C1: Guangdong Electronics (GE).
Written by Ingmar Bjorkman
Summarized by Adrien Gallé
At the moment the GE situation is critical. There is a big disorder in terms of management and organization into the company. There is no efficient tactics and strategies in term of sales, logistics, human resources etc.… Even if the situation tend to get better further to DEI became the majority shareholder, now we know who is the leader. Nevertheless, there is to clan in GE, in one side it’s the locals people (Chinese) and in the other side it’s the expatriates (Germans).
To me the main factor that has restricted the expatriate managers’ ability to GE is a problem of communication of two different cultures. Germans wanted to inculcate the DEI model in China. But there are huge cultural differences between both countries. German didn’t think about an adaptation phase, and local people cannot change their minds as quickly as expatriates wanted. One other important aspect was the problem of decision-making. It was a 50-50 joint venture, and if there is no domination from one part, everybody will be lost. And in this case, there is no trust between each part, so no one accepts wishes from the other. It happens a blockage situation, where no strategic decision can be taken.
First of all, he should restructure the company with managers who are able to set up efficient strategies in each department. In order to get efficient strategies, he must have a team of managers who can adapt themselves to the local countries. Dane cannot apply the mother company’s strategy, he have to understand how Chinese business works. Also, he should encourage local...