De La Salle University

Ramon V. del Rosario

College of Business

Culture Clash in the Boardroom

In Partial Fulfillment of the

Course Requirements for

Management of Organizations
1st Term, SY 2022-2023

Submitted by:
Sanchez, John Arlo
Roque, Robert Aries
Malelang, Eaizen Gio
Singson, Michaella
Maximo, Vehnjaminjoseph
Barely Managing

Submitted to:
Ms. Karen Selina Aquino

Submitted on:
December 1, 2022
 I. Problem Identification

There is a conflict between Almond China and Almond Germany due to different standards of
various decision making. For instance, the German company invested into safety protocols. However, the
Chinese partners stated that it was a waste of investments. When Liu Peijin said: “We are not a Chinese
company, we’re a global one”, blank faces of the Chinese partners stared back at him, emphasizing the
difference in thinking and mindset.

These disputes were mainly caused by the cultural differences between the two countries that
have separate standards and focuses. In general, German business culture focuses on high quality outputs,
planning and perfectionism (Santander, 2022a). On the other hand, Chinese business culture focuses on
relationships, vertical management and capital conservatism (Santander, 2022b). In Chinese culture, it is a
common business protocol to be involved in the act of bribery, and there is no such law for bribery. As
these companies depend on each other, there is a need for a more suitable alternative that would resolve
the problems arising from this issue.

II. Alternatives

1. Find a compromise between Almond Germany and Almond China. There will be no compromise
of safety standards. This alternative is related to TBL standards.

Advantages Disadvantages

It will find common ground between the two
branches, which would lead to a better
relationship that would foster collaboration.
This improves trust between them. If Liu
persuades the Chinese side with emotion and
the German side with reason, his job of
mediating a resolution will be far easier.
Not all needs would be met. By finding a
compromise, it is expected that you have to
sacrifice some in order to get some. Not all
the demands or needs of either branch would
be fulfilled.

Easier to deal with conflicts that might arise There is a chance of potential conflicts in both
in the future, by setting a standard to set branches, as it will cause problems if
compromise in the case of conflicts, they are misunderstandings arise.
more likely to work together to find the best
solution. They would also be less hesitant to
bring up their concerns.

Both branches could end up with better
solutions to problems they may currently be
facing, by applying the way of thinking of the
opposite branch. Both of them get their
important needs satisfied.
Either branch could take advantage of each
other’s cooperativeness and attempt to force
the other to submit to their personal gain.
 2. Will not concede to Chinese “business practices”, but will make compromises on expenses. This
alternative is related to FBL standards.

Advantages Disadvantages

There is a lowered operating costs due to not The German branch would not like that the
upholding the German standard. Instead Chinese brand is not upholding the standard
safety measures and equipment could be being set.
sourced from cheaper options in Asia.

The business would have increased profits The business will miss opportunities if the
due to the lower operating costs spent on German branch continues to adapt modern
various expenses such as safety measures. practices in their branch.

The Chinese partners pressuring Peijin would The branch would experience poor standards
be pleased by the news of lowered costs on of practices as it was not invested on high
their investments. quality equipment that follows German
standards.

3. Continuing to uphold Almond Germany standards and will not entertain the Chinese “business
practices”. This alternative is related to SET standards.

Advantages Disadvantages

They will be able to keep company
regulations and standards. They would be
able to compete globally since they are
sticking to international law. This would lead
to long term success.
They will lose some unethical clients, which
could harm the profitability and connections.
As networking is significantly important in
Chinese businesses, this could affect future
plans.

They will become a better role model for They can affect certain relationships with
Chinese companies. One with a better focus Chinese companies as this can have a huge
on safety standards and less on bribery. impact on their economic partnership between
the two nations.

They will attract more ethical clients, which Almond Germany will be greatly affected
will be easier and better to deal with. They when Chinese business practices will continue
will need to worry less about unethical to improve in the near future by using modern
practices such as bribery in the future. technologies.

III. Recommendation

Option 2: Will not concede to Chinese “business practices”, but will make compromises on expenses.
 It is recommended that Liu Peijin chooses the second option, as this proves to be the safest
option. They would not be disgracing themselves by committing business practices that may or may not
be unethical and unlawful in regards to the US government’s Foreign Corrupt Practices Act, yet would
still be pleasing the Chinese partners by cutting down on the costs of their investments. Though the
German branch might complain that their standards are not being met, a compromise can be brokered
instead. For example, the safety equipment and measures would still be met, but at the lower cost of
cheaper sources that can be found in Asia instead of sourcing the equipment from Europe. This could
spell happiness for Germany in the end as there could be increased profits by lowering the expenses.
Compared to option 1, option 2 is less risky as it will not be breaking any laws in order to find a
compromise to please the Chinese partners. It is also less risky when compared to option 3, as that option
entails potentially incurring the wrath of the Chinese partners, something that Liu Peijin would like to
avoid in order to keep the relations of Almond Germany and Almond China.

IV. Implementation/Action Plan

Activities Department Responsible Duration (in weeks/months/years)

Consultation meeting to find a Production, Finance 1 week

financial forecast for safety
equipment

Create a revised budget for safety Finance 14 days

measures and equipment

Create a revised production plan for Production 21 days

the production facilities in
Chongqing

Employee meeting and training to Operations 1 week

discuss the changes in treatment of
MDI (methylene diphenyl
diisocyanate) waste

Prepare for a press release that would Sales and Marketing 1 week
accurately explain the changes in
safety standards.

Press release and press conferences Sales and marketing 1 day

Development and implementation of Operations 3 months

action plan
References

Standander. (2022a). GERMANY: BUSINESS PRACTICES.

https://santandertrade.com/en/portal/establish-overseas/germany/business-practices

Santander. (2022b). CHINA: BUSINESS PRACTICES.

https://santandertrade.com/en/portal/establish-overseas/china/business-practices