Study On Cross-cultural Management Of FAW-Volkswagen Audi Brand

The difference of Western-Chinese culture exists since ancient times, andreflects in management, communication, corporate culture, etc., in the joint venture.With the implementation of reform and opening-up, and the growing up of theChinese economic in the world, more and more car manufacturers invest in China,there is a rising number of joint ventures coming up. But this leads to Chinese andforeign cultural conflicts inevitably revealed. Despite a part of the joint ventures havea good cooperation with foreign manufacturers, but there are more problems such asdifferences in social and cultural background of the two countries, differences inmanagement mode, human resources differences. Some enterprises simply panderingto foreign philosophy and management models, loss their self-characteristics andlocal advantages,"joint venture" has become the "importers", this will restrict thevariety of products, and lead to less sensitive to the market because of depending onthe foreign company. Conversely some enterprises do not accept the concept offoreign partners; it loses significance of cooperation with the joint venture, eventuallyleading to foreign companies to abandon the joint-venture model toward ownedventure. It means the local company will lose the technical and financial support ofthe foreign companies, and the ability to compete with other companies in the market.The success of joint venture depends on their ability of management ofmulticultural, the same as their failure. Chinese enterprises will face more and moreChinese and foreign cultural problems on communication as they integrate into theinternational market, of which the most important is the cultural conflict. How to find the right culture balance point between globalization and localization and betweenheadquarter and subsidiary, how to find cross-cultural management for thedevelopment of the company have become the key to the victory of the Chineseenterprises. Faced with these problems, we must have in-depth analysis for its rootreason, and make joint venture toward the sustainable development.This paper traces the background of Sino-German cooperation,FAW-Volkswagen, Audi brand, as an example, to discuss the conflicts and resultscome from Chinese and German cross culture communication. Put focus on hardworking for cross culture communication, get the way to resolve the problems oncross culture, and shows how the Audi brand achieved great success in thiscross-cultural fusion. First, this paper introduced current research status of crossculture management from a theoretical point of view between domestic and foreigncountries, secondly, I introduce the essential reason for Chinese and German crossculture conflict in Audi sales division of FAW-Volkswagen. Then I introduce how toresolve the conflicts effectively from five aspects and how to use these effective ways.Finally, I introduce how many ways for Audi sales division to resolve conflicts. Thisarticle takes Audi sales division of FAW-Volkswagen as an example to discussexcellent performance of Chinese and German sides in cross-cultural management. Isummarize lots of ongoing cross culture issues for good joint ventures. I hope by usingthe experience of Audi sales division to provide more effective reference views forlocal or joint ventures to help them develop and boost themselves.