Individual Assignment#4

Case Study

Clash Culture in the Boardroom

By: Muhammad Iesraf (62215119577)

The principal conflict in the boardroom during the business meeting is the whether to allow
the Chinese ways of doing business or of remaining true to the German business culture.
Conceding to the Chinese ways of doing business might cause legal problems in the local
area where the firm is based. It could also lead to a noticeable inconsistency within the
network of the German company, leading to the loss of customers within their home country.
On the plus side, if the Chinese way of doing business is accorded by the German company,
they could make a huge profit on the Chinese market.

If I were in the position of Liu I would probably remain true to the German business culture.
To please a possible business partner I would not bend the company's policies. I assume that
the worst thing a company can do is to go against its own business culture. Once a company
loses respect for its own business culture, it loses its primary objectives and visions which
were set before it decided to open its business to the international business market. The prime
example of this is the situation at Google and China. China wanted Google to censor and
control what its people could search for. That went against Google's culture. As a result,
Google doesn't exist in China. As stated in the case, as every day goes by, the joint venture
seems to be causing more money to the business. The company should perhaps focus on the
weather, the joint venture was the right move for both companies before they attempted to
address any other issues.