Cultural Conflict Edward Lu & Joe Sampsel. Outline The challenge The literature Daimler-Chrysler Suggestions.

Cultural ConflictCultural ConflictCultural ConflictCultural Conflict

Edward Lu & Joe SampselEdward Lu & Joe Sampsel

Outline• The challenge• The literature• Daimler-Chrysler• Suggestions

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

The Challenge• How do international corporations

avoid conflict brought on by differences in cultures?

• Stereotypes• Geographic

– Business Style

• Values– Relativism

• Communication

Stereotypes

• Stereotypes need to be unlearned– They are the most damaging in

creating cultural conflict

• Stereotypes impede progress– Lead to conflict– Misunderstanding– Breakdown

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

Values• Relativism

– Different cultures value things differently• Life• Family• Money and Possessions• Autonomy

Communication• Clear communication solves problems with conflict caused by

miscommunication• Verbal

– Small talk vs. 5W’s 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

The DaimlerChrysler Merger

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

The goal of the merger

• Expected huge savings by combining purchasing and other operations

• Reduce total research and development costs

The DaimlerChrysler Merger

• Provide Culture Workshops for employee

• No Culture Clash at manager level

However…However…However…However…

The DaimlerChrysler MergerThe DaimlerChrysler MergerThe DaimlerChrysler MergerThe DaimlerChrysler Merger

-- James Holden, President of -- James Holden, President of Chrysler Chrysler

““Mercedes was universally perceived as the fancy, Mercedes was universally perceived as the fancy, special brand, while Chrysler, Dodge, Plymouth and special brand, while Chrysler, Dodge, Plymouth and Jeep were the poorer, blue collar relations”Jeep were the poorer, blue collar relations”

Our Analysis

• Corporate Structure • Corporate Cultures• Customer proposition • Value chain • Leadership

Corporate Structure• Daimler

Hierarchical Structure

• Chrysler Team-orientated

Corporate Cultures• Daimler

Management processes of planning, organizing and controlling. More conservative, efficient and safe.

• Chrysler Setting goals, directing and monitoring

implementation. Known as the risk-taking underdog

Customer proposition• Daimler

The driving image and experience associated with the highest quality available in the market

• Chrysler Attractive, eye-catching design at a very

competitive price

Value chain• Daimler

Emphasis on engineering, design, quality and after sales service

• Chrysler High volume, low cost manufacturing

and distribution

Leadership• Daimler

Jürgen Schrempp - with independent personality and South African overlay

• Chrysler Robert Eaton - broke the Chrysler

tradition of commanders

Conclusions

• Recognize the differences in the corporate contexts – 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

Questions?

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.. ¾, pp. 58.

• Finkelstein, S. (2002). The DaimlerChrysler Merger. Retrieved Mar. 2, 2006 from http://mba.tuck.dartmouth.edu/pdf/2002-1-0071.pdf

• Strebel, P. (2002). Focus on Corporate Specifics Not National Cliché Cross-Border Lessons from the DaimlerChrysler Merger. Retrieved Mar. 2, 2006 from http://www01.imd.ch/news/research/perspectives/index.cfm?art=2325

• Wan, K. (2004). “Bridging Cultural Gap Through Communication” in: Korea Herald. January 1, 2004.