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  • Essay / Transaction Focus vs. Relationship Focus - 878

    Based on the book by Richard R. Gesteland, transaction focus versus relationship focus is one of the four patterns of cross-cultural business behavior. Many discrepancies between business orientation and relationship orientation cause both to complain when working together. Transaction-oriented people will move straight to the work part. Transaction-oriented people may be seen as aggressive, bad-mannered, and bossy. On the contrary, relationship-oriented people will focus on building strong relationships before moving on to work. Additionally, relationship-oriented people are calmer and more flexible in their business dealings. Examples of countries with a transaction-oriented culture are Australia, New Zealand, Northern Europe and North America. When it comes to relationships, Korea, Japan, China, and Taiwan are examples. In addition, there will be several explanations, analyzes and recommendations related to the “Exporting to Taiwan: Guanxi in Action” case. Taiwan is an example of a country that emphasizes relationships in business. Relationship-oriented people tend to do business with someone they know. Relationship-oriented people avoid doing business with a stranger. Therefore, most affairs in Taiwan take place between friends, family, or friends of friends. Connections or relationships that need to be managed before are doing some business with Taiwan called Guanxi (pronounced like gwan-shee). For this reason, Guanxi is an important key to succeeding in business in Taiwan and China. Guanxi is a set of connections between several societies that lend a hand and support each other. Guanxi plays a vital role in the affairs of Taiwan and China. When doing business with Taiwan or China, the first thing to do is obtain the correct guanxi. Chi...... middle of paper......put several testimonials from other customers in an attempt to increase the trust of Taiwanese people. After that, I will present several advantages of doing business with Glorious Paints regarding distribution system, product knowledge and pricing strategy. Glorious Paints is to provide a simple and fast distribution system, as well as offer competitive prices to Taiwanese customers. At certain times, Glorious Paints may also offer special offers such as free paint or a big discount during a special event in Taiwan. In summary, cross-cultural business will require businesspeople to learn multiple cultures in order to be successful. Glorious Paints can start by learning Taiwanese culture to expand the market in Taiwan. Remember to join guanxi to minimize business risks. Once Glorious Paints obtains the correct guanxi, the other barriers will decrease one by one..