Guanxi and Gift Giving

In: Business and Management

Submitted By db791592
Words 252
Pages 2
Being in business development and having an opportunity to win a substantial contract in the previously untapped market in China can cause one to salivate. Meridian Software Inc. is in the ultra-competitive computer and network hardware manufacturing business based out of San Jose, California. Having the chance to expand your foothold into a government contract with the Chinese Ministry of the Interior will look phenomenal for your senior management and really show true initiative.
When doing business with a foreign government, it is ideal to have a consulting firm provide advice and guidance on how to approach culture differences. Luckily for Meridian in this situation, the consulting firm ICC, who specializes in international and cross-cultural business predominantly in China, has been hired to provide quick feedback in the Chinese language and culture. One part of the memo is particularly eye-catching; it states the following: “You should plan to spend at least three weeks in Beijing, and we should seek (and plan for) daily meetings with various MOI officials. The meetings should be staggered so that we meet with each relevant official individually every 2 or 3 days while in country. At each meeting Meridian should begin the meeting by presenting the MOI official(s) with a gift, and the value of gifts received by each official should increase with each successive meeting. We recommend that you choose gifts from the tiered lists in Appendix A. It is likely that MOI officials will present you with gifts as…...

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