Learning in previous classes from UMD, I still don't understand why American businesses fail so bad, even though it is emphasized that you must do your homework before entering a foreign market. Here is where Professor Yang Kun talked about during our lecture today.
First of all, United States is a based on a service economy, a terminology I have not heard of until now. To explain this topic, take McDonald's for an instance. In the USA, McDonald's is considered a fast food restaurant, where you pay and go for you food items in most situations. In China on the other hand, McDonald's is considered a sit-in restaurant, where customers like to talk and mingle while they eat in. I saw this as a big difference, as the first time I walked in to McDonald's was very much like the description that Professor Yang Kun explained. You can even plan a wedding in McDonald's in China! Something that someone would never do in the United States.
Now back to failing and surviving businesses. A failing business example is Best Buy, where they provide more information and services in the United States. China's Best Buy didn't focus on one thing, price. People in China are more price conscious, and therefore led to the downturn of Best Buy in China. For a surviving business, IKEA did their homework and adapted to the Chinese culture. By implementing the Chinese culture in a US branded company, you should not be going into a downfall like other failing businesses have done. I wish I could have even known and helped big corporations do their homework, as it seems that little of the American companies even attempt to do a little bit of research...
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