Social environment refers to the immediate physical and social setting in which people live or something develops. It involves the culture that the people have learnt or live in together with the institutions with which they interact. In other words, it is the way of life that the people are used to living in or their way of doing things. China, being the largest populated countries in the world, has a unique composition of its social environment. For a company to successfully carry out business in China, it is imperative for it to conduct a thorough analysis on the social environment of the country, to align the strategies it intends to use to fit in China’s unique environment

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Evaluation of China’s social environment would comprise a detailed analysis of the ethnic and language groups residing in the country. In China, the concept of being Chinese is not based on race rather it’s part of the culture practiced (Fogel, 22). When an investor aims at establishing a successful business in the country, they should learn on aspects that relate to the cultural practices of the Chinese to fully fit in. One has to embrace the cultural values of the Chinese since they are his or her potential customers. For instance, an entrepreneur has to learn various terms that are good for doing business. China is an open place to all corporates and individuals who can fit into their culture, and the country offers a good opportunity to be able to do business openly. This, for instance, is from the large populations that can serve as a readily available market for a given new commodity. A person who intends to so business should consider the legal guarantees that have been put in place by the Chines government to protect the rights of minorities and bring balance in existence in China (Fogel, 23).

China is a country that endorses collectivism. This is a practice that involves groups rather than an individual. This sort of setting in China has resulted in tighter teamwork with a more consensual decision making and developed a good information sharing platform. Many people feel obligated to get the other’s involved in an important decision, even if they are quite certain of outcome which brings about the known tradition of the Chinese people being slow decision makers (Lunicheva). An investor who wants to do business in China should consider the social aspect of collectivism when determining the type of business model to use when establishing a new business in the country. A foreigner should know the various expectations that relate to collectivism for instance, blames and rewards also are equally shared among the members of the group in corporations operating in China. This puts out that the company should be aware of promoting interpersonal relations as well as bearing in mind of its main purpose of existence.

Religion is also a vital aspect of the Chinese Social environment. The Chinese government acknowledges the existence of multiple religious’ beliefs. New corporates and investors who intend to do business in China need to understand is the diversity of religious beliefs and hence need for respect of each and inclusion of each (Fogel, 23). It is essential to give acknowledgement and respect for the opportunity to operate and thrive. China is also a relationship-oriented society. The Chinese prefer to deal with people they know and trust (Michael). Network and interaction with them are vital for the growth of a business. By building a good relationship or a good network, the company minimizes risks, failures, and setbacks. Therefore, when one intends to conduct business with the Chinese, they should be aware that they will require personal interaction with their business partners before graduating to a more professional level. A critical analysis of China’s social environment can attribute to successful business operation in the country.