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Unit2ChineseEnterprisesGoingGlobalChineseEnterprisesGoingGlobalChineseEnterprisesGoingGlobal
1Understandthecompetencesneededforfutureglobalmanagers;234Understandthedifferentmanagementstylesofmultinationalcompanies;Understandthe“ThinkGlobal,ActLocal”strategyofmultinationalcompanies;Analyzeinterculturalconflictsbyusingtheculturalsynergymodel.Objectives
1Lead-inScenario234UnderstandingTextAEnhancingGlocalMindsetAssignment
Lead-inScenarioLead-inScenario:WhichCompetenceIsNeededMostforGlobalmanagersChineseautomakerGeelycompletedtheacquisitionofVolvoCarsin2010,“ThisisahistoricdayforGeely,whichisextremelyproudtohaveacquiredVolvoCars,”saidLiShufu,ChairmanofGeelygroup.Atthesametime,GeelynamedStefanJacoby,aformerchiefexecutiveoftheVolkswagenGroupofAmerica,asPresidentandChiefExecutiveOfficer(CEO)ofVolvoCars.JacobyjoinedtheboardofVolvoCars,chairedbyGeelyChairmanLi.WhathappenedaftertheacquisitionandwhydidLiShufu,ChairmanoftheboardfinallyfireStefanJacoby,PresidentandCEOofVolvoCars,oneyearlater?What’stheproblembetweenthem?FromwhatLiandJacobydiscussedforthefutureofVolvoCars,wecanperceivewhathappenedtothem.Thefollowingaretheissuestheyencounteredwhentheystartedworkingtogether.QuestionsforInterculturalUnderstanding1.WhatwastheproblembetweenthechairmanandtheCEO?Whowasrightandwhowaswrong?Whydoyouthinkso?Lead-inScenario:WhichCompetenceIsNeededMostforGlobalmanagersSceneOneNotlongaftertheacquisition,LiwasinterviewedbythemediaforthefutureofVolvoCars.LideclaredtothepublicthatVolvoCarswouldsetupthreemanufacturersinChina.WhenJacobywasinterviewedbythemediaonanotheroccasionforLi’splantosetupthreemanufacturesinChina,heopenlyadmittedthatanydecisionshouldgetapprovalfromthemanagementteam.SceneTwoWhenLiandJacobydiscussedproductionandmarketing,theyhaddifferentviewsontheaspects.Liwouldexpanditsproductiontotakeupthemarketsharesoon.However,Jacobyrepliedthattheyneededtobecautiousinitsexpansion.2.Whichcompetenceismostneededforthemtosolvetheirproblems?Technicalcompetence,managerialcompetenceoranythingelse?Whydoyouthinkso?QuestionsforInterculturalUnderstandingLead-inScenario:WhichCompetenceIsNeededMostforGlobalmanagersSceneThreeRegardingtheproductforthemarket,LibelievesheknowstheChinesemarketbetterthanJacoby,sohewouldmakelargecarsforVolvo.Jacobybelievessmall-sizedcarswouldbebetter.WhydidboththeChairmanandtheCEOholddifferentviewsfortheirmanagementrightafteritsacquisition?Surelyenough,forsomeimportantissuesliketheissuesmentionedabove,bothofthemmusthaveexchangedtheirviews,andunderstoodwhateachwassaying,butnoconsensuswasmade.Therefore,nodecisioncouldbemadeforanyforwardprogress.Intheend,LifiredJacoby.Lead-inScenario:WhichCompetenceIsNeededMostforGlobalmanagersInterculturaltips:1.WhatwastheproblembetweenthechairmanandtheCEO?Whowasrightandwhowaswrong?Whydoyouthinkso?Theyfailedtocommunicatewitheachothereffectively,becausetheybothbelievedtheywereright,whichledtomisunderstandingorconflict.It’ssimplybecausetheymadetheirdecisionsbasedontheirowncommunicationstylesandperspectives.Interculturaltips:Lead-inScenario:WhichCompetenceIsNeededMostforGlobalmanagers2.Whichcompetenceismostneededforthemtosolvetheirproblems?Technicalcompetence,managerialcompetenceoranythingelse?Whydoyouthinkso?BoththeGeelychairmanandtheVolveCEOarecompetentinmanagementfortheirsuccessintheautomobileindustry,butthisdoesnotmeantheyarequalifiedasglobalmanagers.Inthiscase,whattheyneededisinterculturalcompetence,insteadoftechnicalcompetence,managerialcompetenceorcommunicativecompetence.Similarconflictsandmisunderstandingsoccurredintheprocessofmanyacquisitions,whichresultedfromeachparty’sbehaviorandwayofthinking.UnderstandingTextAUnderstandingTextAA.GlobalUnderstandingReadthetextandanswerthequestions:1.Whatisthebiggestchallengeinactinglocal?Tounderstandtheculturesinwhichmultinationalcompaniesoperateandgosofarastoretooltheverymanagementstylethatmadethemglobalinthefirstplace.2.Accordingtothepassage,whatisgloballeadership?Beingcapableofoperatingeffectivelyinaglobalenvironmentandbeingrespectfulofculturaldiversity.B.UnderstandinginterculturalpointsUnderstandingTextAItalsoillustratesthevaryingcomponentsofselectedcountries’culturalaspectsrelevanttobusiness.(Para.2)Interculturaltips:Competingintheglobalmarketplaceisdifferentfromcompetingwithintheboardersofasinglemarket.Thesedifferencesareprimarilycausedbythelocaldifferencesthatareassociatedwitheachindividualmarketandlocalculture.Apartfromthedifficultiesassociatedwiththeculturalaspects,therearealsootherfactorsthatmaynegativelyaffecttheperformanceofthemanagerinanothercountrysuchasadjustmentdifficulties,familyissues,andhealthissues.B.UnderstandinginterculturalpointsUnderstandingTextAGlobalculture---understandingthatwhilevariouscharacteristicsofhumanculturehasalwaysbeenuniversal,auniqueglobalculturewithsomecommoncharacteristicsmaybeemerging. (Para.4)Interculturaltips:Thesetentermsofbeliefscovermostofthecompetencesagloballeadershipneeds.Inotherwords,globalleadershipisdefinedasleadingpeoplewhoarebasedinmultipleregionsoftheworld.Globalleadershavetoengageverydiversegroupsofpeopletogetthingsdone,andthereneedstobeagoodunderstandingofwhereitaddsvaluetobeglobalandwhereitisbettertobelocal.B.UnderstandinginterculturalpointsUnderstandingTextATheyareattitudes,socialorganizations,thoughtpatterns,societalroles,languageskills,spaceandtimesense. (Para.5)Interculturaltips:Thesesevenculturalvariablesarethewaydifferentpeopleinsidecontrastingsocietiesareabletocommunicatewitheachotherandunderstandwhatishappening.Thesecontrastingattitudes,beliefsandideaswillshapehowtheyrelatetooneanotherandtheirfocusoninteractingwithnumerousindividuals.B.UnderstandinginterculturalpointsUnderstandingTextAFortheseorganizationstobesuccessful,theymustdevelopcompetenceineffectiveinternalandexternalcommunication. (Para.6)Interculturaltips:Internalcommunicationreferstothecommunicationwhichtakesplaceamongtheparticipantswithinthebusinessorganization.Onthecontrary,externalcommunicationisacommunicationthatoccursbetweenintheorganizationandotherindividuals,groupsororganizations.Theformerisusedtoguide,informandmotivateindividualstoworkefficientlyforthesuccessoftheorganization.Thelatterhelpsinpresentingagoodimageofthebusinesstothepublic.B.UnderstandinginterculturalpointsUnderstandingTextAUnderstandyourownculture. (Para.7)Interculturaltips:Understandingyourcultureisaprocessofself-reflectionthatisessentialtothecross-culturallearningprocess.Bydevelopingthisself-awarenessandtheabilitytoanalyzetheirculture(s)first,individualscanthendeveloptheskillsandawarenesstosystematicallyobserveothercultures.C.ComprehensionandlanguagepointsUnderstandingTextA1.mutinationalcompany(MNC)(Para.1)MNCorworldwideenterpriseisacorporateorganizationthatownsorcontrolstheproductionofgoodsorservicesinatleastonecountryotherthanitshomecountry.Black’sLawDictionarysuggeststhatacompanyorgroupshouldbeconsideredasamultinationalcorporationifitderives25%ormoreofitsrevenuefromout-of-home-countryoperations.MNCsarelikelytobringemploymentpracticecharacteristicsoftheirhomecountrytocountriesinwhichtheyhavesubsidiaries.C.ComprehensionandlanguagepointsUnderstandingTextA2.redtape(Para.1)Redtapeisanidiomthatreferstoexcessiveregulationorrigidconformitytoformalrulesthatareconsideredredundantorbureaucraticandhindersorpreventsactionordecision-making.Itisusuallyappliedtogovernments,corporations,andotherlargeorganizations.Thisoriginatesfromthecustomoftyingupofficialdocumentswithredorpinktape.C.ComprehensionandlanguagepointsUnderstandingTextA3.ThinkGlobal,ActLocal(Para.1)The“ThinkGlobal,ActLocal”approachasthenameimpliesreferstothestrategyimplementedbysomemultinationalcompaniesaccordingtowhichglobalviewpointisadoptedintermsofformulatingcompanyvision,long-termaimsandobjectives,anddevisingeffectivestrategyinordertoachieveprofitmaximization.However,adaptationsaremadeineachmarketaccordingtothecultureandspecificationsofaspecificmarket,becauseeverymarketdiffersfromeachotheronthegroundsofpoliticalsystem,religionofpeople,culture,standardoflife,etc.Thesedifferencesfindtheirreflectiononconsumerbehavior,customerexpectationandotherrelatedmatters.C.ComprehensionandlanguagepointsUnderstandingTextA4.ThebiggestchallengeinactinglocalistounderstandtheculturesinwhichtheMNCoperatesandgosofarastoretooltheverymanagementstylethatmadethemglobalinthefirstplace.(Para.1)Themostdifficultpartofactinglocalistounderstandthecultureofyourcompany’sforeignmarket.Inaddition,itisequallyimportanttoreplaceandupgradethecompanymanagementthathadaneffectivestrategyofenteringtheforeignmarket.C.ComprehensionandlanguagepointsUnderstandingTextA5.culturalsynergy(Para.4)CulturalsynergyisatermcoinedfromtheworkofNancyofMcGillUniversitywhichdescribesanattempttobringtwoormoreculturestogether,toformanorganizationorenvironmentthatisbasedoncombinedstrengths,conceptsorvaluesandskills.C.ComprehensionandlanguagepointsUnderstandingTextA6.Americanexecutiveshaveinheritedculturalbiasesofindividualism,simplicity,andsuperioritythatcontradictthecharacteristicsofglobalthinking,namelysystemic,complex,andmulticulturalthoughts.(Para.7)Americanmanagersmustlearntodispensetheiracquiredculturalbarrierstothethreeprinciplesofglobalthinking;i.e.,individualismtosystemic,complexitytosimplicity,andsuperioritytomulticulturalthoughts.EnhancingGlocalMindsetEnhancingGlocalMindsetInterculturalCompetenceModel1.Whatisthemeaningof“Thinkglobal,ActLocal”?Itisanapproachtakenbyamultinationalcompanyforitsglobalstrategicmission.“ThinkGlobal,ActLocal”isamindsettoperceivesituationsandpeoplefromglobalorinterculturalperspectivessothatglobal-localpeoplecanforeseethedifferentviewsoverthesameeventsheldbypeopleofothercultures,whichcanenablepeopletoadopttheappropriatemeasurestoavoidtheconfrontationwithotherpeople.Inthemeantime,“ThinkGlobal,ActLocal”isaskillthatcanbeusedtomanageculturalchallengeswhencompaniesgoglobal.BroadeningInterculturalPerspectivesTask1
1.Whatisthepurposeorgoalofthe“ThinkGlobal,ActLocal”approach?(openquestion)2.Howwouldyouexplaintheattributesof“global-localtalent”?Whatdoesapersonneedtodotobecomeaglobal-localtalent?BroadeningInterculturalPerspectives1.Whatisthepurposeorgoalofthe“ThinkGlobal,ActLocal”approach?(openquestion)Multinationalcompanieshavetomastertheartoflocaloperation,buttheirbehaviorsmustmatchtheirglobalstandards,asexpectedbythelocalpeople.BroadeningInterculturalPerspectives2.Howwouldyouexplaintheattributesof“global-localtalent”?Whatdoesapersonneedtodotobecomeaglobal-localtalent?Global-localtalentssharetheseattributes:aninternationalmindsetandacan-dospiritthatcaterstotheglobaltechnologicalandculturalneeds;specializedleadershipskillstomanagetheworkofpeoplewithdifferentbackgroundsandcustoms;theabilitytoembraceculturaldifferencesandbereceptivetodifferentperspectives,etc.Thus,theycanbothsteadfastlypursuetheglobalvisionandobjectivesandnimblyadapttothelocalsocioeconomicandculturalconditionsandneeds.BroadeningInterculturalPerspectivesInordertobecomeaglobal-localtalent,youneedtoacquirethefollowingskill-setsthrougheducationandtraining:1)proficientmasteryofEnglishoraforeignlanguageasabusinesslanguageinthefuture;2)keeninterculturalawareness;3)effectiveinterculturalcommunicationskills;4)criticalthinkingandstrategicplanningskills.Assignment
AssignmentAfterclasspleasereadTextAagain,andfinishtheexercisesinthispart.Reviewtheinterculturaltipsandlanguagepointswehavelearnedinclass.
1InterculturalPuzzle234Comprehending&CheckingConceptsFollow-upProject
UnderstandingCulturalDiversityInterculturalPuzzle
InterculturalPuzzleAnalyzetheissuesinthecase
1.WhatculturalchallengesdidFuyaoencounterintheprocessofitsglobalization?HowdidFuyaodealwiththesechallenges?2.WhatsuggestionswouldyoumaketomanagethechallengesFuyaoisfacingintheU.S.?WhatlessonscanwelearnfromFuyao’sexperiencefortheChineseenterprises’outboundinvestment?FuyaoAmericanFactoryFuyaoAmericanFactory
InterculturalPuzzleAnalyzetheissuesinthecase1.WhatculturalchallengesdidFuyaoencounterintheprocessofitsglobalization?HowdidFuyaodealwiththesechallenges?Interculturaltips:Fuyaoencounteredchallengesatdifferentmanageriallevels.ThebiggestchallengeinactinglocalistounderstandtheculturesinwhichtheMNCoperates,whichisalsotrueforFuyaoAmericanfactory.Forinstance,forFuyaotosucceedintheU.S.,theChinesemanagementhadtolearnandrespectthelocallaws,regulations,andcustoms.Theyhadtoretooltheverymanagementstylethatmadethemglobalinthefirstplace.Unfortunately,infaceofthesechallenges,whatFuyaodidwascomplainandpushforhighworkefficiency,ignoringthedemandsoftheAmericanworkers.
InterculturalPuzzleAnalyzetheissuesinthecase2.WhatsuggestionswouldyoumaketomanagethechallengesFuyaoisfacingintheU.S.?WhatlessonscanwelearnfromFuyao’sexperiencefortheChineseenterprises’outboundinvestment?Interculturaltips:
Two-waycommunicationisboththecureandpreventionformisunderstandingsandconflicts.First,itisstronglyrequiredtoestablishanewcorporatecultureorculturalsynergybeforeorafterFuyaobeginsoperationsatitsfactoryintheU.S.Second,thepositiveandeffectivecommunicationmethodsandchannelssuchascommunicationbetweenlaborandmanagementshouldbeestablished.FuyaoAmericanFactoryComprehending&CheckingConcepts
Comprehending&AcademicWritingAnswersforTextA:BCABBDA.ComprehendingandReflectingAnswersforTextB:BC ACBA
Comprehending&AcademicWritingB.PracticingAcademicWriting
Comprehending&AcademicWriting(1)Toincreasetheirmarkets;(2)Todiversify;(3)Toseekrawmaterials;(4)Toseeknewtechnology;(5)Toseekproductionefficiency;(6)Toavoidpoliticalbattlesandtheredtape;(7)Toavoidunionizationandreducelaborcosts,etc.(8)UnderstandtheculturestheMNCoperatesin;(9)Retoolthemanagementstylethatgotthemglobal.(10)Researchanddevelopment;(11)Newandoldproductinnovation.B.PracticingAcademicWriting
Comprehending&AcademicWriting(12)Marketdevelopment,etc.(13)Selectionandtrainingstudiesmightincludebothqualitativedescriptionsofculturalcontextsandquantitativestudiesofindividualsandtheirabilitytofunctioneffectivelyininterculturalsettings;(14)Studiesmightascertainpositiveandnegativeinterculturalpersonalityandperceptualstylestoassesscandidates’cognitivedevelopmentforinterculturalcommunication.(15)Problem:culturalbiasesofindividualism,simplicity,andsuperiority.(16)Solution:understandandassimilatetheconceptofglobalthought:a.Developtheabilitytothinkintermsofsystems;b.Developtheskilltosolvecomplexproblems;c.Developaviewoftheexecutiveasaworldcitizen.B.PracticingAcademicWritingUnderstandingCulturalDiversity
UnderstandingCulturalDiversityInterculturalModelAccordingtothereportofBeltandRoadinBigData,Chineseenterprises,whentakingBeltandRoadInitiative,arefacingthesechallenges:
•Lowinternationalizationoftalents;
•Lowcompetenceincommunicatingwithnongovernmentalorganizationsabroad;
•Lowcompetenceinhandlingriskandproblemsolving.
UnderstandingCulturalDiversityInterculturalModelChinaGoOutissuedbyChinaAcquisitionSocietyandErnst&YoungGlobalLimitedalsohighlightedthemostpressingchallengesfacedbyChineseenterprisesabroadsuchas:
•Corporatecultureintegration;
•Strategicobjectiveintegration;
•Localtalentattractionanddrain.
UnderstandingCulturalDiversityInterculturalModel
UnderstandingCulturalDiversityTask21.WhatchallengesareChineseenterprisesfacingnowthattheyhavegoneglobal?Whydoyouthinkso?
Thesechallengescanbecategorizedintofouraspects:(1)Culturalchallengesduetoculturald
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