National Culture Influence on Organizational Structure, Leadership and Business Strategy: A Comparative Study of Honda and Daimler AMG

Running head: GLOBAL BUSINESS MANAGEMENT
GLOBAL BUSINESS MANAGEMENT
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GLOBAL BUSINESS MANAGEMENT
Introduction
Global cooperation transforms the way organizations and societies implement
knowledge, innovate as well as create values and ideologies. This plays a decisive role in all
spheres of social life along with the various aspects of management. Furthermore, global
cooperation results to the emergence of innovative forms of business which promotes
transparency and acknowledges cooperation with clients and stakeholders in order to develop
innovation (Alfermann et al. 2013). It further exerts the power of global cooperation and
develops the role of a multinational corporation by employing the means of contemporary and
sincere global business enterprise. Culture comprises in collective programming of the mind
which causes divergences among the individuals of one group or community from the other. As
individuals belong to various social categories, organizations must keep in consideration the
facets of national culture and the implications on organizational structure (Büschgens et al.,
2013). The following essay will focus on the way national culture influence the organizational
culture, leadership approach and business strategy of Honda based in Japan and Daimler AMG, a
German multinational company owned by Mercedes Benz and Mercedes-AMG.
Organizational Structure of Honda And Daimler AMG Influenced by National Culture
Owing to the fact, that cultures tend to vary in their receptivity to transitions, certain
cultures tend to have gradual transformations and can possess immense resistance of change
even to the extent of attempting to mitigate external forces of change based on their reliance
towards traditional behaviour. Though other cultures embrace significant transitions, however at
significant events certain fundamental segments of the populace endeavour to reinstate
traditional values, ideologies and behavioural patterns and further perceive such advancements as
forms of threats. Regardless to this, it has been noted that other cultures reveal utmost
ambivalence to transition and at the same time tend to embrace, resist as well as show
apprehension towards it (Trevor,Marshall and Cao 2013). At this juncture, one must note the
spirit of collective understanding, collaboration and harmony which subsists in the organizational
culture of Honda that permeates all the other actions as well as the set of standards and values of
effective partnership. However, a significant way to comprehend a role of culture to change is its
process of orientation towards time.

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GLOBAL BUSINESS MANAGEMENT
Similarities and differences between the two organizations
It has further been identified that national culture has a prominent impact on the
behavioural patterns of employee base whereby the decisiveness of national cultural diversity has
been recognized on the association of managers and subordinates in the automobile industry of
both Japan and Germany. Modern observers reveal the exceptional good services of both Honda
and Daimler AMG for its cliental base, the two organizations tend to vary in their opinions and
principles related to the extent of services they should be serving to their clients (Chhokar et al.
2013). While the employee base of Honda tend to reveal propensity in providing great degree of
satisfaction to their clients and further establish stronger associations, the Daimler AMG
workforce reveal greater inclination in corresponding the expenditure rates of client satisfaction
in comparison to the benefits. However, the rationale of the divergence those German and
Japanese employees have been used to various anticipations from the cliental base of both these
organizations (Jacobs et al. 2013).
Leadership Structure of Honda and Daimler AMG Influenced by National Culture
It is significant to note that institutional theoretical aspects identifies the formal norms
about the organizational structure including norms and values for embarking structural formation
as entities of national culture. However, Hofstede has identified four critical dimensions related
to national culture by shedding light on uncertainty avoidance, individualism or collectivism,
masculinity or femininity and power distance (Flores et al. 2014). The dimension of Hofstede’s
power distance reflects the inequality among the individuals of the society and further exhibits
the attitude of the culture towards such degree of disparities amongst the members of the society.
Similarities and differences between the two organizations
In the opinion of Hofstede, Germany being a nation consisting high degree of
decentralization and underpinned by well-established middle class segment, the country is not
positioned among the lower rank of power distant nations whereas Honda, being established in
Japan tend to demonstrate a considerable level of awareness to their hierarchical positioning in
any significant social background and tends to act in accordance (McVeigh et al. 2013).
However, it has been recognized that few foreigners employed in Honda have encountered
certain degree of hierarchical power because of the immensely unhurried decision making