Culture is one variable which is often overlooked when deciding on entry strategies and alliances, particularly when we perceive the target country to be familiar to us and similar to our own. However, cultural differences can have a subtle and often negative effect.
As many of Europe's largest MNCs - including Nestl Electrolux, Grand Metropolitan, Rhone-Poulenc - --experience increasing proportions of their revenues from their positions in the United States, and employ over 2.9 million Americans, they have decided to shift headquarters of some product lines to the United States. As they have done so, however, there is growing evidence that managing in the United States is not as easy as they anticipated it would be because of their perceived familiarity with the culture. Rosenzweig documents some reflections of European managers on their experiences of managing U.S. affiliates. Generally, he has found that European managers appreciate that Americans are pragmatic, open, forthright, and innovative. But they also say that the tendency of Americans to be informal and individualistic means that their need for independence and autonomy on the job causes problems in their relationship with the head office Europeans; Americans simply do not take well to directives from a foreign-based headquarters. Resenzweig gives some comments from French managers below.
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