Because of the high uncertainty, Feat Motor's management decided to do a thorough background study before taking any actions, regardless how other competitors performed and experienced in the same market. Feat Motor formed a team to do the background and cultural study of Chinese market, and initiate their negotiation and operation based on those studies. The study team followed the recommendation of the American Bar Association, did cultural research on seven aspects: language, environment and technology, social organization, contexting, authority, nonverbal behavior, and time concept (Jennings, 2012, p.216); and also especially studied China's political environment due to the high level of government/political involvement in business operations.
For many Multinational Corporations, expanding their business into another country is a big decision, which means that the businesses need to learn a new whole style of negotiation (Volkema, 2010, p.1-2) and communication. Like it or not, culture plays an essential role in cross-border business negotiation and operation, businesses that are well-prepared before they start negotiation and operation will gain advantage and increase their odds to success in that particular market(s).
The American Bar Association actually recommends that businesses examine seven cultural factors and do background work in these cultural areas before attempting negotiations and business in a particular country, those seven factors are: language, environment and technology, social organization, contexting, authority, nonverbal behavior, and time concept (Jennings, 2012, p.216).