Culture eats strategy for breakfast
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In 2010, Zhejiang Geely Holdings group bought Volvo brand for $1.8bn signed in Sweden which implied a Chinese carmaker acquired 100 per cent of Volvo and its assets. The deal marks the largest acquisition of an overseas luxury car brand by a Chinese carmaker company (Reed and Ward, 2010).
Based on research work, between 70% and 90% of mergers and acquisitions fail in large part due to obstacles resulting from cultural differences (Christensen, Alton, et al., 2011). Obviously, this deal has a huge difference between east culture and western culture.
Geely versus Volvo cross-cultural management dilemma
Based on Hofstede's cultural dimensions theory, it scored differences between cultures on the six values dimensions which are Power distance index (PDI), Individualism vs. collectivism (IDV), Uncertainty avoidance (UAI), Masculinity vs. femininity (MAS), Long-term orientation vs. short-term orientation (LTO), Indulgence vs. restraint (IVR). Through putting together different national scores, it allows international comparison between cultures. It shows a huge difference between China and Sweden within almost every dimension as following.
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Specific Geely and Volvo, there existed many cultural differences. For instance, the language barrier, Chinese, Swedish, English, three languages mixed together. China belongs to high-context cultures and combined with facial expression and body language etc to implicitly express the meaning. Whereas, Sweden is low-context cultures. On the other hand, conflict of business philosophy, Geely has inclined long-term orientation, more likely establish several factories in China to speed up the production of cars, but Volvo believes that quality should be strictly controlled and the expansion plan should be postponed.
Measures about cross-cultural management
If you intend to undertake cultural change, you must be prepared to explain why it is necessary. You will need to persuade staff of the benefits and act decisively with the people who resist change (Roberts 2007, p. 53).
Geely took many measures to cope with the dilemma: From day one, Li Shufu, who is the chairman of Geely, said we would keep brotherhood instead of a father-son relationship of two companies. This clear statement set the tone of cultural cooperation between each other. It has run the Swedish carmaker as a separate company with its own management team based in Gothenburg and a new board of directors (Reed and Ward, 2010). Strength language and non-language communication training to both employes. Request the consolidated financial statement and using the unified standard to deal with accounts. Conduct training on cross-cultural values and social norms for employees of both parties, further reducing conflict and enhancing open and tolerant mindset (Cai, 2016).
Result: Success
Culture eats strategy for breakfast, in this case, has been avoided as both organisations have developed tremendously success. Volvo transformed from huge losses to global sales of $23.8 billion in 2019 as well as Geely car has won the sales champion of China’s independent brand cars. Geely Holding was listed in the 2020 Fortune Global 500 for the 9th consecutive year. Volvo CEO Hakan Samuelsson said that "Our evolution into a global company, that would not have been possible without the support from Geely. They have been a very good owner for the company, quite opposite of what everyone thought at the beginning."
The key to success is the close integration of the Nordic culture of Volvo and Chinese culture.
In 2010, Zhejiang Geely Holdings group bought Volvo brand for $1.8bn1.8 billion. The contract was signed in Sweden, which implied that a Chinese carmaker acquired 100 per centpercent of Volvo and its assets.
Based on research work,Research suggests that between 70% and 90% of mergers and acquisitions fail in large part due to obstacles resulting from cultural differences (Christensen, Alton, et al., 2011).
Or "Studies show that..." just an idiomatic thing.
Obviously, this deal hasinvolves a hugesubstantial difference between east culture and western culture.
"Huge" is a little too informal here.
Geely versus Volvo: a cross-cultural management dilemma
Based on Hofstede's cultural dimensions theory, it* scored differences between cultures on the six values dimensions which. These dimensions are Power distance index (PDI), Individualism vs. collectivism (IDV), Uncertainty avoidance (UAI), Masculinity vs. femininity (MAS), Long-term orientation vs. short-term orientation (LTO), and Indulgence vs. restraint (IVR).
*not clear what "it" refers to here. Broke the sentence into two because it was quite long.
Through puttingThe theory puts together different national scores, it allows internationalallowing for comparison betweenamong cultures.
Rewrote this because it wasn't clear what "it" referred to in your first version. Between – use with 2 things. Among – use with 3+ things.
ItThe scores (?) shows a hugetremendous difference between China and Sweden within almost every dimension as following.
Again, "huge" is too informal. Watch out for "it" – meaning is unclear.
Specific between Geely and Volvo, there existedexist many cultural differences.
General statement --> present simple (not past).
For instanceFirst, thethere is a language barrier, with three languages–Chinese, Swedish, English, three languages –mixed together.
Your original sentence was a fragment, meaning that it was missing a verb. ("Mixed" functions as more like an adjective, since it's in the participle form, so it doesn't count.)
China belongs to high-context cultures and combined with, where speakers combine facial expression andexpressions with body language etc to implicitly express the meaning.
WhereasIn contrast, Sweden is among the low-context cultures.
Whereas is only used in the *middle* of a sentence. example: China is a high-context culture, whereas Sweden is a low-context culture.
On the other hand, conflict of business philosophy, Geely has inclinedgreater long-term orientation, making it more likely to establish several factories in China to speed up the production of cars, butwhereas Volvo believes that quality should be strictly controlled and the expansion plan should be postponed.
Measures aboutof cross-cultural management
You will need to persuade staff of the benefits and act decisivelydeal with the peoplethose who resist change (Roberts 2007, p. 53).
What you wrote was correct, but it sounded awkward/unnatural.
Geely took many measures to cope with thethis dilemma:.
Never end a sentence with a colon
From day one, Li Shufu, who is the chairman of Geely, said wethat the two companies would keep brotherhood instead of a father-son relationship of two companies.
"we" doesn't make sense because that's not the point of view used in the rest of the essay
This clear statement set the tone of cultural cooperation between each other.
It* has run the Swedish carmaker as a separate company with its own management team based in Gothenburg and a new board of directors (Reed and Ward, 2010).
*Not clear what "it" refers to here
Strength language and non-language communication training to both employesemployers.
Sentence fragment - needs a verb
Request the consolidated financial statement and usinguse the unified standard to deal with accounts.
Is this in the imperative mood? A little unclear here.
Conduct training on cross-cultural values and social norms for employees of both parties, further reducing conflict and enhancing open and tolerant mindset (Cai, 2016).
No change suggested
Also not sure I understand this - is it a command or a description of what happened?
This sentence and the previous sentence are all descriptions of what happened.
Culture eats strategy for breakfast, in this case, has been avoided as both organisations have developed tremendously success.
No change suggested
Not sure I 100% understand "culture eats strategy for breakfast," but that might just be an expression I haven't heard of.
Volvo transformed from huge losses to global sales of $23.8 billion in 2019 as well as, and Geely car has won the sales champion of China’s independent brand cars.
Geely Holding was listed in the 2020 Fortune Global 500 for the 9thninth consecutive year.
Volvo CEO Hakan Samuelsson said that, "Our evolution into a global company, that would not have been possible without the support from Geely.
They have been a very good owner for the company, quite the opposite of what everyone thought at the beginning."
"
The key to success is the close integration of theVolvo's Nordic culture of Volvo andwith Chinese culture.
- MmagmulanFeb 12
Thank you so much!!
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