- “Americans see themselves as the world's leading country, and it's not easy for them to accept having a European in charge.”
“It is difficult for Americans to develop a world perspective. It's hard for them to see that what may optimize the worldwide position may not optimize the US. activities.”
- “The horizon of Americans often goes only as far as the U.S. border. As a result, Americans often don't give equal importance to a foreign customer If a foreign customer has a special need, the response is sometimes: 'It works
here, why do they need it to be different?”
“It might be said that Americans are the least international of all people, because their home market is so big.”
Other European firms have had more successful strategic implementation in their U.S. plants by adapting to American culture and management styles. When Mercedes-Beflz of Germany launched its plant in Tuscaloosa, Alabama, U.S. workers and German “trainers” had doubts. Lynn Snow, who works on the door line of the Alabama plant was skeptical whether the Germans and the Americans would mesh well. But now she proudly asserts that they work together determined to build a quality vehicle. Said Jurgen Schrempp, CEO of Mercedes' parent, Dainiler Benz, “Made in Germany - we have to change that to 'Made by Mercedes,' and never mind where they are assembled.
The German-trainers recognized that the whole concept of building a Mercedes' quality car had to be taught tp the American workers in a way that would appeal to them. They abandoned the typically German strict hierarchy and instead designed a plant in which any worker could stop the assembly line to correct manufacturing problems- In addition, taking their cue from Japanese rivals, they formed the workers into teams which met every day with the trainers to problem solve. Out the window went formal offices and uniforms, instead using casual shirts with personal names on the pocket. To add to the collegiality, gettogethers for a beer after work are common. “The most important thing is to bring together the two cultures,” says Andreas Renschler, who has guided the M-Class
since it began in 1993, “You have to generate a kind of ownership of the plant.”5 The local community has also embraced the mutual goals, often having beer fests, and including German-language stations on local cable TV.
The impact of cultural differences in management style and expectations is perhaps most noticeable and important when implementing international joint ventures. The complexity of a joint venture requires that managers from each party learn to compromise in order to create a compatible and productive working environment, particularly when operations are integrated.
Cultural impac[s on strategic implementation are often even more pronounced in the service sector, because of many added variables, especially the direct contact with the consumer. Wal-Mart, for example, has not been immune to implementation problems overseas, particularly resulting from culture and lifestyle differences and from infrastructure problems. With its rapid global expansion efforts leading Wal-Mart to Indonesia, China, and South America, WalMart has found that it cannot insist on doing everything “the Wal-Mart way.” In Sao Paulo, for example, bumper-to-bumper traffic impedes timely delivery of merchandise. Also, because Wal-Mart doesn't own its distribution system, it loses its all-important logistic advantage. Often stores in Brazil process three hundred deliveries a day, compared with seven a day in the United States.51 Add to the infrastructure problems, Wal-Mart's use of a bookkeeping system that failed to take into account Brazil's complicated tax system; failure to recognize postdated checks as the primary source of credit in Brazil since its currency problems; and merchandise errors such as American footballs instead of soccer balls, and you have an implementation plan that failed to take account of local culture and customs.52
In China, too, strategic implementation necessitates an understanding of the pervasive cultural practice of guanxi in business dealings. Discussed in previous chapters, gun nxi refers to the relationship networks that “bind millions of Chinese firms into social and business webs, largely dictating their success.” Tapping into this system of reciprocal social obligation is essential to get permits, information, assistance to access material, and financial resources and tax considerations. Nothing gets done without these direct or indirect connections. In fact, a new term has arisen - guanxihu - which refers to a bond between specially connected firms that generates preferential treatment to members of the network. Without guauxi, implementing a strategy of withdrawal is even difficult. Joint ventures can get hard to dissolve and as bitter as an acrimonious divorce situation. Problems include the forfeiture of assets and the inability to gain market access through future joint venture partners - all experienced by Audi, Chrysler, and Daimler-Benz. For example,
Audi's decision to terminate its joint venture prompted its Chinese partner, First Automobile Works, to expropriate its car design and manufacturing processes. The result was an enormously successful, unauthorized Audi clone, with a Chrysler engine and a First Automobile Works nameplate.
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