CrossCultural perspectives on managing diversity By David Pickering
Cross-Cultural perspectives on managing diversity By: David Pickering Huang, De. Jing(Kevin) Roy Tanuwidjaja Norito Kobayashi Luisa
China
CHINA OVERVIEW President: Hu Jintao (Since 2003) Location: Eastern Asian with area 3. 7 million square miles. Major cities: Beijing (Capital), Shanghai, Tianjin, Guangzhou, ect……………… Sources: (China Daily)
CHINA OVERVIEW Population: 1. 3 Billion (July 2004) Languages: Mandarin (Official), and many local dialects. Ethnic Groups: Han Chinese (92%). Religion: Officially atheist; Taoist, Buddhist, Muslim(1 -2 %), Christian(3 -4 %). Sources: (Asia Pulse; Dow Jones Newswire).
CHINA REAL GDP GROWTH source: (Financial Times)
CHINA EXPORTS AND IMPORTS CHINA EXPORT: $ 529. 3 billion( 2004). CHINA IMPORT: $ 505. 8 billion( 2004). Sources: (Financial Times)
CULTURAL DEFFERECES Decision Making: A. Western-Fast decision making; quickly gathered and processed information. B. Chinese-Deliberate longer; Want to be included. Sources: (China Daily)
CULTURAL DIFFERENCES “YES” MEANS “NO” A. Chinese-Don’t like say “No” in a business setting nor admit don’t understanding something. B. Western-Encouraged to express. Sources: (China Daily)
CONNECTION Relationships-with vendors, suppliers, central government. Both outside and inside relationships building.
PERSONAL STYLE Chinese-Don’t challenge the instructor. Western-Encourages to questions, hand on training. Lose face
Hofstede Theory Country Power Uncertainty Individualism Masculinity China 78 36 15 50 U. S. 40 46 91 62
Hofstede Theory (cont’d) Long term orientation vs short term orientation
Nike’s international staffing Nike uses Regiocentric approach. The strategic decision made at the region level. Each region has its own VP. WWW. NIKE. COM
Nike’s global Area Division U. S Headquarter Production Human Resource Marketing Asia Pacific Region Americas Region EMEA Region Finance
NIKE US-7 Subsidiaries. OTHER COUNTRIES-34 Subsidiaries. Employees-25, 000(none of them are represented by unions). Distribution-21 centers around globe, 23, 000 retail accounts. Sources: (Securities and exchange commission).
NIKE Athletic Footwear-Largest seller in the world. China-36% manufactured in China. Revenue-120 foreign countries account for 53%.
Nike’s Subsidiaries Grew from “single product, single market” ”multiple brands, multiple markets” Subsidiaries:
Net Revenue by Global Region (US $, millions) Total net rev. increased 15%
Net Revenue in U. S. FY’ 04 : $4. 8 billion (39% of Nike revenue) Increase 2. 9%
China’s attraction: Emerging economies Cheap labor costs Stable currency Bountiful raw materials Sources: http: //www. fortune. com/fortune/subs/print/0, 15935, 375164, 00.
Nike approaches China Moved most production into China in mid 1980 s More than workshop Set challenge: to change China’s culture
Open the China market Phase I: Getting Swoosh recognized -Donated equipment and sponsor high school basketball game -Bring NBA player-Michael Jordan to visit -Target middle class: seeks Western culture Phase II: Bring in Black culture-Hip Hop -Encourage rap-style trash talk Phase III: Challenge Confucian-style -Fragrant possibilities of higher-quality shoes
Nike’s success in China Sales through 1990 s increase 60% a year Biggest seller of athletic shoes Example: Zhang Han -20 years old art student in Beijing -Owns over 60 pairs of Nikes shoes costing $6, 000(RMB) Western goods mean “status” to Chinese consumer Nike did not enter China selling usefulness, but selling status Grew 66% in revenue in the past year
Nike Case Le. Bron James in Chamber of Fear
Nike Case Corporate Transparency in oversea factories - Contracting through unbiased audits
Nike Case Computer hacking: Stickman copy right lawsuits
Expatriates in China CEO’s and top executives Senior and middle managers Costs and Benefits
Nike IHRM in China Production staff Production management personnel Corporate manager
Home Country Nationals Establishments Employee profile Pay compensation
- Slides: 29