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High Structure Similarity in Manufacturing Sector May Threaten

Industry Boom in Yangtze Delta Region

LI Guiling1

, ZHANG Xiaojuan2

School of Management,Hubei University of technology,P.R.China,430068hbgydxlgl@163.com

Abstract: This paper presents that cross-cultural management is indispensable to global marketing inmulti-aspects, including the origin of marketing-globalization, the definition and characteristics ofmarketing-globalization and the nurture of global marketing, it also involves the necessity and theconcrete application of cross-cultural management in marketing-globalization.

Key words: marketing; globalization; cross-culture; management

In 1990s,marketing-globalization was a significant trend in the development of global marketing,

and it is a fresh marketing-orientated management to guide corporations in global market .In order toensure the achievement of realizing the general goal in home market and aboard, it is imperative tocoordinate and control marketing activities globally. The purpose is to unify and coordinate thedevelopment and achievement between home market and abroad, as well as making sure that thecorporations strategy can be implemented in global market and persist the unique competitiveadvantages in global market.

1.Marketing-globalization

In marketing-globalization, the whole world is regarded as a whole market. Segment the marketand choose target market based on market survey. Implement marketing strategy that emphasizes onpursuing competitive advantage, the optimum market and global spread effects in global scope; Focus

on combining marketing-globalization with localization. Collocate and coordinate resources globally in

order to achieve the competitive advantage through the integrations of global marketing activities. Thereare three significant characteristics in global marketing: global operation, global coordination and global

competition. 1

1.1 Global OperationThe companies that practice marketing-globalization usually pay more attention to the

commonness of the customers demands in various countries than differences. Although they may makeadjustment to the marketing-combination global standardization, they may not adapt for adaptability.

Except that the adjustment will increase the practical interests of customers. Moreover, 2

the

corporation always requires the absolute unification in some marketing-combination such as the goldenarched door sign and standard for serving of McDonald, the prescription of coca-cola, the pattern andcolor of trade mark, and so on. All the standards and sectors are designed and fulfilled by headquarters.

Global marketing administrators holds equidistant visual angle while treating home marketopportunity and foreign market opportunity.

1.2 Global CoordinationThe marketing activities of global marketing companies in the entire world must serve for the

whole strategy of the companies. Whether every foreign market chance is selected or not depends moreon the role and rank in the course of the whole goal accomplishment, instead of its profit of potentiality.For example, some companies may earn no money in some foreign market, but it plays a key role in

global competition with little investment in this market. Besides, the headquarters invent and built afactory in a little demand country, may supply neighbor country. Marketing-globalization breaks theconcept of boundary. Instead of producing and distributing an integrated product by an enterprise

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separately, companies must consider the whole marketing activities from the world perspective.

1.3 Global CompetitionMarketing-globalization requires considering the corporations comprehensive marketing ability

and competitors globally. The key to set up competitive advantage in the world market is to build up amarketing system, which can coordinate, unify and control the entire corporation. It helps to realize thestrategic goal of the corporation. In primary stage, the marketing-globalization usually realize

globalization in single aspects, such as purchasing or producing; In advanced stage, it almost realizesglobalization in all sectors which will-be competitive. Set up global net- work and distribute theimportant posts such as Purchasing, Producing, Researching & Developing Information-Scans and

Human resources globally. They are specialized respectively as well as highly interdependent. 3

2.The necessities of cross-cultural management in marketing-globalization

2.1 The Existence of Cultural Differences

When practicing marketing-globalization, companies should pay attention to cross-culturalmanagement because of the existence of cultural differences. The differences lead to the differentcustom & habits, moral & tradition, life & environment, style & demand, and material & spiritual

pursuit in different countries, which may bring about obstacles for marketing management. Eliminatecultural differences and melt with local management would be an important guarantee for internationalmanagement. Cross-cultural management refers to merge local cultural perspectives into daily

management. In the aspect of resource integration, product-innovation, brand-cultivation and marketing,international corporations should pay more attention to localization. Though cross-cultural management,different cultures can be understood and the obstacles of culture can be eliminated. The cultural

differences will not only hinder international management but also the culture is exclusive. Therefore,

we must pay attention to cross-cultural management in marketing-globalization. 4

2.2 Promote Communication and Amalgamation of Different Cultures

Because the employees may come from different countries and regions, or they need to work indifferent countries and regions. It is very important to handle the differences of value, working style

and thinking pattern that result from varied cultural backgrounds. Cross-cultural management can makepeople adapt to different environment, and promote communication and understanding of people whohas different cultural backgrounds. It is an effective way to break down the role fetters in ones inner

world and find out the differences among diversified cultures. It can also reinforce adaptability todifferent cultural environment, cooperation mind and contact among different culture.

2.3 Demand for Building-up the Common Management Value and Corporation CultureThrough eliminating cultural differences and promoting the contacting and melting of varied

cultures, the employees capacity of distinguishing and adaptive to culture will be improved. Construct

corporation common management concept and powerful corporation culture based on culturalconsistency. It can reduce cultural clash. Every one can combine their idea and action with the tenet of

the corporation management, which will reinforce cultural adaptability. 5

Conflict Management -- the Core of Cross-cultural ManagementCross-cultural management also is called intercross cultural management. In international

management, the administrators take forgiving management method to subsidiary companys culture

that has different race, different cultural types and different cultural developing stage. Its purpose lies inhow to design feasible institutional framework and mechanism of management in different situation ofcultural atmosphere and looking for the corporation goal of surmounting cultural conflict in the course

of management in order to maintain the common rule of employees who has different culturalbackgrounds. Accordingly, control and utilize the potentiality and value of enterprises to the maximumextent.

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While carrying on global marketing, the international corporation will certainly cause cultural

conflict in that the involvement of another kind of culture. The characteristics of the cultural conflict ofinternational corporation are as following:

(1), the non-linear culture with different qualities like different water areas. The conflicting and

blending of several water areas, often demonstrate the intricate state, therefore it has the characteristic ofnon-linear.

(2), the indirect cultural conflict generally goes on in such spiritual fields as the psychology,

emotion, concept, etc. The result is that people change unconsciously, but this kind of change needs longtime to show up.

(3), concept is regarded as the core of inherent culture is taking. So the conflict of culture often

displays on the conflict of the concept.(4), Blending. The cultural conflicting and cultural blending accompany all the time. The task of

Cross-cultural management is to seek something that will be able to reflect different quaint essence in

common in different culture. Thus it could survive in various kinds of cultural environment.

3.Concrete Applicationof Cross-cultural Management in Marketing-globalization

3.1 Staff Training of Cross-cultural Management3.1.1The Required Abilities of Cross-cultural Administrators

American scholars, Moran and Rosenberg think that a successful cross-cultural administrator must

possess the following 12 items of ability: (1) the psychological orientation of globalization (2) workingtogether with the people who has different cultural background equally (3) long and remote sight (4) promote organizational revolution (5) create study environment (6) encourage employees pursuingexcellence (7) negotiate and settle down clash under cooperation (8) handling skills and shift in turn (9)

lead and actively take part in multi-cultural team work (10) learn their own culture, value and customs(11)draw the outline of the culture of organization and nation accurately(12) avoid making mistakes

concerned with cultures, understand and respect other countrys cultures at works.3.1.2 The Selecting and Training of Cross-cultural Administrators

The cross-cultural administrators include the managers in motherland, managers in the hostcountry and administrators in the third country. Staff training can improve their overseas workingcapability and adaptability that will play an indispensable role in guaranteeing the success of theoverseas post. Therefore, more and more companies set up training projects and plans systemically and

intensify staff training. This training includes two stages :one is preparing training before assigning; theother is guiding in field. The first training provides important preparation for the will-be administrators.The more they learn the host country, the less they and their relatives will encounter the cultural impact.

Preparing training generally includes: language training, general cultural training, 6

and the countrys

situations training, managing in host country training, communication with host people training andvisiting host country, etc. Guiding in field refers to be guided by headquarter and local trainer afteradministrators taking up an official post abroad. At the same time, the predecessor of the overseassubsidiary will usually give successors several months guiding.

3.2 The Cultural Tactics of Cross-cultural Management3.2.1 The Localization Tactics of Culture

The localization tactics mainly emphasize on the ethical custom, tradition taboo, and action style.In human resource management, it is better to employ the administrators and staffs who are familiar

with local customs, market situation and the rules and regulations of government.Marketing-globalization must adapt to local culture and do their best to suit for the characteristics oflocal cultures .On the one hand, the tactics cater for the regulation of many countries that foreign

country must employ a certain quantity of local employee; on the other hand, it is good for corporationto save the expensive expenditure of sending overseas personnel and international management, to meltwith local social culture, to reduce the crisis mood of local society to external capital. It is also good forguarding local economy security, increasing the opportunities of employment, promoting innovation

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and accelerating the speed of breasting with international corporations. The localization tactics of

culture coordinate the benefit between corporation and host country turns into a significant means forinternational corporations in implementing cross-cultural management.3.2.2The Complementary Tactics of Culture

The complementary tactics of culture neither take the culture of the motherland nor the culture ofhost country as the mainstream of culture. The tactics will apply the two kind of culture to corporationoperation simultaneously and fully exert the advantage of cross culture. Instead of mutually exclusive,

the relationship between motherland culture and host country culture is complementary although thereis great cultural difference. For example, in 2000, the Chinese government selected The MostSuccessful Management Food Corporation in China of that year, the No. 1 was KFC that coming from

American, not a Chinese enterprise. Although there are great differences in political system, culturaltradition, belief and custom between China and American, the cross-cultural advantage lies in thetremendous cultural differences making the two different cultures perfectly complementary. The

existing of a kind of culture would make up for the shortcoming and monotony of another kind ofculture. The successful management of KFC in China sets up a good example of cross-cultural

management.

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3.2.3The Integration Tactics of CultureThe integration tactics of culture is that the important appointments of the subsidiary companies all

over the world will be motherlands personnel. Because there is no cultural difference between the

administrators in subsidiary companies and mother corporations,

which will do help to informationalcommunication in management activities. In overseas subsidiary companies, the administrators take themotherlands culture as major culture. The daily operation suits for the working pattern under this kind

of cultural background. The pattern suits for big scale international corporations with no differencestrategy and single product. That is, mother- company set up all human resources management policies.The subsidiary companies all over the world abides by the standardized administrative policies. Theeconomic power of the corporation, which adapts to this pattern, must be powerful and its influence onthe world must be gigantic. Its enterprise culture have been publicly known and accepted by other

people. The typical case is McDonalds. 8

3.2.4The Melting Tactics of CultureIn the melting tactics of culture, the motherland culture is regarded as the major culture of

subsidiary company. Based on that, the culture of host country melts with the culture of mother country.All rules and regulations are laid out based on the framework of the general corporations policy. The

overseas subsidiary formulates concrete policy and measures according to local situations. In personnelcollocation, a great part of senior managers in general company should be motherlands citizen, only afew in subsidiary companies are local people. The advantage lies in the flexible tactics of taking both

general strategy and the difference of host countrys cultural background into consideration. And itsdisadvantage is: whether these two kind of culture will melt successfully or not, if fails, culture clashand friction resulting from cultural difference will bring the corporation into plight.

In the trend of the globalization and unification of world economy, the perspective from whichinternational corporations observe the world has changed; the corporation is market globalization

oriented gradually. It shows that the companies break through demarcation line, considering the

developments of marketing strategy within the range of global market gradually in order to get thecomprehensive competitive advantage of the corporation. When the corporation pursues

marketing-globalization, cultural differences bring rub and conflicts that undoubtedly bring influence tomanagement and administration of the corporation. The application cross-cultural managementsuccessfully will help dispelling obstacle that culture factor causes and promote the realization of thewhole strategic objective of the corporation.

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Yuan Honglin, 2001.10,Marketing Paradox: Globalization Or Localization? Contemporary Finance.

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