Contemporary Business communications in a

Globalised World
BSP6002

Writ 1: Influence of Culture and language on

Communication

Student Name: Rajveer Shah

Student number: 20166192
Module Leader: Dr John Follet
Word count: 2560

1
 Contents
No Content Pg no
1 Introduction 3
2 Analysis of Siemens’s Press releases 4
3 Importance of Cultural Context and Knowledge of language 6
4 Evaluation of how interpretation of meaning extends beyond 8
written or spoken word
5 Review of effectiveness of different languages on policies 10
employed by Multinational companies (MNCs)
6 Justification of re-written Press release 11
7 References 12
8 Appendix A: Siemens B (2006) original 14
9 Appendix B: Re-written Press release corresponding to 15
Siemens B(2006)

2
 1. Introduction
This report shall focus on the concept of language and communications theory in relation to
BenQ’s acquisition of the phone division of Siemens. It shall discuss the press releases issued by
Siemens regarding this issue and other relevant sources that help to analyse the impact and
importance of in-effective cross-cultural communication.

3
 2. Analysis of Siemens’s Press releases
2.1 Siemens A (June 7,2005)
This press release is focused on spreading the positive message of the perceived compatibility of
the two brands (Siemens and BenQ). The strengths of both of the firms are portrayed, especially
the factor of geographic presence of the two. Siemens has focused on showcasing the fact that
BenQ have guaranteed to fully utilize Siemens’ developments and manufacturing locations such
as Kamp-Lintfort. These statements focusing on the capital utilisation guarantee are focused at
keeping Siemens’ stakeholders happy as this guarantee shall largely benefit the involved parties
such as the German trade unions and the employees. The positive press release was made before
the acquisition was completed perhaps to increase the confidence of the shareholders in Siemens’
actions and Siemens could cross this target off as their share price rose by 3%, to 61.9 euros
(Seeger and Cheng, 2012)
2.2 Siemens B (September 29,2006)
This was a short press release that was aimed at clarifying Siemens actions plan in relation to
BenQ Mobile Filing for insolvency in Germany. This is a very negative and aggressive reaction
towards BenQ’s action. Siemens have expressed their infuriation caused by BenQ. This is
because they had taken special measures in their decision-making process, to ensure that their
selected buyer would maintain their locations in Germany. They had also allowed BenQ to use
the Siemens Brand name for up to five years (Siemens B,2006). They had also transferred
significant financial resources to help BenQ build up a strong portfolio and adapts its IT structure
(Siemens B,2006). Siemens aim to achieve a long-term partnership had been crushed by BenQ’s
move, therefore Siemens was eventually stirred to examine their legal position against BenQ.
2.3 Siemens C (October 11,2006)
This is press release offers a sign of hope to the 3000 BenQ Mobile employees who have lost
their jobs due to BenQ pulling funds out of the failing mobile subsidiary in Germany. Siemens
broadcasted that they had set up a central coordinating office for these employees and that they
were processing 2000 applicant resumes and job descriptions of the 2000 open positions in
Germany (Siemens C,2006). However, this may have been done to calm the German trade
unions who were threatening to take legal action against Siemens. “After BenQ filed bankruptcy,
the German union leaders, concerned about the workers’ jobs and uncertain future (Paterson,
2005), threatened to take legal action against Siemens over the sale of its money-losing mobile
phone unit to BenQ.” (Seeger and Cheng, 2012)
2.4 Siemens D (October 12,2006)
This Press release positively emphasizes Siemens efforts towards the motion to aid the BenQ-
Mobile employees. Siemens had made 35 million Euros immediately available for employee
training, continuing education and placement measures. This may have been done to re assure
valuable stakeholders, that Siemens is doing everything in their power to help those who lost
their jobs due to the BenQ debacle. This press release could also be intended negative publicity
caused by some critics such as the “labor leaders, politicians and media commentators in

4
Germany that accused Siemens of knowing that its mobile unit was doomed when BenQ took it
over, and that it was trying to avoid the big payoffs typically awarded to German workers when
they lose their jobs,” (Seeger and Cheng, 2012)
2.5 Siemens E (November 24, 2006)
In this press release Siemens aims to showcase their care for the BenQ mobile employees, by
informing the public of their primary goal of placing these employees in the job market. Siemens
have also said that if these employees do not find jobs by Jan 2008, they would find ways to
alleviate severe financial need. Furthermore, they talk about their success in helping 420
jobseekers get scheduled job interviews with representatives of Siemens Group, (Siemens E,
2006).
2.6 Siemens F (January 19, 2007)
This press release assures their existing customers of Mobile phones. This release was aimed to
have a positive impact on Siemens’ brand image which had been damaged as some critics claim
“The Managing Board’s actions have severely damaged Siemens’s image in the public.” (Seeger
and Cheng, 2012) This release also outlines Siemens success at keeping their word regarding the
provision of job opportunities. “Through the job exchange established by Siemens for employees
of BenQ Mobile OHG, over 690 interviews have been scheduled at Siemens. Round about 150
concrete job offers have so far been made,” (Siemens F,2007). Thus, this press release restores
shareholder confidence in the capabilities and promises of the managerial team of Siemens.

5
 3. Importance of Cultural Context and Knowledge of language
This section will discuss the importance of the cultural context and knowledge of language to
understand the correct context of messages in relation to Cultural theory and the siemens case
study.
Hofstede (1980) defines culture as the collective programming of the mind, which distinguishes
members of one human group from another.

Fig 1
Source: https://www.hofstede-insights.com/country-comparison/germany,taiwan/

Fig 1 shows the differences in the German culture and the Taiwanese culture according to
Hofstede (1980).
The two cultures differ most on the individualism aspect, where Germany scores 67 against the
17 scored by Taiwan. This shows that the Germans are highly independent and focus more on
individual success rather than that of the whole firm. On the other hand, the Taiwanese score
implies a collectivism culture, which means that they “look after employees like a family and to
defend their interests,” (Hofstede, 1980). The individualist culture of the Germans encourages
them to focus on applying general rules and obligations unlike the Taiwanese who focus more on
relationships than rules. Hence, the Germans would waste time in following the rules and
procedures while the Taiwanese management needed quick results, therefore causing “speed
gaps and communication problems” (Huang and Sun,2006), such as the delays in “decisions
regarding new product developments and marketing plans” (Seeger and Cheng, 2012).
Another major difference in the two cultures occurs in the power distance aspect of Hofstede’s
theory, whereby Germany scores 35 while Taiwan scores 58. This suggests that Taiwanese
culture believes more “centralization of authority and of autocratic leadership,” (Seeger and

6
Cheng, 2012). However, the Germans believe that the superiors and the subordinates have equal
rights hence the trade unions in Germany are very powerful. Moreover, the Taiwanese workers
show up to work whenever the company needs them, however the Germans do not work on
Sundays or Public holidays, (Seeger and Cheng, 2012). Thus, it was an issue for BenQ managers
to manage this kind of employee attitude and trade union Power. Moreover, the Taiwanese
superiors may have felt that they cannot rely on the Germans completely as they would not be
available to work at times when the company might need them.
Moreover, Taiwan has a high uncertainty avoidance at 69, which means that the Taiwanese
prefer to avoid risks and uncertainty. This can be a valid explanation for the surprising
discontinuation of BenQ’s investment in Siemens’s within one year. This venture had resulted
into losses of NT$36.7 billion according to (Seeger and Cheng, 2012). Thus, the Taiwanese are
no longer comfortable with taking this loss hence they cut the funding.
Both the Germans and the Taiwanese management used English as their common language,
however this was their second language. “The true meaning of words may be lost in translation,
according to research suggesting the way people understand terms such as “anger” or “love”
differs between languages.” (Davis, 2019). An example of this can be the disruption of tenses
when changed from English to Mandarin Chinese, as many times in Chinese, there is no specific
difference in the tenses. Also, Chinese nouns do not have Plurals, thus this could cause
communication problems when translating from German to English to Chinese. These
communication problems would eventually cause delays or wastage in production.
Therefore, (Seeger and Cheng, 2012) conclude “an IM&A has a better chance of success when
managers consider each other’s culture and allocate enough time and resources to assimilate the
host country’s culture,” thus implying the significance of Cultural context and language.

7
 4. Evaluation of how interpretation of meaning extends beyond written or
spoken word
In this section the non-verbal aspects of communications shall be discussed and how they impact
effective communication, particularly in the case of Siemens. “Nonverbal communication is a
process of generating meaning using behavior other than words.” (Andersen, 2008)
“Face consideration is another subtle factor that impacts the communication process,” (Seeger
and Cheng, 2012). “Triandis (1995) argues that individualists are most concerned with saving
their own face (self-face concern), whereas collectivists are concerned with saving the face of its
in-group members (other-face concern).” (Triandis,1995 as cited in Seeger and Cheng, 2012)
For the Chinese societies, Face is represented by the perception of a perception of one’s moral
compass and the reputation that one has achieved through success and ostentation (Bond and
Hwang,1986) while for the Germans Face is just represented by the social image a person
presents to others (Oetzel et al, 2001).
In a high context and collectivist culture like Taiwan, “communication is more indirect or
implicit and an intermediary is more likely to be used.” (Seeger and Cheng, 2012) This is done in
order to avoid face-to face confrontations and conflict which reduced the risk of losing face as
explained by Jandt (2007). This is completely opposite to the low context German culture who
tend to be relatively direct and straight forward. The German tone is also considered to be
aggressive and assertive (Brodbeck et al, 2002).
These cultural differences would greatly impact the projection of any message as “German
managers tend to present their views in a more confrontational manner and open verbal
aggression” (Seeger and Cheng, 2012), which would be considered to be offensive in the
Taiwanese culture, thus causing conflicts between the two managerial sides.
Moreover, the aspect of saving face is very important in Chinese culture, especially to achieve
group harmony and bonding to rectify problems. Seeger and Cheng (2012) discuss the
importance of network of interpersonal relations in the Chinese Culture, such that when a crisis
arises the “guanxi network is then mobilized to accomplish the desired results” (Redding & Ng,
1982). This contrasts with the individualistic nature of the Germans who would directly put their
view across to save individual face rather then the team’s reputation. Therefore, this leads to lack
of group harmony and bonding, hence leading to lack of trust between the Germans and the
Taiwanese management.
Furthermore, the Taiwanese operational culture relies on “vertical interpersonal relationships
while the Germans reject this Hierarchic status, which makes power distance or authority
recognition an unwelcome proposition,” (Seeger and Cheng, 2012). Thus, this lack of
acknowledgement for authority in the German culture causes a rift with the Taiwanese
operational structure, which may be seen as a sign of disrespect towards the Taiwanese upper
management, thus causing conflicts and difference of views between the two managerial bodies.

8
Therefore, for any high context culture such as the Taiwanese culture, the way an opinion is
presented is more important than the actual content. On the other hand, for low context cultures,
the written or spoken word has more weight than the way it is projected.

9
 5. Review of effectiveness of different languages on policies employed by
Multinational companies (MNCs)
Research suggests that the communication variable is the most important factor during mergers
and acquisitions, and is the key to a successful integration of two clashing cultures (Appelbaum
et al, 2000). In the case of Siemens, both parties did not speak each other’s first languages
fluently. Both Parties relied on English to be the lingua franca of the business. Henderson (2005)
points out that ‘‘language standardization through English can have negative consequences’’.
She suggests that managers of different cultural backgrounds may interpret English expressions
differently and this may have serious consequences for trust and inclusion amongst the managers
of the different parties.
According to (Harzing and Feely 2008), “non-native speakers may accordingly resist the use of
English or emphasize their ties to their own language and the social identity or group that this
language signifies.” “This may in turn lead to certain social identities being made salient,
leading to in-group favoritism and out-group discrimination,” (Vaara et al ,2005). This would be
reinforced in high context culture such as the Taiwanese, where a clear difference between
outsiders and insiders can be seen. Thus, there would be group discrimination and lack of
bonding between the individuals of diverse cultural backgrounds. This would be a problem for
collectivist cultures, who value group harmony and depend on it to get the job done. Hence
leading to communication and speed gaps which in turn lead into disruptions in policies
implemented by MNCs.
Moreover, D. P. Kroon et al (2015) states that “informants with low English language fluency
often referred to the emotional strain and anxiety as a result of the merger or acquisition.” The
emotional strain and anxiety would lead to counterproductive behaviours, which could be seen in
the Siemens case as there were “constant delays in the new product rollouts, making it difficult
to compete with leading rivals, such as Nokia and Motorola,” (Seeger and Cheng, 2012).

10
 6. Justification of re-written Press release
In this section, there will be justification for the re-written press release (Appendix B) which is
corresponding to Siemens B (2006).
Siemens B (2006) was chosen to be re-written as this was the most negative press release out of
the 6 press releases. According to (Brassey and Kruyt, 2020) “In a crisis, leaders should act with
deliberate calm and bounded optimism.” Thus, instead of a negative statement issued by
Siemens, they should have opted with have more positivity and optimism in the press release.
Therefore, words such as; disturbed, threatened, incomprehensible, were changed to make the
release incline towards positivity.
Moreover, the individualistic approach of German culture had set in, which may be seen as
disrespectful in the Taiwanese culture. Thus, rather than mentioning that “Siemens agreed to
allow BenQ to use its brand name,” (Siemens B ,2006), the re-written press release reads
“Siemens and BenQ also agreed that BenQ should use its brand name,” (Appendix B). This
would be more appropriate to showcase a united front hence appealing to the collective Culture
of the Taiwanese. This idea is repeated throughout the re-written text, in order to fortify the
image of presenting a united front, which would be beneficial for shareholder confidence as well,
thus avoiding anxiety and panic in the share markets of both firms.
Finally, Siemens ended the press release, suggesting no interest to solve the problem, instead
they have mentioned that they will examine their legal position against BenQ. This statement is
aggressive and offensive. It also causes panic and anxiety in the stakeholder’s minds e.g. the
employees. Thus, instead of these harsh statements, the re-written press release presents Siemens
response in a calming tone. It also suggests that Siemens would work with BenQ to find a
solution, which provides assurance and reduces panic. This point would be re-enforced by
Siemens C (2006) where Siemens mention that they have established a central coordinating
office for Job Seeking BenQ employees.

11
 7. References
Andersen, P., 2008. Nonverbal communication. Long Grove, Ill: Waveland Press.
Appelbaum, S., Gandell, J., Yortis, H., Proper, S., & Jobin, F. (2000). Anatomy of a merger:
Behavior of organizational factors and processes throughout the pre-during-post stages.
Management Decision, 38(9)
Bond, M. H., & Hwang, K. K. (1986). The social psychology of Chinese people. In M. H. Bond
(Ed.), The psychology of Chinese people (pp. 211-266). New York: Oxford University Press.
Brodbeck, F. C., Frese, M., & Javidan, M. (2002). Leadership made in Germany: Low on
compassion, high on performance. Academy of Management Executive, 16, 16-29.
Brassey, J. and Kruyt, M., 2020. Six practices can help leaders build their self-awareness and
guide their organizations through the challenges ahead. How to demonstrate calm and optimism
in a crisis.
Davis, N., 2019. True meanings of words of emotion get lost in translation, study finds. [online]
the Guardian. Available at: <https://www.theguardian.com/science/2019/dec/19/true-meanings-
of-words-of-emotion-get-lost-in-translation-study-finds> [Accessed 16 February 2021].
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management
Journal, 17.
Hall, E. T. (1976). Beyond culture. New York: Anchor Books.
Harzing, A. W., & Feely, A. J. (2008). The language barrier and its implications for HQ-
subsidiary relationships. Cross-Cultural Management an International Journal, 15(1).
Henderson, J. K. (2005). Language diversity in international management teams. International
Studies of Management and Organization, 35(1), 66–82.
Hofstede, G. (1980). Culture’s consequences: International differences in work-related values.
Beverly Hills, CA: Sage Publications.
Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and
organizations across nations (2nd ed.). Thousand Oaks, CA: Sage Publications.
Hofstede, G., & Bond, M. H. (1988). The Confucius connection: From cultural roots to
economic growth. Organizational Dynamics, 14, 483-503.
Huang, C., & Sun, P. (2006, December 6). BenQ’s merger miseries: K. Y. Lee eats humble pie.
Common Wealth Magazine, 148-154.
Jandt, F. E. (2007). An introduction to intercultural communication: Identities in a global
community. Thousand Oaks, CA: Sage Publications
Kroon, David & Cornelissen, Joep & Vaara, Eero. (2015). Explaining Employees’ Reactions
towards a Cross-Border Merger: The Role of English Language Fluency. Management
International Review. 55. 10.1007/s11575-015-0259-2.

12
Oetzel, J., Ting-Toomey, S., Masumoto, T., Yokochi, Y., Pan, X., Takai, J., & Wilcox, R.
(2001). Face and facework in conflict: A cross-cultural comparison of China, Germany, Japan,
and the United States. Communication Monographs, 68(3), 235-258.
Paterson, T. (2005, June 8). Unions to take legal action over Siemens’ phone sale. The
Independent, p. 57.
Redding, G., & Ng, M. (1982). The role of face in the organizational perceptions of Chinese
managers. Organization Studies, 3(3), 201-219.
Seeger, M. and Cheng, S., 2012. Cultural Differences and Communication Issues in International
Mergers and Acquisitions: A Case Study of BenQ Debacle. International Journal of Business
and Social Science, Vol. 3(No. 3).
Siemens A, 2005. Siemens and BenQ to forge partnership.
Siemens B 2006. Siemens: Reaction to threatened insolvency of BenQ Mobile Germany.
Siemens C, 2006. Siemens establishes central coordinating office for job-seeking BenQ
employees.
Siemens D, 2006. Siemens quickly implements aid offer to BenQ-Mobile employees 35 million
euros immediately available.
Siemens E, 2006. Siemens enables financing of BenQ Mobile job placement companies Siemens,
IG Metall trade union and bankruptcy administrator reach agreement.
Siemens F, 2007. Services for Siemens and BenQ Siemens mobile phones guaranteed.
Triandis, H. C. (1995). Individualism & collectivism. Boulder, CO: Westview Press.
Trompenaars, F., & Hampden-Turner, C. (1998). Riding the waves of culture: Understanding
cultural diversity in global business. New York: McGraw Hill.
Vaara, E., Tienari, J., Piekkari, R., & Sa¨ntti, R. (2005). Language and the circuits of power in a
merging multinational corporation. Journal of Management Studies, 42(3).

13
 8. Appendix A: Siemens B (2006) original

Press Presse Prensa

For the business and financial press

Munich, September 29, 2006

Siemens: Reaction to threatened insolvency of BenQ Mobile Germany

“We are deeply disturbed by this development, and it is incomprehensible for us

that BenQ Mobile has filed for insolvency in Germany,” stated Klaus Kleinfeld,
CEO of Siemens AG.

During the decision-making process in 2005, the company took special care to find a
viable and long-term solution for the mobile phone business. For Siemens, maintenance of
the German locations was an important factor in deciding in favor of the buyer BenQ.
Backing this decision, Siemens also agreed to allow BenQ to use its brand name for up to
five years. In the past, this was done only in selected instances of long-term partnerships,
such as with the Fujitsu Siemens Computers and BSH Bosch und Siemens Hausgeräte
GmbH joint ventures. In addition, substantial financial resources were transferred to BenQ
to be used, for example, for building up a strong patent portfolio and adapting its IT
infrastructure.

The current situation does not reflect the intention of the parties to continue the mobile
phone business on a long-term basis. Under the given circumstances, Siemens will
examine its legal position vis-à-vis BenQ.

1/1
Siemens AG Reference number: AXX 200609.57 e
Corporate Communications Peik von Bestenbostel
Media Relations 80312 Munich
80312 Munich Tel.: +49 89 636-36320; Fax: -30085
E-Mail: peik.bestenbostel@siemens.com

14
 9. Appendix B: Re-written Press release corresponding to Siemens B(2006)

Press Presse Prensa

For the business and financial press

Munich, September 29, 2006

Siemens: Reaction to insolvency Filing of BenQ Mobile Germany

“We are deeply concerned by this development, and it is has come as a surprise
for us as BenQ-Siemens had a great complementary relationship and had a
potential to lead the Mobile Phone Market ,” stated Klaus Kleinfeld, CEO of
Siemens AG.

During the decision-making process in 2005, the company took special care to find a viable
and long-term growth idea for the mobile phone business. For Siemens, maintenance of
the German locations was an important factor in deciding in favor of the buyer BenQ.
Backing this decision, Siemens and BenQ also agreed that BenQ should use its brand
name for up to five years. In the past, this was done only in selected instances of long-term
partnerships, such as with the Fujitsu Siemens Computers and BSH Bosch und Siemens
Hausgeräte GmbH joint ventures. In addition, Siemens have worked well in conjunction
with BenQ to Build a strong Product portfolio and enhance the IT infrastructure.

The current situation is tough, but Siemens and BenQ shall aim to work together to
figure out a solution for this issue. Under the given circumstances, Siemens will appoint
a response team, which will review the situation and come up with a solution for it. It will
be strictly monitored closely by Siemens and BenQ officials to ensure an effective and
timely response for this situation.

1/1
Corporate Communications Media Relations
Siemens AG 80312 Munich

15