Reference no: EM133189525

Case study : Mr. Smith[1] (a British expat working in Shanghai) and Mr. Zhang1 above (a Chinese expat working in London) are two expatriates ostensibly doing much the same kind of job. What follows is the story of each as seen from their own perspective.

"The rules in China are not always transparent," observes Smith, an executive at a Western firm that sells beauty products in China. His firm operates through a network of local individuals, who knock on doors and attempt to convince their acquaintances to buy lipstick and shampoo. These salespeople also recruit other salespeople. This direct selling is controversial in many countries, including China. Some officials think it poses a threat to the harmonious society. Direct marketing companies are allowed to operate only under tight conditions designed to keep out scammers. For example, they must maintain a physical presence in the neighbourhoods when they do business, so that disgruntled staff and customers have somewhere to go to make complaints.

Smith says his firm is happy to abide by the rules, but this is not as simple as it would be in the West. China's commercial law is sometimes an unreliable guide to what is allowed. For example, is it legal to recruit students to work as part-time salespeople? As far as Smith knows, it is. When some of his employees started recruiting on a university campus, however, the students' parents complained and the government took their side, making it plain that Smith's firm had crossed an invisible line. "I think it's a Confucian thing," he muses. "Chinese people place an immense value on education, and abhor anything that might distract students from their books." His firm now steers clear of students.

Despite his challenges, Smith says that he enjoys working in China. He admires his Chinese sales force. In the United Kingdom, directly selling is typically someone's second job; in China, it is a full-time occupation. Chinese people tend to have large networks of family, friends, and classmates, and they do not hesitate to use them. "It's embedded in the culture," he says. They are not embarrassed to ask for favours or publicise business propositions at family dinners. "That really helps us", says Smith.

The context in which Mr. Zhang works is quite different. English meat pies "are dry and have no flavour," he observes. Moreover, British food is very expensive. Chinese expatriates who are posted abroad do not enjoy the same lavish pay and perks that Western expatriates in China do, especially as they work for state-owned firms. Back home, Chinese managers have housemaids. "They are not used to cooking for themselves," says Zhang, a telecoms executive. When sent to work in rich countries, "they even have to clean their own toilets," he chuckles. All the same, Zhang finds life in London easier than many other Chinese expatriates, because he speaks English well. His pay is low, however, and he was posted to England without his spouse or family. "We don't have the kind of expat package that pays for family expenses, housing, or the kids' education." This can make for lonely, gloomy time.

Western expatriates in China are typically there because they want to be. Some find the culture fascinating. Most expect to make good money and improve their resume. Western multinationals feel obliged to have a presence in China, and since the country is so potentially lucrative they often send their most capable staff there. Wal-Mart's global head of procurement is based in Shenzhen. HSBC's boss moved from London to Hong Kong last year. A spell in China helps a Western executive rise to the top. The converse is not true, though. Chinese executives, especially at state-owned firms, win promotion by cultivating the right people, and those people live in China. Even a few years away from your connections can mean they go cold, threatening your chances of promotion. If you are a senior Chinese manager and you get posted abroad, it may mean you are not doing very well at home, says Zhang; and if you work for a state-owned firm, you cannot refuse to go, he adds.

According to Zhang, an advantage of working in Europe is that the rules governing business are relatively straightforward. "Everything is transparent," he says. Relationships between companies are simpler, too. In China, he says, firms assume that customers will buy only from someone they know or someone with whom they have a relationship. Therefore, they spend vast amounts of time catering to clients. Western firms do this too, but not to the same degree. Finally, differences in corporate etiquette can also be significant. If a Chinese vendor gives a presentation and the customer asks him lots of questions he cannot answer or raises lots of potential problems, the vendor will be distraught, says Zhang. He will assume that the customer does not like him. If the customer is Western, however, it probably just means that he wants to be given more information. "People here look at the facts, not the person."

At first glance, Mr. Smith and Mr. Zhang have identical jobs; they are both expatriates in each other's country and are both are working in marketing and sales. Obviously, though, the jobs are not the same.

Question : To what extent do the three elements of the communication process influence the perception of meaning in different cultures? Illustrate your discussion with examples of each of the three elements in the communication process.