assignment 4




Refer to the following:

  • Logistics Profile 11-2 (“Guanxi Rules”)

Conduct research to amplify the profile’s discussion of guanxi. What kinds of attitudes and activitikes does the term include? How might a firm develop it? What are the keys to maintaining it? Provide illustrations of firms that seem to have it as well as some that seem not to have it. How does this highlight the importance of cultural awareness in today’s global environment?


Of the issues discussed in Chapter 12, which two do you believe will dominate the provision of transport services in the future?

Global Logistics Management: A Competitive Advantage for the 21st Century, 2d ed., by Kent N. Gourdin. (Malden, MA: Blackwell, 2006). Chapter 12



Thinking About Trade-offs

What trade-offs must a purchasing manager consider when evaluating quality levels of the goods offered by different vendors? What are the potential advantages of reducing the number of vendors supplying the organization?



Guanxi is an organizational cultural characteristic involving interpersonal and inter-organizational networking among individuals within an organization. In China, guanxi is a very critical factor in determining the flow of resources and interactions among individuals in their working environments with respect their organizational dynamics. The system of guanxi networking is determined by various factors like organizational characteristics, and strategic capabilities among others. As noted by Yadong (2007), organizational attributes shape the operational synergy of organizational networking systems. With the turbulent organizational external environment, it has been very vital for firms to overcome uncertainty using guanxi networks. Particularly, guanxi partners coordinate various decision making processes done within organizations since information on the prevailing external conditions is continuously shared within the network. For instance China National Petroleum and China Ocean Shipping are among the largest companies in which utilize guanxi networks.