Unit 8: Discussion Assignment_

Statement

Please discuss the case From OEM supplier to A Global Leading Company and based on it,
discuss the following:

• What does it take to build a cross-cultural team?

• What are the challenges facing managers of projects that cross-cultural boundaries?
• What strategies can be used to address these challenges?

Case Study: From OEM supplier to A Global Leading

Company Case Analysis

Giant was founded in 1972 and is located in central Taiwan. The company began as a

small-scale family business that was unfamiliar with bicycle production procedures. However,

over the next 40 years, the company undertook a series of strategic expansions that propelled it

to the top of the world's bicycle providers. Their successful brand has expanded globally, with

business volumes totaling 54 billion dollars.

The foundation step of Giant's expansion plans includes replicating Japanese

manufacturing practices. They later signed an OEM agreement with Schwinn, a renowned

American bicycle manufacturer. Giant then used the knowledge obtained to improve future

manufacturing methods. The technological development stage was the second stage of Giant's

strategic expansion, in which the firm merged the R&D capacity of external academic institutes

to develop the carbon fiber bicycle. They transferred their technology to bicycle production by

using composite materials. Giant began to advertise its brand in the European and American

markets when China opened up the labor market and realized that Schwinn may cease ordering

from them at any time. Their third stage of strategic growth was the stage in which Giant finally

had the differential R&D and manufacturing capabilities required to support the development of
their brand. As a result, they expanded their businesses to China, while also opening life

experience outlets under their direct control in Taiwan. This allowed the organization to devote

more time to get to know its clients, allowing them to improve their customer service. The

brand expansion stage was the final stage of Giant's strategic growth, during which time the

company began to form industrial alliances with its primary rivals and component suppliers in

Taiwan. They were successful in upgrading the bicycle industry and avoiding competition from

other countries. Giant also sponsored a cycling competition to improve brand awareness,

product quality, and a bicycle-friendly atmosphere (Wu & Lee, 2014).

Building a cross-cultural team

Organizations must recognize that the function of international management in

globalization includes the ability to focus on personal-level concerns such as culture and

communication, negotiations and leadership, human resources and talent management, and

international marketing and distribution (Zamborsky, 2016). As a result, to develop a successful

cross-cultural team, leadership must be trained in both cultural and emotional intelligence. This

strategy must be represented in company culture, with employees and management actively

supporting and fostering an inclusive workplace that embraces cross-cultural variances. This will

increase the possibility of recruiting executives and employees from developing countries who

share the organization's goals and values. This will help to reduce manufacturing costs while

keeping a high-quality offering that meets the demands and desires of the clients. This was

critical to Giant's ability to maintain its stagnant growth and avoid losing business to China.

Giant's long-term ambitions should be scaled to match production requirements, while they

establish and foster a foundation for cross-cultural connections through cultural and emotional

intelligence training (Jessen, 2010; Laegaard & Bindslev, 2006).

Challenges that managers face with projects that cross cultural boundaries

With the advent of globalization, several projects have become global, with project managers, team

members, and stakeholders from various cultures; it is also true that projects managed locally will

still have members from other cultures (Stewart, 2006). As a result, project managers will confront

various obstacles in cross-cultural projects, including but not limited to the following issues and

challenges:

(i) Capable of grasping and comprehending the mindsets of team members from varied

ethnic and cultural backgrounds; and

(ii) Capable of adapting and interacting with team members and other employees who do

not share the same organizational or societal culture.

(iii) Identifying team members who can adjust to cross-cultural variations.

(iv) Recognizing the work ethics that reflect a specific culture. This is critical to the success

of a project since all team members must be on the same page, such as sharing the

organization's aims and values.

(v) Because of varied employment rules and policies, appraisals and remunerations may not

be seen as fair and unbiased.

(vi) Differing perspectives on cost-related aspects can stymie project performance when it

comes to budget allocation.

(vii) Communication and cooperation workflow as it relates to the usage of technology.

(viii) Outsourcing certain functions previously performed by one's organization.

(ix) Outsourcing to another country.

(x) Maintaining the supply chain to connect markets and satisfy deadlines.

(xi) Access to information via numerous channels, such as mobile and the internet.
Possible Strategies

I would advise Giant to use the Original Equipment Manufacturer (OEM) cooperative model to

address the problems and challenges. The bulk of suppliers receive orders from worldwide Original

Equipment Manufacturers; while this gives short-term revenue, it permits manufacturers to acquire

more money to fulfill those responsibilities while creating profits, as was the case with Giant.

The OEM cooperative model enables developed-country corporations to impart

technical support relating to product expertise to their OEM suppliers. This was extremely

advantageous to Giant because it allowed them to learn the industry's core production

procedures while adapting and upgrading them to meet their demands. As a result, Giant was

able to build stronger skill sets. These abilities increased their method, allowing them to

produce OEMs that were superior to their suppliers' orders.

The fundamental knowledge gained from developing-country technical assistance enabled Giant to

overcome the challenges of cross-cultural boundaries; they were able to use the knowledge

information to build their manufacturing facilities, which in turn reduced costs because they could

now manufacture at the scale they required (Wu & Lee, 2014).
Conclusion

The fundamental knowledge gained from developing-country technical assistance

enabled Giant to overcome the challenges of cross-cultural boundaries; they were able to use the

knowledge information to build their manufacturing facilities, which in turn reduced costs

because they could now manufacture at the scale they required (Wu & Lee, 2014). Giant was an

OEM supplier for Schwinn, which accounted for 75% of its sales; through this collaboration, the

company learned the fundamentals of bicycle manufacturing and acquired significant

commercial revenues, allowing them to invest in its brand. Giant was able to survive when

Schwinn transferred their orders to China as a result of this investment.

 References

Jessen, S.A. (2010). Project Leadership -- Step by Step: Part I. Bookboon.com

https://my.uopeople.edu/pluginfile.php/1184419/mod_page/content/5/TEXT%20project-

leadership-step-by-step-part-i.pdf

Laegaard, J. & Bindslev, M. (2006). Organizational Theory. Bookboon.com

https://my.uopeople.edu/pluginfile.php/1184419/mod_page/content/5/TEXT

%20organizational-theory.pdf

Stewart, J. (2006). Cross culture project management. Paper presented at PMI® Global Congress

2006—North America, Seattle, WA. Newtown Square, PA: Project Management Institute.

https://www.pmi.org/learning/library/cross-culture-project-management-teams-8008

Wu, W., & Lee, Y. (2014). From OEM supplier to a global leading company. Journal of Business

Case Studies, 10(3), 225-230. https://my.uopeople.edu/pluginfile.php/1184448/mod_book/

chapter/273973/U8%20OEM%20to%20Global%20Leader.pdf

Zamborsky, P. (2016). International business and global strategy. Bookboon.com

https://my.uopeople.edu/pluginfile.php/1184419/mod_page/content/5/TEXT%20international-

business-and-global-strategy.compressed.pdf