With a rapid and sustainable development of the economy in China, more and more
Chinese companies have started to go aboard to search for bigger markets. However, an
increasing number of these companies confronting a series of new problems and
challenges while they are raising profile and pursing global development. In order to
maximize their corporate value, they have to develop new and innovative ways to
overcome cross-cultural management.
This article choose an electronic enterprise named “Huawei” wich cut a figure and draw
attention of people these days as an research project to try to study some successful cross
cultural management behavior. Though analyzing the cognitive difference of those people
with different cultural background for some of the aspect of cross-cultural management
like localization, managing foreign workers, leadership and so on, I want conclude some
basic localization strategies of Chinese companies which want to develope
overseas,especially in western developed countries.
It is reported that Huaweis net profit rose by 30 percent to 23.8 billion yuan ($3.64 billion)
in 2011, as robust demand from overseas markets boosted sales(Shen Jingting and Wang
Xing). Analysts said that Huaweis rapid growth is expected to continue, despite recent
setbacks in overseas expansion in the United States and disputes with foreign rivals over
intellectual property rights.
While sending its own staff members abroad, Huawei also commits to its localization
strategy. It has offices in over 140 countries around the world and employees come from
150 countries and regions, however, the number of foreign employees exceeded 21,700 in
2010, accounting for 19.4 percent of its total workforce. In 2010, Huawei enhanced its
localization efforts. The localization rate of employees in its overseas offices increased
from 65 percent in 2009 to 69 percent in 2010(Liu Xinlian). Managerial positions are also
available to foreign employees, a practice that helps enhance the diversity of the
management team.
Cross-cultural Management Theory
How Culture Affect Management
According to Hofstedes definition, Culture can be defined as “the collective programming
of the mind that distinguishes the members of one organization from others”. They have
different language, social norms, social systems, social relations, social organizations,
material products, philosophy, and other specific science, religion, art, ethics, values and
so on. These elements have significant effect on peoples way of thinking.
The famous American management scientist Peter drucker (Pete: F.D rucker) combines
management and culture together, he said that management is a kind of social functions,
hidden in the values, customs, traditional beliefs, and political system of government.
