The Cross Culture Management Study Of A German Automotive Component Corporation In China

With the continuous development and deepening of economic globalization,if a corporation does not want to survive and develop only locally,but want to expand your economic territory,then you should go out of the country.In the 4 decade development of its Reform and Opening,China has not only attracted a large number of foreign corporations to enter China,while Chinese corporation have made great strides.In such a globalization process,cross-cultural management is very important,and also must be considered.B is a German automotive component corporation in China,which is a joint venture funded in 1999 by two hundred years old German automotive component Company.B’s main business is the automotive air conditioning control module;its core competitiveness is research and development capabilities.With the continuous development of the automotive component market and the rapid increase in business,B also opened a number of wholly owned subsidiaries in the world.China’s subsidiary in Shanghai which established in 2004 has so far been 13 years.In the first 10 years of development,the business of Shanghai subsidiary has been developing rapidly.It starts with 4-person business subsidiary at beginning and now there is an almost 500 employee scale with an office center and two factories.The sales revenue starts going down from 2014.And for recent 2 year,as the market competition continues to intensify,the business in China is not expanding and global business is also shrinking with very few gained new business.Someone think that this is the market issue,someone think that the company is not competitive any more,also there are people think that is the management issue.There are a lot of people realize that German Corporation B’s management to China subsidiary constrains the development under the new situation.But no one realizes that this is also caused by the lack of intercultural management and the cultural conflict.This thesis focuses on the analysis of Corporation B ’s China subsidiaries in Shanghai,and analyzes the problems and improvement suggestions of Shanghai subsidiary in cross-cultural management through combination of fact and theory.According to the cross culture theory,the way how German headquarters manages Shanghai subsidiary shows obvious German culture characteristics which are rigorous and conservative,while their management of Shanghai subsidiary ignored the existence and conflict of cross culture.And these lead to the growing-up slowing down of Shanghai subsidiary.It is necessary for B Corporation to recognize the existence of culture difference under the special circumstance of Shanghai subsidiary in China market.And the localization management must be taken into account to improve the problems of development slowing down.