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Leslie Melendez
MGMT 332G Spring 2022
“Make sure your China deals are driven by fundamentals, not opportunistic guanxi accidents.”
The best way to have better business opportunities is if you are focused on your main
goals and know exactly what you need for your business. Sometimes people will hear amazing
business plans and it might sound great but if you do not understand or know the connections to
third parties involved most of the time it might be a bad idea. Sticking to the plan that benefits
your business will be the best option even if they offer different plans.
A good example can be those companies that accept having their customer services in
Eastern countries because it is cheaper and easier, this sounds like a great deal because they will
be paying almost half off for the work and no need for facilities or benefits for the employees.
Even if you hear this great deal, investing in good customer service will always be better because
you not only make your business look better but you get to retain customers.
The key principle from all Hubert (2012) writes about how some guanxi deals are too
good to be true, if that is the case to always say no. “It is not an industry you are familiar with,
not a product or service you’ve worked before … just say no to the pure guanxi deal” Hubert
(2012, p. 790) states that if you do not understand the business that they are offering or the
people that are related to it, say no because it is never a good business plan.
I choose this principle key because I believe that no one would accept a business deal
only for monetary reasons. If you choose to be part of a business or an industry because you
believe in it and you understand what you are getting into, accepting something just because it
may give you good quantities of money is never a good idea and most of the time it ends badly.
Leslie Melendez
MGMT 332G Spring 2022
“Make guanxi considerations and relationship building part of your China strategic policy.”
Forming and connecting with customers will always be with your front line, most of the
time these are customer services, sales representatives, or people that connect to the public, and
providing the right resources will always make it easier to have a company with better quality.
Investing in the front line will always be rewarded and will show the care that the owner had for
the company.
A great example of this is a company that I used to work at. They were paying the bare
minimum and wanted the employees to go above and beyond for the company, most employees
with 3-4 years of experience quit because they found better job opportunities. I share this story
