Mercedess Benz Expanding in China

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  • Topic: Daimler AG, Mercedes-Benz, Daimler-Benz
  • Pages : 16 (4525 words )
  • Download(s) : 24
  • Published : April 19, 2013
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Table of content

Table of content………………………………………………………………1 List of Figures and Tables…………………………………………………..2 1. Introduction……………………………………………………………………….3 2. Culture…………………………………………………………………………….3 3.1. Cultural web analysis……………………………………………………3 3.2.1. Symbols……………………………………………………………….4 3.2.2. Stories…………………………………………………………………5 3.2.3. Power structures……………………………………………………..6 3.2.4. Organisational structures…………………………………………...6 3.2.5. Summary of cultural web analysis………………………………....8 3.2. National Culture analysis……………………………………………….9 3.3.6. German culture……………………………………………………….9 3.3.7. Chinese culture……………………………………………………..10 3.3.8. Mercedes and Beijing Auto Industry Company…………………12 3. Cross-cultural issues and barriers …………………………………………...13 4.3. Cultural barriers………………………………………………….....13 4.4. Ways to overcome barriers………………………………………..15

References………………………………………………………………………16
Appendix A………………………………………………………………………18
Appendix B………………………………………………………………………19
Appendix C………………………………………………………………………20

List of Figures and Tables

Fig. 1 Cultural web of an organisation…………………………………………………...4 Fig. 2 Mercedes logo………………………………………………………………………..5 Fig.3 BAIC logo………………………………………………………………………….......5 Fig 4 Mercedes organisational chart……………………………………………………...7 Fig. 5 Beijing Auto Industry Company organizational chart……………………………8 Fig. 6 Germany’s Hofstede cultural dimensions…………………………………….....10 Fig. 7 Chinese Hofstede cultural dimensions…………………………………………..10. Fig. 8 Hofstede applied to China and Germany……………………………………….12 Table 1 Barriers of Entry in China……………………………………………………….13 Table 2 Methods to overcome barriers………………………………………................15

1. Introduction

The purpose of this project is to provide a detailed critical analysis comparing the German and Chinese culture, it will address the likely problems that will emerge in order to ensure the success of both of the organisations and future growth; finally it will propose detailed explanations to the management style, structure, and reporting methods that will provide a solution to the issues identified. The company that will be studied is Mercedes and its expansion into China.

In 1885 Paul Daimler son of Gottlieb Daimler from Cannstatt invented a wooden-spiked two-wheeler powered by a fraction of a horsepower four-cycle internal combustion engine, but shortly after Daimler applied for his combustion motor patent, Carl Benz of Mannheim was granted a German patent covering a three-wheel motor car he constructed in 1844.

By 1890 demands for Daimler’s engine was growing and made expansion necessary, he formed a company naming it Daimler Motor Gesellschaft or Daimler Motor Company as it was known in England. In the early 1890 a wealthy banker-sportsman Emil Jellinek was impressed by the success of Daimler engine and purchased controlling stock interest in the company, in 1900 the 4-cylinder Daimler was completed and the care was named in the honour of Emil Jellinek’s daughter “Mercedes”.

The first connection with the Chinese culture took place at the beginning of 1900’s when Empress Dowager Cixi (1835-1908) was very enthusiastic about new technology. Around 1900 Mercedes offered the empress one of their first concept cars (Mercedes-Benz Velo), the car is still well preserved and on display in the Beijing Summer Palace.

Given the fact that the connection between the countries goes back to the foundation of Mercedes, its expansion into China seemed natural to fallow.

2. Culture
2.1. Cultural web analysis
In order to understand the culture inside Mercedes and their partners Beijing Auto Industry Company a cultural web analysis of the organisations will be performed. Culture is often explained as that which is taken for granted in a society or organisation. Culture can also be thought of as the artefacts of the organisation such as organisational...
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