I. Analyze the culture-learning process at ECL
China is one of the most attractive and biggest emerging market for multinational corporations. ECL, as a leading corporation throughout the world, decided to join Chinese market. For foreign corporations, China provides promising opportunities in terms of its size and diversity in the market. However, at the same time, there are also challenges and risks that corporations confront when entering the market. Among these, one of the most notable challenges is about managing cultural differences between markets. In response to this challenge, ECL developed their own Global Management Policy and implemented it to ECL’s China branch. At the same time, they also tried to embrace Chinese culture into the corporation.
Reinforcement of ECL’s key beliefs
Between globalization and localisation, ECL chose to set their strategy towards globalization - they emphasized on establishing their culture in China rather than adapting Chinese culture. According to the case(P.4), it can be seen that “ECL always tried to ensure consistent understanding of its management principles, and these common principles had to be shared by its employees in China”. ECL had well-organized global management policies which were proved to be successful throughout the world, ECL tried to apply the policies to Chinese market and set up 10 methods to survive in Chinese market. These methods could be classified under 3 main categories.
First of all, ECL tried to reinforce their key beliefs. According to Exhibit 1, one of their key beliefs is “constant respect for people” which means treat others with dignity. Fortunately, this part already possesses similarity with Chinese culture of respecting “face”. This stands for possibility of strengthening the harmonious value-sharing of the ECL expatriates as well as Chinese staff. Training method at ECL University