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Step 1: Discover the Problem
Several issues were problematic in Disney’s business ambitions of investing in mainland China. Most of them were imminent cultural differences depicted between organizational stakeholders. For instance, it was difficult for U.S. – based multinational corporations to establish successful entities in a country with conservative and traditional values such as China (Wei, 2018). In essence, it would be challenging to implement administrative policies with democratic virtues as the authorities perceived it as a foreign threat to national security. Investors considered Asian business destinations culturally diverse, requiring joint partnerships with locals when establishing profitable ventures (Zhao, Liu & Zhou, 2020). In Disney’s case study, the Chinese authorities assessed the cultural risk associated with Western investors’ cultural threat. It was feared, for example, that democratic administrative policies in multinational corporations would result in political instability against the central government (Chen, 2018). Most importantly, cultural intelligence integration in Chinese foreign direct investments was critical for Disney’s success in Asia.
Additionally, the language barrier illustrates a cultural challenge that limits investment opportunities for western companies in Asia. Many profit-making entities resolved to separate production activities from administrative roles and responsibilities by investing in the large human capital in the Chinese economy (Zhao et al., 2020). This approach was useful for reducing operational costs by optimizing voluminous production. Large sales imply profitability as the pricing of the commodities was standardized at an international level by the World Trade Organization (WTO) (Chen, 2018). The language barrier was a significant problem as company officials would not communicate instructions accurately to employees from local communities. Besides, implementing vital business practices successfully, such as marketing, would be difficult due to the language barrier. Consequently, Disney had to strategize a market entry plan which would involve local businesspersons (Wei, 2018). The approach would be useful in overcoming cultural challenges with local stakeholders, including employees and clients.
Step 2: Investigate the Problem
Besides the language barrier, Disney’s expansion to China was challenged by local communities’ conservative cultural values. For instance, employment practices were patriarchal as male applications were more considered for certain roles than their counterparts (Chen, 2018). As a result, the protection of democratic values such as gender equality was problematic for foreign direct investments (FDIs), including Disney. This challenge affected the effective administration of operational values that protect employees being supervised by local employees (Wei, 2018). Conflicts were imminent as employees would differ on social issues halting vital business operations. Investments in Hong Kong and Japan were indicative of market feasibility in Asian economies. However, these economies had liberal leadership frameworks that reduced inter-cultural conflicts, which would affect employment practices at Disney (Zhao et al., 2020). The language barrier contributed substantially to the inaccurate integration of democratic principles in a foreign venture.
Traditional and conservative values among local populations added to Disney’s expansion challenges in China. For instance, parents were skeptical of buying dolls with colors carrying cultural significance to some communities (Wei, 2018). This would affect Disney’s sales in China, requiring objective production reforms to comply with cultural values among local communities. It is important to note that exclusive stakeholder coherence is important for firms operating as FDIs in Asia (Zhao et al., 2020). This significance is attributed to accuracy, relevance, and consistency in executive decision-making between investors and senior management officials. Clients, for instance, required vital product features that are useful for making a purchase decision. However, due to cultural differences, products presented to the market by Disney faced resistance initially before administrative partnerships with local businesspersons were implemented (Chen, 2018). The multinational entertainment firm overcame social problems as reflected in the production attributes of commodities such as color, text, or raw materials.
Step 3. Brainstorm on Alternatives
Disney had several alternatives to resolving cultural barriers to business expansion in the Asian market. As noted before, the entertainment firm encountered language barriers from cultural differences (Zhao et al., 2020). Problems associated with language barriers impacted effective decision-making as communication would be easily distorted. Initially, the company responded by forming joint partnerships with local business professionals for local branches’ managerial duties. Walt Disney could also have considered social programs that enhance cultural intelligence (Chen, 2018). Most importantly, it was vital for American investors to understand the social setup of Asian markets as presented in Hong Kong and Japan. It was imminent that mainland China was more conservative than the previous investment destinations founded on communist leadership (Wei, 2018). Regulations from the authorities include regulation of trading and market practices to protect national security, ensure sustainable growth, and reduce poverty levels among citizens.
Social programs with an exclusive stakeholder integration would be a suitable alternative to overcoming cultural barriers by Disney. For instance, successful business operations are depicted by competent and profitable Supply Chain Management (SCM) processes (Chen, 2018). Consequently, it would have been strategic for the company to include its potential clients, employees, junior and senior officials, and executive directors. Enacting and implementing administrative policies would have overcome cultural barriers as stakeholders are comprehensively involved in the planning process (Wei, 2018). Most fundamentally, cultural intelligence among stakeholders would have been effective in avoiding inter-cultural conflicts among workers. It is common to find verbal religious arguments in a diverse workforce that influence opinions, commitment, and dedication to professional assignments (Zhao et al., 2020). The practices develop a negative organizational culture, which would affect Disney’s market performance in the Asian market.
Step 4: Implement the Best Solution
The best solution would include integrating joint partnerships with local business professionals for the effective implementation of progressive administrative policies. In most instances, business operations are determined by procedures that define the production, distribution, and delivery of products in the market (Zhao et al., 2020). Additionally, organizational policies also influence stakeholder relationships among employees, consumers, management officials, and foreign investors. Consequently, it would have been tactical for Disney to consider employing competent local professionals to oversee the firm’s business operations (Chen, 2018). The approach would have avoided significant challenges associated with the language barrier. Walt Disney would encounter minimal inter-employee conflicts arising from cultural differences. Most importantly, the multinational corporation would have capitalized on an Asian economy with a resourceful market (Wei, 2018). The large population in China presents investment opportunities for investors to capitalize on affordable labor and mass production of commodities.
Partnering with local professionals for running business operations of Disney would have enabled the firm to implement progressive administrative policies in a professional context. Through an accurate implementation of social, and administrative policies, the organization would have improved its management practices (Zhao et al., 2020). International companies have a moral obligation to enhance social values such as gender equality and avoiding social discrimination. Consequently, Disney’s objective investment plan when expanding to China should include managerial practices that uphold human values (Wei, 2018). It was fundamental for the company to maintain a positive global image to invest in other markets across Asia and South America. Consequently, local business officials’ inclusion in implementing organizational policies would have aided Disney to overcome cultural challenges experienced in China (Chen, 2018). Previous experiences in Hong Kong and Japan indicated communication challenges that required inclusive stakeholder integration for developing cultural intelligence among international firms.
Step 5: Review the Solution
Cultural intelligence would enable Disney to improve stakeholder cohesion and interaction for organizational benefits. International business coordination requires stakeholders to ensure communication synchronization for effective decision-making (Zhao et al., 2020). For instance, sales agents should communicate competitive products’ financial performance by assessing the number of sales made per month. The approach would enable executive officials to determine the best strategies for countering stiff competition through sufficient coordination and cooperation. Through timely and detailed sharing of information, multinational corporations make effective global decisions regarding investment opportunities (Chen, 2018). In this case, Disney should consider enhancing information awareness for developing cultural intelligence among vital stakeholders. It would be fundamental for the entertainment firm to ensure cultural sensitivity in management practices within mainland China (Wei, 2018). This would be critical for venturing into remote and culturally diverse economic markets within Asia.
Similarly, administrative policies in Disney which enhance cultural intelligence among stakeholders would reduce stakeholder conflicts. As noted before, mainland China is depicted as a traditional and conservative market whose values are socially restricted by the authorities. As a result, cultural conflicts among workers and management officials would affect the entertainment firm’s operational activities. In essence, liberal administrative policies would help Disney adopt progressive conflict resolution practices (Wei, 2018). For instance, reducing employee dismissal rates using independent disciplinary panels would effectively enhance organizational values within the firm. It would have been fundamental for Disney’s executive officials to integrate social policies that improve clients’ relationships with the firm (Chen, 2018). Mainland China has a resourceful human capital that can develop beneficial professional talents from a large labor market.
References
Chen, X. (2018). Representing cultures through language and image: A multimodal approach to translations of the Chinese classic Mulan. Perspectives, 26(2), 214-231. Web.
Wei, W. (2018). Understanding values of souvenir purchase in the contemporary Chinese culture: A case of Shanghai Disney. Journal of Destination Marketing & Management, 10, 36-48. Web.
Zhao, S., Liu, Y., & Zhou, L. (2020). How does a boundaryless mindset enhance expatriate job performance? The mediating role of proactive resource acquisition tactics and the moderating role of behavioural cultural intelligence. The International Journal of Human Resource Management, 31(10), 1333-1357. Web.
Do you need this or any other assignment done for you from scratch?
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NB: All your data is kept safe from the public.