Analyzing Cultural Difficulties for Jaguar Land Rover in China

This report provides an in-depth analysis of the cultural difficulties Jaguar Land Rover faces while operating in China, particularly focusing on its joint venture with Chery Automobile. It explores various challenges, including communication barriers, differing cultural values, government intervention, and the need to understand the local business environment. The report highlights specific issues such as language differences, climate variations, difficulties in decision-making, and the impact of advertising policies. It also examines the implications of China's education system and employment practices. Furthermore, the report recommends strategies for Jaguar Land Rover to overcome these obstacles, emphasizing the importance of training programs, adaptation to the local environment, and effective collaboration with Chery Automobile to ensure profitability and productivity. Overall, the report underscores the importance of cultural sensitivity and strategic planning for successful international business operations in China.

CULTURAL DIFFICULTY IN
CHINA

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSIGNMENT 1.............................................................................................................................1
ASSIGNMENT 2.............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
While any organisation operates its functioning in the foreign market then it is very
important to understand and cope up with the international culture and its environment.
Employees play a very crucial role in every corporation which contributes their best efforts to
attain the determined objective. While the company operates its activities at global level then it
is essential to train and manage the personnels so as it can properly organise and survive its
business activities and function in the competitive market. (Arnold and et.al. 2014). In the
following project report, various difficulties related to the culture and region which affect
organisation has been addressed. In addition to various strategies and recommendations through
which this difficulty can be overcome in an effective manner has also been discussed in this
assignment. In this report, jaguar Land rover is a luxury auto mobile manufacturer which have
Chinese joint venture with Chery auto mobile. Cited venture is a Britain luxury car maker which
have joint venture with Chinese company Chery auto mobile. It has £1.1bn Of investment in the
world second the largest economy. In the following report, cultural difficulties which is faced by
the employees in the other country has been systematically addressed.
ASSIGNMENT 1
The organisation which is going to expand its business in the other country then it is very
important for that to understand the various components which affect operation of enterprise. In
this manner, understanding about the cultural diversity in the other country is major aspect so it
can able to train its employees to face the changes. Trading in another country on one hand can
act as an opportunity and on the other hand it can be a barrier of growth. It includes various cross
culture difficulties that can be faced by a company going to establish its business in some other
country. The management of the company is required to be take adequate measures opting for
international business (Eubanks, Joinson and Dove, 2016). If all the factors are not considered
by the entity it can prove to an unsuccessful business which can lead the corporation to heavy
loss. Every country have different ways to work and varied values that are followed by the
people living in that country. It may not match with that of the home country. The main motive
of expansion is to maximize profits. Despite of presence of trader balances, currency upheavals,
uncertainty of success, companies tend to make efforts in expanding in international market. The
companies also make various strategies to reduce social, cultural and economic barriers in order
to earn maximum on the foreign land. Also, it increases their global presence in the market and
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hence raise brand image and market value as well. However, losses or bad response from the side
of the customer may affect the brand image. Communication problem, different values of varied
cultures, strict code of conduct, first bad impression are few other barriers faced by the
companies. It is important to do a research and make appropriate strategies based on the
challenges that the company think that it can face. It will help in better establishment of the
business in other countries having different code of conduct from that of home country. In order
to survive in the other country, it is very important for the organisation to understand the
business practices and code of conduct of the country and operate its operation accordingly. With
help of effective business environment analysis, corporation can easily understand the each
components and coordinate its activities accordingly in the new country.
There are various factors that are considered before starting a business cross boundaries
such as political, economic, social, technological, legal and environmental factors. These six
factors help to understand the country's trade, norms and values in better way. International
trade gives opportunity to grow and expand the business but the entities have to make changes in
their functioning in order to match with the values of other country. People living in another
country may have different way to conduct a business for which the enterprise have to make
strategies so that the entity can match with the skills that have been already present there.
Culture refers to the social behaviour and norms which one finding the human societies.
It also defines cumulative deposit of knowledge, experience, belief, value, attitude, regions,
notion of time, spatial relation. In different countries, there are different cultures which affects
the living standard of people (Bae, Song and Kim, 2012). Culture of any country directly reflects
the language, region, value, belief, background of the people. In every country, different culture
show the differences among the people’s values, language, dressing sense, way of living
standards etc. While any organisation deals with other country in order to expand its business,
operates new venture, merge with other company and enters into joint venture with other firm
then said corporation may face various difficulties related to the cross culture. Cross culture
refers to the group of people under which everyone have their own culture, own value, beliefs,
language etc. For maintain the differences among the group members, organisations engage with
initiatives to increase understanding of different groups, develop effective communication, or
marketing efforts to reach out to customers and client outside its traditional market.
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As per the scenario, Jaguar Land Rover automotive PLC is the British multinational
automotive corporation with it’s headquarter in the whitely Coventry. Its major activity is that it
design, develop and manufacture vehicles. It is a brand of car and specialise in four wheelers
and it is owned by British multinational car manufacturer Jaguar Land Rover which is owned by
India's Tata motors. Cited venture have joint venture with corporation Chery Auto mobile which
is Chinese auto mobile manufacturer. Jaguar Land Rover have to faced the difficulties related to
understand the culture in the China. There are different set of understandings among the people
of China and are generally less acceptable in terms of cross culture. It can be challenging for
Jaguar Land rover to establish its enterprise in China as it will take time to develop trust and
brand loyalty in people belonging to China.
Chinese culture is one of the oldest culture tracing back to thousand years. Traditional
culture of china covers large geographical territories at which each region is usually divided into
distinct sub culture (Iqbal and Sharma, 2012). In the china, culture includes ceramics,
architecture music, literature, material arts, cuisine, visual arts, philosophy and region etc.
region of china was earlier oriented to worshipping the sovereign god shang di. Thus, it can be
said that there are very different culture carried by the people in china so it is not easy to cope up
with this culture. In china, there is excellent scope technology but its culture is quite difficult for
the organisation which is going to deal with it. Jaguar Land Rover has faced the various culture
related issue in the china as it has joint venture with Chery Automobile. It is difficult to do
business in China when one company is not aware of the issues that it can face while operate
venture at there (Kolade, Oluseye and Osibanjo 2014). China is a country where very strict
regulation and legislation related to the venture operation. There is huge government interference
in the company. Management have to understand the cross culture and government regulation
while it starts its operation in cited country. It can be challenging for Jaguar Land rover to
establish its firm in China as it will take time to develop trust and brand loyalty in people
belonging to China. There are various other issues present which Jaguar Land rover can face
while establishing its venture in China. Some of them are stated below:
 Climate and communication: People belonging to China are not well versed with other
languages, not even English. Communicating with them is the major barrier due to which
it is difficult to understand and live there. The employees and the management have to
learn Chinese before going to China. The climatic condition are ever-changing and the
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company should be ready to face it. Jaguar Land rover employees may face this issue
because people have different language (Lin and et.al., 2012). Employees in the
organisation cannot freely communicate with each other through which employees can
not properly conduct team work and they feel uncomfortable to share their knowledge,
idea, message related to activities and function about the organisation process etc. Understanding the environment: It is important to understand the new environment in
order to attract customers to the new company. Jaguar belongs to Britain and taste and
preferences of China may differ. Difficulty in decision making: It can become difficult for the management to take
decisions without knowing the environment of China as it may differ from that of Britain.
In the first few months Jaguar may face unmanageable complexities, uncertainty of
information and long term goal of the venture or heavy losses (Nongo and Ikyanyon,
2012). Shame Technique: A technique is used by the people of China where they do not give
regards to people who are not more than 40 years old. It gets difficult to talk with them
and know their preferences regarding auto mobile. Government intervention: Government partly own most of the companies functioning in
China which gives rise to restricted decision making in the hands of the company which
further leads to conflicts. In the china, government have major participation in the
companies and its business activities and function. While company takes any decision
about the business then it is very important to understand the role of government and
operate its functions accordingly.
 Advertisement policies: People of China shows their anger if any of the advertisement of
the company affects people values who lives in the china. They show their dissatisfaction
and completely boycott the brand. Advertising department of Jaguar have to be attentive
enough and design the advertisement campaign carefully (Yu and Ramanathan, 2012). Difference in education system: Employees of China have read through different
educational system from that of Britain. They may have less understanding of
international market and free economy which make them incompetent to work in a
company which have outlets across the globe.
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 Employment in China:The workers in china restricts themselves from working in an
organisation which do not belong to their country. Also, their education and language
also act as a barrier in training them to perform a particular task. Top level managers are
competitive enough however, they do not believe in taking training.
 Picking right candidate for right job: It is difficult to employ workers in China as people
below the age of 40 years are not considered mature enough to take decisions. It will be
difficult for Jaguar to appoint people who are above 40 years of age. This acts as a barrier
where the company will not able to get fresh and young talent to work with them.
As per the above discussion it has been ascertained that in the china Jaguar Land rover
have faced various kinds of difficulties due to the different culture and region such as
understanding environment, different language, lack of communication, government intervention
etc (Barak, 2013). As it has analysed that Jaguar Land rover have joint venture with the Chery
Auto mobile so it is very important to effectively work with Chery company. If Jaguar Land
rover does not properly work with the Chery firm then its profitability and productivity can
directly affect. In order to survive effectively business functioning in the joint venture with
Chery Auto mobile, Jaguar Land rover required to consider on the following strategies and
recommendations-
 As it have discussed that in china there is major issue related to communication and
language. Jaguar Land is required to organise the training and development program for
its employees so as they can beable to learn the different language. In addition to this,
companies such as Chery Automobile and Jaguar Land should adopt the open
communication practices in the firm so that every employee can share their view,
suggestion, feedback, issue and conflict with each other. By open communication,
different cultural people can be able to connect with each other and share their knowledge
related to the company This strategy assist in overcoming the communication gap and
improv firm productivity (Heginbotham, 2012). Furthermore, company can organise the
activities and event at the workplace so as everyone can connect with each other and
understand their value and beliefs. Cited venture should develop such effective working
environment at the workplace by which every employees can able to work together and in
collaborate manner.
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 As it has discussed that in the China, A technique is used by the people where they do not
give regards to people who are not more than 40 years old. They give importance to the
people who are age of more than 40 year. This is major issue for the Jaguar Land
company because it will not identify the taste and preferences of customer who are age of
40 below. In order to resolve this issue, both companies such as Jaguar Land and Chery
automobile should conduct the market research so as these can identify the actual demand
of the customer related to automobile.
 As it has been discussed that in the china, there is major issue related to the Government,
which partly owns most of the companies functioning which give rise to restricted
decision making in the hands of the company. In the china there is huge role of the
government and it has high interfere among the enterprises (Emerson and et.al., 2012). In
order to resolve this issue company should keep update about the regular information of
government. It should regular study about the changing policies, practices and regulation.
By effective monitoring and update, firm can easily cope up with the governmental
regulation and rules.
 As it have addressed that another major culture related issue in china is advertisement
policy. It has founded that in the china, People show their anger if any of the
advertisement of the company affects Chinese values. They show their dissatisfaction and
completely boycott the brand (Batenburg, van Walbeek and in der Maur, 2013). Thus, in
order to overcome this issue company should follow the custom and norm of the country.
It should give the importance to china culture by following their national symbol, logo,
national sign etc with the advertisement and promotional campaign This strategy will aid
in collaborating with the country's people as they will happy to see their cultural value
and beliefs in the advertisement and marketing strategy.
 As it has analysed that another major issue related to the china culture which have faced
by the Jaguar Land is related to decision making about the organisation policies,
practices, strategy etc. This is due to the culture difference in the company. This issue can
resolve by conduct enterprise analysis. In this manner, firm should effectively analyse the
market condition and various element of the business environment like political, social,
cultural, technological, legal etc. With assistance of the analyses of mentioned concept
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company can overcome the issue related to lack of proper decision making about the
organisation.
 Company should organise the workshop and provide the tips to understand the cross
culture, different method and technology. This strategy assist employees in enhancing
their knowledge about the cross culture in china and they will motivate to adopt the
changes in the new business environment (Glasby, 2012). Company should adopt such
practices and policies through which every employee can satisfy. The corporation
strategy and policy should be suitable for all personnels so as they can easily survive ion
the new culture.
CONCLUSION
From this report it has been concluded that Jaguar Land Rover have faced the various
culture related issues in the china as it has joint venture with Chery Automobile. China is a
country which have different culture as compare to the others. It has effective technological
power but there are some issue related to culture which faced by the organisation. There are
different set of understanding among the people of China and are generally less acceptable in
terms of cross culture. It has been concluded that in order to overcome the issue related to the
culture, company should organise activities, events and programs to make employees understand
the different value, beliefs, thoughts of other people and share their knowledge with each other.
7

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Online
Chinese cultural diversity. 2017. [online]. Available Through:
<http://www.thejakartapost.com/news/2013/07/27/chinese-cultural-diversity.html>.[Accessed on
8 July 2017].