Almost everyone in Tennessee has heard about Volkswagen’s recent plant move to Chattanooga. Because Volkswagen is a German-based firm, there are many cultural differences between the United States and Germany. Whenever foreign firms choose to re-locate to a new area, cultural considerations are often at the top of the list. As we have discussed in class, cultural differences can unhinge an otherwise perfect merger or acquisition. This particular move for VW was inspired by a package of economic incentives. Germans are known for being analytical and relying on data in their business decisions.
What are the most important cultural differences that VW should be aware of when relocating to a place like Chattanooga, TN?
Do you think that German and American cultures are similar enough that cultural differences are minimized?
Would this move be riskier if Volkswagen were headquartered in a place like Japan?
Thanks,
Amber and Tricia
9 comments:
I think this was a good move for VW to expand a plant in the US. The most important cultural differences they should be aware of however is they are not just expanding into the US, they are expanding into the Southeast. Every part of the US has cultural differences of its own but the South is somewhere that drastically differs from foreign countries. This being said the whole culture of the South is something VW should keep in mind. I don't think that the two countries are so similar that cultural differences can be ignored but with every successful global company, adapting a strategy is the most important part of expanding internationally. It wouldn't be riskier is VW was headquartered in Japan because companies like Subaru (Japanese) have plant facilities similar to VW's Chattanooga plant but in Indiana. This is a growing trend for foreign automakers. Finally, working in the car business for 4 years now I have seen a growth in VW's vehicles in the local area. With a plant 90 miles away many Tennesseans feel more of a connection to this German firm because not only are they seen as more 'local' they are also providing jobs for local residents in a time when job creation is crucial.
More so than any specific difference, i think VW should be aware of the overall difference in culture. the southeastern u.s. is culturally unique from other american regions; some domestic firms even have difficulty conducting business here. because of this VW must understand and prepare for that culture as well as demonstrate respect for it. americans and germans do share some cultural similarities such as a low-context communication manner and a monochronic preception of time; these will help to minimize potential conflict in culture. not only this, but i do think our government and regulatory environment is not so extremely alien to VW in the sense that there is somewhat consistency in southern politics to maintain business-friendly policies. vw is obviously aware of this with incentives being a main reason to expand here. therefore vw's working knowledge of the environment and the existing cultural mutualities make Chattanooga,tn a less delicate locale in which to engage in business than japan.
I agree with everyone, apart from the general culture of Americans, there is specific cultures that can come to play. But I dont think the Germans will have any problem succeeding in Chattanooga because the American people have seen worse situation and are ready and willing to see the car industry come back to the Country that they will do anything and everything to keep this company. I see the Americans rather making the big adjustment.
I completely agree with Hannah on her comment that WV is not only investing in America but the Southeast as well. I agree with her in saying that each region in the US has their own different quirks and traditions but I think it is safe to say that Southerners value theirs very highly. There are many different cultural differences between the US and Germany, but their business operations and cultures seem to be very similar. There are a few other foreign automakers that have done well in the south like Nissian in Alabama, so I think WV will have great success in operations in America and in the South
Thanks for all the comments! I like how you all have divided the cultural area by region and not necessarily by state or city.
-Tricia Bruce
Thanks for all the comments! I like how you all have divided the cultural area by region and not necessarily by state or city.
-Tricia Bruce
I think the fact that Volkswagen chose to move into Tennessee is an important move both for Volkswagen and the Southeast in general. Volkswagen moving into America is a big decision in and of its own, but moving into Tennessee is very strategic. Germany and America are a lot alike when it comes to business. We have a lot of similar beliefs such as negotiating, being on time, low context, etc. I think that it's definitely a move that will work in the long run. I don't see any major cultural conflicts. And since Volkswagen chose Tennessee, I see a great future relationship. However, with Japan, there could be potential for many problems to arise. There is a lot of difference in the cultures which could provide conflict in deals.
I think this move will be very smooth for the MNE. They have plants in various countries and probably have a sound system on working through cultural differences. They will obviously have locals as plant managers and workers as well as American regional and national executives. This will be a great opportunity for Chattanooga residents to work for a large company that has a lot of upward movement opportunities.
I think that there are many important cultural differences that VW should be aware of while moving to chattanooga. First thing is the decision making styles. Germans are very prone to going off of data and details as according to Kiss Bow or Shake Hands. Also they are very closed off to outside information. While entering Tennessee, they should be more willing to use less outside inside information. It seems that people in the south do rely on a good bit on trust as well as other things. Also, they must be willing to accept the slowed down pace of the south. Punctuality may need to be a little less of a concern.
Post a Comment