Managing business in Asia pacific. Management Essay

CROSS-CULTURAL MANAGEMENT ISSUES OF FOREIGN COMPANIES IN CHINA
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Introduction
Doing business in another country is not an easy task. Large companies often take a lot of consideration when aiming for a specific location. China is popular with foreign investors because of the great developmental potential of businesses in China (Froese et al. 2019). However, many international corporations that seek glory in the Chinese market often fail because of the rise of unique problems. The problem with business expansion in unfamiliar countries is that cultural differences influence cross-cultural management, which can be detrimental in the operations of a company (Song 2018). According to Froese et al. (2019), there are two key challenges that international companies often face when expanding their territory in China: the business environment and management challenges.
In the challenges within the business environment, a foreign company is faced with cultural and regulatory issues that cripple the operations of a company (Froese et al. 2019). In the regulatory issues, foreign companies need support from locals of the country such as establishing local supply chain and related government procedures for smooth business operations (Froese et al. 2019). But establishing local partners is harder to achieve, especially if there is negligence in the country's culture (Froese et al. 2019). In the cultural challenges, failure to address the role of culture in establishing a business environment can create conflicts between the company and Chinese local suppliers that hinders the development of the company (Huang & Jia 2015). China does not have a homogenous culture unlike other Asian countries like Japan and South Korea, Chinese culture under the influence of varying faiths such as Confucianism, Taoism, and Buddhism that generates the majority of the Chinese market's values, norms and beliefs (Kwon 2012). Depending on the location, culture can vary where systematic assumptions of the Chinese market will change including employee labor preferences (Kwon 2012).
In the management challenges, international business expansions need to address underlying issues of cross-cultural human resource management. Although many problems flood human resources management, an international company should focus on attracting and retaining qualified employees in its China branch (Froese et al. 2019). Specifically, companies should address problems in recruiting employees, personal training problems, performance appraisal, and the issues with the compensation system (Huang & Jia 2015; Song 2018). It must be emphasized that the challenge of foreign companies is recruiting those who are qualified, especially in the managerial position. There are many undergraduates and newly graduate applicants in China that may be inexperienced in developing an international company (Froese et al. 2019). On solution in this problem is an employee or managerial training by an experienced foreign manager; however, foreign expatriates specifically qualified Western managers, are not willing to be transferred in China to...