ping a business in China one should always consider the cultural factors that makes the Chinese society so strong and differentiating it from western societies. The fact that China wants to grow, does not mean that it will do it with the western models and philosophy, rather it will be with models developed from their own culture. This is the point that can be attributed to cause most of the problems between Chinese and Western cultures, and the point to be accepted in order to be successful in developing a successful business relationship in China. Negotiating in China can be very frustrating. Differences in decision making styles and negotiating tactics cause misunderstanding and tension. Chinese culture is based on the importance of rituals and ceremonies and so is Chinese business. Business meetings are as important as the dealings during receptions. To exemplify the process of dealing with China in order to develop a productive relationship we will use the case of Kentucky Fried Chicken in China. This case includes the different problems and strategies used in the negotiation and development of business in China, specifically in setting up a foreign joint venture. However, the problems that arise and the current working environment of the Chinese economy cannot be understood without first understanding the history and the cultural revolutions that have shaped it. This brief outline of the history of China leads insight into some of the problems and the resolutions that a manager for KFC experienced during his venture with the Chinese. KFC in China In 1986, Tony Wang was Vice President of the Southeast Asia division of KFC. He had an opportunity of bringing the world's largest chicken restaurant company into the world's largest populated country. Wang was an experienced entrepreneur and had been working for KFC for seven years. No other fast food companies were currently operating in the People's Republic, so Wang did not have...
