PART 3

Expansion for any company is a fundamental activity that, if implemented appropriately, would result in more revenues as well as a better reputation of an organization both in its home country as well as the overseas company. Exxon Mobil, thus expansion to China is cutting edge milestone that will aid the company in expanding its bounders and market sales and consequently push the vision of the company to a higher and better position.

Cultural differences

Being an American based Multinational oil and gas organization there will be some form of difficulty, especially considering that China and American have very distinct differences in respect to their cultures. The method of conducting business is also different in China as compared to America. Being the largest country globally in terms of population and its rapidly growing market, the republic of China is a wealth of prospects for savvy business owners, especially those seeking expansion such as Exxon Mobil. The country has elaborated and strict control by the government, which may seem difficult for organizations. However, the country is best for any expansion organization.

Additionally, the focus has been shifted to consumption and innovation by the Chinese government as a way of moving from investment-based growth. This indicates that people's massive existence is an excellent avenue of creating a pool of consumers for foreign products and services, which is an important aspect that can enable an organization to thrive.

When it comes to cultural differences, a domestic company seems to do better in China. Such companies have a considerable impact and control; of the market, especially with how seamlessly the customers integrate with Chinese Culture. For foreign companies it would not be easy to penetrate the Chinese market. However, when the necessary research and adjustments of the products and marketing are made, there is an excellent chance of success for the foreign companies (John, 2017).

Furthermore, the act of gift-giving characterizes Chinese Culture. Receiving and giving gifts, according to the Chinese, is an essential act of strengthening their relationships. They also follow a specific gifting etiquette; thus, it's vital to follow their way to avoid being misunderstood. Greeting is another characteristic of the Culture in China as a sign of respect. For instance, a business card should be received with both hands and placed in a jacket rather than the trouser this is considered ethical, unlike in the US (John, 2017).

Hierarchy is another critical integral part of the business community in China. Leaders and managers are well distinguished as compared to America. Additionally, such individuals expect obedience without question. This means that in China, any humiliation or challenge to leaders and managers is taken seriously; thus, unlike in America, wherein a meeting, any member can interrupt their boss while doing their presentation through asking of equerries or suggestion, in China, this is regarded as disrespectful. These are some of the culture and cultural differences that Exxon Mobil managers and individuals responsible for expansion will encounter.

Distribution methods

Regarding how strong and elaborate the Culture is in China, the best distribution method is via Franchising. As mentioned earlier, local and domestic companies thrive well in the Chinese company; thus, Exxon Mobile company should partner with domestic companies through Franchising, where it will be able to take advantage of the roots the company has to penetrate the Chinese Market. Additionally, the company should employ locals who will be better positioned to communicate with fellow locals with ease, which will mitigate the language barrier issues. The use of locals will also help the company managers get insights on the Culture and its differences in the overseas company, which will help them interact and penetrate the market in general.

References