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A company in its headquarters has its own organizational culture which is in line with the culture of the country. However, once the country becomes global, it may be forced to change these…
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Download file to see previous pages The culture of Chinese demands them to take tea as opposed to coffee and this proved to be the first cultural challenge for Nestle. Their culture demands strict trust before conducting businesses with foreigners (Allen, 2009). The trust is earned through complying with their culture, demands and offering them gifts time and again. This proved to be quite a challenge for the company and especially the adoption of Chinese culture in its business. The gift part was against their code of conduct and especially because it was seen as a form of corruption (Hanson and Rothlin, 2010).
The code of ethics and conduct of the Nestle Company had to be changed to adopt and accommodate the cultures of the Chinese people or the company would lack support and hence have to move base of operation to another country. China was just starting to succeed and hence Nestle wanted to create a strong base and outdo its competitors.
Culture of China demanded that majority of the management of the company had to comprise of Chinese people. This therefore meant a complete change in administrative process as the managers in some positions had to be removed and taken to head other branches in other nations. This process was not only costly but took time to enforce hence delaying the process of Nestle establishing its market niche in the country.
China’s cultural demands which need to be enforced made a mockery of the administrative processes and procedures of the company (Sun, 2012). The cultural demands made the company have ultimatums of carrying out changes and the administrators were reduced to mere puppets. With the many cultural demands which were being led by the government agencies, the company’s administration faced leadership challenges and internal conflicts.
The administration eventually in order to comply with the ever growing cultural demands had to fully change from their norm ...Download file to see next pagesRead More
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