Analyzing Shandong Company through Chinese and Canadian Culture Differences

The Company Shandong
Student’s Name
Institutional Affiliation
The Company Shandong
Business organizations are fast pursuing internationalization as a primary strategy to stay competitively sustainable in their operational environments. As globalization expands, more businesses are attempting to operate in more countries. Operations in different countries accord businesses an opportunity to create new markets for their goods and services besides opening avenues for more human and material resources for such business entities. The challenge of operating at a multinational level is that the rules of operations change with every nation. Aspects such as politics, culture, and legal factors change as soon as businesses advance their activities beyond a single geographical area. Hence, business managers must understand their targeted markets and operational settings before venturing. Still, it is important to venture strategically into a new setting, or the business entity can face challenges that most new entrants face, such as difficulties to adapt to the prevalent culture. Company Shandong is an organization attempting to expand its operations from China to Canada. The Canadian business operational environment is different from the Chinese, a prospect that may require Shandong to approach the move strategically. In this paper, the analysis delves into Shandong and its proposed operations in Canada through the lenses of environmental analysis, culture analysis, and competitive analysis. Any business organization that intends to stay competitive in a foreign operational environment must conduct an insightful environmental and cultural analysis before delving into its competitiveness to validate the move.
Case Summary
Company Shandong is a business entity that is on a positive trajectory considering its intent to grow into the Canadian mining sector. In May 2020, Shandong announced its intent to grow its operations by signing an agreement sanctioning its TMAC Resources acquisition. TMAC is a publicly listed Canadian company that mines gold. Shandong, in the signing, announced that it would acquire 100% of the equity in cash. With such an acquisition, Shandong would pursue some of TMAC’s strategic resources, such as the Hope Bay gold project that has stalled since 2017 due to challenges, including the difficulty navigating the hostile polar environment and the lack of financial and technical resources to execute the plan. Shandong has shown that it has the financial ability to explore the stalled project. However, it still requires the inputs of the Canadian workforce and technology in such a hostile environment, something that it will find challenging. Canada is also a unique country when it comes to mining. The country is subdivided into ten provinces, with each province accorded jurisdiction over its mining activities. In the Northwest Territories, such as Nunavut, exploration rights and mining rights are governed by different laws. Also, there are different surface land rights and underground mineral rights. Negotiations with the indigenous people and the acquisition of land entry permits are some of the challenges in this region for private mining companies. While the agreements with the indigenous people can ...