefine the role of the state in business issues, since the previous legislation had made state policy towards business ambiguous and the Imperial regulations had monopolized the essential businesses in China.  However, the reforms that were brought by the introduction of the company law changed this.

The reforms aimed at overhauling the balance of power.  The merchants became favored when the imperial examination was abolished and the recognition of both commercial and agricultural associations, and the company law was made.  The World’s Depression in China made production to slump and the monetary system to come under attack.  In 1949, China’s new government was able to put inflation under control and the transition towards greater centralization of government authority was exerted on business.  The transition is said to have been encouraged by 3 stages; 1912 Republicanism, 1927 nationalism and 1949 communism.

In brief, the traditional Chinese business institutions had certain characteristics which included, the common employment of written contracts relating to land, patronage in all businesses, lack of a means to calculate capital, limited knowledge of capital and legal basis for business institutions.

However, to transform the nineteenth century Chinese institutions into twentieth century, it required China to adapt business to commercial law.  In the modern China, there is rapid growth of economy and business than all any other nations of its size.  Modern China business concepts have been adopted though several factors have influenced this (Murphy, R. 1996).

China has presented great business opportunities to individuals or other nations in the world and the attractive business opportunities have seen the influx of western companies in China.  For instance, the US has established companies in China, which has resulted to the introduction of the tradition of strict rules and procedures into China’s business operations.

Furthermore, the returning back of young Chinese business students to China, who has been educated abroad, has complemented the adoption of the new procedures.  The western companies in China have set code of conducts for their factories in China and other nations where high standards at the work place plus environmental responsibilities have promoted continued growth of business in China.  There has been a sharp decline in the importance of the SOEs (state-owned enterprises) which has promoted joint venturing of SOEs with the foreign based companies.

Business in China has been encouraged to grow by the high level of attraction that the country offers to the investors.  This has been made possible by the adoption of international accounting standards by many large state-owned enterprises in China while the joining of the World Trade Organization by China continues to encourage China-based companies to adopt Western business practices.

The Chinese business practices to some extent consider the Guanxi practice as a key factor in doing business.  The belief that establishment of a long-term relationship takes time and it’s based on friendship and trust, promotes maintenance and creation of healthy business relationships in China.  Those involved in various businesses have a tendency to avoid conflict which prevents direct conflict that may hurt the basic relationship with other parties.  This has created a stable business environment in China.  Herald Group

During the study tour, we visited some of the companies that are doing very well in China. The companies have been able to produce their products which are getting positive response from people all over the world. One such company is the Herald Group located in Hong Kong. The Herald Metal and Plastic works limited operates as a toy making division. It was established by George Bloch, Chang Dong-Song and Boris Freiman in the year 1969.  Since then, it has become a leading toy producer and has its factories on Dongguan, Shenzhen and Hong Kong.

The Herald Group in China is a company that manufactures house ware, toys, computer heads and time piece divisions.  The company is located in Hong Kong city of China’s mainland and in the United Kingdom (www.heraldgroup.com.hk/profile.htm).

The 1989 acquiring of a clock manufacturing factory by the Herald group led to the formation of Herald Electronics Limited which integrated the manufacture of watches and clocks. Herald Electronics Limited manufactures a very wide range of clock radios, watches and clocks.

This company has been growing since its establishment in 1969 and though it started off as a toy manufacturing company, Herald has managed to diversify into many other manufacturing fields.  Apart from toy and watch manufacturing the other divisions of Herald Group deal with house ware, manufacturing as well as computer storage devices.

The toys that are produced range from action figures, electronic games, pre-school toys, electronic radio-controlled toys and boats. The company ensures that the staff and company supporters adhere to the very crucial ICTI code (International Council for Toy Industries Code of Business practices). The adherence of the code of conduct by the Herald Company has earned it a place in the international market, which promotes its production and maximum gains which also continues to develop China as a business giant.

The company does toy licensing and manufactures high quality watches that enjoy world wide market.  The toy business has been growing and the development of toys that are recognized and received well in the market has created China’s good market in many areas of the world.   For example, the Herald Group has managed to produce over 400 million toy figures which include Superman, Batman, Aliens and Jurassic Park. The battery-operated toys, electronic toys and radio-controlled vehicles are also produced.

The tubing companies are also a business enterprise in China that has been manufacturing collapsible tubing and sells them in both the local and the international markets. China hosts several tubing companies that are involved in the making of collapsible tubing. The tubes are applied in the manufacture of other products that are also sold in the international markets. For instance, the aluminium collapsible tubes are produced in large quantities by various companies in China.  The produced tubes are used by other companies that are located in China while the others are exported to the various nations of the world. During our visit to one of the tubing company, the company was running a foot cream.

As discussed above, China’s ability to produce goods that are easily available and much cheaper to the other companies has made it become a favorable business location even to the foreign investors. This has continued to present China with the best business opportunities for fast economic growth, a situation that is only predicted to continue in future.

The formation of China as a modern business giant can also be attributed to the China’s change in policies that relate to business as well as to the internal business decision making. Greater access to the China markets by foreign companies has continued to encourage investors to conduct business activities in China, a situation that has encouraged China’s economic and business enterprises growth.  The elimination of import licenses and quotas for the foreign companies and the reduction of tariffs have created a favorable business environment for great investment and competition of business enterprises in China.

The business growth model in China has been so great such that its pressure has made China’s business industry to grow so rapidly.  China’s business industry’s direction has made people become interested in investing and operating in businesses. Furthermore, China’s interest to access other nation’s capital markets through Chinese IPO’s has led to the growth of business in small and large investors.

The Chinese companies are very innovative, counterintuitive and holistic in their approach to marketing, a factor that has created a good marketing network for the goods and services that they produce.  For instance, China is predicted to become the second largest auto market in the world, after the United States of America. The auto sales were estimated to hit 4m units in 2006, which shows the ability of the expanding market in China.  There was great improvement in domestic sales of Chinese auto domestic brands in 2006, which put China on a fast track in the race for domination of the market. For instance, about 982,800 sedans were sold which accounted for 25.67% of the total sales.

The rapid growth of business in China has consequently led to the growth of China’s infrastructure greatly.  For instance, the growth of the bicycle industry in China has necessitated the construction of road infrastructure to accommodate the cyclists.   The building of more and new roads has continued in order to cater for the transport needs of China’s huge population as well as for the transport of raw materials in factories or products to the market. Though in some instances, some city authorities have not been able to create comfortable infrastructure for the cyclists, efforts have been made to correct this.  The consumption of motorbike in the rural areas has increased due to the reduced taxes.

The Chinese government participation in providing infrastructure has no doubt attracted business in China (Politics, Economy and Society in Contemporary China. Paperback .1994).  The Chinese government has adopted an infrastructure strategy where it provides private investors with a world-class infrastructure.  The state provides infrastructure to the people with the government owned port authority building the infrastructure.

For instance, port infrastructure development has been the government’s initiative to encourage companies to operate efficiently and to attract more business.  The construction of efficient ports has made business activities much faster and efficient which has promoted more infrastructure development. The government has continued to promote competition between the ports, which they view as the only way to encourage ports to survive even in the world of full of business competition (Murphy, R. 1996). The need to acquire good business and to maintain it has made development of infrastructure in China compulsory.  For instance, the ports of Hong Kong and Shenzhen have shown great competition.

Both ports in the past adopted new port facilities where there was low-cost land and equipment at competing prices as well as disciplined labor. With such initiatives, productivity in the ports was encouraged, and still continues to be experienced.  The ports in China have been able to handle the vessels carrying large amounts of goods and can turn them around in the shortest time possible. Shipping lines can also go to the ports that offer cheaper services in China due to the building of more ports and terminals.

China as one of the world’s fastest developing economies has had a great appetite for infrastructural development due to its growth in business enterprises (both domestic and foreign).  China’s construction industry in 2006 was estimated at US$146. 40 billion.   Furthermore, the construction industry is predicted to grow at an average rate of 11.3% between the years 2008-2012.

China’s infrastructural growth has given a tremendous boost to both the industrial and tourism growth. The Chinese government through its 11th five-year plan period (2006-2012) made a commitment to continue supporting further infrastructure building.  The infrastructure building has included the new construction and upgrading of ports, roads, railways, oil utilities and water infrastructure. For instance, China’s major ongoing infrastructure projects include the US $35 billion Guangdong program (road and seaport development).  Another project involves the high-speed rail-link between Guangzhou and Nanning, costing US$29.5 billion.  Other two projects, Sichuan-Shanghai pipeline project (costing US$8.2 billion) and nuclear power project in Dalian (US$6.58 billion) are seen as great projects that will definitely improve China’s infrastructure.

Setting up of manufacturing units in China by companies and the Beijing Olympics in 2008 has encouraged more business through international enterprises.  For example, the construction of hotels and resorts, and construction of a state-of-the-art birds nest Olympic Stadium.  The Chinese major construction companies have worked hard to ensure good and effective infrastructure is in place where various department work to achieve this. The China State Construction Engineering Corporation (CSCES), China Railway Engineering Corporation (CREC) and China Railway Construction Corporation (CRCC), make up the country’s infrastructure sector.

China’s construction industry by 2012 is estimated to be worth US$315 .32billion which would make it contribute about 7.17% of China’s GDP (Gross Domestic Product)

The growth in business and infrastructure in China has been encouraged by technological advancements.  Over the last few years as earlier stated, business has been boosted by the establishment of both domestic and foreign companies in China.  This eventually encouraged and continues to demand the expansion and further development in infrastructure where construction is done using the most effective and easily available technology.  China’s technology has also been used for industrial output.

China has managed to raise into millions the units of high technology items such as refrigerators, air conditioners, cameras, video records and color TV sets.  China’s economic reforms which have made it a success have resulted from its focus on the technological manufacturing as well as the increased production of the raw materials.  In the ancient times, China is said to have made a range of inventions in science and technology.  Referred to as the “Four Great Inventions of ancient china” the inventions included printing, paper making, gun powder and compass.  Since then, China has integrated technology in the various aspects of its economy and industry.

The adoption of China’s reform and open policy was very instrumental in encouraging China’s rapid development in scientific and technological fields.  The establishment of the star program in China aimed to develop the agricultural field through the scientific progress support and farmer’s quality improvement.  The program has made agriculture in China to develop through science and technology.

China introduced the National Technical Innovation program to raise the competitiveness and innovation capabilities of the companies found in the country.  Through the program, the nation was also able to cultivate their technological advance mechanism.  Later on, China developed and examined hi-tech equipment projects and began to implement the high tech programs so as to catch up with the global developments in technology.

After ten years of hard work, China was able to make great technological development by the end of 1995.  Some of the achievements reached the international level; others received national awards while an estimated 244 were patented.  The successful implementation of the China’s 863 technology programs was very vital in promoting China’s high technology development by the year 1997.

The technology advancement in china has been through the domestic inventions as well as adoption from other nations.  For instance, foreign companies in China have played a huge role in introducing new technology in China. Since technology has been integrated in China’s all sectors of the economy and industry, the Hong Kong Stock Exchange has also adopted it.  The Hong Kong stock exchange acts as China’s market where shares are listed and traded.  It is seen as the Asia’s second largest stock exchange, after the first stock exchange Tokyo Stock Exchange.

In the Hong Kong Stock exchange, different companies’ shares are both listed and traded.  It is considered to be the exchange that monopolized the market from the year 1947 to 1969.  The Hong Kong Stock brokers Association was founded in 1921 and later in 1978, Hong Kong Stock Exchange (HKSE) in 1986 merged with other exchanges.  In year 2000, Hong Kong Exchanges and Clearing became the Holding company for the HKSE (www.hkex.com.hk).

The Hong Kong stock Exchange integrated computer use in its system on April 2, 1986 so as to modernize the system.  The launching of “Automatic Order Matching and Execution System” (AMS) in 1993 was later replaced by AMSB in October, 2000.  These systems were introduced to meet the increased popularity of the HKSE stock trading and since its establishment; the HKSE has contributed greatly to China’s growth in business and continues to do so.

The HKSE has total securities market capitalization of HK $8,260.3 billion (US $ 1,063.9 trillion) and ranks 8th in market capitalization globally.  In 2005, HKSE market turn over was HK$4,520.4 billion (US $ 0.582.2 trillion) having increased from the previous years’ turnover by 14%.  The market turnover main contributors are the local, institutional as well as the retail investors.  From year 2004, HKSE has had a leading derivatives market in the Asia-pacific region.

HKSE trading system is order-driven.  The two trading platforms upon which the HKSE securities market operates are the Main Board and the Growth Enterprise Market (GEM). The two platforms have increased China’s profit requirements and have raised venue for high growth of companies and they   have each different set of requirements. The HKSE main board acts as the market for capital growth. This it does by the establishment of companies that are able to meet the profits requirements.

On the other hand, the Growth Enterprise Market offers a fund raising venue that promotes ‘high growth, high risk’ companies. The GEM component is very important in the HKSE since it promotes the development of industries related to technology and also encourages the venture of capital investment.

The HKSE has developed trading systems that has allowed investors to place their requests electronically since October, 2000 and the HKSE development of trading system (AMS13) consisted of four components.  They include, Trading Terminal, Broker supplied System (BSS), Multi-Workstation system (MWS) and the Order Routing System (ORS). The investors are provided with these systems so that they can choose what the best is for them amongst the many.

In the past, the Hong Kong Exchanges and Clearing Limited (HKEx), the listing of Lyxor ETF Japan Topix ® has been done.  This was the  first Exchange Trade Fund (ETF) in Hong Kong, which was based on Tokyo Stock price Index (Topix ®).The availability of Japans Topix ETF to investors in Hong Kong enabled the investors to access one of the world’s leading equity markets with much ease, convenience, as well as cost efficiency.

The Order Routing System is very effective in offering investors a good opportunity to place their requests through electronic means while trading can be done through the terminals in the HKSE Trading Hall. Trading in exchange participants is made easy by the enabled trading from their offices, which can be done through the installed off-floor terminals. The HKSE has used leading index the Hang Seng for shares traded.  The index was introduced in the year 1969 and has consisted of 33 largest companies that have been traded on the HKSE. To give an insight into both the HKSE and AMEX (American Stock Exchange), the AMEX will be briefly discussed. This provides a clear understanding on how both exchanges operate.

The American Stock Exchange has more liberal policies in relation to company listing, as compared to HKSE.  This is because the AMEX listed companies are generally of small size as compared to the New York stock Exchange and NASDAQ. The AMEX has managed to trade the majority of the US listed ETFS.In the United States, the major stock Exchanges are found in the nation’s various cities.

For instance, cities in the USA that have major stock Exchanges include, Chicago, San Francisco, Minneapolis, Kansas city, Boston, New York, Philadelphia and Washington D.C. Though both HKSE and the American Stock Exchange support listing and trading of shares in nations that have very strong economies for creating financial opportunities for both individual and institutional investors, they vary in the way they operate. For instance in USA, the stock exchange has innovative technology products and services that have made it to be a choice for many investors all over the world

The American Stock Exchange (AMEX) is situated in New York.  It was the only market that actively listed and traded securities through the ETF (Exchange Trading Funds) by the year 2002(www.amex.com).  The ETFS means that the AMEX was able to list and trade securities across three business lines, which include, equities, exchange traded funds and options.  Through the equities, the AMEX would provide a well regulated auction market for both the small and mid-cap companies.  The AMEX have in the past been the most active equity option market and  was different from all other Stock markets in 2002, by its integration of the ETFS.  The ETFS were the most fastest in growth, and most innovative financial products.

The AMEX has integrated the Auction and Electronic market as a new automated trading platform. This enables the servicing of equities and Exchange Traded Funds (ETF) listings in the American Stock Exchange. The AEMI can then be integrated with the ANTE as the platform of trading options of the AMEX. The AEMI is very vital in enabling the exchange to allow the best bid to be offered. The BBO prices on both the AMEX and non-AMEX can be offered based on the listed issues.

The AMEX produces stock market indices. For instance, an index of stocks of Internet Companies (Inter@ctive Week Internet Index) and unique set of indices known as intellidexes have been developed in the AMEX.  The indices have attempted to gain alpha through the creation of indices that have been weighted on Fundamental factors.  On November 30, 2006, AMEX composite, a value-weighted index of stocks on exchange listed had a monthly record of close to 2,069.16 points. The New York Stock Exchange provides the price discovery through an auction environment where the environment is designed to provide both parties with the fairest prices where the stocks are able to be traded through the NYST electronic Hybrid Market.

However, a small group of very high-priced stocks cannot be traded.  The customers are able to send their orders for immediate electronic execution and the customers can route orders to the floor to allow trade in the auction market.  Through this system, over 50% of order flow can be delivered electronically to the floor.  To trade on the floor, a continuous auction format is used to trade in the NYSE with each listed stock trade having one specific location on the trading floor.

A specialist broker acts as an auctioneer in an open outcry auction market environment and has the responsibility of bringing together the buyers and sellers, as well as to manage the actual auction.  The NYSE member firm often employs a specialist broker who works together with the Exchange members who are either buying or selling stock on behalf of investors.  The brokers sometimes facilitate the trade by committing their own capital and a frenzied commotion of men and women can be experienced in the exchange.  The right of trade shares directly is one conferred to owners of the “1366” seats.

 On Hong Kong Exchanges and Clearing Limited (HKEx) the listing of Lyxor ETF Japan (Topix ® has been done.  This was first Exchange Trade Fund (ETF) in Hong Kong, which was based on Tokyo Stock price Index (Topix ®)

The availability of Japans Topix ETF to investors in Hong Kong enabled the investors to access one of the world’s leading equity markets with much ease, convenience as well as cost efficiency.

Infrastructural development in China has encouraged business and economic rapid growth. In Shanghai, China’s business centre, there is boom in the infrastructural development. Several reasons have led to this, even as the infrastructure construction has continues at a very high rate in China, especially in Shanghai.  Over five years ago, some of China’s Island experienced transportation problems.  For example, the Chongming Island has in the past experienced transport problems and the need to attach it to business centers like Shanghai has encouraged infrastructure development between the two regions.

Shanghai is China’s largest city in population and represents one of the world’s largest urban areas.  It has over 18 million people in the city and around the Metropolitan area.  By location, Shanghai is found in the Central Eastern Coast of China at Yangtze River’s mouth.  Shanghai has an advantage of a favorable port location, which makes it a good location for arriving and leaving of commodities.  Another advantage that Shanghai enjoys is the 1842 Treaty of Nanking which enabled it open to foreign trade. These factors have led to the growth of Shanghai as a business centre, which further continues to demand for more construction of the infrastructure.

These factors have made Shanghai flourish as a centre of commerce between the east and the west.  By 1930s, Shanghai became a finance and business multinational hub but the communist take over of Shanghai halted its prosperity after 1949. In 1990, Shanghai was allowed to make economic reforms which led to its booming again with great development and financing.  Shanghai due to this development became the world’s largest port by the year 2005.

There is no doubt that Shanghai is recognized worldwide as China’s most important centre for both the finance and commerce.  It is predicted to be a future global city and is usually seen as one of the world’s fastest growing economy, a prediction that has made China establish infrastructure construction programs that are ongoing.

Another factors have made Shanghai become what it is today are, its emerging tourist destination recognition due to its renown historical landmarks; Bund and Xintiandi.  Shanghai’s modern and ever expanding Pudong Skyline, Oriental Pearl Tower and its recognition as a cosmopolitan center that integrate culture and design have made it grow in relation to business and technology.

Shanghai became very significance for the trade with the west because of its strategic position at the Yangtze River Mouth, making it an ideal location for trade.  Its favorable location for trade has made it grow greatly economically, necessitating the development and construction of infrastructure to cater for the massive development it continues to enjoy and its important role as China’s business center has made it necessarily for the city to keep constructing the much needed infrastructure, to cater for the ever-growing economic development and other demands that come along with it.

Currently, Shanghai has a very extensive public transport system which includes buses, metro system and taxis.  The need to provide cost-effective and fast means of transport to its large population continues to encourage infrastructure construction. Shanghai is viewed as the birth place of everything in the modern China because it is seen as the cultural and economic center of East Asia, just like it was known for in the first half of the twentieth century.

A good example is the   driving of the first motor car in Shanghai, plus the laying of the train tracks and the modern sewers.  Shanghai is the center of film making in China, which has resulted to the development of Hong Kong film industry.  China’s regional and international recognition are found in Shanghai which makes it a great tourism attraction destination; the Shanghai Museum of art and history houses some of the best collections of Chinese history artifacts. Construction of tourism facilities have to be provided and hence infrastructure also.

References

American Stock Exchange.

            www.amex.com   Retrieved on June 30, 2008

China news, weather, business, travel, language courses, archives

            China.org.cn    http://www.china.org.cn. Retrieved on June 30, 2008

Herald Holdings Limited Company Profile

            www.heraldgroup.com.hk/profile.htm. Retrieved on June 30,2008

Hong Kong Exchanges and Clearing Limited

            www.hkex.com.hk  Retrieved on June 30, 2008

Lynch, M .1998. Peoples Republic of China 1949-90.  Trafalgar Square Publishing

Murphy, R. 1996. East Asia: A new History University of Michigan Press

            China Stock Market news and Information

            www.heavens-above.com/financialinfo/stock/china-stock-markets.html

Politics, Economy and Society in Contemporary China. Paperback .1994 Macmillan Press

Selden, M .1979. The People’s Republic of China: Documentary History of Revolutionary         Change. New York: Monthly Review Press

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Health Care System of Taiwan and the United States

Health Care Systems of Taiwan and the United States Health care is one of the most essential foundations for any citizenship in any country since whether it is effective or not, it definitely affects the standard of living and the life expectancy of a country. According to Johnson and Stoskopf (2009), “A health system as described by the World Health Organization (WHO) is the sum total of all the organizations, institutions, and resources whose primary purpose is to improve health,” (p. 3). Therefore, to positively improve a nation, having an effective ealth care system is crucial.

Being recognized as one of the powerful countries in the world, the United States has a great shape of health care programs; however, sometimes it is inaccessible to some of the citizens. On the contrary, as a small country, Taiwan is famous for its health care system although there are still defective parts existing in the current system. To compare the differences of health care systems in Taiwan and the United States, we can observe the three major aspects: ownership, cost, and quality. First of all, Taiwan and the United States have different types of ownership in the health care systems.

Thus, Taiwan owns a single-payer system, which is run by the government, forcing everyone to Join it and pay. Because of this policy, the coverage of health care is close to 99 percent (Underwood, 2009). In this country, the government-run system covers prevention, primary care, hospitalization, Chinese massage, acupuncture, traditional herbal medicine, mental health care, dental, vision, and long-term care. Unlike Taiwan, the United States possesses several types of ublic and private funding systems: Medicare and Medicaid are the two main public funded plans for Americans.

There is also abundance of private insurance companies for people to choose, but they usually have a long list of pre-existing conditions, which restricts many patients since they are unable to receive health care insurance. Although the United States contains public and private programs, nearly 15. 6 percent of Americans had no health insurance in 2003, (Samuel D. , 2010). Secondly, the cost of health care for Taiwanese and Americans is divergent. Thus, Taiwan spends approximately 6 percent of G. D. P. on health care while the United State spends about 16 percent of G.

D. P. (Seth B. , 2009, p. 1). Moreover, in Taiwan, people merely have to pay small amount of money set by the Bureau of National Health Insurance (BNHI) for each medical service received, and the BNHI will cover the rest of the payment (Taiwan Health Care Reform Foundation, 2010). As a result, no one in Taiwan goes bankrupt due to the medical bill. Unlike Taiwanese, a lot of Americans undergo bankruptcy since they cannot afford their medical bills. Finally, the quality of health care in Taiwan is not the same as that in the United to turn to.

Moreover, there is no waiting time for patients which highly enhances the effectiveness of health care. The competition between public and private hospitals improves the quality. Furthermore, every Taiwanese who is under the coverage has a Smart Card: an electronic health record, which is required for patient to bring along when seeing a doctor. The nurses would scan the card and all the medical record of that patient would appear clearly. It is a paperless system that improves treatment nd reduces redundant process of paperwork.

Different from Taiwan, the insurance companies in the United States limit the patients in what doctors and hospitals they can go to, and it is necessary to set up an appointment in advance. In conclusion, it should be underscored that the ownership of health care systems plays an important role for a country because it might affect the entire system. The cost determines whether or not the citizens of the country are able to pay for the bills. The overall quality is a critical aspect of health care system since it ight either directly or indirectly influence a patient’s well-being.

It is quite difficult for me to conclude which one of the health care systems is more effective due to the fact that Taiwan and the United States are distinctive in many ways, such as population and country size. Nevertheless, there are still several aspects that the United States can learn from Taiwan: for instance, studying other nations’ health care system. Before deciding on a health care system, the experts in Taiwan carried out research on several successful countries’ programs and eventually established its wn in 1995.

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PESTAL for China airlines

So, in order to avoid the influence of political situation of Taiwan on the airline as much as it is possible, CAL decided to change its symbol into pink plum blossoms and create new slogan-“blossom every day’. Thus, neutral brand image helped CAL to cooperate with several European cities as Amsterdam, Rome, Frankfurt and Vienna. Only in 2008, when Ma Yin-Juju came the president of Taiwan, significant steps on improvement of relationships between mainland China and Taiwan were taken. Improvement of the political situation positively influenced CAL.

Eight Taiwan and five mainland China’s airports opened for flight operations. This helped to minimize the flight time of CAL carriers, which caused the reduction of operational costs and increase in passenger flow due to the direct flights, which were undoubtedly cheaper than traveling by transit. Eleven airlines from mainland China and Taiwan started to operate 18 flights in each direction, be October 2008. Good political relationships with mainland China allowed CAL to enter into agreements with Chinese airlines.

It agreed with China Cargo Airlines and China Southern Airlines to exchange cargo space, which produced win-win outcomes for all three airlines (Ann rep, 2008), besides, CAL got an opportunity to join the Steam alliance. (Which what). CAL started to cooperate with Chugging Post Co. PESETA for china airlines By Showboating-Maharajahs in delivery to daily mail and postal goods to China. Expanded cross-strait tiling agreement, signed on April 2009, allowed to increase passenger flights from 108 in 008 to 270, and cargo flights from 30 in 2008 to 112 return services per month in 2009.

CAL started 55 scheduled direct flights to 13 cities in mainland China. However, improvement of the political situation with mainland China and opening cross-strait routs allowed expansion not only for CAL, but for Chinese airlines as well, which means that CAL experienced strong competition. From the low cost mainland China airlines. Economic The Chairman of China Airlines Philip Wee states that “about 1 million of Taiwanese business people doing business in China. They constantly go back and forth between he two sides”.

The other point is that, when people have Jobs, they have money, Which they can spend on flights. Thus, unemployment rate of Taiwan is directly correlated with the passenger flow. National Statistics, Republic of China reports that starting from the 1978 to 2010 unemployment in Taiwan had an upward trend,  and the overcompensating within this period was 2. 95 %. Unemployment in Taiwan within this period reached its highest point in 2009 and lowest in 1981, which accounted for 6. 13% and 0. 86% respectively.

In general employment rate of Taiwan had an upward trend, which means that, first, less and less people had an opportunity to travel by plane, because of the absence of work and as a result absence of money; and second, less people are doing business in China and travel there. So, it can be said that unemployment rate of Taiwan within 1978-2010 time period negatively influenced airline businesses as a result China Airline Ltd. Despite the fact that political situation and unemployment rate of Taiwan was not positive GAP of Taiwan during 1950-2010 had an upward going trans.

An average economic growth of Taiwan over 1950-2010 was 8,10%, http:// Breathe 2010. pdPDFduring almost the half of the century Taiwan transformed from having a poor, agrarian to a developed economy. It can be seen from figure 2, that TaTwain’srowth rates exceed world economy almost in all years within 1951-1999 time period, however, in 1973 and 1979 it dropped dramatically, mainly because of the oil price shocks. As it was mentioned in the case, rising profits of CAL were paused because of oil crisis in 1973.

However, oil shocks negatively influenced not only CAL, but the whole Taiwan. Increase in price for oil, deceased the revenue totortirlines, because it can be seen trtrothe financial statistics hat operating revenues minus operating expenses give operating profits of the company. Increase of price for fuel increase operating expenses of CAL and other airlines, thus, reducing operating profits. And taxes for government are taken from the operating profits, which means that the less CAL got in operating profit, the less amount of money could be got from tax.

Annual report of CAL in 2009 defines that in recent years aviation again suffered from the rising of fuel prices (Annual rep. 2009). For instance, in 2007 when competitors from mainland China presented profits, CAL suffered from loss of NT$2. 2bBillionue to the increasing costs for fuel and certain situational factors (Ann rep. 2007). Social Since the establishment of CAL in 1959, population of Taiwan had grown to 23000000 people by 2010 (figure 1), which means that potential market for sale had also grown. The more people in the country the better for the companies, because there are more chances to gain profits when population accounts for the 23000000, than when it is 1515927167ast was in 1974 Life expectancy of Taiwanese citizens increased as well (fgfigure), for instance, the average life expectancy of Taiwanese person reached for 78. 15 years by 2010. This means that the number of retired people had increased.

Most often, people in retirement spent their time for leisure, traveling. (find what old taTaiwaneseo) That is why; people in retirement are potential clients for CAL. On the other hand, there was a decrease in the birth rate. High percent of retired citizens in accordance with the small birth rate meant that there were little workforce in Taiwan, so, the cost for lalaborncreased with the increase in life expectancy rate and decrease in birth rate.

Besides, it can influence not only workforce of the country, but the brainpower. Old people are less able for innovations, for development of new abilities, concentration is also, lower , than young generation. From this point of view, company could experience difficulties with the workforce for the company. CAL is actively involved in charity programs, mainly to support children, indigent families ndNDoung students (Ann. reRep009). For instance, in 2009 CAL and the ROROCKed Cross Society held fund-raising activity called “Making Dreams Come True”. China Airlines donated more than NT$I. 9 million, obtained from in-flight duty-free sales, to support poor tatimeliestnd subsidize living cost ottooung students (Ann rep Such actions tiny, but help to increase the level of life of Taiwanese, and indirectly can influence increase in number of educated people in the country, which is important for CAL itself, because it is a huge company, which need a lot of qualified employees. Taiwan has a diversified culture, CAL always tried to support cultural heritage and share it with other nationalities.

That is why, CAL involve itself in social-benefit activities, helps to promote tourism, culture, arts and sports events (Ann. Rep 2009). For example, in 2009 CAL in accordance with TaTwain’siggest bicycle brand, named Giant, promoted the “Cycling Paradise Taiwan” campaign in order to attract overseas travelers and share warm friendship of Taiwanese people and their diverse culture (Ann rep 2009). Moreover, Taiwanese government launched a project on increase of the number of tourists in the country (anAnnep, 2007).

China Airlines actively support this project and offers its resources to attract international tourists and media. (anAnnep, 2007). This social involvement of CAL, beneficial for both: government and the company itself, because on the one hand, the flow of tourist can increase the GDGAPf the country, as they are potential nonorthwesternon the other hand, tourists are potential clients of CAL, and the more number of tourist visit the county, the higher can profit if CAL.

It, also, support sport events, than as well can increase tourism in the country, which beneficial for CAL (anAnnep 2007). Technological Much of TaTwain’schievement in science and technology is attributable to public support for applied scientific development. Government-sponsored agencies, such as the Industrial Technology Research Institute and the National Applied Research Laboratories, have played important roles in advancing TaTwain’scientific and technological development by conducting research, aiding R&D in the private sector and exploring new technologies.

To maintain TaTwain’sompetitive edge in information technology, the government, industry, and universities are active in efforts to develop cloud computing by rolling out new designs and supporting the reaeration a “Taiwan Cloud Valley For many years, Taiwan has ranked among the top five countries for the number of patents issued by the U. S. Patent and Trademark Office. It was the No. 3 recipient of all types of U. S. paPatentsver the period 1977 to 2011.

In terms of output of scientific papers, Taiwan ranked 16th worldwide in 2010 for the number of papers published in Journals tracked in Thomson Reuters’ Science Citation Index, and ninth for those published in Journals tracked in the organization’s Engineering Index. CAL owns world biggest-capacity 120000 pound engine test cell hiwhichllows maintaining its own aircraft engines and those of other aerospace companies and airline fleets in East Asia. Additionally, it is valuable and well organized because it shortens maintenance time, improves quality and helps with the recruitment of clients and the reduction of flight safety costs.

The latest technology and high cost make this resource rare and hard to imitate. One more technological invention added by CAL is located at the High-Speed Rail TaTananatation. It offers flight check-in, baggage check-in and boarding pass insurance, which saves passenger’s time and relieves from lugging his/her baggage around. Besides, it provides 25% discount on the rail ticket, which is purchased together with CAL ticket.

First of all this resource provides travelers with insurance, discounts on tickets and convenience while making check-in if they have heavy luggage.

Secondly, it is rare, as no other Taiwanese company can offer such service to their customers.

Thirdly, it is difficult to copy this resource as other companies will have to make contracts with such train stations in order to cooperate with them and finally it will be costly.

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Cultural Analysis – Taiwan

Abstract This paper is an analysis of culture within Taiwan. It will focus on how different cultural elements and dimensions effect and influence business in Taiwan. This paper will also look into the implications for businesses from the United States seeking to conduct business within Taiwan. Taiwan has a unique blend of traditional Chinese cultural as well as modern Western influences. It is an open and welcoming culture and one that plays an important role in the East Asian economy. Global Business Cultural Analysis: Taiwan Introduction to Taiwan Taiwan is a small island country located off the east coast of China in Asia.

Also known as the Republic of China (ROC), it is the place where the ROC settled after losing control of mainland China to the People’s Republic of China (PRC). Taiwan’s population is made up of mostly Han Chinese with a few other Chinese ethnic groups and a smaller number of aboriginal tribes. The official language spoken in Taiwan is Mandarin Chinese; however, about 70% of people in Taiwan speak both Mandarin and a dialect known as Taiwanese. Another dialect call Hakka is spoken by about 15% of the population and the aboriginals have several other dialects as well (Deaton & Paxson, 2000).

Taiwan has unique political status because of their strained relationship with China. At present, the PRC claims it has control over Taiwan and its territories, even though the PRC has never has exercised any governmental control over those regions. China has threatened to put political pressure on any country wanting to officially recognize Taiwan as a sovereign nation, which has led many countries, including the United States, to only recognize Taiwan in an unofficial capacity. These countries, while still doing business with Taiwan, are forced to only officially recognize China, thereby reducing Taiwan’s global influence (Friedberg, 2005).

On the economic front, Taiwan has done very well in the past few years, experiencing rapid economic growth. It is commonly referred to as one of the East Asian Tigers, a group which includes Hong Kong, Singapore, South Korea and Taiwan. The countries in this group were relatively poor until around the 1960’s when they underwent educational reforms. These educational reforms, coupled with their cheap yet dynamic workforce helped industrialize their countries and spark rapid economic growth. “In the 21st century, all four regions have since graduated into advanced economies and high-income economies” (Vadra, 2010, p. 0). Although the economic growth rate in Taiwan has slowed recently, it remains at a relatively high, yet sustainable rate. What are the major elements and dimensions of culture in Taiwan? Taiwan, like almost every country, has many different elements and dimensions of culture woven together to form an intricate and unique society. These components of society affect day to day life in both obvious and also unexpected ways. Taiwan has the same core grouping of cultural elements that one would think of affecting any country: communication, religion, ethics, moral values, social structure, and education.

However, the main elements which control the actions of most individuals and society as a whole will differ from other countries. For Taiwan, education and religion along with social structure play the major roles in the shaping of Taiwanese culture. It will be found that the main, guiding cultural elements in Taiwan, such as their religions, the sources from which they get their values and attitudes, and also their feelings of responsibility, are especially different from the main cultural elements guiding most of the western world. 1. 2. Communication Communication plays a major role in any functioning society.

The way people communication and interpret the communications of others can drastically shape the actions of a society. Communication within a culture can usually be defined as either low context or high context. In low context cultures, “cultural behavior and beliefs may need to be spelled out explicitly so that those coming into the cultural environment know how to behave” (Satterlee, 2009). On the other hand, in high context cultures, “as a result of years of interaction with each other, many aspects of cultural behavior are not made explicit, because most members know what to do and what to think” (Satterlee, 2009).

Communication within Taiwan is high context, with more nonverbal forms of communication used than in low context countries, such as the United States or United Kingdom. Even the official spoken language of Taiwan, Mandarin Chinese, is a high context language (Hall, 2000). High context communication. High context communication implies that “there is less verbally detailed communication and less written/formal information. Instead, there is a more subliminal understanding of what is communicated” (Kuo-Ying & Majtaba, 2010). Duties and responsibilities are frequently assumed or subtly implied rather than directly assigned or commanded.

Elements of communication in high context cultures such as Taiwan include indirect and embellished verbal messages, avoidance of directly challenging another person’s opinions, and situational changes. Also, an importance is placed on personal face-to-face interaction. Nonverbal communication. Nonverbal communication plays a large role in the communication process in high context countries like Taiwan. Elements, such as facial expression, eye movement, the tone of voice, gestures, and body language are all important parts of communication within Taiwanese culture.

Religious beliefs Taiwan has a large population of people practicing eastern religions such as Buddhism, Taoism and small bits of Confucianism, as well as a small but growing Christian and Catholic population (Chou, & Chen, 2005). It is also common for individuals to do some mixing of religions to accommodate their personal ideas or desires. Most religions in Taiwan incorporate ancestral worship, which is a large part of the religious practices in Taiwan. Ancestral worship even affects national holidays within Taiwan. Ancestral worship in Taiwan.

Ancestral worship is a religious act born from the belief that an individual’s ancestors have a continued existence after death and that these spirits of deceased family members have the ability to influence things in the physical world. Ancestral worship is practiced by some out of respect and honor for their ancestral heritage. For others, however, it is practiced more out of fear of upsetting spirits that may possibly influence the individual’s fortune on earth. In Taiwan, several national holidays are focused around ancestral worship practices.

Among these holidays is Tomb Sweeping Day, a holiday where families visit the graves of their ancestors to attend to their burial place as well as pay homage. Another holiday which sprang from the traditions of ancestor worship is Ghost Festival, which is a time where people place food outside their homes to feed wandering spirits. Chinese New Year also has its roots in the traditions of ancestor worship and is a time often used by families to pay their respects to their ancestors (Newell, 1976). The role of Buddhism in Taiwan.

Buddhism and Taoism are the two foremost religions practiced in Taiwan. Combined, they are practiced by more than 75% of the religious population in Taiwan (USDS, 2008). Although Buddhism teaches the putting aside of earthly ties and possessions, including family, influences from both Taoism and Confucianism and integrated some forms of ancestral worship into practiced Buddhism within Taiwan. The role of Taoism in Taiwan. Taoism and Buddhism together are the two largest religions in Taiwan. The beginning of the Taoist religion came from the early Chinese nature worshipers.

Taoist beliefs center on the idea that all things have a natural order and that through obtaining harmony with nature one can obtain eternal life. These beliefs add to the non-confrontational aspects of Taiwan’s high context culture. The role of Confucianism in Taiwan Confucianism, though practiced in Taiwan by lesser numbers than Taoism or Buddhism, is to many “an honored school of thought and ethical code” (USDS, 2008). Very similar to Taoism, Confucianism has more of a focus on performing well within society and also ritualistic ancestor worship. The Role of Christianity in Taiwan. Christian churches have been active in Taiwan for many years, and today, the population includes a small but significant percentage of Christians” (USDS, 2008). Both Catholic and Mormon churches are set up in Taiwan, but their numbers are much smaller. A majority of the aboriginal population in Taiwan are Christian. Ethical practices Ethical standards are often tied very closely to the culture in which they are practiced. According to Stedham, Yamanura, and Lai in an article examining Japanese and Taiwanese ethics: “ethics cannot be understood independent of the local cultural fabric” (2008).

Taiwanese tend to be very utilitarian representing “a collectivist culture that tends to be more homogeneous and has a greater group orientation” (Muk, 2007). Therefore, ethical decisions made by Taiwanese people are likely to focus on the wellbeing of their social group. Values and attitudes “Values are invisible and a ‘core element of culture’. These invisible values become evident in behavior. Decision making and the resulting actions and behavior are manifestations of the predominant values in a culture” (Stedham et al. , 2008).

In Taiwan, many of the values center around the individual’s social groups, most notably, the family. Saving face is another factor which often influences and motivates decision making within the Taiwanese culture. The concept of face is “related to the preference for harmony and avoidance of conflict. One aspect of face is concerned with a person’s moral character which can only be earned by fulfilling one’s obligation to others” (Stedham et al. , 2008). Face also includes “one’s reputation or prestige which can be earned through accomplishments or through bureaucratic or political power” (Stedham et al. 2008). Great lengths will be taken to avoid situations which might cause damage or embarrassment for one’s self or other resulting in a loss of face. Another factor affecting Taiwanese cultural attitudes is the concept of guanxi, which literally translated means relationship. Having a good reputation and relations on both a personal and professional level is very important to Taiwanese people. Attitudes toward gender within Taiwanese society. Gender, though in the process of equalizing, still plays an important role within Taiwanese society.

Research indicates that women in Taiwan’s job market “suffer lower earnings than men as job opportunities are not made available to them due to the labor market discrimination, family responsibilities, or lack of job mobility” (Bishop, Gronder, Liu, & Chiou, 2007). However, due to the fact that Taiwan’s industry is constantly growing, with more jobs in the labor market being filled with female workers, discrimination against females in both hiring and compensation is effectively diminishing over time (Bishop et al. , 2007). Generational differences.

Younger generations tend to follow the religious or ethical guidelines set by their predecessors more out of tradition than true belief. Therefore, there is some movement away from previously accepted religious thoughts and ideas within the younger generations in Taiwan. Recent research indicates that “young Chinese people seem not to identify themselves with traditional Chinese values and Confucian ethics. Maybe it is the result of conflict between Eastern and Western cultures. However, traditional thoughts still significantly influence most people in Chinese ocieties” (Lin & Ho, 2009). Social structures Social structures are very important in Taiwan because the culture is quite Unitarian in its design. One of the largest and most central social structures in Taiwan is family and filial piety. Religion, because of its widespread acceptance, is also a major social structure in Taiwan. Another important social structure is politics with many people in Taiwan voicing their opinions on political matters, especially those matters dealing with mainland China.

Military service also has bearing within society, and is an inevitable part of young men’s lives in Taiwan due to the fact that military service is compulsory. The importance of filial piety. Especially popular in Confucian households, filial piety is, along with brotherly love, considered the ‘roots’ of humanity. It is believed that the way perfect virtue and human perfection will become evident as an individual shows care and respect for these ‘roots’ of humanity (Ruiping, 2006). This belief translates into strong familial ties within the Taiwanese culture, as well as deep feelings of responsibility to one’s family.

The cultural effects of politics. A Datamonitor country profile of Taiwan stated: “the issue of reunification with mainland China continues to dominate domestic politics and international relations. With both the People’s Republic of China (the mainland) and the Republic of China (Taiwan) claiming to be the legitimate authority over Taiwanese land, frequent tensions between the two are common” (2010). Within Taiwan, the debate over international policy with China is ongoing, with some in favor of increasing ties with the mainland and others advocating more independence for Taiwan.

Another aspect of the strained relationship between Taiwan and China is the fact that China has greater influence in the global arena and has therefore been able to stop Taiwan’s efforts in seeking to gain global recognition as a sovereign national by the United Nations. China has also threatened severing diplomatic standings with any country to officially recognize Taiwan as its own nation. Therefore, many countries, including the United States maintain unofficial diplomatic ties with Taiwan, keeping their official diplomatic status with China intact.

Mandatory military service. It is written into Taiwanese law that males between the ages of 18 and 22 are eligible for selective compulsory military service. Service duration is 12 months. Males students seeking higher education can obtain deferments, were they have several years to complete their education before serving their time in the military. Also, any citizen between the ages of 19 and 36 are considered eligible for drafting into the Taiwan military (USDS, 2008). Education Education is a very important part of Taiwanese society.

Because of the high population density in Taiwan, there are high levels of competition for spots in top universities as well as positions in the job market. Academic excellence is so emphasized by parents that it often creates stress for students, who feel pressured to be the best. Emphases on education. Even though Taiwan’s laws mandate education through the ninth grade, approximately 95% of students go on to some form of higher education. Many parents see education as the best way to advance their children’s future. Taiwan also has a large number of cram schools for subjects ranging from math and English to sports.

Students will often spend several hours after the normal school day or on weekends getting extra tutoring and study at cram schools. High stress levels in education faced by students. According to statistical analysis by Cheng Kai-Wen, some of the biggest contributors to stress for Taiwanese college students include fear of inferiority, excessively high expectations from parents, anxiety about the future, and lack of sleep (2009). Many parents believe that a better life can be achieved through academic excellence and therefore push their children to perform well in school.

This mind set from parents can lead to children who feel guilt or shame when they are not performing up to expectations. Though Taiwan has not seen the high rates of student suicide that its Asian neighbor South Korea has experienced, it is not unheard of for students to take their own life after poor test performances. Higher education. Higher education is popular in Taiwan and, due to an increasing number of universities, greater numbers of students are able to attend under-graduate and graduate schools. How are these elements and dimensions integrated by locals conducting business in Taiwan?

Successful businesses will understand the culture they are operating within and seek to incorporate elements of that culture into their policies and practices in order to be more appealing to their target markets. Therefore, many elements of culture will automatically be integrated into locals’ businesses. In Taiwan, cultural elements such as religion, education, and attitudes are sown into the fabric of local businesses. This section will examine how elements such as religion, education, and ethics are taken from the surrounding culture and integrated into local businesses within Taiwan. 1. 2. 3.

Religion in local business Research done on the affects of religion in business negotiation styles indicated that the principles of Buddhism as well as Confucianism can have an effect on the business making decision made by Taiwanese (Farazmand, Tu, & Daneefard, 2011). Business decision made will take into account the good of the group over the good of the individual. Also, because of the high religious population, there is a large market for items used in religious practices such as incense burners, paper money, good luck charms, prayer beads, and religious ornaments. Education and its effects on business

With increasing levels of education in Taiwan has come increased competition for better and higher paying jobs. This increased competition has led to a rapid growth in the number of people obtaining higher education degrees, such as masters or doctorate degrees (Wang, 2003). Taiwan’s economy is very open to small business owners, which gives those with the education and desire to start their own business a welcoming and available environment. Business ethics and attitudes In Taiwan it is believed that “ethical standards and moral conduct must come from within business people” (Cavico, Majtaba,Venezia, & Venezia, (2011).

Many ethical standards and cultural attitudes in Taiwan are rooted in their religious beliefs, especially the teachings of Buddhism, Taoism, and Confucianism. Taiwanese businesses incorporate these standards of hard work, and family responsibility. Often, the unwritten cultural norms are relied upon to govern the decisions of employees. Also, the concept of corporate social responsibility is gain more popularity in Taiwan, with more people calling for corporations to operate in a more honest and open manner (Ip, 2007). Generational differences.

As the new generations shift away from the traditional religious practices and beliefs held by previous generations there is also a shift in moral and ethical standards. Thought possibly to be a result of the increasing embracement of Western culture, this shift in viewpoint within Taiwan could actually be beneficial for American businesses within Taiwan due to the fact that the younger generations are moving more towards Western values and ideas. After researching moral cognizance in both the United States and Taiwan, Cavico et al. ecommended a stronger push not only for business ethics education, but for the incorporation of teaching ethics into every aspect of education (2011). How do these factors compare with culture and business within the United States? The differences between high context and low context cultures include communication differences, relational differences, as well as religious and educational differences. Research has shown that there is a “significant difference between Taiwan and America in individualism/collectivism attitude” (Jung-Tsung, 2010). Communicational differences

Communication differences between the United States and Taiwan involve so much more than a simple difference of spoken languages. There is a completely different style of communicating with different backgrounds of understanding as well as different personal beliefs and goals. Businesses in the United States operate within a low context culture whereas businesses in Taiwan operate within a high context culture. To cross this barrier will require American businesses to have an understanding of high context communication and managers that are capable of working within a high context environment.

Comparing high context and low context cultures. “High context communication tends to be more indirect, ambiguous, and understated than low context communication, which is direct and precise, and expresses feelings and intentions rather open” (Usunier, & Roulin, 2010). Therefore, business communication may contain more implied concepts in Taiwan than business communication in the United States. Religion in the workplace The United States approach to dealing with religion in the workplace has been one of suppressing outward signs and discussion of religion so as to avoid any potential conflict which may arise.

Taiwan tends to be more accepting of displays of religion, probably due to their focus on group harmony. Many prominent businessmen in Taiwan are very open about their religious affiliations, making charitable donations in the name of their religion (Hoh, 2002). Religious discussion is allowed and sometime encouraged, but when issues become uncomfortable or divisive it is ignored or avoided. Education emphasis in the US compared to in Taiwan In Taiwan, there is an emphasis put on education by parents and also businesses looking to hire new employees.

In fact, education is emphasized so heavily that “attendance at cram schools is an experience that the majority of Taiwanese have while growing up” (Liu, 2012). This causes individuals to seek higher education such as graduate degrees or doctorates in order to obtain highly contended, higher level jobs. Social Structures One of the main differences between Taiwanese social structures and those in the United States is the strong family connection maintained by the Taiwanese people.

While Americans still view family as an important group in society, the feelings of filial piety in the United States are not as deep and motivating as they are in Taiwan. Also, religion, while still a factor in American culture is not as prevalent to the culture as it is in Taiwan. What are the implications for US businesses that wish to conduct business in Taiwan? Businesses seeking to conduct business within Taiwan should have a clear and complete understanding of how business is done in Taiwan.

Not only should they learn laws and regulations which will be relevant to their desired business, but they must also study the culture to understand the people and what motivates and inspires them. Businesses from the United States who are studying the culture of Taiwan will discover important differences between American and Taiwanese ways of doing business. They will then need to incorporate policy which will successfully blend the needs and goals of their business with the needs and goals of the Taiwanese culture. Possible miscommunication

Whenever companies conduct business in a foreign country, language must be taken into account. The Taiwan’s national language is Mandarin Chinese, with some of the population speaking Hakka along with some aboriginal dialects. There has been a strong push recently to learn English in Taiwan, with English classes being mandatory in school and a large number of English cram schools open for further training. Even so, the English level may be quite low, so American businesses seeking business opportunities in Taiwan should have interpreters who have a complete knowledge of both languages.

An understanding of the culture is also important when communicating and research on cultural do’s and don’ts should be conducted before initiating communication to avoid confusion and unintentional offense. For example, it is offensive in Taiwanese culture to give a clock or watch to someone as a gift because it symbolizes the termination of the relationship. A full understanding of the culture will help businesses from the United States in forming good relationships and create good guanxi for their company in Taiwan (Stedham et al. , 2008). Accommodating religious freedom

It is important for American businesses to understand and facilitate the different religious practices in Taiwan. As simple as insuring employees have adequate time off for important religious holidays and not requiring them to break their religious convictions, such as vegetarianism, respecting and accommodating the religious beliefs of the Taiwanese will help to insure the success of a prospective business there. The cultural element of avoiding conflict will help to make sure no religious discrimination or fighting will take place so businesses need not worry about that aspect as much as they do in America.

Ethical policies Businesses from the United States with operations in Taiwan should have ethics policies that are written with the Taiwanese culture in mind. They should remember that, often times, there is no need to spell everything out specifically. With the concept of corporate social responsibility become more prevalent in Taiwan, it will be important for American business to highlight appropriate social involvement (Ip, 2007). Understand employee’s family focus. One aspect that businesses can encourage their employees to focus on is family.

This will demonstrate the company’s commitment to one of Taiwan’s most important social structures, the family. The encouragement and facilitation of strong family ties will go a long way to establish a favorable public image for foreign companies operating within Taiwan. Effects of current political environment Taiwan’s economy is currently independent of China; however, any foreign business in Taiwan would be wise to watch the political relationship between mainland China and Taiwan very closely.

Taiwan has been slowly moving towards closer ties with China which would allow China to “assert increasing influence over Taiwan. As a consensus emerges in Taiwan on establishing closer relations with China, the thaw [of political tensions] is calling into question the United States’ deeply ambiguous policy, which is supposed to serve both Taiwan’s interests (by allowing it to retain its autonomy) and the United States’ own (by guarding against an expansionist China)” (Gilley, 2010).

Should China be allowed to exert control over Taiwan’s economy and political environment it could drastically change the way foreign businesses are allowed to operate in Taiwan. The effects of national healthcare on business. While healthcare is not a major cultural issue, it is useful to note that Taiwan currently has nationalized healthcare, offering inexpensive healthcare to all their citizens. While some in Taiwan oppose this system of healthcare because it can be easily abused, national healthcare would affect businesses by lowering their employee coverage costs.

Conclusion With favorable ties to the United States and growing acceptance of the Western world, Taiwan is a promising opportunity for businesses from the United States. With careful research and consideration of the culture, Taiwan could be a very profitable venture. American companies in Taiwan should be careful not to ignore the strong cultural elements in Taiwan, such as religion, family, and communication differences. However, because of Taiwan’s willingness and eagerness to work with foreign business and to expand its global presence, it is very open to foreign commerce.

Taiwan’s rapid growth and solid economy can be a very useful tool in the future as they seek to gain wider global acceptance. Taiwan’s favorable economic situation provides the ideal environment for businesses from the United States. American businesses can take advantage of the available workforce and welcoming culture found in Taiwan. Ultimately, Taiwan is a culture that is based in tradition, yet still open to new ideas and influences. The people are friendly and accepting of foreigners into their culture. They are eager to share their culture with others.

On the business side of things, Taiwanese companies work together with many American corporations and the both the culture and regulations in Taiwan in favorable to incoming businesses. Even though Taiwan has faced many challenges in the past and will continue to face those challenges in the future, mainly the task of reaching satisfactory and beneficial foreign relationships with China, Taiwan has remained strong and continued to grow. Taiwan is certain to have a bright future in the world arena. References Bishop, J. A. , Grodner, A. , Liu, H. ; Chiou, J. (2007). Gender earnings differentials in Taiwan: A stochastic frontier approach. Journal Of Asian Economics, 18(6), 934-945. Chou, T. , ; Chen, M. (2005). An exploratory investigation of differences in personality traits and faith maturity among major religions in Taiwan. Chinese Journal of Psychology, 47(4), 311-327. Datamonitor: Taiwan. (2010). Taiwan Country Profile, 1-76. Deaton, A. , ; Paxson, C. (2000). Growth, demographic structure, and national saving in Taiwan. Population and Development Review, 26, 141-173. Erling, H. 2002). Buddha business. Far Eastern Economic Review,165(35), 54. Gilley, B. (2010). Not so dire straits. Foreign Affairs, 89(1), 44-60. Hall, E. T. (2000). Context and meaning. In L. A. Samovar ; R. E. Porter (Eds. ). Intercultural communication: A reader (9th ed. ). Belmont, CA: Wadsworth Publishing Co. Farazmand, F. A. , Tu, Y. , ; Daneefard, H. (2011). Is religious culture a factor in negotiation: a cross-cultural comparison of Iran, Taiwan and the United States. Journal Of International Business Research, 10(1), 27-44. Friedberg, A. (2005). The future of U. S. -China relations: Is conflict inevitable? ” International Security 30(2), 7-45 Ip, P. (2007). Corporate social responsibility and crony capitalism in taiwan. Journal of Business Ethics, 77(1-2), 167-177. Jung-Tsung, T. (2010). Cross-cultural comparisons between Taiwan and America. Interdisciplinary Journal Of Contemporary Research In Business, 2(4), 116-129. Kai-Wen, C. (2009). A study of stress sources among college students in Taiwan. Journal Of Academic & Business Ethics,21-8. Kuo-Ying, H. , & Mujtaba, B. G. (2010).

Stress, task, and relationship orientations of Taiwanese adults: an examination of gender in this high-context culture. Journal Of International Business & Cultural Studies, 31-13. Liu, J. (2012). Does cram schooling matter? Who goes to cram schools? Evidence from Taiwan. International Journal Of Educational Development, 32(1), 46-52. Lin, L. , & Ho, Y. (2009). Confucian dynamism, culture and ethical changes in Chinese societies – a comparative study of China, Taiwan, and Hong Kong. International Journal Of Human Resource Management, 20(11), 2402-2417. Muk, A. 2007). Cultural influences on adoption of SMS advertising: A study of American and Taiwanese consumers. Journal Of Targeting, Measurement & Analysis For Marketing, 16(1), 39-47. Newell, W. H. (1976). Ancestors. Chicago, IL: Aldine Publishing Company. Ruiping, F. (2006). Confucian Filial Piety and Long Term Care for Aged Parents. HEC Forum, 18(1), 1-17. Satterlee, B. (2009). Cross Border Commerce (pp. 40-43). Roanoke, VA: Synergistics Inc. Stedham, Y. , Yamanura, J. H. , & LAI, S. (2008). Business Ethics in Japan and Taiwan: Relativist and Utilitarian Perspectives.

Asia Pacific Business Review, 14(4), 535-551. United States Department of State, Background Note: Taiwan. (2008). Background Notes on Countries of the World: Taiwan, 1-12. Usunier, J. , & Roulin, N. (2010). The influence of high- and low-context communication styles on the design, content, and language of business-to-business web sites. Journal Of Business Communication, 47(2), 189-227. Vadra, R. (2010). India’s Trade with Asian Tigers. Journal Of Marketing & Management, 1(1), 49-69. Venezia, C. C. , Venezia, G. , Cavico, F. J. , & Mujtaba, B. G. (2011). Is Ethics

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Me, Myself: A Rolling Stone Out to Gather Mosses!

Old proverbs made new, so is the scripting of my life so far. Thus at the outset I thank the Almighty for presenting me a unique kaleidoscope to look through and to bask in the joy of discovering the unknown!

The Journey
I breathed first at Taiwan, then turned into teens at Shanghai and now I’m busy shaping my life in US. My horizon zoomed on gradually, and surely, it couldn’t have been better! I hope someday I could boast about myself as a happy citizen of a global village.

Thankfully, it was not the case of uprooting, and instead it all went like a series of happy adventure so far. Of course, a few hiccups were there, but who cares if it took some sweat to rise from a non-starter to a first boy in English Class at 7th grade (Shanghai), or for that matter, to adapt to the ethnic cuisine there? Who cared either, when it took some extra effort to excel in the Basketball Varsity Team in spite of a shorter height!

Challenges actually serve as springs beneath the launching pads – so I have learnt from my experience – the greater the challenge, the greater the scope to attain a new height! I liked them all. With this spirit, this humble fish has now reached the sea, thankfully with time and tide by its side as guardian angels – one to provide the power of young mind, and the other, which is YOU, to provide me the scope to utilize that power, let alone guiding and governing me towards the right direction.

As for the rough shades, I am lucky to have seen off the monotony of a run-of-the-mill life or political storms at places. I still detest the identical uniforms and rigid routines at Taiwan School, or political tension between Taiwan and Shanghai. These are the humdrums I’ve left behind.

Yet I will obviously carry with me the simplicities of Taiwan and the financial/economic knowledge that I could garner from Shanghai. I would always salute my teachers at Villanova (the premier school of Shanghai) for cementing my basement of knowledge and rousing my craving for more of it. And why not? This business school has equipped me bit by bit, to meet all the challenges of academic and social circumstances whatsoever anywhere!

And my parents! Words would fall short to describe their contribution in my life. It’s because of them I could develop the attitude to find rhythm in diversity, to walk through the tough terrains of the unknown and to appreciate anything good anywhere.  It’s this attitude that has made my transitions smoother and enjoyable – why, today I love English language no less than Taiwanese, or for that matter Chinese. Thanks to the unique and varied grooming, today I comprehend one adage from my heart:  “The more you learn, the more it opens up for learning.”

Coming of Age
I love my pond, I love that bigger lake too and now I’m excited about my prospect in the sea! So what if I think to raise more capillaries in my brain through varied social, academic and spiritual sparks? The bigger the canvas the bigger scope for its painter!

I dream to be a part of the US society, an active molecule to its social, academic and cultural chemistry. I dream to be a big fish in Economics. Big fishes need sea, and so I am here!

And yes! It would never be all about taking. Thanks to the new age gurus, I’m a firm believer of the Law of Giving. Thus it has to be a unique symbiosis between my world and me.

And this is the world for me. Study and masterminding scopes cannot be better than what is available here. The fuss about politics is absent; the freedom of expression is highly regarded. These are the ideal conditions for a student to grow. Here I will be able to continue my co curricular activities too – I can brush up my Basketball skills again, or the debating skills I earned from the Student Association body. I can renew my writing or editing skills. I can unwind with community services. I can bask in the warmth of friendship.

Here’s the scope. Here I will be able to light a thousand bulbs in the hall of my heart. It’s here I’ll be able to air, care and share all of me.

This place is the ideal example to establish the law of giving. This is my choicest springboard for actions. And who doesn’t know, actions speak louder than words? That is my mantra and with that I’m merrily waiting at your gate. Knock knock knock! Open the door and let me in! I’ve wonderful dreams waiting to be unearthed. Let that happen here!

Ends

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Littlest Tigers

With rapid increase of GDP (Gross Domestic Product), the economies of Taiwan, Singapore, Hong Kong and South Korea have earned the reputation of being the “Four Little Tigers” of Asia. These four countries, primarily under the influence of Chinese culture had shown rapid industrialization in the decades of 1960s and the 1990s. Since the twenty-first […]

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