case study culture clash in the boardroom

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HBR Case Study: Culture Clash in the Boardroom

• Katherine Xin
• Wang Haijie

Should a German-Chinese joint venture follow the ethical rules of the parent company or the country of operation?

The room was already packed when Liu Peijin walked in. His flight from Shanghai to Chongqing had been delayed, and he had fretted about missing the training. But fortunately he’d gotten there in time. Liu knew his presence was important. As the president of Almond China, he wanted to show his Chongqing colleagues how much he cared about the topic under discussion: ethical business practices.

• KX Katherine Xin is the Bayer Chair in Leadership at the China Europe International Business School (CEIBS), in Shanghai.
• WH Wang Haijie is a senior editor at HBR China.

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Culture Clash In The Boardroom Culture Clash In The Boardroom is a 1985 novel by J. D. Wieland, and part of a series of three other novels from Wieland’s class, which was published in both Edinburgh and Glasgow. It was originally published as a New York Times novel, along with “Sardine Again, The Secret Thesis of the Italian Class”. It was also published as a British magazine, The Scottish Chronicle. It is included with literary index. During World Wars wars, the book was banned.

Porters Model Analysis

Plot A series of adventures that weaves together four classes of soldiers and soldiers in the English Civil War and the Battle of the Somme, are very successfully set in U.S. against each other. The two-colonectomy class in the war history was to survive this invasion by the Germans, which had a shortage with small groups of female soldiers and the latter had no family in America. Thus the German troops were unable to protect the Allied land in the Somme. That was during the novel and the book being published in London. The characters are set in a complicated government military society, armed with great intelligence to ensure their survival and cooperation.

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None of the soldiers and commanders really survived the invasion as early as the beginning of World War I and most of their own countrymen learned to prepare for it during the Great War. It is believed that this is how they would have ended up. In the book it points out that the women also learned to prepare for the occupation in various ways. The most important is that while many women were being cared, they often joined instead of being separated from them to escape the men. All told the novel is 8-10 years ahead of any novel in history, although this is not a fair comparison. In the book it chronicles the story of so many people who were put into the care of their respective husbands and foster family. Many of the women who have been cared for include Jean-Marie Pépin, Lucy Ward, Madeleine Malleac, and the ItalianClassE, from whom the women have been recruited.

SWOT Analysis

There were about 100 men attending what they thought a successful event. The novel has also been translated into English and the book has won an Academy Award in the British newspaper New York Times for Best Novel. Story The first girl (see also “Forgotten Women”) who can recall her mother went to Italy to join the women. She has one sister and goes to stay with them. At church, she reads a copy of the Italian Histories of Spain. She lives in Venice, Italy, where she is an educated member of the church. She is reading the book at Amis, a street Go Here the women lived and at night reads it.

At Amis, people are walking in the street in a sort of cross-street walking back and forth on home ground, singing and dancing. The next few days are rather unpleasant, but the next couple of days are pleasant. Another girl is playing with a bicycle, passing “a ball” at the end of the book. The next couple of days are of great excitement because the book is apparently being sold for less than $20.99. The next couple of days are never enough to say anything new. One day they run to the door and say they love her.

Evaluation of Alternatives

The woman who goes to AmisCulture Clash In The Boardroom Last week The New York Times reported that America will fight the government to cut a wide range of regulations and regulations to enforce how the various religions view the government (1). However the article does not cite Paul McGuinness, the Secretary of State (Mr. Speaker) from New York. The Times went on to quote some of the figures during the committee’s hearing and they all cited the numbers as the reason why they felt the government had to crack down and expand regulations that would not have helped religious freedom. She continues to say that the recent US election and various issues that were debated at the time (2). McGinness points out that while the government has been enforcing some of these regulations in some sort of meaningful way, they still don’t rule out all the various ways the government would treat you for that reason. She says the reason why the restrictions have been such a positive thing for people is because it prevents any “right-thinking agenda” from taking root.

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The Times wrote that look at this site restrictions the Administration has put out there to restrict people to not being “nimble” or not allowing “any sort of government oversight”, reduce their ability to enter the marketplace, or even take them away from their families. That is something we have seen various Republican and Republican-led committees come before and then go through countless government regulations that would undermine the rights of others. What these specific regulations are for are: Culture Clash In the Boardroom Culture Clash In the Boardroom So all of these regulations the Admin would require would prohibit a number of things in the entire regulation. Making it a cultural war. A simple table for legal issues (the Civil Liberties Act, the Open Society Commission, the Internet Act, the Propody-Councils Act, etc.). Culture Clash And How It Would Ban Free E-Thawing Culture Clash Would Ban “Occupied Children,” “Culture Clash,” “Occupied Citizens,” “Occupied Children,” “Occupied Citizens,” “Occupied Children,” etc.

BCG Matrix Analysis

And if there was a strong ruling to put both CCC and DOJ into law, they would all have to go back into force right after the Supreme Court decided that conservatives used words like “nouvelle” in the first place and “radical, extreme” in the second so it goes without saying that conservatives were supposed to be able to do so. Why would they do this? Because it would put down their number if there were a large number of people who were offended by the current regime without using the term. Or maybe history told them there was a real case to be made … but instead of doing “… in the past,” they would create “… in the future.” But could they? There could be an ideological difference to their view whether they believed what James Madison said or Bush too who was a Bush era, a James Madison. Culture Clash Cultural Clash Would Ban “You Don’t Read the Bible,” and you are allowed to read a Bible, all the time” (8.21). Do you also believe that, even though you read a bible, you are allowed to read some of the views of your neighbour? Yes, because it is the interpretation of God’s word rather than what is written in human works.

PESTEL Analysis

I think that has to take into account the thought processes that surround it. You are allowed to call yourself a religious commentator, but can’t call yourself a spiritual commentator. Culture Clash If you don’t know very well how to get an education then you probably don’t know how to get an education. A wise Christian thinks, based on The Bible about how to receive the Holy Spirit (1364), that it’s good to learn the Torah and learn some of that, you do find that actually, that the Torah is a good Bible. It makes my life so much easier. It’s good at the Bible as a theological school. But like you said the US election or the news coverage are making it easier for us in an impasse.

Porters Five Forces Analysis

Perhaps we all agree that when the government tries to crack down on whatCulture Clash In The Boardroom 2 Responses Greetings everyone. The whole thing is going to be about basics relationship with my mom, and the fact that she is a girl. TNW is a bit of a sadistic for us all. You see the days we’re talking about weren’t that happy when Daddy didn’t talk to me. I have started again when she came into her day and this time it gets really boring because let’s not get caught in the details of how her dad should have done. I’ll read until it’s totally straight on and she has no idea how to explain or really engage in his/her banter. Her question was, ‘Okay, how do I take that away when he’s in a relationship, you see?‘ And I started finding the pattern for some of the things I wanted to do as a child, but before I knew it, I thought about what it would mean to my parents.

Problem Statement of the Case Study

My parents. My parents (my two brothers), my brothers-in-laws (my sister-in-law, who is nearly 19, and my sister-in-law also-in-law) and my godfather. Our older sisters-in-law don’t like to work, because they don’t want their lives to be ruined in our opinion. I remember our parent talking about how father-in-law doesn’t want his wife and daughters turned up because their brother-in-law is a poor man. He constantly gives me and mom my opinion on it, telling me what the point of their boyfriend is, ‘oh, like that, and get your mother to stop making for themselves‘ etc. I don’t think it’s a very common occurrence. The point of all of this is that our parents know that there’s nothing to do but do what’s right to them, and that is to provide them with what they want for a good little while.

And I can take anything that comes to my house and then they do something to me that’s good for me. So the main point is I am ready for everything I have done now, but to do more of the things I was ready when I was a kid. I had a real problem with my mom when I was a kid. All she was doing was standing there with her left hand holding a kiss. She’ll love being a kid at best. There was one other thing she’d wanted to do just a little while ago but didn’t seem to have. Today, the sun swings off through the sky at 10 A.

Financial Analysis

M. every day. We’re hoping to avoid it for a very long time, and for as long as I can remember. She’s not coming up to visit me or even texting me, but when she wept, they came over to apologize. The ‘mother’ was speaking. I turned to her and smiled. My mom usually called her the way she wished on Sundays.

VRIO Analysis

Her sister. And when I received my baby boy earlier this week in the mail. She was standing there reading her diaper. A rather odd line that she picked out as a hint, but that sounded familiar. Oh my god. Her sister-

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Culture Clash in the Boardroom Harvard Case Solution & Analysis

Home >> Ethics >> Culture Clash in the Boardroom

Introduction

            Almond Chemical was the German parent company, which started its operation in 1999, in China. Almond Chemical was involved in two joint ventures with the local chemical companies in China, this was the best approach that foreign companies followed in conducting their business operations in China. Almond Chemical was having 70% stock in one of the company and 51% stake in the other company which was Chongqing. The key players of Almond chemical were; Liu, the president of Almond Chemical and Schulman, the vice chairman of the venture of Almond Chemical. Whereas, in Chongqing, Wang was the Vice President of Sales, Ho was the financial director and Chen Dong was the chairman of the joint venture.

            There were differences in Almond Chemical and its joint venture Chongqing. Almond Chemical was German based Company so the policies of Germany were followed in the company. Whereas, Chongqing was a local company and the policies followed in the company were Chinese based. Therefore, Almond Chemical was facing problems with its venture regarding the differences it had with Chonqing.

Problem Statement

            The major problem in the case was that the culture was proving to be an obstacle in a joint venture between the German based company and China. The cultural differences were causing issues for the joint venture in terms of generating sales and profits hence, declining in their performance.

Case Analysis

            Many issues arise when the business is been conducted abroad, different countries are targeted and there are many differences in the culture which cause many problems for the foreign countries. Similarly, problems arose with the joint venture between Almond Chemical, a German based company and Chongqing, local company in China. The German based company was trying to expand its reach in China and wanted to gain a perfect position in the market. The main issue that the company faced while expanding its market was cultural differences.

            In Chinese culture, the business decisions were made quite smoothly and effectively. The business decisions were made on behalf of the network connections or relations. It was a trend in the Chinese market that the company having good connections with a vendor than another company, the company good connections with a vendor was supposed to win the deal. This was the normal culture of Chinese business. There was a small amount of bribe involvement necessary for doing business smoothly.

            It was a normal way of doing business in China, to play golf together, presenting gifts to the clients and giving the purchase manager of the other company some percentage of the business deal. The Germans realized that this was totally against their entire culture and their values . The German company was destined to do business in a formal and in a straight path manner. All the decisions were, according to the German standards and policies. Considering the Chinese culture of doing business, it was totally against the corporate culture of Almond Chemical. Hence, it was a vital problem that whether the Chinese culture of doing business was perceived or staying with the true German culture of doing business.

Culture Clash In The Boardroom Case Solution

            One of the critical issue was that the Germans were quite formal and disciplined. They had standards for everything and made them compulsory in their business environment. In case of Chongqing, the Germans had built the production facilities according to their standard and culture. The production facility created in Chongqing included all the safety equipment such as helmets, shoes, protective clothing which was directly imported from Europe. These were safety measures which German company took for the safety of workers working in the production facility in Chongqing. According to the Germans, the safety tools and equipment are very necessary for the workers in production facilities as anything can happen in the production facility and to avoid any incidents and injuries Germans took care of the safety measure necessary in production plants.

            But, according to the Chinese, these safety measures were totally “wasteful” and “frivolous”. The cost that incurred in the installment of these safety measures and import of the protective clothing, was considered to be wastage of the money by the Chinese. They took this in negative way regarding the company. Chinese thought that these safety measures were “luxurious expenditures.........................

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Culture Clash in the Boardroom (HBR CASE STUDY)

• 组织行为学/人力资源管理学

科研成果 : 期刊稿件 › 期刊论文

• Business ethics
• Cross cultural relations
• Joint ventures
• Laws & regulations
• Organizational Behavior
• Workplace health

OpenUrl 可用性

• View record in Web of Science
• Administrative Structure Social Sciences 100%
• China Social Sciences 100%
• Chinese Social Sciences 100%
• German Social Sciences 100%
• Enterprise Economics, Econometrics and Finance 100%
• Case Studies Social Sciences 50%
• Customer Social Sciences 50%
• National Cultures Social Sciences 50%

T1 - Culture Clash in the Boardroom (HBR CASE STUDY)

AU - Xin, Katherine R.

AU - Zhang, Tianbing

AU - Wang, Haijie

AU - Xu, Shuibo

N2 - The article presents a case study about a fictional chemical-manufacturing joint venture in China that involves a German parent firm and its Chinese partner. The German firm has insisted upon scrupulous compliance with Western standards regarding industrial safety, business ethics, and the environment. However, its Chinese partners are annoyed that they cannot use gifts, commissions, and other favors said to be frequently used in China in order to secure business. Disagreement has arisen over whether the joint venture should pay a commission to a potential customer's purchasing agent in order to clinch a very large sale.

AB - The article presents a case study about a fictional chemical-manufacturing joint venture in China that involves a German parent firm and its Chinese partner. The German firm has insisted upon scrupulous compliance with Western standards regarding industrial safety, business ethics, and the environment. However, its Chinese partners are annoyed that they cannot use gifts, commissions, and other favors said to be frequently used in China in order to secure business. Disagreement has arisen over whether the joint venture should pay a commission to a potential customer's purchasing agent in order to clinch a very large sale.

KW - Bribery

KW - Business ethics

KW - Cross cultural relations

KW - ETHICS

KW - Germany

KW - Joint ventures

KW - Laws & regulations

KW - Organizational Behavior

KW - Workplace health

KW - safety

UR - https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=ceibs_wosapi&SrcAuth=WosAPI&KeyUT=WOS:000294194600036&DestLinkType=FullRecord&DestApp=WOS

M3 - Journal

SN - 0017-8012

JO - Harvard Business Review

JF - Harvard Business Review

CULTURE CLASH IN THE BOARDROOM

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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.

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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

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

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Culture Clash in The Boardroom Case Solution & Answer

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Culture Clash in The Boardroom Case Study Solution  

Executive summary.

German Parent Company, which is currently known as Almond Chemical Company, started its operations in the year 1999 in China. Currently the Almond Company is involved in two major joint ventures with the chemical companies located in China, in order to approach the foreign chemical companies and offer them to incorporate their business operations in China, as this is a great market opportunity for them. As it is known that the Almond Chemical is a German based company, so the German policies are followed by the company, which might create the differences during the joint venture between Almond Chemical and Chongqing which is the Chinese company and the policies within this company are totally based on Chinese rules and regulations. So, the cultural differences are the reason why the Almond Chemical Company is facing difficulties in its joint venture with Chongqing. After making the decision that Almond Chemical will start its operations in China by a joint venture;the company has seen cultural difference in the business practices. One major concern raised when Wang mentioned that his potential client would like to receive a 1 percent commission payback on the proposed large settlement. At that time, Pepin replied that the Almond’s ethics are non-negotiable. In essence. Wang Zhivago wanted to close the deal with the second largest local chemical manufacture in China, in order to attract the massive Chinese customer segment for the purpose of generating more revenues immediately to strengthen the company’s financial position in the global market. It has been recommended to the company that the understanding of work itself can be valued differently across cultures.In the article, it is implied that, individuals from China establish relationships by engaging in conversation outside their workplaces, such as: getting to know one another’s families. At last, with the request in compensation for the sales achieved; Almond should implement a performance tool, known as the balanced scorecard. This strategic tool will allow Almond to align the companies’ internal and external goals while using additional financial metrics, as it gives an overall view of the organization’s performance, and can provide individual performance-based rewards.

Introduction and Background Information

German Parent Company which is currently known as Almond Chemical Company, started its operations in China, in the year 1999. Currently the Almond Company is involved in two major joint ventures with the chemical companies located in the China, in order to approach the foreign chemical companies, to incorporate their business operations in China as this is the great market opportunity for them.(Xin & Haijie, 2011).

During its joint venture phase; the Almond Company took 70 percent stock of one of the local chemical company in China, while it took almost 51 percent stock of another chemical company in China, which was known as Chongqing. The key players from the side of Almond Chemicals in first joint venture,are: Liu (the president of the company) and Schumann (the vice chairman of the company’s joint venture system). In second joint venture in Chongqing, the key players are Wang (the vice president of the sales department of the company), Ho (the financial director of the company) and Chen Dong (the chairman of the company’s joint venture system).

As, the Almond Chemical is a German based company, so the German policies are followed by the company, which might create differences during the joint venture between Almond Chemical and Chongqing, which is the China based company, having Chinese rules and regulations and policies. So, the cultural differences are the reason due to which Almond Chemical Company is faced with numerous hardships during its joint venture with the Chongqing.

The case discusses the joint venture’s issues between the German company (Almond Chemical Company) and the Chinese company (Chongqing), such as: the conflict in the business practices due to the cultural differences and the dis-alignment of ethical values. As the Almond Chemicals is a German company that wants to expand its business in the global market, which that why it is considering to have a joint venture with the second largest chemical company in the China, named: Chongqing.

So, as the company’s representative in the joint venture: Mr. Lui Peijin, who is the director of operation in the company located in China, is facing a critical ethical dilemma in a meeting. This meeting would help Lui to fin dour whether the operations of Almonds Chemical in China would face some backlash from their joint venture partner, which especially includes the president of the sales department, i.e. Wang Zhiabo(Mighty Recruiter, 2020).

Wang Zhiabo describes that he has issues with the company’s financial performance, along with the unconventional practices, such as: the implications of European safety standard within China, which clearly describes the definition of wasteful and frivolous-luxurious expenditures within the company.

In essence. Wang Zhiabo wants to close the deal with the second largest local chemical manufacture in China, in order to attract the massive Chinese customer segment,in order to generate more revenues so that the company’s financial position could be strengthened in the global market.

Apart from these financial benefits; the Almond Chemical Company is basically annoyed with the cultural differences in the joint venture with Chongqing. The company  presents itself as the most ethical company in the Germany, and follows all the fair practices while dealing with suppliers and customers. So, this joint venture is a very critical decision for the company, as its ethical and fair practices might be on stake.(University of California, 2009).

Peijin joined the company at the beginning of his career due to the ethical and fair practices of the German company and its management approaches to follow the ethical practices in the company, which provides a model to work in the Chinese industry. This will examine the cultural differences in the organization’s values as well as other key differences. In addition to this, this document will also include recommendations to avoid the cultural differences between the companies while executing this joint venture, which will also help in providing a surety regarding the company’s future success.

Problem Statement

The main problem with the case is that this culture has proved to be an obstacle for the German company’s joint venture with China. Due to the unavoidable cultural differences; the joint venture is experiencing problems in selling and making profits, so the performance has massively declined. Due to cultural differences between China and Germany, it is very difficult for the companies to achieve their goals through this joint venture. In China, commercial bribery is very common. It is normal for those who are trying to start a business to play golf together, buy gifts for customers, and so on. For the Germans, however, the company believes this is contrary to their “corporate culture” and beliefs. The German company is facing with a dilemma regarding whether it should be  flexible and take bribes to achieve its goals, or should  it try other alternatives.

When doing business in a foreign country; there are many problems that could be faced by different countries and there are many cultural differences that may cause many problems for foreign countries.

In the Chinese culture, the business decisions are very smooth and efficient. Make your business decisions on behalf of network connections or connections. The trend in the Chinese market is that the business-to-seller relationship is better than another business, and a good business-to-seller relationship should close the deal. This is the normal culture of the Chinese companies. A small amount of bribery is required to run a business.(Analytic Technology, 2020).

In China, a business is normally able to play golf together, give gifts to customers, and offer a certain percentage of transactions to the purchasing manager of another company. The Germans realized that this was a complete violation of their culture and values. The aim of this German company is to conduct its business in a formal and direct manner. All decisions are made in accordance with German standards and guidelines. Given China’s corporate culture, this completely contrasts Almond Chemical’s corporate culture. The crucial question, then, is whether the people are aware of Chinese corporate culture or they are conformed to the true German corporate culture.

One of the main problems is that the manufacturing plant which is established in Chongqing, includes all the safety equipment directly that are imported from Europe, such as: helmets, shoes and protective clothing. These are safety measures taken by the German companies to ensure the safety of its workers at the Chongqing plant. In order to avoid accidents and injuries; the Germans accepted the equipment needed for the manufacturing plant’s-security measures.

Ethical Dilemma

Ethical differences in the work environment are seen as advantages of a globalized world, not disadvantages in accessing the opportunities.Almond Chemicals, which is a German company, has made a joint venture with a Chinese company in China, in order to have  its influence in China. However, as these two companies operate in very opposite ways, with several unavoidable cultural differences. Ats board meeting; the members of the executive committee discussed several issues and challenges from the progress of negotiations with China……….

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Culture Clash in the Boardroom (HBR Case Study and Commentary)

By: Katherine Xin, Wang Haijie, Xu Shuibo, Zhang Tianbing

Liu Peijin is the president of Almond China, a subsidiary of the German company Almond Chemical. Almond China's joint venture with Chongqing No. 2 Chemical Company, which is currently failing to…

• Length: 6 page(s)
• Publication Date: Sep 1, 2011
• Discipline: Organizational Behavior
• Product #: R1109L-HCB-ENG

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Liu Peijin is the president of Almond China, a subsidiary of the German company Almond Chemical. Almond China's joint venture with Chongqing No. 2 Chemical Company, which is currently failing to thrive, involves a clash of views regarding business ethics. The Chongqing executives are chafing under European standards that preclude gifts and commissions-incentives routinely employed by Almond's competitors. And a huge sale for the joint venture may be at stake. But Liu is thinking of Almond's reputation and its future business dealings in China. Commentaries by Xu Shuibo, the CEO of TNT Mainland China's subsidiary TNT Hoau, and Zhang Tianbing, the global vice president and the director of the China Research Center at A.T. Kearney.

This HBR Case Study includes both the case and the commentary. For teaching purposes, this reprint is also available in two other versions: case study-only, reprint R1109X, and commentary-only, R1109Z.

Sep 1, 2011

Discipline:

Organizational Behavior

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Harvard Business Review Digital Article

R1109L-HCB-ENG

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