Mingchuan University, 12/2012

Doing business in Taiwan

Group 4
Vincent Rimie Kevin Jenny

History
In 1949, the Communist Party came to power in mainland China. The Kuomintang (KMT) retreated to Taiwan. Taiwan has been politically estranged from China ever since.

The KMT governed Taiwan as a one party state under martial law until 1987.

Taiwan was transformed into a representative democracy. First-ever direct presidential election in 1996.

Location

Geography
The island is characterized by the contrast between the eastern two-thirds, consisting mostly of rugged mountains running in five ranges from the northern to the southern tip of the island, and the flat to gently rolling Chianan Plains in the west that are also home to most of Taiwan's population.
Taiwan's highest point is Yu Shan (Jade Mountain) at 3,952 meters (12,966 ft), and there are five other peaks over 3,500 m (11,500 ft). This makes it the world's fourth-highest island.

Climate

LIES ON THE TROPIC OF CANCER, AND ITS CLIMATE IS MARINE TROPICAL. THE NORTHERN PART OF THE ISLAND HAS A RAINY SEASON (JANUARY to MARCH) THE MIDDLE AND SOUTHERN PARTS OF THE ISLAND DO NOT HAVE AN EXTENDED MONSOON SEASON DURING THE WINTER MONTHS. THE ENTIRE ISLAND EXPERIENCES HOT, HUMID WEATHER (JUNE to SEPTEMBER). TYPHOONS ARE COMMON BETWEEN JULY AND OCTOBER.

Economy
Population: 23,174,528 (2011). GDP: 430.58 billion USD (2011). Taiwan has small deposits of coal, natural gas, limestone, marble, and asbestos.

 Source: http://www.tradingeconomics.com/taiwan/gdp

Main industries
Electronics, communications and information technology products, petroleum refining, chemicals, textiles, iron and steel, Agricultural: Rice, vegetables, fruit, tea; pigs, beef, milk; fish. Beside the globalization, Taiwan almost does not have or just few barrier is applied on some countries.

Legal/Political Environment
Taiwan is a democratic country ruled by the laws. It is rated as a free country. Taiwan and mainland China signed the Economic Cooperation Framework Agreement (ECFA) to strengthen the integrity of trade and economy and to effectively reduce the political risks between Taiwan and mainland China.

 Religions

Culture

Taiwan has many different religions: Buddhism, Taoist, Christian,

 Family life
- In a traditional Taiwanese family, age, gender and generation determine the role that each family member plays.

- The familys reputation is very importance.

Education
- Strongly emphasized in Taiwan.
- A large share of national expenditures is allocated for educational purposes.

Business customs and practices

- Business etiquette in Taiwan is formal, basic similar to the Western.

 Folk Culture and Art

- Traditional Chinese opera and famous puppet

theater.

- Taiwan's movies and performing groups.

Technology
Taiwan has advantages for the development of "KnowledgeIntensive Industries.

A large amount of Gross Expenditure was spend on R&D (USD 22.3 billion 2012).
Major source of R&D Fund: Business Enterprise (71.2%) and the Government (27.5%). Number of U.S. Granted Utility Patents of Taiwan is 8781. Taiwanese people have good skills on technology.

 Distribution

- Taiwan has 18 airports, 5 international harbors. - High speed railway and MRT network.

Financial
Taiwan has 37 local banks and 31 foreign banks. Internet banking remains unpopular in Taiwan. Taiwan has 1 reinsurance corporation, 30 life insurance companies, 20 property & casualty insurance companies.

Marketing & Communication

Internet marketing is developing. Good mobile phone network (Taiwan mobile, Chung Hwa,...) Fast ADSL and free Wi-Fi in many places.

An abundance of radio, cable TV and newspaper choices, including English-medium sources.

Meeting and Greeting

A nod of the head or a slight bow is considered polite for the first meeting. Handshakes are generally only for males who are friends. Introductions are important. Do not introduce yourself. Instead, have a third person introduce you. At a party or business meeting, wait to be introduced by the host.

Names and Titles

Use family names and appropriate titles until specifically invited by your Taiwanese host or colleagues to use their given names. The Taiwanese are often addressed by their government or professional titles. Names may have two parts. The Taiwanese generally introduce their guests using their full titles and company names.

Body Language

Do not touch anyone.

Never use your feet to move an object or to point at an object.

Men should not cross their legs. Putting an arm around another's shoulder, winking and pointing with your index finger are all considered rude gestures. Placing your right hand over your left fist and raising both hands to your heart is a greeting of respect for the elderly.

Corporate Culture
Punctuality is appreciated, but being a few minutes early or late is acceptable.

Allow your counterparts in Taiwan to set the negotiation pace. Don't set deadlines; if you do, don't disclose them. People in Taiwan often state their ideas clearly and without hesitation. However, they will generally not say a direct "no." Instead, they may say, "We'll try." "Yes" may mean, "I understand."

Corporate Culture
Friendship is valued in business. Show commitment, sincerity and respect for Taiwanese counterparts. Guan-xi (qwon-she) means connections/personal relationships. Guan-xi is vital for business success in Taiwan. The spoken word is the contract.

Dining & Entertainment

Entertaining is required to be successful in business in Taiwan and should never be regarded as a waste of time. Business entertainment can last late into the night.

Be sure to arrive on time or early for a banquet.

Do not discuss business at dinner unless your hosts bring it up. The host (person who invites) always pays the bill. It is polite for the guest to offer to pay, but don't insist.

Business Dress
- same as in the West

Gift
Show that you plan to build a long relationship.
Should represent your town, business, region or country. Hand it over with both hands. Avoid presenting the following gifts: handkerchiefs, umbrellas, white flowers, watches or clocks represent mourning.

Helpful Hints
Speaking even a few words of Chinese is greatly appreciated. Revere the elderly. Elders make the decisions. Business relationships are based on respect. All new products registered and or patented to avoid copying.

Especially for Women

Taiwan to accept women in business roles. Most Taiwan businessmen will invite a businesswoman to dinner.

Stress

Causes
Job issues
Family problems Relationships Financial matters Life pressure

Effects
Bad health Anger Sadness Depression Drug, alcohol abuse Social withdrawal

Solutions
Do exercises Assertiveness Nutrition Outdoor activities Communicating Relaxation techniques

Business ideal

Project name: SMASH STRESS Purpose: Provide a new service that allows people to deal with stress in a safety environment.

Taipei: Shilin night market, Ximending, Taichung: Feng Chia night market,..

People who get stressed and want to deal with it. Local people and foreign tourists.

Leaflets, Internet Magazines, Television,..

Greenfield 100% owners equity

About the business

Basically there are 4 different kind of room we can create Calculate the price for each room

Throwing ball room: which room allow you to throw some 119NTD per hour
soft ball as hard as you can.

Screaming room: which room allow you can cream, use

bad world as loud as you can

119NTD per hour

Soft smash room: which room you can smash every soft
things available in the room like pillow or sack of sand by available weapon

189NTD per hour

Heavy smash room: which room you can smash every

things available like laptop, television, pottery, with available weapon and goggles.

259NTD per hour

Throwing ball room

In this room we have some balls on the ground that people fell free to catch and throw in to the wall.
There are many kinds of ball available, from the big one to the small one.

Screaming room
This is just a room that sound can not leak out, so that you can scream or use bad word as loud as you want to.

We have a service that print photo of someone you hate or somethings like that.

Soft smash room

There are available soft things that youre allowed to hit, kick, or fight.

Smack of sand that you can use some baseball clubs to hit it.
More stuffs will be added.

Heavy smash room

We have some old stuffs for you to smash, it may make you feel better. There are laptop, iphone, ipad, television, pottery, etcas long as you ordered. You are required to wear goggles for your safety.