Eurochem Shanghai

In: Business and Management

Submitted By kzinnert
Words 3073
Pages 13
Situation
The “Eurochem Shanghai” case study is a familiar example of problems associated with the global marketplace and the failure to adapt to cultural differences when going international.
The young high-flier Paul Paus is sent by the head office of the European chemical company EUROCHEM to run the marketing team in the Shanghai office. Paus, who seemed to be the perfect person having the necessary skills and qualification for this job, has proven to be ineffective in his team-building program and failed to develop cultural awareness by ignoring local practices. Despite Paul Paus was a young, innovative manager performing very well in Europe he failed in Europe. But why?
There are the following characters in case: * Paul Paus: the European expatriate who worked in the head office in Antwerp for 4 years * Mr Olsen: an expatriate with intercultural experience, general manager & head of China Eurochem * Mr Li: deputy manager, close relationship to Olsen * Mr Wu: young employee of marketing department, expertise in marketing * Mr Vandenbergh: director of marketing in head office, sent Paus to Shanghai

Analysis
Significant mistakes have been made by all persons involved in the project.
Three major issues occurred in the case of “Eurochem Shanghai”: * problems of international managerial transfers, * management, communication and strategic issues, * as well as leadership and managing diversity problems all caused by cultural differences and different ways of doing business.

1) Problems of international managerial transfer
At a first glance Paul Paus appeared to be qualified for the challenging assignment in China. But the first mistakes were already made at the stage of the preparation and selection process.

Despite Eurochem Shanghai had qualified staff for the marketing position there were major reasons for the…...

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