University of Greenwich ID Number: 001343086

Module Code: BUSI1695

Module Assessment Title: Report

Lecturer Name: Ngo Tran Thai Duong

Submission Date: 2/8/2023

Boardroom Cultural Conflict

Introduction
According to Katherine & Wang (2011) a case study titled "Culture Clash in the
Boardroom" in September 2011. It is based on a case study from China Europe
International Business School, which has its headquarters in Shanghai. The case
study focuses on Liu Peijin, the president of Almond China, a branch of the
German company Almond Chemical. Almond China and Chongqing No. 2 Chemical
Company's joint venture is currently falling short of sales targets. More and more
business leaders in Chongqing are expressing how difficult it is to conduct
business by European standards, particularly the bans on gifts and commissions.
According to Wang Zhibao, the vice president in charge of sales for the Chongqing
joint venture, attempting to conduct business without them was foolish. Almond,
on the other hand, was required to adhere to the Foreign Corrupt Practices Act of
the US government, which prohibited U.S.-listed firms from bribing foreign
authorities because it had its headquarters in Munich and was listed on both the
New York Stock Exchange and the Frankfurt Stock Exchange. This article will
address Culture Conflict in the Boardroom.

Power Distance
The "Culture Dimensions" by Hofstede. How individuals of a society interact with
one another is described by power distance on a hierarchical scale. It also explains
how people interact with one another in a society. A society that places a high
priority on respect for those in positions of authority is known as a High Power
Distance culture, as opposed to one that places a low importance on treating
everyone equally. According to Hofstede, Hofstede, and Minkov (2010),
"Inequality is seen as the basis of societal order" in High Power Distance
civilizations. While inequality is occasionally required in Low Power Distance
societies, they also recognize that the more connections can be equalized, the
better it will be for everyone. According to research, those at the bottom of a
social hierarchy tend to favor a system that would distribute power evenly, but
those at the top prefer things to stay precisely as they are. The folks at the top do
not want to lose any of the authority they have gathered. According to Moran,
Abramson, and Moran (2014), power distance measures how much subordinate
members of an organization will support unequally distributed authority. Chinese
civilization, which was influenced by the philosopher and statesman Confucius,
favors straightforward organizational systems where subordinates blindly follow
and revere their superiors. A high power distance culture is present in China.
China's PDI is 80, compared to the average PDI (Power Distance Index) of 64 for
Asian nations (Hofstede Insights, n.d.). People's differences are tolerated, yet the
subordinate-superior connection is frequently divisive. According to United
Language Group (2017) with its sizable middle class and decentralized society,
Germany has a low power distance. Rather than valuing positions that are based
on family connections or age, Germans prefer to put trust in those who
demonstrate experience and vast knowledge. In Germany they invest heavily in
the safety of their employees while in China it's quite the opposite. The
production facilities in Chongqing, according to Katherine & Wang (2011), were
constructed by German national requirements, and all of the safety gear—
helmets, shoes, and protective clothing—was imported from Europe. These
investments were labeled "wasteful" and "frivolous" by the Chinese partners,
who said they were "luxurious expenditures" that the fledgling company
shouldn't have made. It can be seen that the difference in worker health and
safety input between Germany and China is huge. In terms of Germany, they are
very big in terms of safety and health while China is the complete opposite, they
are almost indifferent to the health and safety of workers or if there is an
investment, it will be very little. In Germany, people like order and regulation in
both business and society people tend to know what is allowed and what is
forbidden The gap. The power distance in Germany is very low. While China
shows a significant power distance in industry and society in general. This
indicates that China is a country frequently criticized for disregarding human
rights (StudyMoose, 2016).

INDIVIDUALISM-COLLECTIVISM

Kendra (2022) claims that individualism and collectivism are two diametrically
opposed philosophical systems that place emphasis on the role that the individual
or the collective plays in a certain circumstance. In contrast to collectivism, which
places more importance on group cohesiveness, uniformity, and collaboration,
individualism places a greater emphasis on freedom, variation, and self-identity.
Individualism is connected to liberalism and anarchist, whereas collectivism is
connected to communism (Kendra, 2022). Kindness, aid, reliability, and sensitivity
to the needs of others are viewed as qualities of "good" people in collectivistic
groups. On the other side, individualistic cultures have a propensity to place a
higher value on traits like independence and violence. The component that
compares individuality and collectivism takes into account how much societies are
grouped as well as how dependent they feel they are on groupings. According to
individualism, accomplishing personal goals should be given more importance. "I"
refers to a person's sense of self in this category. According to collectivism, the
goals and welfare of the group are prioritized over individual interests. A person's
sense of themselves is referred to as "We" in this category. The level of one's
individualism is determined by how independent they are. Tours are offered to
visitors by high-scoring nations. taking better care of oneself and being less
dependent on others. For instance, according to report IDV by clearlycultural
(2022) Germany had a score of 67, which is respectable and 56% better than the
overall average. Germany as a result has a very individualistic culture. Above
everything else, freedom and independence are treasured. But in China, where
the adjustment is the opposite and only 20, there is a lot less individualism. It's
possible that the communist regime is partly to blame for this. Unreasonable
focus is placed on the group in Chinese society. Cooperation between individuals
is common in China, and typically, the needs of the group are prioritized before
personal needs. When it comes to commercial ties, people in China often value
long-term bonds above fleeting ones. China is accustomed to having different
commercial partners. It's common in China to frown upon changes in business
connections. Given that China is currently the second largest economy in the
world and has an IND score of just 20, Hofstede's theory can be contested.
Hofstede discovered that wealthier nations tended to have higher scores in
individualism (Hodgetts et al., 2006). The Chinese are ranked 20th out of all Asian
nations in the Individualism (IDV) rating, as opposed to the average of 25. It is
clear that individuality and collectivism have benefits and drawbacks. Germany
and China are two representative instances above. In terms of individuality, they
value independence since it allows people to It doesn't rely on someone solely.
Everyone is free to act whatever they like, in full. It is independent of everyone.
Yes, they may have their own ideas and be creative and at ease. The benefits of
collectivism include long-term, dependable employment.

Conclusion
in conclusion, Cultural Boardroom Cultural Conflicts are becoming more and more
popular. It will come from many factors like Power distance, and conflict when
equipping workers with protective gear, one side said it is necessary and the other
said it is waste which will make an imbalance in business. In Individualism-
collectivism.The choice of individual or collective? It will determine where people
live, and the environment people work in. This will change a person's character. It
will will be invisible in general, disturbing the model and making changes to
everything. It can be said that cultural conflicts In the room will affect the investors
and international joint venture companies. It will take time for them to be able to
learn the culture. And find a way to apply it appropriately. Cultural Boardroom
Cultural Conflict in business will be a very difficult problem hesitate. It can be seen
how complex culture in business is. It will be a challenge for investors. In the future,
this problem will continue to happen. People will always need to be respectful and
understanding.

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