It is recommended that multicultural organizations be capable of ‘glo-calization’: of having global missions, policies, and objectives that are capable of local adaptation when implemented.
BMW
Features of BMW’s corporate strategy in Thailand which have facilitated intercultural management:
• The CEO of BMW Thailand had been a member of one of BMW’s International Management Training Groups. These Groups give BMW senior managers inputs in intercultural management by making them visit different countries and solve live management problems there. A BMW manager has to demonstrate competence in intercultural management before he or she can become part of the top management team in a foreign culture.
• BMW always keeps its long-term objectives in mind. One of these is to gain acceptance in new locations. Hence the organization tries to fit into a new niche without creating disruptions locally. This ensures that it does not acquire a reputation as a ‘killer company’. Once it starts establishing itself in a new country, it slowly disseminates among its employees the BMW way of doing things.
• Part of BMW’s market-assessment and environment-scanning efforts involves reviewing cultural trends. The corporation accepts the fact that culture is dynamic and amenable to evolution and change. It therefore keeps abreast of these cultural changes so that it can implement its strategies in a manner that will find local acceptance.
General issues
Other pointers about corporate strategy and intercultural management:
• When a global company starts operations in a new culture, it is advisable that it initially enters into a collaborative arrangement with a local partner. This partner can then educate the global company about how business is done in the local culture.
• Corporate strategy should be capable of adjustment in response to feedback obtained from different cultures. Sometimes the feedback may be contradictory and the overall corporate strategy should be flexible enough to accommodate opposing responses from local cultures.
The strategy formulated at headquarters by a global company must be understood and accepted by local branches. It is well worth spending time making local managers appreciate the top management perspective through special seminars and programmes.
Recommendation
BMW may like to institute a special cell at all its branches to monitor cultural trends. These trends can then be conveyed to corporate headquarters. BMW can then formulate corporate strategies that can be implemented in diverse as well as changing cultures.
Discussion suggestions
• Begin by discussing the concept of ‘glocalization’. Cite examples of ‘glocalization’ from companies you have studied.
• Discuss whether branch heads should be from the local culture or expatriates with intercultural skills. Perhaps it is just a question of assigning the most competent person for the job? Or is it?
• Discuss the circumstances under which ‘glocalization’ may not be feasible. Ask whether ‘glocalization’ will always be valid within the context of intercultural management.
• Start the discussion about theory by searching and looking at advertising from the prism of corporate strategy. Advertising by a global organization can then be compared to ‘glocalization’.
Sample Solution