The research generally targets two international companies from different continents, with diverse cultures, languages and competition Renault and Nissan.
In the span of the research we observe the similarities and dissimilarities regarding the multinational culture as ideas, in our theme comprising of the cultures from two countries France and Japan we intend to view them independently, and gauge the nation's structure to see the nature of modern culture, depending on traits like specific or collective with respect to connection between individuals, also to learn their capability to adjust to other cultures and exactly how does the Individual form a local culture accept or refuse the affect of other ethnicities, hence in this respect Hofstede measurements and theories about individualism is seen in France as compared to Japan.
In the next phase Trompenaar's measurements and theory about culture is taken into account, which is seen that individualism verses communitarisnism, affectivity verses neutrality, and universalism verses pluralism as independent. And make an effort to apply the measurements from the model on both countries: France and Japan.
By then we may have the ability to identify properly how Trompenaar's related multinational companies to managerial areas and how civilizations as a concepts can help visitors to solve problem and the benefits they could have.
Also Hofsted view about ethnicities: criticism and recommendation about the deviation of ethnicities in the different societies.
Renault: it's a French automaker car company was set up in France in 1890. The business has a technique of profitability development based on three fix factors: international expansion, invention and competitiveness. The business utilizes almost 130, 000 staff member all over the world; existence in around 118 countries. The future plans are to enhance the product and placed the brand atlanta divorce attorneys country, Renault run by its CEO Carlos Ghosn.
They made an alliance with Japanese company Nissan in 1999. Their goal was to improve the product and disperse the brand with focusing on the. U. S. market.
Nissan its Japanese automaker car company was set up in the 1963s in Japan. Located in more than 125 countries, has more than 220, 000 individuals.
The company was working very well till 1998 when was experienced some financial problems, and were about to collapse. 1999 Renault's CEO People from france Company spent money and bought share of Nissan hence an alliance was formed and Carlos Ghosn was appointed as the CEO for Nissan to turn it around, and make it a profitable company, Nissan had a fresh breath with the benefits of new brand to enhance the merchandise and perform better than before.
An alliance of two global companies with two cultures:
After the alliance of Renault- Nissan mutually, they truly became the first global hybrid company in the world with two different civilizations and geographic location, mentalities, dialects, employee's perception, and united under one CEO.
Carlos Goshn: chief executive
He was born in Brazil to a Lebanese parents, elevated and educated in the centre east, his first job was at Michelin in sc Usa he changed to France and led Renault car company in 1996, was recharged to lead Nissan car company in 1999 following the formation with their alliance, he than bridged Tokyo and Paris and ran both firms. Moving forward, deeper integration between your two companies is expected to spark important changes.
As he said "I'm going to spend 40% of my time in Tokyo, 40% of my amount of time in Paris and 20% in all of those other world, "
"It means that I'm going to be relying more and more on very carefully selected people confirming if you ask me. "
Moreover, after years of operating at arm's-length distance, both companies are expected to undergo a process of quick integration.
HOFSTEDE CULTURE DIMENSION:
Gerard Hendricks Hofstede is a Dutch copy writer born on another October 1928, his work particular date back to the 1960s on mix cultural differences in several centre of IBM, and he attained this conclusion "it is at the middle collective level that the majority of our mental encoding is discovered, which is shown by the fact that we reveal it with people who have been through the same learning processes but do not have the same hereditary makeup". French (2010 pg54), showing culture influences everything we do, with the model by him, managers have used it as "framework for tests cross-cultural differences" it goes to show that for a administrator to succeed, he or she must have to understand these.
Carlos Ghosn, CEO and Leader of Renault and Nissan, within an interview he said the troubles and problems of the alliance, and it's multi-culture, that "if the culture is not considered then that organisation is doomed to fail", he sensed the dignity of the of the individuals must be respected since humans will be the greatest asset of an organisation. He is quoted as saying "cross-cultural exchange can be an important part of basic lasting performance" Gјnter K. Stahl, Mark E. Mendenhall (2005) the alliance of Renault and Nissan needed into account the cultural differences.
To understand how he was able apply this, it will be necessary to see dissimilarities in the two civilizations, France and Japan, for he has been putting it on to his success, that we can easily see from the income generated by the alliance, some of the differences had to do with what the Japanese refers to as the shushin koyo that is life job and promotional predicated on seniority, whereas the situation is different from that of France, that type of diverse cultural variations was a huge challenge for Carlos. To understand what sizes of civilizations are between your two countries, it'll be proper to look at them individually.
The first is what he calls vitality distance, which has regarding inequality that is endorsed by the many in the population, Carlos had to discover the gap between your two countries and put it to use to the benefit of the business "all societies are unequal, however, many will be more unequal than others. "For the diagram given by Hofstede, Japan is ranked at 54% and France is at 68% on the list, the difference is not much but there is still difference
The second one had to do with individuality, these is where ties are either lose or ties, from the diagram the percentage of Japan is 46 while that of Franc is 71% showing the that Japan or even more of the collective contemporary society than France.
Another great differentiation between the two countries is masculinity, that is rate which competition high, and the between your it is very great, with Japan on 92% showing a great deal of space between men value which of women, while that of France is just on 43%, a gap of 49% between your two countries, meaning what you would use to encourage the Japanese will not be the same for France.
Uncertainty Avoidance was next on the list of the dimension, this refers to degree of which a country will try limit it disadvantages through laws and regulations and rules, it was mentioned by him that those in this aren't expected to show express emotions. Japan is on 92% and France is 86%.
On LASTING Orientation, thus giving the level of being persistence, which is having a sense of shame if achievements are not fulfilled. Japan is positioned 86% while that does not apply to France.
Carlos felt the best way to achieve end result was through a technique which insists that every employee must value the identity of any fellow colleague, for he brought up that if that's not done, then company will not last. Another strategy employed by him was that of investing in the training in cross-culture training "having over 1500 employees from Renault find out about the Japanese business culture and 400 Nissan employees research the French culture", and inter transfers between them, Using the believe that it'll result in successful organisational management. Renault-Nissan Alliance RESEARCH STUDY (2010)
CRITICISM OF HOFSTEDE WORK
Although the work of Hofstede has been applauded by so many, it includes come under some criticism, that the task was in reality related to just IBM, that it does not represent the sample of the nationality. A question was asked if the dimension does cover the dominating aspect of the culture, and it is believe to be limited in its software. (ibid pg 58). It had been noted that it is not culture only that contribute to economic growth but instead technology that the partnership between the nationwide development and culture is not enough, and culture can't supply the reason why there may be decline in expansion. Stahl et al (2005). But no matter what criticism it has contributed to social technology.
Analysis of the Problems
Empirical studies claim that creating well-functioning public relations with Japan is challenging because of group-oriented behavior, negative behaviour toward foreigners, indirect and suppressed appearance, and different interpersonal manners and human relationships with the opposite gender. (Tanaka and Fujihara 1992; Hsiao-Yuin 1995; Jou and Fukada 1996). One possible reason for the low rate of recurrence of intercultural interactions in homogeneous Japan is the limited integration and deferential treatment of foreigners. Ebuchi (1991). The case analysis is performed for Renault and Nissan alliance, that are international companies working in several continents of the world, with the geographical coverage of the manufacturing devices worldwide hence the socio cultural challenges it encounters are in a global context have emerged mostly with their diverse culture which present a hurdle and hinder in the simple move in their day to day interaction using their counter-top parts it is apparent as both the company have was the terminology barrier as both companies were from different part of the world France and Japan, hence dialect was a significant concern according to the ceo mr Carlos Ghosn when he took charge of the company it was problematic for him to connect and therefore it was with the help of a interpreter he was able to put across his programs and strategy for Nissan forwards. The Ceo of Renault and Nissan perceived cultural differences weren't a handicap it was the dawn to the cooperation of technology and resources getting started with makes to make something new, it was a functional business approach to the challenge of Nissan that was going right through a financial crises and the management in Nissan were conscious of the severe nature of the problem hence they had no concern in taking the strategy led down by Ghosn. In today world the variations in culture are being used increasingly more as means of hearing what differing people can bring to the table to accomplish our objectives for future years. So, this is a careful collection of best practices and best strategies. Hence the ethnic diversity is durability as people are focussed to study from their counter-top parts.
After the alliance Renault and -Nissan confronted the biggest problem was to bridge the difference of cultural distinctions that were between the two companies by the Lebanese Brazilian business man Carlos goshn managed modify the perspective of Japanese counterparts for occasion the Japanese are collective firm where in every the decision was considered unanimously under general consensus whereas the ideology of the new (CEO) Goshn had a individualistic approach where he would take your choice on his own without the formal discussion among the list of board, in another occasion as language was a tremendous hurdle to the function of communication Carlos goshn enforced English as the task language within the company so the cross ethnic tams within Renault and Nissan could improve cooperation with each other while working, another aspect that was difficult is Japan is a land of traditional principles hence it was troublesome for the counter parts from France to bear in mind to respect the basic value of communication.
The alliance of Renault-Nissan acquired brought an alteration in the efficiency of the working of japan management that have a collective set up of decision making whereas when compared with the French counterparts that includes a inclination towards individualistic way of management, Japan were advanced with solutions hence Renault got the possibility to loan company on the development with good technology as French were good with the tactical management hence it worked well together for the business to co-exist together.
Every employs must undertake the combination cultural training to comprehend and respect one another, the other aspect is Language British was launched as working words to smoothen communication between the counter parts.
The progression towards globalization was noticeable in the motor vehicle industry around the world. For surviving the competition, several automaker organizations were shifting towards alliances. The highly successful cooperation is between the organizations that own ancillary advantages and weaknesses. The identical was with the truth of Renault-Nissan. The alliance of Renault and Nissan was to neutralize the weaknesses and needs of the companies mutually. The information about the companies is briefly explained and the reasons for the tactical alliance were included for an improved understanding of the case.
This alliance of the companies involved crucial combination cultural issues such as variety in their cultures, barrier of physical distance in associative assignments and linguistic obstacles. However, the mix social issues were fixed by the CEO Carlos Ghosn. With the release of the English as the common terms, and the termination of the 21, 000 employees, closure of five companies and benefits of two times hierarchy system by the CEO solved the critical mix cultural issues. With the discourse about the CEO in the event study displays his role in handling cross ethnical issues in the alliance. Hofstede sizes and Trompenaar theory with regards to the research study were discussed. But both the theories are criticized as they are not appropriate completely in this case.
This part of criticism will involve the discourse about the relevance of Hofstede theory in the alliance of Renault and Nissan. The applicability of the Hofstede proportions in culture, it is very important to focus upon those factors of sizes that indicate the highest difference in the cultures. The alliance of Nissan and Renault is crucial on social grounds due to the fact that Nissan is of Japan source and Renault is a French company. The under discussed proportions describe the applicability of the dimensions of Hofstede theory. Firstly it is crucial to discuss the dimensions of "individualism vs. collectivism", because the individualism is saturated in France whereas collectivism is high in Japan. Group participation and group based mostly collective work is visible in Japan on the other hands; individualistic procedure towards executing the tasks is seen in France work culture. This difference in aspect could show its effect on the management style of work of the alliance of Renault and Nissan. The other important dimensions that should be discussed is "femininity vs. masculinity"; the masculinity is more in Japan while it is very less in France. The equality in genders is very closer in Japan which is highly reverse to France. Due to this dimension it could be inferred that the inculcation or the integration of the employees under the alliance of Renault and Nissan in both companies must go through a compromise. Both of these dimensions describe our observation of criticism about the alliance of Renault and Nissan.
The following methodology of understanding the concept of managing across cultures through the case study of Renault-Nissan is done by us as an organization work created by the team of four customers. Our team is comprised of members with various social reflections comprising of associates from India, Nigeria and France. The functional implications mixed up in group are experienced by us in our group work. The team procedure in completing this group task can be discussed by applying the theories of Tuckman.
Tuckman theory software in our work: Corresponding to Tuckman, all the communities formulate their team with the periods of "Forming, Storming, Forming, Executing, and Closing/Dorming.
Forming: this stage refers to the early phase to acquaint other group participants in the group. The key responsibility is to build up an agreeable and favourable environment for the group members. This stage was reflected in our group work too, in the early stages there have been differences in views but eventually with an agreeable environment existed between us.
Storming: This period is about the power concerns that arise in the group associated with power and effect. This period was also experienced in our group which surpassed by frequent and some dialogue that needed place to resolve the problems of the team members.
Norming: This stage is neutralizing stage with regulations that were set up in the group. Being truly a scholar group, we did not find the utilization of establishing rules and regulations because we settled the problems in a friendly manner.
Performing: This stage is where the group issues are solved and cleared. This phase witnesses the delegation and implementation of the duties in the group. We found the applicability of the phase inside our group work which is reflected in delegating the responsibilities of executing the course work.
Ending: This is the end phase of the group work. This is evident inside our group use the understand capability and understanding of the case study and the academic theory related to it.
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