The organizational cultures among the four companies may differ in several aspects. The firm’s corporate culture may be derived from the objectives, the business type, geographical location, or positioning in the market. The four fashion companies originate from diverse home countries. The geographical locations and diversity of these locations contributes to the disparities in the organizational cultures. The French Designer Luis Vuitton’s organization culture may focus on retaining an intellectual competence and a formal note while interacting with the client. The American Fashion Company possesses the western elements, whereby people believe in healthy socialization aspects to enhance customer loyalty. The Swedish firm’s organizational culture is distinct from others in that the employees are likely to adhere to the hierarchical structure. Employees receive the instructions from the managers in accordance with the position structure. The workers in the American company believe in interacting with their managers, especially during the decision-making process. The Spanish company seeks to interact and exchange various ideas with the clientele, which enables it to create long lasting relationships.
The fashion companies have similarities in their organizational culture structures, for instance, regarding the customer satisfaction issue. The competitive nature in the modern business world has forced various companies with diverse organizational cultures to focus on customer satisfaction. Creating reliable relationships with the targeted clientele is a vital aspect in the companies’ organizational cultures. The firms aim at enhancing loyalty among the potential clients and attracting new people to increase their sales. The arrangement of the internal environment of a company determines the essential aspects of its corporate culture. The companies have trained their personnel to serve their customers well to enhance a reputable image.
The merging of Zara and H&M would initiate various changes in the organizational structure. The two firms have diverse characteristics, for instance, in the relation aspect. The merging would facilitate a balance between the level of employees’ interactions with the management team, the stakeholders, and the customers. The rigidity of the Swedish culture would probably reduce as the merger would embrace the socialization from the Spanish firm. Zara members, on the other hand, would learn the importance of generating trust relationships at a slow pace; the Swedes take time to develop trust by ensuring evaluation and intellectuality are applied in the process.
The American firm Tiffany &CO would influence the French company’s organizational culture. Most American companies tend to embrace teamwork in the decision-making process; the employers include workers in the process to gain useful information. The French company may influence the decision-making process by ensuring that the joint venture carefully reviews the contracts to enhance efficiency.
A culturally diverse top management team encounters various challenges during the implementation of the joint venture strategies. The members from the two distinct sides may find it difficult to embrace changes in the organizational cultures, which hinders consistency in the planning process. An example of a problem may be an attempt by the management team to establish tight regulations; this measure hinders the staff from adapting to the changes in the organizational culture, which causes resentment.
The management team’s failure to consider the national culture may cause challenges. According to Hofstede, the national culture contributes to the development of an organization’s culture (Heritage, Pollock, & Roberts 5). Disneyland Paris has been experiencing massive losses due to the failure of adopting the country’s culture. The entity organized an event to attract customers, but banned people from drinking wine; this was against the French culture, and, therefore, led to a below standard attendance.
Failure to implement effective communication channels can cause problems to the newly formed joint ventures. Communication is imperative in encouraging the exchange of useful ideas among the members of the two diverse companies. According to Nioaţă, & Stăncioiu (327), the management teams should communicate with the employees to ensure commitment towards achieving the set targets.
The work structures of the joint venture firms would affect the operations in Japan, for instance in the management policies. The organizational changes tend to change the management strategies of the company, which in turn affects its operations. The merging of various useful organizational cultures would increase the firms’ productivity, which would be reflected in the Japan’s sales. The changes from diverse organizational structures would influence the production process in Japan, which would result in improved productivity.
The flexible work schedules and structures at the headquarters would influence the workers in Japan to embrace such structures. Japan employees are a bit conserved and believe in retaining strict work schedules, as a sign of commitment towards their duties. The revised plans would improve their productivity as they would enhance a balance between the professional and personal life.
The work schedules and structures in the other locations differ from those in Japan. Most companies in other countries have organizational structures that define the work hours, responsibilities, and other related activities. The headquarters would likely suggest an 8-hour plan for the firms. This measure would affect Japan’s stores as the workers do not follow such a strategy. Again, it will allow the employees to work for a prolonged period without necessarily attaining a compensation.
Nioaţă, A., & Stăncioiu, A. Strategic Management Role in Changing The Organizational Culture Of The Company. Viability & Durability / Fiabilitate Si Durabilitate, 1(2013), 326-329.
Heritage, B., Pollock, C., & Roberts, L. Validation of the Organizational Culture Assessment Instrument. Plos ONE, 9.3 (2014), 1-10.