Submitted by: Submitted by bmajer
Views: 567
Words: 1345
Pages: 6
Category: Business and Industry
Date Submitted: 07/09/2012 03:18 PM
Introduction
The case of unsuccessful alliance between an American Corning, Inc. and Mexican Vitro because of cross cultural differences shows an important role of a national culture in international alliances. As the impact of each culture on decision making process had a significant role, our paper shows what kind of cultural clashes brought to a failure of a joint venture and what kind of different perceptions and experiences of each culture played a role in that case.
The basis for our comparison of decision making process through two different cultures of the United States and Mexican is Geert Hofstede studies based on four dimensions of each country culture[1] and Fons Trompenaars studies on impact of internal and external – oriented culture on the control process.[2]
Corning’s strategic predispositions toward a joint venture with Vitro.
The basic business arguments for creating a strategic alliance between Corning and Vitro focused on similarities in the companies’ corporate culture, history, customer - oriented philosophy, goals and objectives. Besides, both companies have similar operating procedures and Vitro’s products can complement Corning’s range of products. As the last conclusive argument it was raised that two partners were globally oriented, both have a long story of successful joint ventures. Because Corning has had previous successful experiences connected with international joint ventures for over 70 years, after analyzing thoroughly mentioned above similarities, it was decided to enter the new alliance.
Economic circumstances that previously lead Corning to formation international alliances included opportunities for gaining access to the new markets for obtain a competitive advantage on a penetrated market. Another economic reason that appeared in a case it was a possibility for gaining an access to brand new technologies elaborated by joint venture ally or to bring company’s technology to a new market.
Finally, as Vitro...