Module 4 Case study

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University of Louisiana, Lafayette *

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525

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Management

Date

Jun 26, 2024

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pdf

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2

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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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