Pacific Dunlop Case

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As an increasing number of organizations seek to operate in foreign markets, it is vital that management to develop a better understanding of, and sensitivity to, the impact of different national settings on the management task. In the field of cross-cultural management/organization , the success of operations, efficiency depends on the understanding of few things what is the work culture, what is peculiar or specific to one nation or culture, customs. Pacific Dunlop case describes the experiences of a plant manager in China. Problems arise concerning differences in culture, expectations, and management styles. In a country like China the processes, people and systems are tuned in away, which is totally different from a western management point of view. Lack of automated production system, lack of managers whom plant manager can delegate, unable to retain young floor managers, lack of technical skills, custom and practices are all part of the current inefficiencies and excess inventory in the Beijing plant. In order to focus on expansion of the plant, plant manager has to restructure the operations. The issues in the emerging markets ate generally cultural, most of the emerging cultures are different than the already developed western business cultures. Majority of the emerging markets would be in adapting and the shaping process. It takes a while for them to reach on par with the developed markets. Lack of legal frame wok, ambiguity in the laws, role of the unions, lack of highly educated labor, environmental standards, inability to adapt to the new culture, aged workforce are the common issues for any foreign investing company in the emerging markets. Training, hiring managers who already exposed to the emerging culture, educate the employees with corporate policy, proper communication channel, shaping the environment with the corporate business culture reduce the risk of losing investments in emerging markets. In order to make the operations efficient,...
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