Module 4 Case study
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Jun 26, 2024
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Step 1: Define the Problem
Google is facing challenges in navigating cultural differences as it seeks to expand into China's
market. The company is encountering resistance from the Chinese government regarding its
cultural values, particularly concerning censorship regulations. The Chinese government insists
that Google comply with their censorship regulations to gain access to their market. However,
Google would be going against its own principles if it were to agree to the level of censorship
requested by China, potentially facing backlash from the U.S. Google must weigh the importance
of its company's values against the desire for increased profits and brand expansion.
Step 2: Identify Causes
Cause 1- Currently, Baidu stands as China's most popular search engine. However, it lacks many
of the technological advancements and features offered by Google (Wang, 2023). China is
concerned that without access to sufficient technology, it may lose talented scientists and
inventors to other nations. Baidu's stronghold in the Chinese search engine market presents a
significant barrier to Google's entry. Moreover, the Chinese government's preference for
domestic technology companies further complicates Google's efforts to gain traction in the
market.
Cause 2- Chinese consumers have always had access to Google's unrestricted material. However,
accessing this information is challenging due to the firewall installed by the Chinese government.
The firewall either completely blocks access to the content or significantly reduces the website's
loading speed. For Google to fully operate in the Chinese market, it would need to comply with
China's censorship regulations. Various regions have various organizational cultures, which are
typically classified as individualistic or collectivistic (Credo, 2021) Conformity and following
rules are highly regarded in the workplace in China, where collectivism is the norm. Regulation
observance and the preservation of Chinese history and culture are highly valued. However
Google's Western values weren't consistent with those of the Chinese government when it
adopted them. This demonstrates the Fit Perspective, which contends that standards may not be
deemed appropriate if they conflict with those of the particular company (Credo, 2021).
Step 3: Make Recommendations
Recommendation to cause 1 - At first, Google attempted to acquire a majority stake in Baidu, but
Chinese regulations prevented it from doing so. To overcome regulatory barriers and gain market
acceptance, Google should consider forming strategic partnerships with Baidu. Collaborative
initiatives, such as technology sharing or joint ventures, could enhance Google's competitiveness
in the Chinese market while aligning with local preferences for domestic brands (Wang, 2023).
Google should also explore the possibility of granting Baidu access to some of its proprietary
features, as Chinese consumers tend to prefer domestic brands over foreign ones, as indicated in
the case study.
Recommendation to cause 2- Due to local laws and restrictions, Google has already consented to
restrict search results in various nations. This week's lecture stated that a "adaptive culture has
leadership that produces change, focuses on the changing needs of customers, and encourages
confidence and risk-taking among employees." Long-term performance-oriented cultures are
typically the most adaptable. Adaptive cultures let organizations adjust to better serve their
constituents' interests (Credo, 2021). According to Grogan and Brett (2017), Google affirms its
commitment to adhering to legal requirements and upholding the utmost level of ethical behavior
through its own Code of Conduct, as outlined in Exhibit 9. This leaves Google with little
alternative but to comply with the norms and regulations set by the Chinese governments. Failing
to do so would be morally wrong and contradictory to Chinese culture and government. Given
that Google has adhered to the standards of Germany and France, it is imperative that the same
level of compliance be observed in China.
References
Grogan, C., & Brett, J. M. (2017). Google and the Government of China: A case study in
Cross-Cultural Negotiations.
Kellogg School of Management Cases
, 1–15.
https://doi.org/10.1108/case.kellogg.2016.000140
Credo K. (2021) Organizational Culture. Online Handout. Retrieved from:
https://louisiana.voicethread.com/myvoice/thread/15020521
Wang, I. (2023, April 15).
Baidu is the Google of China: But just who is using it in 2023? -
Nanjing Marketing Group
. Nanjing Marketing Group.
https://nanjingmarketinggroup.com/blog/who-is-using-baidu-in-2023
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