In the previous week, students became aware of how effective communication has a direct impact on negotiation and decision-making processes while the importance of understanding and overcoming culture differences were recognized. The simulation, making the students to take on a certain perspective (native or nonnative English speakers), brought them to the concept of ‘mutual adaptation’ to manage differences while teaching them how to better communicate with international colleagues and to manage cross-cultural interactions. The important takeaway was that multinational organizations, based on cultural differences, have to adjust their operational and regulatory issues while respecting the local culture.
The Week 4 of the International Management course focused on the theme of introduction and integration of management systems.
Today’s case is about the process of Haier, the most valuable home appliances brand in China, implementing its organizational structure and culture in Japan, after acquiring Sanyo Electric Co. Through the case, students navigated the difficulties and conflicts in implementing the management system and organizational culture in international mergers and acquisitions. During the discussions, students were then guided by Dr. Hakeem to figure out the role of culturally competent global leaders to bridge cultural differences at both the individual and the organizational level. After major acquisitions, it is common that the acquired company resists to the new culture and practices, so it is essential to build up mutual understanding and trust. As an important takeaway from the class, students learnt that adaptation should be a judgment call based on a strategic assessment of the context instead of a single-minded adaption of the management systems to local practices.