DMG-Shanghai-International Business

1.Why do you think that it is so important to cultivate guanxi and

guanxiwang in China?
Guanxi literally means relationships, although in business settings it can be
better understood as connections. Guanxi has its roots in the Confucian
philosophy of valuing social hierarchy and reciprocal obligations. Confucian
ideology in China has a history of more than 2000 years.
I think that it is so important to cultivate guanxi and guanxiwang in China
because both of guanxi and guanxiwang are essential to business in China. It is
an important mechanism to do a long-term business and getting successful
business in China. Guanxi refers to the business connections that are so
important to companies doing business in China. Then, guanxiwang refers to
the relationship network that companies cultivate. Therefore, by establishing in
relationships would help do a better job and mechanism in doing business in
China.
2.What does the experience of DMG tell us about the way things work in
China? What would likely happen to a business that obeyed all the rules
and regulations, rather than trying to find a way around them as Dan
Mintz apparently does?
(a)The experience of DMG shows us that culture is an important thing in China.
Guanxi, what means relationships or connections and guanxiwang, what means
relationships network is a very important piece of there culture. They are also
crucial to whom who are trying to start a successful business in China.
(b)Although you hold some obligations towards your superiors, they also have
to reward you with something. This obligation helps them to get a good
reputation and support for the future. In China when you have these
relationships, it will help you work around the law and it can open doors for
your business that normally can not be opened. It also is very useful when you
have a business that delivers a good job, they bring the message over what
gives you the opportunity to get good assignments from major
companies.
(c)So a business in China without the relationships network is doomed to fail,
because if you cant work around the law and have doors opened for you it is
almost impossible to get a successful business.
As we look through the case of DMG in Shanghai, we recognize the influence of
guanxi more apparently. Dan Mintz, the founder of DMG, had no prior
experience in the fields of advertisement. He had no contact in China, even no
Mandarin language. However, he had guanxi with two young Chinese who have
connections with people of various levels. Making their connections as bedrock

of the companys guanxiwang, they were able to emerge as one of the Chinas
fastest growing advertising agencies. DMG shows us that culture is an
important thing in China. Guanxi refers to the business connections that are so
important to companies doing business in China. Guanxiwang refers to the
relationship network that companies cultivate. Both of these are important to
the Confucian ethics loyalty, reciprocal obligations, and honesty in dealing
with others - that drives business in China. Dan Mintz believes that guanxi and
guanxiwang are important because they help companies get around
restrictions that limit the ability of companies to function. It also is very useful
when you have a business that delivers a good job.
3.What are the ethical issues that might arise when drawing upon
guanxiwang to get things done in China? What does this suggest about the
limits of using guanxiwang for a Western business committed to high
ethical standards?
The ethical issues that might arise are that, as an reciprocal, you might be
asked to do something which is highly illegal in your own country or is
against your personal beliefs in order to get things done in China through
guanxiwang. For a western business with high ethical standards this means
that they can only use guanxiwang for very little favors, because if they ask a
big favor and the reciprocal is something which is illegal and it all comes out
the western business loses their good reputation and with that their
customers.