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Cross-Cultural perspectives on managing diversity

Cross-Cultural perspectives on managing diversity. By: David Pickering Huang,DeJing(Kevin) Roy Tanuwidjaja Norito Kobayashi Luisa. China. CHINA OVERVIEW. President: Hu Jintao (Since 2003) Location: Eastern Asian with area 3.7 million square miles.

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Cross-Cultural perspectives on managing diversity

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  1. Cross-Cultural perspectives on managing diversity By: David Pickering Huang,DeJing(Kevin) Roy Tanuwidjaja Norito Kobayashi Luisa

  2. China

  3. CHINA OVERVIEW • President: Hu Jintao (Since 2003) • Location: Eastern Asian with area 3.7 million square miles. • Major cities: Beijing (Capital), Shanghai, Tianjin, Guangzhou, ect……………… Sources: (China Daily)

  4. Population: 1.3 Billion (July 2004) Languages: Mandarin (Official), and many local dialects. Ethnic Groups: Han Chinese (92%). Religion: Officially atheist;Taoist, Buddhist, Muslim(1-2 %), Christian(3-4 %). Sources: (Asia Pulse; Dow Jones Newswire). CHINA OVERVIEW

  5. CHINA REAL GDP GROWTHsource: (Financial Times)

  6. CHINA EXPORTS AND IMPORTS • CHINA EXPORT: $ 529.3 billion( 2004). • CHINA IMPORT: $ 505.8 billion( 2004). Sources: (Financial Times)

  7. CULTURAL DEFFERECES • Decision Making: A. Western-Fast decision making; quickly gathered and processed information. B. Chinese-Deliberate longer; Want to be included. Sources: (China Daily)

  8. CULTURAL DIFFERENCES • “YES” MEANS “NO” A. Chinese-Don’t like say “No” in a business setting nor admit don’t understanding something. B. Western-Encouraged to express. Sources: (China Daily)

  9. CONNECTION • Relationships-with vendors, suppliers, central government. • Both outside and inside relationships building.

  10. PERSONAL STYLE • Chinese-Don’t challenge the instructor. • Western-Encourages to questions, hand on training. • Lose face

  11. Hofstede Theory

  12. Hofstede Theory (cont’d) • Long term orientation vs short term orientation

  13. Nike’s international staffing • Nike uses Regiocentric approach. • The strategic decision made at the region level. • Each region has its own VP. WWW.NIKE.COM

  14. Nike’s global Area Division

  15. NIKE • US-7 Subsidiaries. • OTHER COUNTRIES-34 Subsidiaries. • Employees-25,000(none of them are represented by unions). • Distribution-21 centers around globe, 23,000 retail accounts. Sources: (Securities and exchange commission).

  16. NIKE • Athletic Footwear-Largest seller in the world. • China-36% manufactured in China. • Revenue-120 foreign countries account for 53%.

  17. Nike’s Subsidiaries • Grew from “single product, single market””multiple brands, multiple markets” • Subsidiaries: Sources:http://www.nike.com/nikebiz/nikebiz.jhtml?page=3&item=facts#nike

  18. Net Revenue by Global Region(US $,millions) • Total net rev. increased 15% Sources:http://www.nike.com/nikebiz/gc/r/fy04/docs/company_profile.pdf

  19. Net Revenue in U.S. • FY’04 : $4.8billion (39% of Nike revenue) • Increase 2.9%

  20. China’s attraction: • Emerging economies • Cheap labor costs • Stable currency • Bountiful raw materials Sources:http://www.fortune.com/fortune/subs/print/0,15935,375164,00.html

  21. Nike approaches China • Moved most production into China in mid 1980s • More than workshop • Set challenge: to change China’s culture Sources:http://www.chinalaborwatch.org/en/web/article.php?article_id=50214

  22. Open the China market • Phase I:Getting Swoosh recognized -Donated equipment and sponsor high school basketball game -Bring NBA player-Michael Jordan to visit -Target middle class: seeks Western culture • Phase II:Bring in Black culture-Hip Hop -Encourage rap-style trash talk • Phase III:Challenge Confucian-style -Fragrant possibilities of higher-quality shoes Sources:http://www.chinalaborwatch.org/en/web/article.php?article_id=50214

  23. Nike’s success in China • Sales through 1990s increase 60% a year • Biggest seller of athletic shoes • Example: Zhang Han -20 years old art student in Beijing -Owns over 60 pairs of Nikes shoes costing $6,000(RMB) • Western goods mean “status” to Chinese consumer • Nike did not enter China selling usefulness, but selling status • Grew 66% in revenue in the past year Sources:http://www.chinalaborwatch.org/en/web/article.php?article_id=50214

  24. Nike Case LeBron James in Chamber of Fear

  25. Nike Case Corporate Transparency in oversea factories - Contracting through unbiased audits

  26. Nike Case Computer hacking: Stickman copy right lawsuits

  27. Expatriates in China • CEO’s and top executives • Senior and middle managers • Costs and Benefits

  28. Nike IHRM in China • Production staff • Production management personnel • Corporate manager

  29. Home Country Nationals • Establishments • Employee profile • Pay compensation

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