Study On Cross-cultural Management From The Perspective Of Organizational Culture

The Michelin Group entered the Chinese market in the 1980 s,from a humble office to nowadays the Shanghai headquarters with about 8,000 Chinese employees.In 2019,it was selected as the 100 best-known companies in China,ranked eighth in total,which is the first among all French brands on the list.Michelin is not only the most familiar tire brand for Chinese consumers,but also provides high-quality products and services for Chinese consumers in the after-market services,travel information and lifestyle.As a French company with more than 100 years of history,Michelin's gratifying achievements in China are inseparable from its excellent cross-cultural management.However,we can't ignore that Michelin has been in China for more than two decades and has learned a lot from its cross-cultural management failures.As early as March 2001,Michelin and Huayi Group jointly established Shanghai Warrior Tire.Due to the poor efficiency of the joint venture,Huayi Group chose to withdraw in 2009.The following year,both two sides began to look for some new opportunities in the future development and reached a cooperation in 2011 to jointly build Anhui's Warrior Tire.The result is far less beautiful than it originally designed.Six years later,Huayi Group repurchased shares in Anhui Warrior Tire.Michelin claimed compensation and terminated cooperation.After these two blows,Michelin's direct economic loss was about one billion yuan.Therefore,this article first sorts out the Michelin Group's organizational culture and development process in China,collects data from a large number of internal employee's real experience as well as direct executive interviews,and then combines the theoretical results of organizational culture and cross-cultural management,using related academic accomplishments and theories to clarify Michelin's mismanagement of joint ventures in China 's cross-cultural management and the reasons for the difficulty in implementing the management system.From the perspective of organizational culture and cross-cultural management,analyzing why the organizational culture from France is too strong and the management system cannot be adapted to local conditions.Finally,I give my conclusion as well as suggestion regarding how to take advantages of its internal culture in order to establish the people-oriented values accepted by both Chinese and French employees,and the ways of increasing cross-cultural training for employees from China or France.