Task input for the report below
Situation:
Following a recent business trip to China to investigate the possibilities of importing tea, your manager has asked you to write a report on the particularities of doing business over there.
Task: Write your report, including the following information:
- the aims of your visit
- how your meetings with tea manufacturers went
- the reaction of your potential business partners to your proposals
- advice and recommendations for other colleagues who may follow up on this visit
Write 300– 350 words.
32.1 – Report on a successful supplier visit to China
Introduction
The report was requested by our CEO, Mr John Stevens and includes important findings and information about the special circumstances when doing business in China. They were collected during a recent trip to several tea manufacturers. The purpose was to clarify the options for importing some new Chinese tea brands. The following recommendations should serve as a guidepost for other purchasing agents in our company who will visit China and several tea manufacturers.
A supplier visit in China/particularities
The arrival
The first impression is very important. If it comes to a first meeting with a possible supplier, a general knowledge of the Chinese rules of behaviour during a meet and greet situation is very helpful in doing so. A special point to mention is business cards. In China, they will be exchanged at the beginning of a first meeting.
Visiting the tea manufacturers
After a first meeting, your potential Chinese business partner should have a choice of how long and in which way your business visit will expire in his or her factory. Our recent visit showed that normally a conversation about mutual requirements and expectations will be helpful for an agreeable business atmosphere during your trip. It was almost not possible to overlook the fact that most Chinese businesspeople love to haggle. Therefore, for the purchasing party, it is very important to have the possibility to adapt your offers. An inspection of the factory/ plant itself was the next thing to do during our visit. It was obvious that the whole staff and the managers are very proud of their product. Thus, for us, it was appropriate to show a fair valuation. During some small talk, it is never wrong to show an interest in Chinese culture and society.
Conclusion of a contract
The aim of the whole visit was to establish a contract to import some new Chinese tea brands.
It was a major advantage that a member of our company management was with us. In China hierarchy is very important. Therefore, if we only send a normal employee, our Chinese business partner may not be willing to make a contract. After some final negotiation, we were able to complete a contract.
Conclusion
Our visit to Chinese tea manufacturers was successful. Due to enough preparation about the Chinese particularities of doing business and the specific manufacturers, it was possible to have a successful conversation and a pleasant negotiation. These experiences taught us some new insights.
Recommendations
A visit to China requires some general rules. Good preparation of the rules of behaviour, the culture and the manufacturer itself is essential. It is important that the loss of face of the Chinese business partner will be avoided in every situation. To receive valuable information or even complete a contract, a senior manager of your company is required. Hierarchy is very important in China, so high-ranking Chinese business partners will want an equal manager from us.
In addition, it is worth bearing in mind that in China it is common to treat your business partner also as a friend. Business comes secondary.