Conflict Between Development And Cross Culture Of Germany-Funded Enterprices In China

S company is a Germany-funded enterprise in China which established in1998, and itis an automotive components manufacturer which develops very well. But as the differenceof culture background, the Chinese side and German side understand the China marketdifferently, so that it causes S company growing very slow. Low market share and highprice will lead S company to huge risk. But headquarter insists that S company developvery well and there is no risk behind, no support will be given to S company for increasingthe production capacity and localization to get more market share in China, and this makesChinese side of S company very worry about.This thesis will diagnose the conflict between S company development and crossculture, find out the cross cultural problems that a Germany-funded enterprise may has inChina, the problems including not enough resource to increase the production capacity andget new project, company strategy is profit oriented not market share oriented so that Scompany may have problem in the future, headquarter support nothing on light commercialvehicle projects, not enough employees to get the job done perfectly and can not match thecustomers’ needs.According to the study of S company, discover that the difference of culture andenvironment is the reason to the cross cultural conflict. German culture will not adapt tothe Chinese market, Chinese culture will not adapt to German management. So both sidesmust realize the difference of culture. For the case of S company, German headquarters isthe key to the cross cultural problem, they must realize the problem and set up and localizethe development plan and standards.This thesis provides some solutions to the cross cultural problem and somesuggestions for the company development. But still has problem while realizing, theproblem is that who or which department is responsible for this issue, or how to realize theproposal from top to down and how to tell German headquarter what really happen inChinese market. And for the different company has different situation, that could be moredifficult to solve the problem.And the feature for this thesis is that the study between cross culture and company development. Although a lot of problems are not solve yet, the study of S company andsolution of conflict between company development and cross culture could provides areference for the latter researchers.