Edward+Joe(2)

8/7/2019 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.

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