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ALPHA GEARING SYSTEMS MGMT 810 November 29 2004 ALPHA GEARING SYSTEMS Alpha gearing systems an Illinois based gearing manufacturing company made a joint venture with Chinas Kai Li Machine systems the joint venture was called Alpha Shanghai The Illinois based company had an entirely different method of working the western culture while Kai Li had a different method of operation that was based on the Eastern culture In the Western culture the manufacture is more concerned about customer satisfaction at the design phase where as in the Eastern culture the manufacture worries about customer satisfaction after production Another major difference is that Western companies are more inclined to run operations with the least number of people they dont keep into the fact that employee job security is important as long as costs can be reduced in the production phase In the Eastern region companies work on the basis of ensuring employments In China you create relationships first and everything else follows So when you want to do business in the Chinese environment you first create a relationship in which each party understands each other and on the basis of this trust that is created other terms of the business are negotiated It is considered rude to ask for payments because its a way of saying that you do not trust the other party Due to these cultural differences doing business between some Eastern company and some Western company is a lot demanding In the West when you do business the first step is to negotiate a contract terms and conditions and a price when both parties mutually agree and a deal is struck thats when a transfer of products and service or business is
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