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Cultural differences in business communication
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On 2007, Volkswagen AG financial performances hit its record sales and earnings, selling more than 6 million car in a year and accumulating approximately €113,808,000 sales revenue (Volkswagen Annual Report, 2008). Martin Winterkorn, Volkswagen's Chairman of the Board Management realised that Volkswagen secret of success is thanks to the continuous effort towards new knowledge creation and innovation process. Gurteen (1998) stated that collaboration enabling firms to initiate faster knowledge creation and innovation. Drawing from Gurteen's statement, Volkswagen AG's new knowledge creation and innovation process (via strategic alliances and acquisition) allowing them to gain a new knowledge of automobile industry faster and meet different needs of customers. It saved them from the brink of bankruptcy and also makes them one of the biggest automobile manufacturers in this world (Koplin et al., 2006).
Company Background
Volkswagen AG is one of the world's leading automobile manufacturers. It currently has wide varieties of brand like Volkswagen Passenger Cars, Audi, Skoda, Seat, Bentley, Bugatti, Lamborghini, Porsche, Scania, and Man. All brands have individual characteristics from sports cars, high-end car, commercial vehicles, SUV and family car. This is part of company strategy to fight global competition, where each brand contributes as an independent brand under one umbrella of Volkswagen Groups (Hood and Vahlne, 1998). The origin of words from 'Volkswagen' is people's car, born from Ferdinand Porsche's idea who wanted to built a car that available for everyone with a loan program (Aviel, 1980). He then succeeds in creating the new type of car codename Beetles, one of most prestigious vehicles ever created in the history of au...
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...(2008) 1992-2008: Globalization of the mobility group. Available at: www.chronik.volkswagenag.com (Accessed at: 10 March 2013).
Scania Group (2012) Ecolution by scania. Available at: http://www.scania.com/products-services/ecolution-by-scania/ (Accessed at: 13 March 2013).
Shimokawa, K. (1994) The japanese automobile industry. London: The Athlone Press.
Wimmer, E. and Mani, A. (2012) Monitoring the future: VW and toyota vying for pole position. NY: Palgrave Macmillan.
Zagelmayer, S. (2001) 'Brothers in Arms in the European Car Wars: Employment Pacts in the EU automobile industry'. Industrielle Beziehungen, Vol. 8, pp. 149-177.
Zahra, S. A. and George, G. (2002) 'Absorptive Capacity: A Review, Reconceptualisation, and Extention'. The Academy of Management Review, Vol. 27:2, pp. 185-203.
Zola, D. (1999) 'Cheerio, Old Chap'. Ward's Auto World, 11 November 1999, p. 73.
Established in 1908, General Motors happens to be one of the most popular companies in the automobile industry. GM is a multinational company with its presence being felt in 34 countries. Moreover, the company is also large in terms of its employee base having an employee base of more than 245,000 globally. GM is associated with a number of the biggest car manufacturers in the world including Vauxhall, Daewoo, Chevrolet, Cadillac, as well as Buick (Carmohn, 2014). Despite the impressive attributes, GM has recently witnessed some of the greatest challenges in the automobile industry. Therefore, the following section provides a description of GM in reference to the broader automotive industry in terms of size, complexity, organization in the industry, context, environment and conditions.
Volkswagen used to be “burdened by bureaucracy” with Winterkorn being obsessive about making all of the decisions all the way down to the angle of the windshield. Alternatively, Muller only focuses on the “big picture” decisions and those leaves concerning individual products to those who are in charge of that particular product line. This shift to a decentralized firm contrasts with the strategy implemented by John Chambers at Cisco Systems who wanted to add bureaucracy; he accomplished this by establishing “councils and boards” that accounted for making 70% of the decisions. The reasoning behind the strategy offers an explanation to why each CEO chose the path they did: Cisco was attempting to break into many new markets and did not want to miss any opportunity whereas Volkswagen had to empower employees to act in the “right” way to remove the tarnish from their
After Volkswagen was exposed with their emissions-cheating scandal last year, they have been forced to make some changes within the company. To gain back the lost trust and their reputation with their customers, Volkswagen has been trying to restructure the company, in a way, that adds more transparency and eventually will lead them away from the old habits and into a new fresh start where fraud and unethical behavior is less likely to occur.
Bayerische Motoren Werke AG, shortly known as BMW, is a German manufacturer of luxurious automobiles and motorcycles. BMW group is not simply one name: it is also the parent company of other premium brands such as the MINI, the Rolls-Royce and the motorcycling company Husqvarna. For the purpose of providing a maximum of details, this essay will just focus on the automobile part of BMW as it is more significant than the motorcycle segment and since they have a lot of overlapping factors.
OECD, 2009, The Automobile Industry in and Beyond the Crisis. OECD Economic Outlook, vol.2, no. 86, pp. 81-112.
Now Toyota Motor Corporation has expanded their market around the world, covering 170 countries (“Globalizing and localizing”, n.d.). According to the policy of Toyota vehicles, “Producing vehicles where the demand...
Many people who go to visit or work in another country suffer some misunderstanding from the local people, because they have a different culture. Different culture will cause disparity points of view about almost everything. In the article, Intercultural Communication Stumbling Blocks by Laray M. Barna, there are five stumbling blocks mentioned that are seen in a cross-culture communication. These blocks are: language, nonverbal signs and symbols, preconceptions and stereotypes, the tendency to evaluate and high anxiety. Barna wants to use these stumbling blocks to show the common blockades between different cultures. I agree with what she thinks about the language, nonverbal signs and symbols, preconceptions and stereotypes, and the tendency
Audi is majorly owned subsidiary of the Volkswagen (VW) Group and is headquartered in Germany and operation in more than 100 countries. With the commitment the implement progressive technology and its technological ingenuity, by late 1990’s Audi became globally respected brand among luxury automakers. After its entry in luxury sector in early 1990’s, Audi leveraged its ingenuity and gained the competitive edge over the industry parameters of innovative design, safety and performance. Today, Audi remains focused on satisfying on customer needs by building a brand that exemplifies individuality, exclusivity and excellence.
As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.
In order to be successful, a company such as Audi needs to effectively identify the parts of the market that it can best serve in order to gain the greatest profit. With our eyes firmly focussed on upgrading our smaller vehicle product line while broadening its customer base, there is a need for the creation of customer driven marketing strategies that aim to build strong relationships with the right customers. This is achieved through identifying segments within the market, choosing one or more of them, then developing tailor-made products and marketing programmes for them.
Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf
Humans have been communicating since four million years. On the other hand, the birth of culture is estimated to have taken place about 35,000 years ago. Today, both culture and communication have evolved considerably and have become interdependent of one another, to the point that communication is considered to be a product of culture. Thus, our own culture has a deep impact on our thoughts and behaviors. Since each culture has its distinct aspects, intercultural communication can be the cause of conflict and disorder. There are three main issues which are at the root of the problem of intercultural miscommunication : language as a barrier, cultural diversity and ethnocentrism. I will analyze these three notions in situations in which intercultural communication is frequent such as : the workplace, the classroom and vacation trips.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.
The term “culture” refers to the complex accumulation of knowledge, folklore, language, rules, rituals, habits, lifestyles, attitudes, beliefs, and customs that link and provide a general identity to a group of people. Cultures take a long time to develop. There are many things that establish identity give meaning to life, define what one becomes, and how one should behave.