Part 1: Memorandum
To: Helen Martin
Subject: Recommendation for a course of action for L.A. Silk
In order for the company to perform better both externally and internally, it is recommended that all its original designs be screened manually onto the silk in plants around LA that are similar to the workshop. It is also recommended that only the high quality tools should be used in the process of designing and with special care especially when it comes to the sector of handling and ventilating the noxious chemicals that are used in the process of silk-screening (Castle 2008).
Through this, your company will be able to meet the strict regulations provided by the environment of southern California and keep its workers healthy and loyal to LA Silks. The major problem affecting your company is that you tend to make decisions on your own without involving the other members working in the company. Therefore, for the betterment of the future of the company, you need to involve and listen to the other workers` ideas concerning the growth of the company. This is because everyone has a right to contribute and make a decision in the company as long as the idea is worthy.
Strategies your company should adapt in order for it to enhance its chances for success in China may include allowing both the employers and employees to contribute equally to the company through the process of decision in making in certain issues. This will create a healthy and a conducive environment for everyone and can work as a strategy to retain workers. This is because the company has not been able to retain its skilled labor despite the best efforts made (Cimasko 23). Therefore, to avoid such occurrences in China where it plans to relocate, you should consider this measure very significant for the performance of the LA Silk Company. There is need to attain a business license from the place where it intends to relocate. As the CEO of LA Silk company, it is also necessary that you ensure that all the paper work is accomplished in time in order to get the best or the suitable factory for the business in China. You should ensure that it provides its employers with the necessary requirements as away of motivating them to perform even better. These could be through rewarding the best performers, providing incentives to other workers and creating an environment that is free for every one to air their views.
Part 2: Letter writing
445 Erlong Road
Shenzhen urban development bureau
Helen Martin, the company president has accepted that we should consider the three factories that will be available for us to choose from. The CEO Helen Martin has become very interested in starting up a branch of the company in China. This has been motivated by the availability of labor, which is cheap in China, and the processing plant will be close to the LA Silk’s fabric suppliers. It is always good to discuss business deals face to face rather than through letters. Therefore, the leader of the LA Silk Company intends to visit China so that they can discuss the relevant issues concerning the relocation of the company to china (Beamer 76).
Helen Martin also intends to learn more about Chinese culture if the business has to prosper to even to greater heights than before. This is because it is always a requirement that the company provides accommodation to its workers, therefore since most of the Chinese workers are still young, they are most likely to cause a huge number of problem including being undisciplined. However, with the knowledge of how to handle them, then such issues could be solved. The company leaders should thus make enough investigations concerning China before settling their business.
George Liscomb, Vice President
The main problem of L.A. Silks is poor employee retention and difficulty in obtaining other skilled employees in the firm. In an effort to curb this problem, the CEO has sought to open another firm in China. She has asked the deputy CEO to ensure that the business goes smoothly with the Chinese people. However, the deputy CEO has become frustrated and he thinks that the Chinese are not on board with the plan. This could be a great danger because the way the Chinese conduct their business is different from the way the people from the West do so.
The company should conduct its business with people from China because there is availability of cheap labor and raw materials in China. However, the frustrations that the Deputy CEO has being feeling are because of the misunderstanding that has been going on between the two parties. For instance, the Chinese do not like to conduct their businesses very fast; they like to take it slow. Moreover, the Chinese do not like to conduct business with juniors, they like conducting business with the boss: thus leading to the misunderstanding with the Deputy CEO who wants to take the things very fast. Another issue is that the Chinese like creating commitment and trust first before entering into any contract. The Deputy CEO is not demonstrating either of this thus leading to the misunderstanding.
Guanxi simply means relationships between the different parties. These are the different social networks are created by the different parties. The Chinese value the relationships while doing business. In this case, L.A. Silk should look forward in creating good business relationships with the Chinese in order for their plan to be successful.
George Liscomb, the Deputy CEO of L.A. Silk is not an effective communicator. This is because he should have first learned the culture of the Chinese before becoming in contact with them. Similarly, Gui Fen is not an effective communicator since he is not ready to learn the culture of the West so that they can be able to communicate. The two misunderstood each other because neither of them took time to study the culture of the other.
The two of them have a great deal of difference in them in that, Liscomb is very fast in business and he is not interested in creating business relationships as compared to Gui Fen who takes his time in order to create good business relationships.
The information about doing business in china has altered my opinion very much because a simple case of misunderstanding can lead to people having misguided opinions about one another. I thought the Chinese were just arrogant but this is not the case, because they are very precautious people unlike the people from the western.
The challenges that will be faced in writing to Gui Fen will be to convince him that it was a misunderstanding and that you are ready to show a commitment by creating a relation after what has happened with the Deputy CEO. The challenges of writing to Helen Martin will be a difficulty in explaining to her how the cultures of the Chinese have almost led to the failure of the plan and yet she is looking forward to perform good business deals with the company.
Castle, Jeff. “Chinese business culture- Business in China requires patience.” InBusinessTV. 20 Mar. 2008. Video. 01 Jul. 2011.
Cimasko, Tony. “Writing for a Chinese business audience.” Purdue Online Writing Lab. 02 Feb. 2011. Web. 01 Jul. 2011.
Los Angeles Chinese Learning Center. Chinese Business Culture. 2008. Web. 01 Jul. 2011.