Introduction: Globalization in the 21st century
Globalization has become one of the most discussed and controversial issues in the beginning of the 21st century. In terms of business, globalization is an opportunity to gain competitive advantage and market growth. Yet, what is associated with globalization? Why do many companies see themselves limited and sometimes even impotent trading globally and what are the critical success factors in global negotiations?
According to the Future Commission of the Friedrich-Ebert-Stiftung globalization is “… a complex set of overlapping and interacting processes at a global level.” The Future Commission continued noting that “… globalization is in connection with the growing international interrelatedness of markets, economies and companies.” (Future Commission of the Friedrich-Ebert-Stiftung, 1998:56). Hence, globalization is a world wide ongoing interhuman relationship process on different levels. They include social, private and business aspects. In the case of business terms, it should not be forgotten that globalization is not merely an increase of imports and exports. It implies the application of the principle of free markets in an international context.
This dissertation contains the sources and explanations of why international negotiation is important to sustain competitive. It shall allow the reader to get an insight of why western and eastern cultures are often clashing together and thus prospecting business deals are cancelled. Moreover, the dissertation provides the reader with a general solution to overcome barriers in negotiating with foreigners and how important it is to gain not only technical and cognitive but also cultural skills. Understanding and accepting the differences in values and beliefs is crucial to be a global player. By getting a precise idea of the theoretical part, the author will endow the reader with a case study of Hewlett Packard (HP) and how the founders William (Bill) Hewlett and David (Dave) Packard have started business in a garage with merely two employees. Gradually after 60 years HP became the world class leader in printing devices. Furthermore, the study is showing the importance of the present Chairman and Chief Executive Officer (CEO) Carly Fiorina who let HP into the 21st century. Carly Fiorina is considered to be the most powerful women in the United States of America (USA) (Hjelt, 2003:40-48)...
Table of Contents
- INTRODUCTION: GLOBALIZATION IN THE 21ST CENTURY
- WHAT IS CROSS CULTURAL MANAGEMENT?
- THE MEANING OF DIVERSE CULTURES
- WESTERN VALUES
- AMERICAN CULTURAL VALUES
- NEGOTIATING WITH AMERICANS
- THE DIVERSITY OF EUROPEAN CULTURAL VALUES
- German
- Italian
- Swiss
- British
- SUMMARY: WESTERN COUNTRIES AND THEIR CULTURAL VALUES
- EASTERN VALUES
- JAPANESE CULTURAL VALUES
- JAPANESE NONVERBAL MESSAGES
- CHINESE CULTURAL VALUES
- THE EIGHT ESSENTIAL CHINESE ELEMENTS
- Guanxi - Personal Contacts
- Zhongjian Ren - The Intermediary
- Shehui Dengji - Social Status
- Renji Hexie - Group Harmony
- Zhengti Guannian - Lateral Thinking
- Jiejian-Pricing
- Mianzi - Reputation and Social Capital
- Chiku Nailao - Persistence and Being Tireless
- CHINESE COMPETITION
- SUMMARY: EASTERN COUNTRIES AND THEIR CULTURAL VALUES
- WESTERN VERSUS EASTERN AND HOW CULTURAL DIFFERENCES INFLUENCE INTERNATIONAL NEGOTIATIONS
- A PROFILE OF HEWLETT PACKARD COMPANY
- MILESTONES OF HEWLETT PACKARD
- MANAGING GLOBALLY: WHY CCM IS COMPELLING
- HP entering the Asian Market
- How Packard subconsciously applied Chinese elements
- What made the Chinese JV successful
- HP's status quo regarding CCM in the 21st century
- Conclusion
- PORTRAIT OF CARLY FIORINA
Objectives and Key Themes
This dissertation aims to explore the impact of cross-cultural management (CCM) on international negotiations in the 21st century, using Hewlett Packard as a case study. It investigates how cultural differences, particularly between Western and Eastern values, influence negotiation strategies and outcomes.
- The importance of CCM in international business negotiations.
- A comparison of Western (American and European) and Eastern (Japanese and Chinese) cultural values and their influence on negotiations.
- An analysis of Hewlett Packard's experiences in navigating cross-cultural negotiations, particularly in the Asian market.
- The role of cultural understanding in achieving successful international business ventures.
- Identification of strategies to mitigate cross-cultural clashes in negotiations.
Chapter Summaries
INTRODUCTION: GLOBALIZATION IN THE 21ST CENTURY: This introductory chapter sets the stage for the dissertation by discussing the increasing globalization of business and the consequent rise in the importance of cross-cultural management in international negotiations. It highlights the challenges and opportunities presented by operating in a diverse global marketplace and emphasizes the need for a nuanced understanding of cultural differences to succeed in international business.
WHAT IS CROSS CULTURAL MANAGEMENT?: This chapter provides a foundational understanding of cross-cultural management (CCM), defining the concept and outlining its key principles. It explores the significance of cultural awareness and sensitivity in business interactions across borders and lays the groundwork for the subsequent analysis of specific cultural contexts.
THE MEANING OF DIVERSE CULTURES: This chapter delves into the complexities of cultural diversity, emphasizing the wide range of values, beliefs, and communication styles found across different cultures. It provides a framework for understanding the nuances of cultural differences and highlights the need for careful consideration when engaging in international business interactions.
WESTERN VALUES: This chapter provides an in-depth analysis of Western cultural values, with a particular focus on American and several European countries (German, Italian, Swiss, and British). It examines the distinct characteristics of each culture, detailing their communication styles, negotiation approaches, and prevalent values. The chapter explores how these differences can impact business interactions and lays the groundwork for a comparative analysis with Eastern cultures.
EASTERN VALUES: This chapter offers a detailed examination of Eastern cultural values, focusing primarily on Japanese and Chinese cultures. It explores the unique characteristics of each culture, including their communication styles, negotiation approaches, and core values. A significant portion is devoted to the eight essential Chinese elements influencing business practices and negotiations, providing valuable insights into the complexities of doing business in China. The chapter contrasts these values with those of Western cultures, highlighting potential areas of conflict and cooperation in international business settings.
WESTERN VERSUS EASTERN AND HOW CULTURAL DIFFERENCES INFLUENCE INTERNATIONAL NEGOTIATIONS: This chapter compares and contrasts the Western and Eastern cultural values explored in the preceding chapters. It analyzes how these cultural differences manifest in international negotiations, highlighting potential points of conflict and misunderstanding. The chapter provides a framework for understanding the challenges and opportunities presented by cross-cultural negotiations and emphasizes the need for cultural sensitivity and effective communication strategies to achieve successful outcomes.
A PROFILE OF HEWLETT PACKARD COMPANY: This chapter provides a detailed profile of Hewlett Packard (HP), tracing the company's history and its global expansion. It examines HP's strategies for managing its global operations, focusing particularly on its experiences in the Asian market. The chapter uses HP's case study to illustrate the practical application of CCM principles and to highlight the importance of cultural understanding in achieving success in international business.
Keywords
Cross-cultural management, international negotiations, cultural values, Western cultures, Eastern cultures, globalization, Hewlett Packard, intercultural communication, negotiation strategies, business success, case study, cultural differences, Asian market, Japanese culture, Chinese culture, American culture, European cultures.
Frequently Asked Questions: A Comprehensive Language Preview on Cross-Cultural Management and International Negotiations
What is the main topic of this text?
This text is a comprehensive preview of a dissertation exploring the impact of cross-cultural management (CCM) on international negotiations, using Hewlett Packard's experiences as a case study. It focuses on the differences between Western and Eastern cultural values and how these differences affect negotiation strategies and outcomes.
What topics are covered in the Table of Contents?
The Table of Contents covers an introduction to globalization and CCM, definitions of diverse cultures, detailed explorations of Western (American and various European) and Eastern (Japanese and Chinese) cultural values, a comparison of these values and their impact on negotiations, and a case study of Hewlett Packard's global management strategies, particularly in the Asian market.
What are the key objectives and themes of the dissertation?
The dissertation aims to demonstrate the importance of CCM in international business, compare Western and Eastern cultural values, analyze Hewlett Packard's cross-cultural negotiation experiences, and identify strategies for mitigating cross-cultural conflicts in negotiations. Key themes include cultural understanding, successful international business ventures, and negotiation strategies.
What are the chapter summaries?
The chapter summaries provide a detailed overview of each chapter's content. They outline the introduction to globalization and its impact on business, define cross-cultural management, explore diverse cultures, analyze Western and Eastern values in detail (including specific examples from various countries), compare and contrast these values in the context of international negotiations, and finally, offer a detailed case study of Hewlett Packard's global management and its success in navigating cross-cultural challenges.
What are the key words associated with this text?
Key words include cross-cultural management, international negotiations, cultural values, Western cultures, Eastern cultures, globalization, Hewlett Packard, intercultural communication, negotiation strategies, business success, case study, cultural differences, Asian market, Japanese culture, Chinese culture, American culture, and European cultures.
What specific Western cultures are examined?
The text examines American, German, Italian, Swiss, and British cultural values, focusing on their unique characteristics and how they influence business interactions and negotiations.
What specific Eastern cultures are examined?
The text focuses on Japanese and Chinese cultural values. The Chinese section notably delves into eight essential elements of Chinese culture (Guanxi, Zhongjian Ren, etc.) influencing business practices and negotiations.
How does the Hewlett Packard case study contribute to the dissertation?
The Hewlett Packard case study provides a real-world example of how cultural understanding and CCM strategies impact success in international business. It illustrates the practical application of the theoretical concepts discussed and showcases the challenges and triumphs of navigating cross-cultural negotiations in the Asian market.
What is the significance of the "eight essential Chinese elements"?
The eight essential Chinese elements (Guanxi, Zhongjian Ren, Shehui Dengji, Renji Hexie, Zhengti Guannian, Jiejian, Mianzi, Chiku Nailao) are highlighted to illustrate the complexities of Chinese business culture and how understanding these elements is crucial for successful negotiations in China.
What is the overall conclusion of the text?
The text emphasizes the critical role of cross-cultural management in achieving successful international business ventures, highlighting the need for cultural awareness and sensitivity to navigate the complexities of international negotiations effectively. The Hewlett Packard case study reinforces this conclusion by showcasing a real-world example of a company that successfully leveraged cultural understanding for international success.
- Quote paper
- Nina Müller (Author), 2004, Cross Cultural Management in the 21st century and how it effects Negotiations with an example of HP, Munich, GRIN Verlag, https://www.grin.com/document/28506
