Introduction
The present paper examines the international joint venture business between two companies. The joint venture is called BMW Brilliance Automotive Ltd (BBA). It was founded in May 2003. The partner companies that established the venture are the BMW Group and Brilliance China Automotive Holdings Ltd. (Company introduction, n.d.). BBA produces, sells, and provides after-sales services to those who buy BMW vehicles in China. The company’s state-of-the-art production base is situated in Shenyang and a branch company is in Beijing. As follows from the names of the companies that form the international joint venture, the countries that founded the business are Germany and China.
Cultural Differences Between Germany and China & Challenges They Cause During Cooperation
The cultural values of both countries vary significantly due to the fact that Germany is a Western country while Chin is Eastern culture. First of all, it seems relevant to start with the workers’ attitude towards directors, as Chinese people tend to pay more attention to social status than German people. Apart from that, Chinese people share a collectivist culture, while Germans cherish individualism. When speaking about social interactions in public places, it is necessary to mention that social distancing is more typical in Germany than in China (DW, 2019). German people value punctuality, while in China, it is normal to come to the meeting earlier or be late for several minutes. In addition, the level of uncertainty avoidance in China is high, while in Germany it is, on the contrary, rather low.
When comparing the cultural peculiarities of both countries, it is clearly seen that Germany and China have different values and mentalities. Hence, it will be rather challenging for the representatives of these two countries to build a successful international business. In order to identify the challenges the workers of BMW Group may face during cooperation with their Chinese colleagues and vice versa, it is necessary to compare, first of all, the cultural differences that may influence the process of sales and management (McFarlin & Sweeney, 2017). The attitude towards punctuality may cause partners to clash as German investors may find it difficult to understand why their Chinese counterparts may be late for meetings. At the same time, Chinese workers may not welcome the fact that German employees do not pay proper respect to those who have higher social status.
When speaking about the challenges in multicultural teams, it is necessary to mention that the worldviews of the team members from different cultures may clash. For instance, Germany’s typically individualistic culture does not share China’s collectivistic values. Hence, German and Chinese workers may not understand each other’s motives and have conflicts provoked by their different interests and values (DW, 2019). In addition, Western and Eastern cultures, in general, are not alike, so it is hard for the representatives of those cultures to understand and share the worldview of their colleagues.
Possible Ways to Meet the Challenges
Considering that the cultures, values, and behavioral models typical of China and Germany are significantly different, it seems logical to suggest a possible training plan for the companies’ workers. This training plan should first target increasing the level of intercultural competence of the joint venture employees since those familiar with different cultures are more tolerant of their representatives (McFarlin & Sweeney, 2017). Thus, in order to avoid misunderstandings and conflicts among the workers, it is necessary to pay attention to their intercultural competence.
However, forming intercultural competence in the joint venture’s employees does not mean effective management. Hence, to avoid unnecessary outcomes, the business owners and executives should establish the areas of responsibility for each company that forms the venture (McFarlin & Sweeney, 2017). This measure is necessary due to the fact that it helps the partners establish clear boundaries and responsibilities for each other, which fosters clear and transparent cooperation. Apart from that, it contributes to the idea of effective management since all the parties have their own areas of work and production, and it is in their interests to ensure their effective performance.
Many business owners and managers tend to employ executive coaches to help the business profit. However, the only option when the company needs his assistance involves situations when the managers cannot meet the crisis the company faces. In that case, it seems reasonable to employ the executive coach as his assistance may be helpful. Apart from that, his assistance may be useful during the initial stage of international joint venture development since his experience in the field may help the company avoid a wide range of problems.
Stages That Companies Pass-Through as They Develop Internationally
Cultural diversity, however, may prove useful for the business, as it enables the managers to look at the challenges from different angles of various worldviews the company’s employees possess. In addition, they help the business pass through the stages of international development as success consists not only of the knowledge of the market but of intercultural competence as well. These stages usually are the domestic-market establishment, export research, initial export sales, expansion of the international sales, and investment abroad (Garg, 2019). If the company’s executives successfully lead their business through these stages, its products will be in demand in the international market.
Conclusion
Taking into account everything mentioned above, it is possible to conclude that the process of intercultural communication and interaction between China and Germany may be complicated due to cultural differences. However, if the companies’ executives regard these differences with respect to each other’s mentalities and values, the majority of challenges may be avoided. Hence, it is necessary for companies to take up policies that comply with the values of both participants as well as to raise intercultural awareness in their employees.
References
Chua, M. (2019). A personal look at some central differences between China and Germany. DW. Web.
Company information (n.d.).BMW Brilliance. Web.
Garg, B. (2019). A review of international business and 5 stages of international market development. Journal of Advances and Scholarly Researches in Allied Education, 16(6). Web.
McFarlin, D., & Sweeney, P. (2017). International Organizational Behavior (2nd Edition). Taylor&Francis.