“This is the age of global economy in which resource supplies, product markets and business competition are worldwide rather than merely in local or national scope.” “The global economy offers great opportunities of worldwide sourcing, production, and sales capabilities.” Nevertheless, when companies stretch their leg to the world, they have to face many challenges caused by the process of globalization. Cultural differences are the inevitable question they have to encounter. During my internship period, I worked as a receptionist in Park Plaza Beijing Science Hotel, which is managed by Carlson, a global hospitality and travel company. In my research paper I will take Carlson Hotels as a main example to make a deep analysis about what are the popular cultural differences that multinational corporation encounters in China and what conflicts those cultural differences will cause. Carlson is a family-owned, global hospitality and travel company. Headquartered in Minneapolis, Minn., Carlson encompasses 1,077 hotels in 81 countries and territories; 924 restaurants in 61 countries and territories; and a majority stake in Carlson Wagonlit Travel, the global leader in business travel management, which operates in 153 countries and territories. My concentration will be on the area of its hotels in China. The Carlson Rezidor Hotel Group is one of the world’s largest and most dynamic hotel companies. It has a fantastic portfolio of 1,319 hotels in operation and under development, a global footprint covering 81 countries and territories and a powerful set of global brands: Radisson Blu, Radisson, Park Plaza, Park Inn by Radisson, Country Inns & Suites By Carlson and Hotel Missoni. Until the October 14th of 2010, throughout China there have been 10 hotels managed by Carlson Company in operation and 11 ones have been contracted. In addition, there will be 9 Carlson hotels opening in 2011 to 2013. For more potential consumers and lower labor costs; Carlson is on a rapid expansion in China. Apart from Carlson, many other international hotel companies do business in China, such as Sheraton Hotel, Hilton Hotel, Shangri-La Hotel, Hyatt Hotels. Not only facing with the challenge of complex and dynamic global economic environment, international hotels also encounter Chinese social and regional culture which in a large part differs from that of America. Global business executives must understand and deal successfully with general environment conditions that present many differences in economic, legal-political and human resources systems, among other aspects of business infrastructure. Culture differences tend to arouse conflicts and business failure. Success of international hotel company is not achieved just by coming to China. But they need to establish themselves locally and become Chinese citizens.
Chapter Two the Theory of Cross-Culture Conflict
2.1 The Concept of Cross Culture Conflict
Cross-cultural conflict can be defined as conflict generated, and perhaps exacerbated or perpetuated, by cultural differences among the groups involved in the conflict. The culture in which a person is raised plays a significant role in shaping his values, morals, behaviors and attitudes. These characteristics impact how a person thinks, and what his overall mind-set is toward the world around him. When a person is met with the principles and ideals of a different culture, cross-cultural conflict takes place. The power of culture is strong, and it can be difficult to overcome cross-culture conflict, as evidenced by numerous conflicts between different cultural groups. People in different cultural background hold distinctive values, attitude and ways of solutions towards six basic issues faced by human beings. These issues include views about humanity, views about himself and the nature, relationships with people,...