Edward+Joe(2)
Transcript of Edward+Joe(2)
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Cultural ConflictCultural ConflictCultural ConflictCultural Conflict
Edward Lu & Joe SampselEdward Lu & Joe Sampsel
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Outline
The challenge The literature
Daimler-Chrysler
Suggestions
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The Literature
Broad Review Diversity between Asia and West
Problems to recognize as an English Speaker
Avoiding language traps In business, online
Multi-national advertising
Suggestions for business-people
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The Challenge
How do international corporationsavoid conflict brought on bydifferences in cultures?
Stereotypes Geographic
Business Style
Values
Relativism Communication
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Stereotypes
Stereotypes need to be unlearned They are the most damaging in creating
cultural conflict
Stereotypes impede progress Lead to conflict
Misunderstanding
Breakdown
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Geographic Conflict
Differences abound Business style
East and West Emotional vs. Logical Yes and No
Nationalism West and West
East and West East and East
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Values
Relativism Different cultures value things
differently
Life Family
Money and Possessions
Autonomy
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Communication
Clear communication solves problems with conflict caused bymiscommunication Verbal
Small talk vs. 5Ws and H Yes and No are not always clear Progress is viewed differently Time
Meetings Phone Time zones
Agenda Superiority
Non-Verbal Sight-seeing
Smoking Eye-contact Physical Contact
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The DaimlerChrysler Merger
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The DaimlerChrysler
Merger Daimler-Benz luxury vehicles had
captured less than 1% of the
American markets. Chrysler's primary reason for
teaming with Daimler-Benz is to
extend its international reach
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The goal of the merger
Expected huge savings by combining
purchasing and other operations Reduce total research and
development costs
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The DaimlerChrysler
Merger
Provide Culture Workshops for
employee
No Culture Clash at manager level
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HoweverHoweverHoweverHowever
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The DaimlerChrysler MergerThe DaimlerChrysler MergerThe DaimlerChrysler MergerThe DaimlerChrysler Merger
---- James Holden, President ofJames Holden, President of
ChryslerChrysler
Mercedes was universally perceived as the fancy,Mercedes was universally perceived as the fancy,
special brand, while Chrysler, Dodge, Plymouth andspecial brand, while Chrysler, Dodge, Plymouth andJeep were the poorer, blue collar relationsJeep were the poorer, blue collar relations
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Our Analysis Corporate Structure
Corporate Cultures Customer proposition Value chain Leadership
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Corporate Structure Daimler
Hierarchical Structure
Chrysler
Team-orientated
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Corporate Cultures Daimler
Management processes of planning,organizing and controlling. More conservative,
efficient and safe.
ChryslerSetting goals, directing and monitoring
implementation. Known as the risk-takingunderdog
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Customer proposition Daimler
The driving image and experience associatedwith the highest quality available in the market
ChryslerAttractive, eye-catching design at a very
competitive price
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Value chain Daimler
Emphasis on engineering, design, quality
and after sales service
Chrysler
High volume, low cost manufacturing anddistribution
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Leadership Daimler
Jrgen Schrempp - with independent
personality and South African overlay
Chrysler
Robert Eaton - broke the Chryslertradition of commanders
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Conclusions
Recognize the differences in the corporatecontexts will this merger work?
Channels of communication must be open Consider a mediator at meetings hired help (if you are
a multi-billion dollar company) Goals, goals, goals?
Avoid cultural stereotyping Trade employees a major failure
Resolve cultural stereotypes
Contextual differences - $ Share knowledge Exploit the merger
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Questions?
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References
Cox Jr. T.H. (1996) Intergroup conflict, in: Shafritz, J. M. & Ott,S. J., Classics of Organization Theory, 4th edition, 192-202. Dou, W. & Clark Jr., G.W. (1999). Appreciating the diversity in
multicultural communication styles, in: Business Forum, Vol. 24,Is.. , pp. 58.
Finkelstein, S. (2002). The DaimlerChrysler Merger. RetrievedMar. 2, 2006 from http://mba.tuck.dartmouth.edu/pdf/2002-1-
0071.pdf Strebel, P. (2002). Focus on Corporate Specifics Not NationalClich Cross-BorderLessonsfromtheDaimlerChryslerMerger.RetrievedMar. 2, 2006 fromhttp://www01.imd.ch/news/research/perspectives/index.cfm?art=2325
Wan, K. (2004). Bridging Cultural Gap Through Communication in:
Korea Herald. January 1, 2004.