CULTURE CLASH IN THE BOARDROOM

CULTURE CLASH IN THE BOARDROOM

It is important to understand that the case at hand plays a critical role in exploring different issues that might arise while performing business across borders. In fact, the case in question plays a significant part in speaking of a joint venture existing between a German based organization as well as China. In particular, the German firm tries to expand its operations into China and for it to do so; it must try to get China to agree with what the organization is providing. On the same note, the available culture block comes into play as the two involved ventures operate their businesses in various ways. It is noteworthy that the case at hand is a prime instance of various issues experienced when doing global business. Simply put, it is evident that the aforementioned type of business has both negative as well as positive effects to the decision that is made (Xin and Wang 2011). In fact, the idea of international culture is the fundamental issue that faces many investors who wish to venture in international businesses. Nevertheless, I think that businesses should not go against their cultures in the naming of venturing in foreign countries. The reason is that if an organization losses its reputation as well as respect because of culture, it also losses its underlying objectives not forgetting visions that were set before the firm decided to open up its operations to the global business market.

It is noteworthy that Chinese culture plays a vital role in allowing people follow the concept of guanxi. Specifically, the aforementioned idea is recognized as a fundamental way to make sound business decisions go over smoothly. In particular, the preceding concept is known as the network of connections in China that are utilized to make important business decisions in the country. In case one firm has a better guanxi with the available vendors as compared to other organizations in the market, the enterprise with excellent guanxi wins considerable business deals over the other companies (Xin and Wang 2011). Notably, guanxi is a vital concept in China because it makes businesses in the country move at a required pace. In simple terms, guanxi can be recognized as a small form of corruption that is paramount for the flow of various businesses in China.

The stakeholders in the provided case study include customers as well as employees. In this case, clients face violation of both psychological contract as well as trust. On the same note, workers face harmful practices, criminal charges, extra paperwork, fundamental health issues, as well as lack of motivation, and this contributes to performance reduction. It is time that Almond China to comply with the available foreign corrupt practices act. However, the executives of the organizations are discussing whether to pay 1% commission of huge sale or not to the customer-purchasing manager to close the deal.

The company at hand needs to focus on the long term view and come up with a strategy as well as enforce policies as well as guidelines that adhere to the available standards. Based on social understanding, China should concentrate on honor, respect, as well as gift giving. For example, the country should consider individual moral education and ensure that this is shared for businesses to possess incentive to act and develop morals. What is more, the country at hand should reinvent public identity as ethically focused to enhance long-term sustainability in international markets. In simple terms, the country is in a position to avoid catch up ethics by concentrating on enhancing approaches as well as procedures for safety.

During a business meeting in the boardroom, the members of the executive board for the German company discuss many issues that are arising concerning the progress of negotiations with China. In the Chinese culture, it is common business protocol to be involved in bribery. It is normal for the people trying to conduct business to go play golf together, buy the client some sort of gift, or giving the client some percentage of the profit gained by the business deal. The German company feels that this goes against their entire moral culture. The German company does business in a “straight lace” fashion. All business decisions in the German company are made though ideals and thoughts that are reasonable. Conceding with the Chinese way of doing business goes against the entire business culture of the German company. Chen makes a good point when he states, “We need to be flexible in order to compete” (Xin and Wang 2011). Overall, it is noteworthy that there are negatives as well as positives to the case study at hand. If I were in Liu’s position, I would probably stay true to the culture of the German business. I would not bend the company’s policies in order to please a possible business partner. I feel like the worst thing a company can do is go against its own business culture. Simply put, the organization in question should be focusing on whether the joint venture was the right move for both companies before they try to tackle any other issues

Reference

Xin, K. and Wang, H,. 2011. Case study: culture clash in the boardroom. Harvard Business Review.