Cross Culture Communication“How Organizations Communicate”

(Intra-firm and Inter-firm)

Presented ByManish

Singh#31

Culture

“National culture encompasses the values, believes and assumptions that defines a distinct way of life of a group of people and is based on fundamental concepts imparted in early individual development” - Hofstede

“National culture not only is deeply embedded in everyday life but also shapes how realty is interpreted in a society, such as distribution and use of power”

- Hofstede

Challenges in Cross-cultural Cross-boarder Communication

Greater the diversity among organization culture more difficult to communicate

Sub cultural differences makes communication complex

Lack of consistency in national and organizational culture make communication complex

Organization structure Vs Communication

Integration Option

TATA – JLR Acquisition(2008)

Journey of JLR

1922- Founded as Swallow Sidecar Company

1935- Changed Name to SS Jaguar

1961- Acquired Daimler and Coventry Climax, Focus on Luxury Segment

1968- Ownership passed to British Motors and Merged with Leyland

1989- Jaguar sold to Ford

Jaguar was in a complete identity crisis

Ford had a very hierarchical and bureaucratic structure whereas flat and friendly culture at JLR

There was a very strong role culture at Ford and competition for promotion was very high hence very little information sharing between departments, and problems were often hidden

During meetings, managers usually attacked each other, looking for ways to gain an advantage on them

These characteristics also permeated to Jaguar

Intra-firm Communication at Ford-JLR

JLR had always been a dog, in the sense that it never provided a profit to the parent company

JLR added up to one of the costliest chapters in Ford Motor Co.’s long history

The acquisition would’ve been able to launch Tata globally

It could give Tata easy access to international markets

Tata made a $2.3 billion offer to Ford to buy Jaguar and Land Rover in 2008

TATA – JLR Acquisition

Organizational Culture differences and Cross Border differences

Communication over borders over long distance

2008 Automotive Industry Crisis

Challenges

TATA’s Culture

Leadership of trust

Hierarchy structure is flat

Value of work ethics and integrity

Tata also takes seriously employee well-being

Focus on Customer satisfaction

JLR’s Culture

Environment is Friendly and Helpful

Hierarchy structure is flat

Environment is Fast Paced, Inspiring, Hardworking and Flexible

Focus on Employee well being and Employee satisfaction

TATA-JLR Inter-firm Communication

Communication treated as an important tool

Operate JLR as a British company and JLR to be kept independent, although set challenging targets

Maintained clear and open channels with all layers of the newly acquired company

Information must be flowed to everybody involved

Choosing the right leaders to ensure that people feel like they are being taken care of

Tata has brought more flexibility, capability of delegation and autonomy removed a lot of red tape of Ford’s culture

JLR’s New Culture

Cultural respect

Professional Integrity

One team

Effective communication

Outcomes

After Tata’s acquisition, JLR returned to be a profitable company

JLR increased sales by 33% worldwide(2008-12)

Turnover of JLR increased from €4,500million(2008) to €14,000million(2012)

Mercedes – JLR Fray

Thank You!!!