GNC Corp1 Essay Example | Topics and Well Written Essays - 1250 words

GNC Corp1 - Essay Example Let us consider the first option that is to hire native Chinese worker into the company. In order to successfully run the operation GNC Corporation will face the issue of cultural differences that exist between America and China. In One survey it has been recognized that cultural differences is the biggest barrier which any company faces while doing business. The management practices of America and China is different. So they need to take into consideration the cultural differences between them to be successful. There is a great difference between China and US with respect to political system, economic system, laws and social values despite the fact that major changes have occurred in China in recent years. China works in a centralized way while US is relatively decentralized. China follows collectivism principle. But in US they follow the principle of individualism. US enterprises have short-term orientation as compared to China’s long-term orientation (Baines 45). . These di fferences in culture greatly affect human behavior and the thinking process, and GNC must provide a platform where people from both the countries can interact on the basis of shared values. These cultural differences will impact the management practices in terms of cooperative strategies, decision making, conflict management, motivation systems and work group characteristics. American managers use open forms when faced with conflicts which are new to Chinese workers as they use assistance from third party. Also Chinese people pay more attention in building social and interpersonal relations. Also for motivating the employees the Chinese follows equity principle which is ignored by the American companies (Ambler 78). But hiring Chinese workers can do a lot of good also for GNC Company. Chinese workers will bring diversity in the business which is required for them to operate in China. They know the local people, what they need and which product will be able to sell most. Also rules a nd regulations that GNC has to follow in Chinese market can be easily followed if there is a presence of Chinese advisors in the company. With such Chinese workers they can reach out to the people in a far effective way. They will direct the strategies which the company needs to take so that their profitability increases. Another strategy that they will employ is to sell their product online, so that they can reach wider consumer base. In China the internet penetration is increasing and it has the second highest internet user base in the world. This opens up avenues of e-commerce base business style. Also the consumer can use the mobile phone as the strategy to reach to new consumers. GNC has to capture Chinese market by reaching out to the Chinese people through the use of their smart phones and digital devices. The rules and regulation of the Chinese government is strict as compared to the US market. They sometimes ban use of social media if they feel like it is a threat to the na tional security. Hence GNC must be careful to implement the online marketing which they will use. They can use Face book, twitter and their local social media sites in China to reach out to wider consumer base. Also telephone marketing is also a way of marketing through which they can use it as a medium to convey about the new products which they are offering to the consumer. Since today