Nissan & Renault

Portfolio Question: How will you apply Hofstede’s or Trompenaars’ theory within your ICN group project. When applying Hofstede’s or Trompenaars’ theories of cultural dimensions, it will be important to concentrate on those dimensions which reflect the greatest difference in culture. In our case, our group will be examining the 1999 merger between auto manufacturers Nissan and Renault. The merger between Nissan and Renault is significant culturally speaking because Nissan is a Japanese company, while Renault is French. Firstly, the dimension of “individualism vs. collectivism” will be important to analyse. This is due to the fact that collectivism is high in Japan, whereas in France, individualism is highly valued. Group based work and loyalty characterize Japanese business, whereas the French prefer to emphasize the individual looking after themselves. In terms of management style, this could have a major impact on the way the alliance between Nissan and Renault would work. Another relevant dimension of culture would be masculinity vs. femininity. Japan is a highly masculine country whereas equality between the genders is significantly closer in France, which is considered a country that ranks high on femininity. This dimension will be important to note, as gender roles within the companies may vary significantly, and integrating the workforces of each firm could be compromised. Uncertainty avoidance and perceptions of time could also be applied to our case. In total, the cultural theories will be used to underscore cultural conflicts and similarities. Such analysis will enable us to determine whether or not the merger between Nissan and Renault was successful from an intercultural awareness