BUSI271 Global Strategy: Analysis and Practice

Individual Report

Student: Kayumova Karina

Student ID: 001140420

Introduction

Culture is when members of one nation have shared objectives, values, beliefs, identities and
interpretations or meanings of key events that are passed down through the generations( GLOBE).
National culture profoundly influences organizational culture, which impacts every face of its operation.
The ability to recognize and manage cultural differences is essential for multinational and global
organizations.

This case analysis based on Документальный фильм Netflix основанный на реальных

событиях. Key theories related to this case and cross cultural management will be
discussed and applied in this study. Чтобы провести глубокий анализ я
использую Хофстид дайменшнс и IDEAL framework.
I the end of report I will concluded with a summary of the most significant
findings of the case.
This examination focuses on overcoming cross-cultural issues through cultural
intelligence; international labor relations, wellbeing of employees, safety, and
well-being, stereotypes and power distance and collectivism, as summarized in
typical management courses below.
Overview

The documentary film "American Factory," which is available on Netflix, is based on a genuine story. At
the height of the previous financial crisis, General Motors closed its Dayton, Ohio manufacturing facility
in late 2008. Due to the city's tiny size and lack of other employment opportunities, it immediately
plunges into an economic crisis following the closing of the General Motors factory. Thousands of
individuals have been forced to live on the streets since there are no jobs available.

In 2015, the Chinese entrepreneur chose to establish a vehicle glass company on the site of the former
GM plant. The odd scenario is that several hundred Chinese workers are being sent to the plant to work
alongside the Americans. At the same time, coworkers' mutual understanding is exceedingly low, and
communication takes conducted via Google Translate on mobile phones.

American Factory is a film with deep meaning. It demonstrates in detail how different the cultures of
these nations are, as well as the working circumstances in Chinese and American firms within the same
company. Verification reveals that Chinese labor productivity is 3-5 times higher than that of Americans.
And it's a lot less expensive. American workers, on the other hand, quickly begin to push for labor rights,
a union, injury insurance, paid sick leave, and other benefits from industrialized countries. The Chinese
are prepared to live without it. Both sides are essentially right and understandable. But what is the real
reason for their conflicts? Maybe the answer is that these are absolutely two different nations?

Issue 1 – Power distance and Collectivism

The cultural characteristics of power distance and collectivism identified by Hofstede (1984) play a
critical role in comprehending the experiences of the individuals profiled in American Factory. Several
instances (see Table 7) indicate that the US and China occupy opposing poles on diverse ethnic
dimensions (Hofstede Insights, 2020). For example, throughout the documentary, all workers and
managers refer to Cao Dewang with the title "Chairman." Furthermore, managers, particularly Chinese
expats, are frequently portrayed as showing reverence to Chairman Cao. These actions are consistent
with a larger tolerance of power differentials between employees and managers that is characteristic of
a country with a higher power distance, such as China (Hofstede Insights, 2020). Given the smaller
power distance in the United States, it would be impossible to envisage both of these scenarios
occurring in a wholly domestic U.S. corporation (Hofstede Insights, 2020). There are several scenarios in
which U.S. employees have difficulties accepting commands from managers and express their concerns
as evidence of this lower power distance in the United States.

Issue 2 - Safety

Given the background of FGA's glass manufacture, safety is a persistent theme throughout the film.
Glass breakage, heat, regular use of heavy duty gear, and repetitive task injuries are all potential
hazards. Safety is linked to crucial organizational outcomes across a range of industries, according to
meta-analyses (Clarke, 2010). Instructors can use this literature to emphasize the importance of safety
to FGA and organizations in general.

FGA is unprofitable in the first act of the film. This unprofitability puts pressure on companies to boost
output, which might conflict with putting safety first (Zohar & Luria, 2005). As a result, part of the film's
employee interviews focuses on workplace accidents as well as employee concerns about safety (which
is fueling increased unionization desire). The viewpoints of management on workplace safety are also
presented, with the FGA safety director, John, sharing insights into the FGA safety climate.

Globe Project Dimensions China Americans

Power Distance Higher power distance in Lower power distance in
organization culture organization culture
Uncertainty Avoidance Higher. More focus on Moderate. Focus on
organization rules, balancing formal
regulations, risk minimization relationships and less concern
and formal relationships. about organization
consistency and orderliness
Human Orientation Moderate focus on human High focus on employee’s
orientation. Organization safety, work life balance,
overall success is more kindness, fair judgement,
important than employee’s spending time with
personal benefit and interest. colleagues.
Institutional Collectivism Higher focus on organization Moderate focus on
success than individual collectivism. Individual
performance is important at
the same time work as a
wellbeing for the
organization.
In-group Collectivism Moderate. Individual Individual identities must be
identities must be balanced balanced against group
against group accomplishment. Individual
accomplishment. Individual employees contribute to the
employees contribute to the group's success. Group
group's success. Group decisions can be hierarchical.
decisions can be hierarchical.
Assertiveness Moderate. In different Moderate. In different
situation prefer assertiveness situation prefer assertiveness
through prudery. Avoid through prudery. Avoid
confrontational in workplace. confrontational in workplace.
 Values are determined
Values are determined
through hard work. through hard work.
Gender Egalitarianism Higher in China. Most of the
Lower in America. Women
women are likely to work atare in workforce and get
home. positive view for woman’s
participation.
Future Orientation Higher. More focus on Comparatively lower. More
outcome and profitability. focus on instant result,
extrinsic motivation
Performance Orientation Higher. Focus performance Moderate focus on
over individual and safety performance also concerns
about social relationships and
safety
The unfortunate reality is that a lot of managers who perform business on a global scale have little grasp
of how culture affects their work.

Культура имеет очень важное значение. Каждая страна имеет свои особенности которые
выражаются в языке, религии , политическом устрое , исскустве и так далее.

Members of a collective have shared objectives, values, beliefs, identities and interpretations or
meanings of key events that are passed down through the generations (GLOBE).

Schein, E. H. (2009).

Source: (Tsai et al., 2016)

Taras, V., Kirkman, B. L., & Steel, P. (2010). Examining the impact of Culture's consequences: A three-
decade, multilevel, meta-analytic review of Hofstede's cultural value dimensions. Journal of Applied
Psychology, 95(3), 405.
 Erin Meyer

LEADING.

REF

Andresen, M., & Bergdolt, F. (2017). A systematic literature review on the definitions of global
mindset and cultural intelligence–merging two different research streams. The International Journal of
Human Resource  Management, 28(1), 170-195.

Browaeys, M. J., & Price, R. (2011). Understanding cross-cultural management.

Meyer, E. (2016). The culture map (INTL ED): Decoding how people think, lead, and  get things done
across cultures. PublicAffairs.
Schein, E. H. (2009). The corporate culture survival guide (Vol. 158). John Wiley & Sons

Taras, V., Kirkman, B. L., & Steel, P. (2010). Examining the impact of Culture's consequences: A three-
decade, multilevel, meta-analytic review of Hofstede's cultural value dimensions. Journal of Applied
Psychology, 95(3), 405.

Tsai, J. L., Ang, J. Y. Z., Blevins, E., Goernandt, J., Fung, H. H., Jiang, D., ... & Lin, Y. (2016). Leaders’ smiles
reflect cultural differences in ideal affect. Emotion, 16(2), 183

Morris, M. W., & Peng, K. (1994). Culture and cause: American and Chinese attributions for social and
physical events. Journal of Personality and Social psychology, 67(6), 949.

Molinsky, A. (2016). Cultural differences are more complicated than what country you’re from. Harvard
Business Review.   

Thomas, D. C., & Peterson, M. F.

Ruane & Chappel (2018) IDEAL framework

Tompkins (2002)

Masuda, T., Gonzalez, R., Kwan, L., & Nisbett, R. E. (2008). Culture and aesthetic preference:
Comparing the attention to context of East Asians and Americans. Personality and Social
Psychology Bulletin, 34(9), 1260-1275.

DiStefano, J., & Maznevski, M. (2003). Culture in international management: Mapping the

impact. IMD Perspectives for managers, 104, 1-4.
1) Tompkins (2002) case analysis guidelines

2) Ruane & Chappel (2018) IDEAL framework

Javidan, M., & Bowen, D. (2013). The ‘global mindset’of managers. Organizational Dynamics, 42(2), 145-
155