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Potential Cross-Cultural Challenges for the Renault-Nissan Alliance

Uploaded by robba on Apr 22, 2021



Potential Cross-Cultural Challenges for the Renault-Nissan Alliance
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Potential Cross-Cultural Challenges for the Renault-Nissan Alliance
Introduction
The growth in international trading and competition has led to several companies getting into mergers and acquisitions to operate as one and enhance their competitiveness. One such arrangement happened between Renault, Nissan and Mitsubishi that had their headquarters in France and Japan. These automobile manufacturers were among the leading players within the industry, yet they came together to create a niche in the market and become more competitive. Their alliance in 1999 has enabled them to command substantial market share to attain short-term and long-term sustainability. However, the alliance's success depends on explicit consideration of the local and global impact, local practices, and cultural boundaries from one country to another (Song, 2018). The human resource managers of such firms bear the burden of ensuring cultural compatibility and efficacy (Forster, 2017). Accordingly, Renault CEO, who has taken over the top job at Nissan, must ensure smooth integration of the two cultures (French and Japan) to overcome possible cultural differences that may cause internal conflicts and distract stakeholders from focusing on the organizational goals.
Potential Cultural Challenges
As Renault CEO takes over Nissan, there are few cultural challenges that the entity is likely to face and should devise ways to overcome them. To understand the potential differences, one must understand the prevailing cultural conditions in Japanese organizations (Miroshnik, 2013). Japan is one of the countries that operate with an ancient and complex culture (Powell, 2016). The country's unique culture that organizations have manifested as they manage human resources includes lifetime employment and enterprise unionism (Powell, 2016; Hirosuke, 2017). Most organizations within the Japanese culture employ vigorous TQM systems that involve bureaucratic decision-making, while their employees remain largely loyal to entities while the long working hours make it difficult for women to advance career-wise (Powell, 2016, Karapetrovic, 2010). Accordingly, a major challenge in managing the culture would be creating a gender-equality culture in assigning roles, a major aspect in the Globe theory (Carolina, 2019). Besides, there is a significant problem in communication channels and approaches that Renault CEO would face while operating in Japan. There are also potential challenges in assigning roles to executives and designing promotional strategies. Thus, Renault CEO should deeply compare the two nations to decide on the best approaches to address cross-cultural differences.
Applying Different Theories to Ensure Smooth Cultural integration between French and Japanese Cultures
Hofstede's...

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Uploaded by:   robba

Date:   04/22/2021

Category:   Art History

Length:   12 pages (2,633 words)

Views:   325

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