Please discuss the case From OEM supplier to A Global Leading Company and based on it,
discuss the following:
What does it take to build a cross-cultural team?
What are the challenges facing managers of projects that cross-cultural boundaries?
What strategies can be used to address these challenges?
“Cross-cultural teams are global teams that include people who come from different cultures and
unique experiences (AllThingsTalent, 2019).” Working with cross-culture teams takes respect
and dedication in order to communicate effectively and maintain productivity. Giant Bicycle
became a successful bicycle brand by effectively managing cross-culture teams. Over the next
few paragraphs, this paper will explore Giant’s journey to the top of the bicycle industry, what
cross-cultural team management is, challenges for managers with cross-cultural boundaries, and
strategies to address the challenges.
What does it take to build a cross-cultural team?
According to Zamborsky (2016), an effective cross-cultural team needs to be built within the role
of international management in global strategy. A global mindset is essential to success. Leaders
need to concentration on “personal-level issues including culture and communication,
negotiations and leadership, human resources and talent management, and international
marketing and distribution (Zamborsky, 2016).”
In Giant’s foundation stage, the leadership started with a global mindset. Instead of only focusing
on their regional market, Giant’s leadership concentrated on culture, communication, and
negotiation. Giant learned “basic bicycle manufacturing techniques from Japan (Wu & Lee,
2014).” Then they negotiated with suppliers to upgrade their components to meet Japanese
standards, which lead them down the path to manufacture and distribute Schwinn products (Wu
& Lee, 2014).
What are the challenges facing managers of projects that cross-cultural boundaries?
According to Williams (n.d.), the largest challenges revolve around communication styles and
cultural values. As Williams explains, some cultures communicate directly, openly, and
emotionally, called low-context culture, where other cultures are subtler with implied
information, known as high-context culture. Examples of a high context culture would be the
UK, USA, or Australia. Examples of low context culture would be Chinese, Japanese, and Indian
culture (n.d.). DuPraw & Axner (n.d.) suggest that cultural values and communication styles will
create differences in attitudes toward conflict, completing tasks, decision-making, and disclosure.
Giant would have had to deal with communication and cultural value challenges from the
foundation stage to their brand growth stage. Every time they interacted with a new culture
including 1978 when they started working with US company Schwinn, 1986 when they founded
branches in Europe and the US, started investments in China in 1992 and Japan in 1998,
sponsorship with European bicycle teams in 2004 and 2006 (Wu & Lee, 2014).
What strategies can be used to address these challenges?
“A one size fits all approach is not an effective solution (AllThingsTalent, 2019).” Using your
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own cultural values and communication styles could ruin companies potential to work cross-
culturally. Plus, learning how to effectively work cross-culturally with one culture, does not
mean it will work with another culture. Each culture needs its exploration and strategy. Plus,
whatever plan is in place needs to be flexible so it can adapt to the needs of the culture.
According to DuPraw & Axner (n.d.), the first rule to cross-culture management is patience.
They continue by pointing out that managers should not use generalizations as fact, to listen
actively and empathically, stop cultural judgment, and respect others’ choices.
Giant faced cultural challenges and was able to overcome them and prosper. “Giant survived
when Schwinn, which represented 75% of Giant’s business revenue, changed its orders to China
(Wu & Lee, 2014).” Giant sponsoring internal bicycle teams, they listened, learned, and
upgraded to satisfy the rider’s needs (Wu & Lee, 2014). Giant researched, successfully
communicated, and negotiated deals in different markets to get low-cost supplier advantages in
China and Southeast Asia (Wu & Lee, 2014). Plus, Giant was able to enter a multitude of cross-
cultural markets by understanding the culture and building bicycles segmented for that market
group (Wu & Lee, 2014).
In conclusion, working cross-culturally takes dedication and effort. Challenges with cultural
values and communication need to be explored and solutioned. Through international
management in a global strategy, leadership needs to listen, adapt, and learn to communicate
effectively with other cultures. Giant’s global success is an example of great cross-cultural
management. From their humble beginnings as an OEM supplier to one of the world’s top
bicycle brands, Giant’s global strategy, and cross-cultural management is a success story that is
worth exploring.
References
AllThingsTalent. (2019). Managing a Cross-Cultural Team? Here Are 10 Strategies To Do It
Effectively! Retrieved from: https://allthingstalent.org/2019/10/30/managing-cross-cultural-
team/#:~:text=Cross%2Dcultural%20teams%20are%20global,the%20individuals%20in%20a
%20team.
DuPraw, M.E. & Axner, M. (n.d.). Working on Common Cross-cultural Communication
Challenges. PBS.org. Retrieved from: https://www.pbs.org/ampu/crosscult.html
Williams, B. (n.d.). Cross-Cultural Management Challenges and How to Face Them. Retrieved
from: https://www.forwardfocusinc.com/inspire-leaders/cross-cultural-management-challenges-
and-how-to-face-them/
Wu, W., & Lee, Y. (2014). From OEM supplier to a global leading company. Journal of Business
Case Studies, 10(3), 225-230. Retrieved from:
https://my.uopeople.edu/pluginfile.php/1184448/mod_book/chapter/273973/U8%20OEM%20to
%20Global%20Leader.pdf
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Zamborsky, P. (2016). International business and global strategy. Bookboon.com. Chapter 11.
Retrieved from: https://my.uopeople.edu/pluginfile.php/1184419/mod_page/content/5/TEXT
%20international-business-and-global-strategy.compressed.pdf
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