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GOOGLE V
S. CHIN
A
VI V
I AN
LI U
, L A
UR
EN
CR
OK
E,
AN
N Z
HE
NG
BASIC INFO
Renowned search engine
Google.com/fr/de
Expand in 2005
China 2nd highest Internet users
CURRENTLY
Restricted access- ‘Great firewall’- Thus Google unreliable, inefficient and slow.
Baidu.
Google's stake in Baidu.
Google under pressure.
THE PLAN
Hired Dr Kai-Fu Lee to help negotiations. Set up research and development centre in China.
China: Access to Googles technology and research.
Google: Gain presence in Chinese market (increase revenues).
Google set up in China Google remain on the outside
Google Pro’s Place in the Chinese
market Increased Revenues More efficient Services Achieving their goal
-‘Instant gratification’.Con’s Abiding to legal
restrictions and censorship (Decrease the value of their searches- not as thorough).
Pro’s Does not have to abide
to heavy restrictions.Con’s Offshore website would
be unreliable due to firewall.
Slow. Not achieving their goal. Baidu takes over. Missed opportunity for
increase income.
Google set up in China
Google remain on the outside
China
Pro’s Access to Google's R+D. Enhancing their
international reputation.
Create and retain many jobs.
Con’s Fear of westernisation.
Pro’s No fear of
westernisation. Censorship and
restrictions under control.
Con’s Brain Drain. Lost opportunity to
access Google's R+D.
POSSIBLE OUTCOMES
There are three possible outcomes for Google, they could:
1. Establishes a local domain.
2. Continues offshore.
3. Lobby the Chinese Government for a greater stake in Baidu.
WHAT TYPES OF SEARCHES ARE CENSORED/MONITORED?
GOAL: NEED TO DEVELOP A GOOD RAPPORT WITH CHINESE USERS
China is a collectivist society – suspicious of foreign firms.
Key learning #1: assimilation of company culture
The government acts in the interest of the country at large.
Key learning #2: consideration of all players
GOAL: USE OF DR LEE TO ASSIST IN OPENING NEW RESEARCH FACILITY
Advantages for Chinese government Curtail ‘brain drain’ and create new jobs Access to key research technology
Reconcile ascription and achievement societies
Key learning #1: recognise ‘comfort zone’ of home party Appeal to China’s relationship oriented society
Key learning #2: importance of personal relationships
GOAL: SOCIAL AND POLITICAL STABILITY – CONFIRMING TO CENSORSHIP
Google’s sacrifice
Future Orientated Society
Confucian philosophy
Key Learning: collective identities
GOAL: ESTABLISHING A POSITIVE RELATIONSHIP WITH CHINESE GOVERNMENT
Power distance community
Hierarchical society
Sequential v Synchronic cultures
Key Learning: building relationships
SOURCES
Grogan, C. and Brett, J, 2006, “Google and the Government of China: A Case Study in Cross-Cultural Negotiations,” Kellogg School of Management
Kalathil, S, 2003, “China’s New Media Sector: Keeping the State In,” The Pacific Review vol 16. No. 4 pp. 489-256
Phatak et al, 2009, International Management, 2nd edn., McGraw-Hill/Irwin, New York
Philip P. Phan, 2005, “Hu Tightens Party’s Grip on Power,” Washington Post, April 24
Brett, J. M., 2007, Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries, John Wiley & Sons, Inc.
Graham, J. L., Lam, N. M., ‘The Chinese negotiation’, Harvard Business Review, vol. 81, no. 10, p. 82-91.
Kusyk, S. 2010, ‘Unmasking the myths: learning to navigate the rough seas of ethics’, Deep Insight, no. 5, p. 31-37.