Question

Please read the New York Times' article tittled "A Chinese Company in India, Stumbling Over a Culture" and answer the following questions: 1. What's the mentioned superstition when the Chinese company Foton selecting the location to build a new factory in India? 2. What are the main cultural problems that Foton face to build a new factory in that location? 3. Compared to their Western counterparts, what do most Chinese companies neglect when they expand to other markets? 4. Based on what we have learned so far in this course, what suggestions would you like to propose to the Chinese company, Foton to improve its communication effectiveness with local Indians?

Answer 1

1)Superstition held was that the site was an auspicious location according to the traditional practice of Feng Shui, i.e, it had a mountain in back and a river in front.

2)The major cultural problem that the Chinese Company had to face was religious sentiments of the locals, monks and pilgrims who visit the area. The mountain there was sacred to many Hindus. The cliffside caves were home to generations of monks. Foton erected barbed-wire fences and hired uniformed guards to keep out trespassers. Cattle herders and Hindu pilgrims have repeatedly trampled the fences. The monks consider the company as a "noisy neighbor" and believe that it will ruin the spirituality of the mountain. Large number of Pilgrims  would have lesser land to perform their rituals. Farmers sentiments towards their land, which they had to sell out to the company, was also hurt as Indian farmers are emotional about their land, especially the farmers.

3) Chinese enterprises lack the experience of their Western counterparts with regard to developing international operations. As Chinese companies have built their businesses largely at home, they haven’t had the need to address the same challenges. Western companies have worked closely with communities, communicating their projects to residents and explaining the need and the consequence of the same. Western companies send teams of executives, often with overseas experience. But Foton, on the other hand, keeps revising production plans and delaying construction. With the project stalled, the promised jobs have not materialized. Foton’s corporate style has also caused friction. It tries to manage the project mainly from China, sending executives to India for two-week visits. Due to language barrier at both ends (as most Chinese donot understand English and vice-versa) Chinese executives often speak at length in Chinese and the conversation may not have the desired impact on the participants. The neglection in terms of communicating with the locals, the need and the impact of their projects is one the main frictions created by Chinese companies as they try expansion in other countries. Locals in various countries complain of dangerous working conditions, low pay and displacement of villagers, as a result of working for Chinese Companies.

4)To improve the communication effectiveness, the Chinese need to hire more local talent, who understand the local culture and sentiments of the affected people and are able to communicate it to the Chinese effectively. Further, they could hire better translators which bridge the communication gap effectively. Chinese could prefer to hire more Chinese expats who have studied and worked abroad and understand varied local cultures and are comfortable with different Asian Languages.