With the development of global economies and international immigration, international business is universal all over the world. Business cultures are regards as the significant part of international business and impact the business strategies. To demonstrate the features and influences of business cultures, this report discusses American cultures components and its effects in international business through the example of opening a Chinese restaurant in Now York City in America. The reasons of choosing America to be the host country and detailed American cultures are analyzed in the forward part of this report. Then the influence of business cultures to international business and special cultures should be considered when open Chinese restaurant is illustrated.
It is concluded that American people are pursuing individual freedom, self-reliance, equality of opportunities, competition, hard-working and seeking the wealth through the drastically analysis. They are enthusiastic, open-minded and helpful in general, however some manners and customs should be paid attention. The social structure is unbalanced and almost every religion could be found in America. Communication, negotiation and management style might be influenced by business cultures in international business. And among all American cultures discussed above, manners and customs, social structure and personal communication should be considered to the business of opening Chinese restaurant in America.
Business cultures are vital to international business, especially in current business environment. Different countries have their different values and attitudes, manners and customs, social structure, personal communication, religion and education concept (Hofstede, 1994). Each part of cultures will affect the success and efficiency of international business which should be paid more attention. How to analysis one country’s culture? What kinds of cultures should be considered in international business? This report is aimed to illustrate the inflation of business cultures through an example of opening a Chinese restaurant in Now York City in America.
The reasons of choosing America will be explained in the first part, and then detailed analysis of American cultures will be demonstrated in the second part. Some examples are taken to describe American cultures more visually. After that, niche targeting analysis of the influence of American business cultures and the ones should be concerned especially when opening a Chinese restaurant are discussed in the following part.
2. Chinese restaurant in America
The industry of Chinese restaurant in America has developed more than one hundred and fifty years, especially in recent years with the growth of economic globalization and the increase of overseas immigrant. According to statistics, there are more than 46000 Chinese restaurants exist in America, and 2500 thousand Chinese food is consumed per day. The enormous consumption demonstrates that Chinese food is very popular in America, and this brings the idea of opening a Chinese restaurant in America. This restaurant is designed to selling Sichuan cuisine which has been proved very popular in America. And it will be located in New York City in America.
3. Why choose America?
Although Chinese food is famous all over the word, America is chosen to be the host country with the following reasons. (1) The long history and enormous consumption of Chinese restaurant in America could guarantee the basic business performance. As the American people are familiar with Chinese food, the expenditure of expanding the market and advertising could be saved. (2) America is famous as its diverse cultures and highly developed economy, which provide the inclusion of different cultures and consumption level. In this country, a little expensive but distinctive menu could also be accepted.
(3) Experience of opening restaurant could be learned from other restaurants in America, such as site selection, decoration, design of menu and operating. (4) New York City is the largest city and international finance center in the world. Many international corporations have their distributions in New York City where Chinese food is also popular. Under the influence of financial crisis, many cities’ economy suffers, however New York City is still prosperity. Therefore more opportunities could be offered.
4. The culture of America
The culture of one country could affect the local business seriously. Generally speaking, culture includes values and attitudes, manners and customs, social structure, personal communication, religion, education, language, physical environments, etc. The different culture of America will be analyzed particularly in this part according to the factors mentioned above.
4.1 Values and Attitudes
Values are the overall merits and attitudes to the meaning and significance of surrounding objective things (Fischer, 2012). Once values are confirmed, they will stay stable. However, to the society and group, social values will change all over the time according to the replacement of personnel and environment. American values contain the following points.
● Individual freedom
It’s one of the most significant components of American values. Nowadays it represents the pursuing of freedom and liberation of personality. It is advocated by American people to emerge the difference between one person and another, and one could do anything he or she wants to in the scope permitted by law (Merish, 2008).
As everyone is born to be free in American’s opinion, one should enjoy the freedom totally by relying on themselves. It is common in American society that kids earn their pocket money by doing housework or manicuring lawns.
● Equality of opportunities
American believes that everyone is equal before the god and law, and they should have equal opportunities in society. One should not be deprived of equal competition opportunities as their poor social and economic positional, beliefs, race, pronounce and the difference with mainstream society.
The concept of competition has the ideal condition and basic foundation from political liberalism, economic unrestrained freedom philosophy and social democratic opinion. People seek success and individuality in this atmosphere and competition becomes the efficient method to achieving their goals.
● seeking the wealth
In America, one’s success is measured by the wealth he or she owns (Merish, 2008). The best symbol of their social and economic positional is displaying expensive dresses, luxurious limousines and beautiful houses.
Working is the thing must be traded seriously in America, because it is not only the way by which one makes a living, but also the duty one should take in the world. The working attitude and achievements have been the standards of judging one person in America.
4.2 Manners and Customs
Manners and customs are the certain patterns one expresses in communication and they are different in different countries (Truty, 2012). The correct understanding of one country’s manners and customs is significant for international business. Generally manners and customs include social manners, clothing manners, dinner manners and custom and taboo.
● Social manners
American people are enthusiastic, open-minded and helpful in general, and like making friends with strangers (Truty, 2012). Although they act casually in daily life, some social manners should be paid attention. For example, lady first is a general rule in public occasion; polite language is used in most situations. American people cherish the time and an appointment in advance is recommended (Merish, 2008).
● Clothing manners
The clothing preference could be described with several words: natural, loose and comfortable. However, they emphasize the neatness and details of dress, and it is rude to wear sleep coats in public or receiving visitors (Truty, 2012). It is also polite to take off hat and coat when entering the house.
● Dinner manners
Several rules should be obeyed in dinner. For instance, noise and smoking should be avoided when eating. Taking off clothes and shoes is impolite in public, as well as discussing sick things (Truty, 2012).
● Customs and taboos
American has many customs, such as the celebration of each holiday, have dinner with family in Christmas. And taboos are also should be concerned. For example, they dislike the number of 13 and Friday. Personal income and property should not be asked, as well as female age (Merish, 2008).
4.3 Social structure
Social structure is the constituting pattern of members of society who occupy certain resource and opportunities. It contains occupation structure, stratum structure and income distribution structure. In America the proportion of service industry is rising which has became the largest industry, while that of manufacture and agriculture is falling. The stratum could be divided into six classes: upper class, upper middle class, and lower middle class, laboring class, poorer class and underclass (Wright, 1982).
The population of middle class occupies about 50% of the social members, while laboring class accounts for 30%. Income distribution structure is similar with stratum structure. The upper class (less than 1% society members) owns more than 40% wealth, while underclass lives with public welfare.
4.4 Personal communication
Views and opinions could be expressed in personal Communication, as well as culture. American people always talk directly and ask actively. They used to get useful information through simple direct words and do not consider whether the words are beautiful or euphemistic (Merish, 2008). If they have questions about your topic, they will ask actively until they understand completely. Besides, body language is a component of communication, and one’s attitude could be reflected by gesture, posture and facial expression.
Religion is an important part of American culture. Almost all religions of the world could be found in America. It is declared by Gallup that 77% adults are Christian in America by 2012, while other religions take 6% members. And the residual 18% have no belief. 5. The influence of business cultures to international business Business cultures should be paid attention in international business, as the misunderstanding of foreign culture might misunderstand others or hurt others’ feeling. It affects international business from the following aspects (Anderson & Kolko, 2010).
Different business cultures impact communication in international business. In different cultures, the think modes, logical ways and inference pattern are different, which will be expressed on the face, tone and gesture (Becker, 2000). For example, American talks directly to each other, while Chinese prefers to speak in euphemisms. If they do not understand each other’s culture, American might think Chinese is dishonest, and Chinese regards American as rude. Communication between two countries’ people could not proceed effectively.
Business negotiation will be impacted by business cultures. As basic business activities, business negotiation decides the success and profit of international business. Business culture affects negotiation in progress, location, style and strategy (Leung, Bhagat, Buchan, Erez & Gibson, 2005). For example, American prefers cutting to the chase than long-time small talk and always choose formal commercial location for negotiation. Instead, Chinese act the opposite to them.
Cultures influence management style in international business (Muñoz-Seca & Riverola, 2011). The management styles differ in different cultures. For example, managers are regards as a special hierarchy in American culture and they actualize production through inspiring others (Merish, 2008). However, employees do not need inspiration to work hard in Germany and they are proud of their occupational skills and morals. In China, solidarity and harmony are emphasized in management as well as genetic connection, family relationship and concept of face (Alon, 2003).
6. The cultures need to consider
To the Chinese restaurant first entering American market, several business cultures should be considered. As mentioned above, culture includes values and attitudes, manners and customs, social structure, personal communication, religion, etc. The most significant cultures to a Chinese restaurant are manners and customs, social structure, and personal communication.
Manners and customs help to choose correct attitude, proper dressing, and dinner habits as well as avoid taboos (Woolliams & Trompenaars, 2003). For example, as America dresses neatly, the boss and waiters should wear clean uniform and shaving frequently. Smoking should be forbidden in restaurant and elegant background music is preferred.
Social structure helps to understand the target market and persons who consume in Chinese restaurant. The style and charging standard of restaurant depend on the surroundings. The restaurant should be located in the proper district. For example, delicate decorating and high price are suitable for middle class habitations, not for poorer class.
Personal communication is pretty important for restaurant, as service quality decides operation performance except food quality. Understanding clients is the first step to offer high quality service, and then let them feel comfortable should be advocated. Before all steps, waiters should be familiar with the characters of American communication to avoid misunderstanding. For instance, waiters should speak directly to clients to save their time and pay more attention to their body language.
About the business in foreign country, opening a Chinese restaurant in New York City in America is chosen. The main reasons include long history and enormous consumption, diverse cultures and highly developed economy, plenty of experiences and New York’s financial status. Many factors could be used to demonstrate one country’s culture, which mainly contains values and attitudes, manners and customs, social structure, personal communication, religion and education concept. In this report, American cultures are illustrated from the front five points mentioned above. Business cultures could affect international business from communication, negotiation and management style.
The different think modes and logical ways will be expressed on the face, tone and gesture and influence fluent communication without accurate understanding of foreign cultures. Negotiation could not achieve expected outcomes if business cultures are ignored. Management style differs among different countries and affects the managing patterns of superior to ordinary employees in company. To the business of opening Chinese restaurant in America, the cultures of manners and customs, social structure, personal communication should be considered.
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