[국제경영] DMG -Shanghai 사례(영문)

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목차
1. Why do you think that it is so important to cultivate guanxi and guanxiwang 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?
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?
본문내용
1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China?


In China, guanxi is an essential factor which makes a business more likely to be successful. Because the political system of China is based on communist totalitarianism, there is much more possibility to execute works by person in charge with his subjective mind rather than to the legal process. Since the flexibility is commonly available in executing process, the officials are exposed more to be in contact with reciprocal relationships, what we call guanxi. Therefore, cultivating guanxi is required to maintain a long-term business. Without guanxi, companies will not be able to overcome problems coming from the expectations of reciprocal relationships by other business-related units.

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 company’s guanxiwang, they were able to emerge as one of the China’s fastest growing advertising agencies.



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?


The way things work in China is quite different from that in other countries, especially from Western countries. There is a saying; “When in Rome, do as the Romans do”. When in China, businesses need to remember that guanxi is in higher priority than the law is. Even illegal processes can be done through guanxi. It is explained well in the case of using the old Chinese characters in advertising which is banned by government and closing down Bund boulevard where is always crowded for making the shoot.

As an entrepreneur who is starting up a business or penetrating into a new market, making full use of given resources is essential to overcome difficulties and to be successful. Every business has some sort of obstacles, and the story of DMG in Shanghai tells us sticking to strict rules and regulations is less likely to leap over the obstacles.


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?

There are several ethical issues which can be provoked by drawing upon guanxiwang. First, there will be lack of equal opportunities for business units. For start-up companies, guanxi of existing companies can be a sort of barriers for entering a market. For example, the existing companies can use guanxi to make collision among them or to get exclusive rights for using essential facilities to operate business activities from the government. It might hurt the system of free market competition.
What is more, the cozy relations between
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