Beiersdorf - how does culture impact on a small German multinational

Organizational Behaviour 

Beiersdorf - how does culture impact on a small German multinational

Question: The corporate culture of a particular multinational company may complement and appropriate to some of the national cultures in which it operates, but inappropriate in others. How does Beiersdorf, operating in numerous different countries and cultures, resolve this issue?

Daniel Wülbern
Patrick Hanisch
Cléa Martinet
Domenico Sapone
Amir Bagheri

Oxford, 24 November 2002

1. Content

2. Executive Summary ... 2

3. Company description: Beiersdorf (BDF) ... 3

4. Cultural Framework: Hofstede ... 4
4.1. Measuring culture ... 4
4.2. Four dimensions ... 5
4.3. France - A High power distance culture ... 7
4.4. UK – The village market ... 7
4.5. Germany – The well oiled machine ... 7

5. Cultural values, beliefs and norms ... 9
5.1. The efficiency factor ... 9
5.2. Setting standards worldwide ... 9
5.3. Strength from within: the Beiersdorfers ... 10
5.4. What about growth policy? ... 10
5.5. Thinking globally, acting locally ... 11
5.6. Learning company ... 11

6. Analysis of Practices ... 12
6.1. The organization in practice ... 12
6.2. Beiersdorfers in practice ... 12
6.3. A learning company in practice ... 13
6.4. Quality in practice ... 14
6.5. BDF-checklist for business success in different cultures ... 14

2. Executive Summary

This work deals with the way Beiersdorf’s does business in Europe. It considers the German impact of this particular culture on local practices, such as the organisational structure, human resource issues, team working or employee reward systems. First we introduce you to the firm behind Nivea, a product that is well known worldwide. Beiersdorf, though a relatively small company, is present around the world and therefore worth analysing. We than picked a cultural theory to base our analysis on. We chose the cultural framework as discussed by Hofstede, which is accepted throughout the scientific world as a useful tool. We will explain what is meant by the four considered dimensions and say how the UK, Germany and France fit into this framework. Then we outline BDFs values, beliefs and norms, as integral part of the Beiersdorf culture and how they partly reflect German values. In the end we will show how these values are set into practice in general and on a day-to-day basis.

3. Company description: Beiersdorf (BDF)

Beiersdorf was originally established in Hamburg, Germany in 1882. In 1911 Oskar Troplowitz invented a chemical formula and Nivea was born. Nivea is still the strength of Beiersdorf’s product portfolio. But soon other products followed and today Beiersdorf consists of three departments: cosmed (e.g. Nivea, Labello, Atrix), tesa (produces and markets adhesive products for industrial and private customers) and medical (e.g. Hansaplast, Elastoplast, Eucerin). Their products are always regarded as high-quality products.

It then followed a step by step growth until it became the leading international consumer goods company we are all somehow familiar with today. Indeed the 11 brands included in the company have in common few outstanding features, such as offering products for everyday use, with a very wide target market .Who has never heard of or used the blue pot of Nivea cream ?

Since 1994 Beiersdorf, when Rolf Kunisch, a former Procter & Gamble Manger, became CEO the internationalisation process of Beiersdorf has accelerated. Today Beiersdorf sells its products in over 100 countries and has become a cornerstone of health- and personal care in many different cultures, often being regarded as a native rather than a German product. But Beiersdorf is not internationally known just because of the type of its products. Merging into people’s daily life on an international scale is one of Beiersdorfs main objectives.

With only 17500 employees worldwide Beiersdorf has a turnover of 4.7 Billion Euros worldwide and profits of 460 Million euros. The company is not yet represented in all countries and all market segments. Plenty of room is left for expansion. Beiersdorf therefore follows a strategy called “growth in three dimensions”:

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