CHINA

By

Catalina López

Natalia Gutierrez

Susana Ramírez

This class my friends and me had to made the presentation, we talked about China and our main topic was - Mergers and acquisitions-

Before we started the presentation we brought a very kind chinese guy called Zhen, he is in Colombia learning spanish and working in the "Instituto Confucio" here at university. Zhen told us a little bit about the chinese culture and the differences he saw between the colombian and his culture. He said that chinese are very influence for the confucianism , in that order, they respect a lot the spaces between the people and they do not hug or kiss each other as much as we do, to greet they just move their hands. The punctuality is highly important for them, they always arrive 5 minutes before an appointment, they give business cards with both hands and the person has to received like that. He also said that his generation is called "ants generation" because they are really hard workers. Zhen answered many questions to the group and was really nice his introduction.

Then we started saying the general aspects of this country China is the most populous state in the world with over 1.3 billion people, it is governed by the Communist Party of China (CPC) under a single-party system and exercises jurisdiction over 22 provinces, five autonomous regions, four directly administered municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two highly autonomous special administrative regions, Hong Kong and Macau.The Capital city is Beijing and the current president is Hu Jintao.

THE RELIGION

China is a multi-religious country.Taoism,Buddhism,Islamism,Protestantism and Catholicism have all developed quite a following in this country. Freedom of belief is a government policy, and normal religious activities are protected by the constitution.

Here we came to a debate, Buddhism is a religion or a style of life?

TRADITIONAL MANAGEMENT STYLE

In Confucian philosophy, all relationships are deemed to be unequal. Ethical behavior demands that these inequalities are respected. This Confucian approach should be seen as the cornerstone of all management thinking and issues such as empowerment and open access to all information are viewed by the Chinese as, at best, bizarre Western notions.

THE IMPORTANCE OF FACE

The concept of 'face' roughly translates as 'honour', 'good reputation' or 'respect'.

Types of 'face':

• Diu-mian-zi: this is when one's actions or deeds have been exposed to people.
• Gei-mian-zi: involves the giving of face to others through showing respect.
• Liu-mian-zi: this is developed by avoiding mistakes and showing wisdom in action.
• Jiang-mian-zi: this is when face is increased through others.

Our main topic was MERGING PROCESS

WHAT IS MERGING PROCESS?

• Business combination transactions involving the combination of two or more companies into a single entity.
• Most state laws require that mergers be approved by at least a majority of a company's shareholders if the merger will have a significant impact on either the acquiring or target company.

ACQUISITION and MERGERS are different, ACQUISITION is when one

company takes over another and clearly established itself as the

new owner, the purchase is called an acquisition. From a legal

point of view, the target company ceases to exist, the buyer

"swallows" the business and the buyer's stock continues to be

traded. And a merger happens when two firms, often of about the

same size,agree to go forward as a single new company rather than

remain separately owned and operated.

Mergers and acquisitions in China offer some strategic benefits

to the foreign investors, as well as the domestic investors. One of

the principal goals of the mergers and acquisitions in China is to

gain knowledge and market share in the Chinese market.

ORGANIZATIONAL CULTURE

"Guanxi" is an important chinese business element, it literally

means "relationships" and stand for any type of relationship. In

the chinese business world, however, it is also understood as the

network of relationships among various parties that cooperate

together and support one another.

BUSINESS PROTOCOL

•Only senior members of the negotiating team will speak.

Designate the most senior person in your group as your

spokesman for the introductory functions.

•Business negotiations occur at a slow pace.

•Be prepared for the agenda to become a jumping off point for

other discussions.

•Chinese are non-confrontational. They will not overtly say

'no', they will say 'they will think about it' or 'they will

see'.

•Chinese negotiations are process oriented. They want to

determine if relationships can develop to a stage where both

parties are comfortable doing business with the other.