Cultural Conflicts in Deronde International: Case Study

This case study explores the cultural conflicts in Deronde International, focusing on the selection of Jianguo as the global head of product development. It provides advice to Jianguo and highlights the management competencies needed in a contemporary VUCA world.

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Contemporary Management

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Executive Summary
The report reflects the case of Deronde International such that it highlights the issue of cultural
conflicts resounding around the selection of Jianguo as the global head of product development
of the firm. The cultural conflicts gained ground owing to Jianguo’s failure in understanding the
needs of the global consumer force associated to skin care and perfume products. Jianguo is also
observed to have failed to understand and honour the cultural differences between Chinese and
French communities which accounted for the growth of cultural tensions and conflicts within the
firm. The report thereby contributed in generating effective advices to Jianguo while also in
reflecting the level of management competencies that are required of leader-managers operating
in contemporary VUCA World base firms.

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Table of Contents
Introduction......................................................................................................................................4
Evidence of elements of conflict.....................................................................................................4
Reasons for such conflicts...............................................................................................................5
Advice to Jianguo for way forward.................................................................................................8
Management competencies needed.................................................................................................9
Conclusions....................................................................................................................................13
References......................................................................................................................................14

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Introduction
The paper focuses on understanding the manner of conflicts and the reasons for their outbreak in
Deronde International that potentially affected the performances of Jianguo promoted as the
global product head of the firm. It further focuses on rendering effective advices to Jianguo for
reducing the emergence and impact of conflicts in Deronde and in working towards holistic
productivity. Finally, the paper would focus on understanding the management competencies of
a leader-manager in a VUCA World in the contemporary period.
The case opens based on highlighting the issue where Yang Jianguo operating as the country
manager for Chinese operations of Deronde International was promoted as the global head
associated to product development of the company. The case thereby tends to evaluate the
manner in which Jianguo needs to win over his western colleagues that are bound to their
western traditions and thereby in redesigning the existing product line.
Evidence of elements of conflict
The evidence of conflict in the case can be best studied regards to Yang Jianguo’s attending of
the meeting with the executive committee members of Deronde International. The first evidence
of conflict is observed regards to Jianguo’s choosing of Liu Xiang as the brand ambassador for
the new product line of skin care products that are focused on being launched to meet the
cosmetic needs of the male customers. The choosing of Liu Xiang as the spokesperson for the
products was critiqued by his western colleagues like Yves in terms of inquiring about the
sportsman’s recognition outside the Chinese province (Nohria, 2009). The second evidence of

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clash was noted regarding Yves interruption to the suggestions made by Jianguo to Deronde of
selecting a Brazilian footballer for promoting the cosmetic and perfume products in the Latin
American region and also in working in a focused fashion for selection of sportspersons along
different emerging markets where the company aims at promoting the brand (Nohria, 2009). To
this end, the suggestion put forward by Jianguo and supported by Elise Bernier, VP Marketing
was again critiqued by Yves and even supported by Alain Deronde stating that things were being
stretched quite afar without even evaluating the actual market demand of male customers from
Deronde. Further evidences of conflict are observed in terms of Jianguo’s feelings based on
hearing words spoken against him like that of ‘marginal’ and ‘unsophisticated’. Jianguo felt to
have been thrown out and isolated by the executive team at Deronde in that he was not called in
the meetings enabled for carrying out of strategic decisions (Nohria, 2009).
Reasons for such conflicts
The existences of differences between the level of national and corporate cultures associated
with the business unit operating in diverse economies potentially contributes in the emergence of
conflicting attitudes among the corporate executives working in diverse national environments.
The corporate executives of the business corporations functional in Asian economies like China
are acclimatised in working in an organisational culture involving hierarchies of roles and
responsibilities. On the contrary, the executives working in corporate circles associated to
western economies are involved in operating based on flatter organisational structures that reflect
the presence of reduced amount of organisational hierarchies (Beugelsdijk & Welzel, 2018). The
existence of flatter organisational structure encourages the growth in the levels of
communication between the members associated to management and subordinate levels which

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are considered to be alien regards to the culture of the business organisations operating along
Asian economies (Qiu & Homer, 2018). In that Jianguo previously operated in Deronde’s
Chinese based units he was more blended to work along hierarchal organisational settings than
that of flatter organisational structures involving freedom of communication along the different
levels. The same accounted for restricting the easy mixing of Jianguo with his western
colleagues and superiors in Deronde leading to rise of conflicts.
The cultural conflicts between Jianguo with his French counterparts and higher management in
Deronde International can also be further evaluated through the use of the Hofstede’s Cultural
Paradigms. A comparison made between China and France based on the six cultural benchmarks
reflects the following scores.

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(Hofstede Insights , 2019)
The ‘Power Distance’ parameter reflects that both France and China both reflect higher scores
though the score of China is much higher than that of France. The French companies are
essentially characterised with around one or a maximum of two levels of hierarchy. The superior
or owner of the company remains inaccessible to the subordinates which is quite evident in the
case where Jianguo could not access and communicate freely with Deronde the CEO of Deronde
International. Thus, though Jianguo was selected by Deronde yet at a subsequent level the case
reflects doubts on the part of the latter regarding selection of Jianguo as the global head of
product development in the firm. The comparison of France and China based on the parameters

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of Individualism reflects that France tends to have a potentially higher score compared to China.
The same reflects that the higher management requires and encourages the subordinates to take
decisions on their own rather than to depend and focus on consulting with group members
(Meyer, 2017). Thus, in the case Deronde required Jianguo to take decisions regarding product
development and promotion in an independent fashion rather than to depend on the support
provided by other colleagues and peer groups. This created a conflict in the minds of Jianguo in
that he expected support from his colleagues for the taking of decisions associated to the global
canvas. The failure in gaining due support from his colleagues and Deronde made Jianguo feel
isolated and frustrated. Further, in terms of masculinity and femineity, France reflects the
existence of a feminine culture such that the French society earns to be linked to tradition and
values (P. & Mac Giolla, 2017). The same is also reflected in the case where Jianguo identifies
the essence and significance of traditional blending in the activities and whereabouts of his
French colleagues. In terms of uncertainty avoidance, the French society reflects a potentially
higher score compared to China. The same reflects that the French people render greater
importance to the aspect of planning and thereby avoid taking decisions with haste. The same is
evident also in the case where Jianguo tried to convince the members of the executive committee
for selection of sportspersons along different emerging nations for marketing and promoting the
skincare and perfume product ranges. The decision was refuted and critiqued by Deronde and
another French colleague stating that the thinking was quite far-off in nature. Finally, in terms of
indulgence the cultural conflict becomes evident in that France reflects a higher score compared
to China associated to the stated parameter. The same reflects that French render greater
importance to the parameter of socialising and in taking recesses amidst their professional and
other activities (Ollier-Malaterre & Foucreault, 2017). The same is also evident in regards to the

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case where Deronde is focusing on taking a trip to Davos for a week’s time and thereby
empowers his team to think and work more constructively on product launches in his absence.
Further, the corporate decisions are also observed being undertaken in gatherings that reflected
the need and interest of the French people in taking breaks and socialising. The above differences
in the cultural paradigm between France and China rightly accounted for the emergence of the
conflicting situations associated with Jianguo.
Advice to Jianguo for way forward
To earn success in his new role as a global leader in the arena of product development for
Deronde, Jianguo is required to have an open mind for learning new sets of skills that matches
the French working environment and also in terms of operating in a family business climate
where the CEO acts as the operational and administrative head of the firm. Jianguo is thus
expected to understand the dynamics regarding working in a family business where the CEO has
the power in intervening along anything and everything that is carried out within the
organisation. Further, Jianguo is also required to specifically understand that the decisions
required to be taken by him would be meant for the global environment of the business and
thereby is required to be free of the cultural influence of China (Nohria, 2009). In that, the
decisions and strategic operations workable in the Chinese environment would not suit the
environment of any other emerging or developing market, Jianguo is thereby required to focus
on the generation of decisions in a customised fashion based on studying and evaluating the
cultural paradigms and demand expectations of the people in the new cultural settings. Jianguo is
thereby required to honour and respect the cultural differences of the French colleagues such that
the same helps in forming of diverse teams for meeting of departmental and institutional

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objectives (Nohria, 2009). Jianguo is also required to focus on easing his stress level through
entertaining himself and also avoid from getting emotional based on the attitudes and behaviours
of the colleagues. Jianguo also needs to focus on the meeting of short-term objectives associated
to product development and product launches rather than targeting of abstract results. The
meeting of short-term objectives associated to production and business would potentially help in
convincing the CEO of Deronde and also in motivating others in the organisation in the
formation of smart teams for productively helping in the accomplishment of the strategic
objectives of the firm. Jianguo to succeed in Deronde’s home market, France is required to
actively work in understanding the expectations and needs of the French consumers and also in
developing acquaintance with his colleagues and managers such that the same helps in working
in a comfortable manner in the firm (Nohria, 2009).
Management competencies needed
The management competencies that is required for a 21st century leader-manager operating in an
organisation pertaining to a volatile, uncertain, complex and also ambiguous or VUCA world is
rendered as follows. The manager is required to have an open mind which would help him/her
gain flexibility in responding to a changing business environment and also in learning of new
concepts and ideas. The enhancement of the knowledge regarding technology, operations and
other needed knowhow would help in enhancing the competencies of the leader-manager to work
in the changing and demanding business environment (Prakash, 2017). Further, the leader-
manager is also required to work as an avid risk taker in terms of undertaking of new
experiments associated to novel concepts and ideas. The willingness to undertake newer
experiments would help the leader-manager to move over to uncharted territories and thereby

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help in gaining access to newer markets and consumers. Again, the leader-manager is also
required to readily accept the errors committed by him or her and thereby to rightly work with a
focus on meeting situational objectives and needs. A leader-manager is also identified to be such
that focuses on understanding the needs and expectations of others with due humility and thereby
in working towards the meeting of such (Sobratee & Bodhanya, 2018). Likewise, the leader-
manager is identified as such that focuses on working in a passionate and inquisitive fashion in
meeting of set targets and objectives associated to business and production. The leader-manager
thereby becomes responsible in setting of strategic objectives and mission and thereby in
developing competencies and arranging of resources for meeting them at a future period
(Chauhan, Kumar, & Joshi, 2018). The management competencies of a leader-manager
discussed above are reflected in the following model.

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(Chauhan, Kumar, & Joshi, 2018, p. 44)
Further research carried out regarding leader-manager competencies in a VUCA environment
reflect that the level of leadership agility can be essentially divided into three main types like
expert, achiever and catalyst. The expert level leader-manager is such that is required to feature
essential competencies associated to problem-solving ability and tactical knowledge. These
leaders continually focus on developing their expertise such that the same helps them in gaining
higher authority in the organisation (Raghuramapatruni & Kosuri, 2017). Further, the achiever
level leader-manager is identified as such that focuses on the development of effective strategies.
These leaders tend to encourage others in operating in a challenging environment and thereby
work in an empowered fashion for meeting of set objectives (Kumar & Narayana, 2017). Finally,

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the catalyst leader-manager is identified as such that works in the development of new visions
and thereby in enhancing the level of existing capacity for meeting of the identified visions. The
catalyst leaders are thereby identified to work in an innovative fashion and also encourage and
empower individuals for meeting of visionary objectives and goals (Pimplapue, 2018).
Again, the agility competencies are identified to be of four different types like context-setting,
stakeholder, creative and finally self-leadership based agility. In terms of context-setting based
agility the leader-manager is required to work in scanning the external business environment and
thereby in anticipating future or emerging changes so that the strategic objectives and tasks can
be effectively designed for influencing and empowering organisational members
(Balasubramanian, 2018). The leader-manager herein is required to reflect additional
competencies in terms of having a long-term and visionary focus and thereby in influencing and
impacting others in meeting of the long-term and visionary objectives. In terms of stakeholder
agility, the leader-manager is required in not only identifying effective stakeholders but also in
working towards integrating and engaging them for meeting of organisational objectives (Das &
Ara, 2014). Herein, the leader-manager is thereby required to understand the needs and
expectations of the potential stakeholders and also interact with them for helping them gain
needed clarity as to the institutional objectives and in designing a working plan for aptly meeting
of such. In terms of creative agility, the leader-manager focuses on working as a catalyst leader
that aims in empowering and leading teams for brainstorming of effective solutions to an
emerging problem affecting the business institution. Finally, in terms of Self-Leadership Agility
the leader-manager focuses on enhancing the level of self awareness and thereby in envisioning
the type of business leader one focuses on becoming and the manner their leadership growth and
potential would help the business institution in the long-run (Inam, 2017).

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Conclusions
The analysis of the case study ideally reflects that the success and sustenance of Jianguo in
Deronde is highly dependent on the manner he tends to revolutionise himself in understanding
the cultural differences and objectives of his French colleagues and management based in the
firm. Jianguo to act as an effective leader-manager is required to act in a glocal fashion which
would help in understanding of the localised needs of the international markets. The same would
help in strategising the product offerings and in deciding on the manner of launching and
promoting the products in the international markets. Further, Jianguo is also required to focus on
training and in empowering the subordinates to work in generating effective solutions concerning
the problems associated to product development and launches in the global marketplace. The
above initiatives would help Jianguo in earning needed recognition for his job and thereby in
designing internal teams that would help in fulfilling of visionary objectives in a collective
fashion.

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