Cultural

Cultural Conflict
Conflict
Edward Lu & Joe Sampsel
 Outline
• The challenge
• The literature
• Daimler-Chrysler
• Suggestions
 The Literature
• Broad Review
• Diversity between Asia and West
• Problems to recognize as an English Speaker
• Avoiding language traps
– In business, online
• Multi-national advertising
• Suggestions for business-people
 The Challenge
• How do international corporations
avoid conflict brought on by
differences in cultures?
• Stereotypes
• Geographic
– Business Style
• Values
– Relativism
• Communication
 Stereotypes
• Stereotypes need to be unlearned
– They are the most damaging in creating
cultural conflict
• Stereotypes impede progress
– Lead to conflict
– Misunderstanding
– Breakdown
 Geographic Conflict
• Differences abound
– Business style
• East and West
– Emotional vs. Logical
– Yes and No
• Nationalism
– West and West
– East and West
– East and East
 Values
• Relativism
– Different cultures value things
differently
• Life
• Family
• Money and Possessions
• Autonomy
 Communication
• Clear communication solves problems with conflict caused by
miscommunication
• Verbal
– Small talk vs. 5W’s and H
– Yes and No are not always clear
– Progress is viewed differently
– Time
• Meetings
• Phone
• Time zones
– Agenda
– Superiority
• Non-Verbal
– Sight-seeing
– Smoking
– Eye-contact
– Physical Contact
The DaimlerChrysler Merger
 The DaimlerChrysler
Merger
• Daimler-Benz luxury vehicles had
captured less than 1% of the
American markets.
• Chrysler's primary reason for
teaming with Daimler-Benz is to
extend its international reach
 The goal of the merger

• Expected huge savings by combining

purchasing and other operations
• Reduce total research and
development costs
 The DaimlerChrysler
Merger

• Provide Culture Workshops for

employee

• No Culture Clash at manager level

However
However…
 The
The DaimlerChrysler
DaimlerChrysler Merger
Merger

“Mercedes was universally perceived as the fancy,

special brand, while Chrysler, Dodge, Plymouth and
Jeep were the poorer, blue collar relations”

-- James Holden, President of

Chrysler
 Our Analysis
• Corporate Structure
• Corporate Cultures
• Customer proposition
• Value chain
• Leadership
 Corporate Structure
• Daimler
Hierarchical Structure

• Chrysler
Team-orientated
 Corporate Cultures
• Daimler
Management processes of planning,
organizing and controlling. More conservative,
efficient and safe.

• Chrysler
Setting goals, directing and monitoring
implementation. Known as the risk-taking
underdog
 Customer proposition
• Daimler
The driving image and experience associated
with the highest quality available in the market

• Chrysler
Attractive, eye-catching design at a very
competitive price
 Value chain
• Daimler
Emphasis on engineering, design, quality
and after sales service

• Chrysler
High volume, low cost manufacturing and
distribution
 Leadership
• Daimler
Jürgen Schrempp - with independent
personality and South African overlay

• Chrysler
Robert Eaton - broke the Chrysler
tradition of commanders
 Conclusions
• Recognize the differences in the corporate
contexts – will this merger work?
• Channels of communication must be open
– Consider a mediator at meetings – hired help (if you are
a multi-billion dollar company)
– Goals, goals, goals?
• Avoid cultural stereotyping
– Trade employees – a major failure
• Resolve cultural stereotypes
• Contextual differences - $
• Share knowledge
• Exploit the merger
Questions?
 References
• Cox Jr. T.H. (1996) “Intergroup conflict”, in: Shafritz, J. M. & Ott,
S. J., Classics of Organization Theory, 4th edition, 192-202.
• Dou, W. & Clark Jr., G.W. (1999). “Appreciating the diversity in
multicultural communication styles,” in: Business Forum, Vol. 24,
Is.. ¾, pp. 58.
• Finkelstein, S. (2002). The DaimlerChrysler Merger. Retrieved
Mar. 2, 2006 from http://mba.tuck.dartmouth.edu/pdf/2002-1-
0071.pdf
• Strebel, P. (2002). Focus on Corporate Specifics Not National
Cliché Cross-Border Lessons from the DaimlerChrysler Merger.
Retrieved Mar. 2, 2006 from
http://www01.imd.ch/news/research/perspectives/index.cfm?
art=2325
• Wan, K. (2004). “Bridging Cultural Gap Through Communication” in:
Korea Herald. January 1, 2004.