Business Structure
When looking at China from a business structure it is important to take a look at their economics and other factors such as: National Output, Labor, Communications, Commerce, Government and more. With the way China emphasizes the whole when making a decision each of the following has an impact on the structure of business.
A ten-year plan for 1976 to 1985 stressed improvement in economic management and a larger role for private and collectively owned (as opposed to state-owned) enterprises. This program was superseded by a more modest ten-year plan for 1981 to 1990, but efforts to attract Western technology and investment continued, as did a program of incentives to increase agricultural production. Policies introduced in October 1984 called for further decentralization of economic planning and for increased reliance on market forces to determine the prices of consumer goods. During the early 1990s the government continued to ease controls on the economy.
Encarta
Microsoft Student with Encarta Premium 2007 runnin...
China, Shibangou Bridge underpass, Fuling, Yan...National Output
The annual gross domestic product (GDP) of China in the early 1990s was $544.6 billion, or about $460 per capita (Encarta 98). Agricultural output (which also includes some small-scale industries in rural areas, forestry, and fishing) accounted for about 24 percent of domestic income, and industrial output (which includes manufacturing, mining, electricity generation, and building and construction) accounted for 42 percent.
Labor
The Chinese labor force in 1996 was estimated at nearly 584 million people Encarta 98). China has problems with unemployment and underemployment due to rapid population growth rate. In the mid-1990s about one-quarter of the population was 15 years of age or younger; this guarantees that a large number of young people will enter the labor force each year (Encarta 98). It is estimated that about 60 percent of the labor force consists of agricultural workers. The rural family is estimated to...
Tiny possible problem
This is referring to the rice-cooker. China is a country that rates very highly on Hofstede's collectivist country list. That means that decisions are based on group opinion. The risk of introducing innovative products is that group-opinion might lead to a negative response. Taking the rice-cooker as an example, the Chinese rice-cooker has been in existence for 20-30 years. Group-opinion may well be, if the shoe already fits, why buy a new one. This information is derived from a study comparing Australian customers to Chinese. A chinese proverb says: "the bird that flies higher than the rest will get shot first." For the rest it's not a bad essay. The author left out the part that contracts are not very respected in China, and most business-negotiations are based on guanxi-style networking. Trust, hierarchy, ingroup, retourning favours, most mentioned in the essay, is called Guanxi or Guanxi-Wang (Guanxi-network).
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