Navigating Cultural Differences: A Case Study of Ford Vietnam

International Management
Navigating Cultural Differences: A Case Study of
Ford Vietnam
DUC THANG, TRAN
Word count: 2316

1


Contents
1

2

3

Introduction.................................................................................................... 2
1.1

Executive Review...................................................................................... 2

1.2

Main Issues............................................................................................... 2

1.3

Theory/Concepts Used:............................................................................. 2

Findings.......................................................................................................... 2

2.1

Differences in Power Distance:.................................................................2

2.2

Differences in Individualism:....................................................................3

2.3

Communication Barriers..........................................................................3

2.4

Differences in Time Orientation:..............................................................4

Discussion....................................................................................................... 4
3.1

Summarize................................................................................................ 4

3.2

Alternative Solutions................................................................................ 5

3.2.1

Cross-Cultural Training......................................................................5

3.2.2

Cross-Cultural Communication Strategies.........................................5

3.2.3

Diversify the Workforce......................................................................6

4

Conclusion...................................................................................................... 6

5

Recommendation............................................................................................ 7

6

References...................................................................................................... 8

2


1

Introduction

1.1 Executive Review
The objective of this case study is to scrutinize the intricacies of cross-cultural
management faced by Ford Motor Company during its operations in Vietnam. To
achieve this aim, the study endeavours to discern the primary cultural

disparities that arise when an American company such as Ford operates as a
subsidiary in Vietnam, utilizing theoretical frameworks and models of Hofstede,
Meyer, and Lewis. Drawing on these cultural distinctions, the study seeks to
shed light on the principal challenges in cross-cultural management that Ford
encountered in Vietnam and proffer alternative solutions to overcome them.
Furthermore, the study proposes potential remedies for prospective issues that
may arise within the company and recommends the most suitable solution,
which is to provide cross-cultural training.

1.2 Main Issues
Conflicts arising from differences in power distance
Misunderstandings of differences between individualism and collectivism
Communication barriers resulting from differences in context
Issues with time management and scheduling due to differences in time
orientation

1.3 Theory/Concepts Used:
The essay draws upon several theories and concepts to explain the cultural
differences between Vietnamese employees and American managers from Ford
Motor Company. These include Hofstede's cultural dimensions theory, which
emphasizes the differences in power distance and individualism between the
two cultures (Hofstede Insights, 2017). Meyer's cultural dimensions theory is
also used to describe the differences in communication style and time
orientation (Meyer, 2014). Besides, The Lewis Cultural Model categorizes
cultures into polychronic and monochronic cultures based on their approach to
time (Lewis, 1997).

3

2

Findings

2.1 Differences in Power Distance:
As per Hofstede's cultural dimensions theory, the power distance index (PDI) is
a crucial aspect of cross-cultural communication, especially in the workplace
(Sorge & Hofstede, 1983). In Vietnam, the high PDI indicates a greater
acceptance of hierarchical structures and a strong emphasis on status and rank
(Hofstede Insights, 2023). This can lead to differences in behaviour between
Vietnamese employees and managers from other cultural backgrounds, who
may

not

be

used

to

such

deference

and

respect

towards

authority

(Organizational Psychology Degrees, 2022; Corporate Finance Institute, 2023).
For instance, if American managers from Ford, with a relatively low PDI, were
to work with Vietnamese employees, they may find it challenging to navigate
the hierarchical structure of the Vietnamese workplace culture (Khatri, 2009).
Consequently, this could lead to communication gaps and conflicts in the
workplace.

2.2 Differences in Individualism:
According to Hofstede's theory, Vietnam has a collectivistic culture, where
group harmony and consensus are valued more than individual interests
(Hofstede Insights, 2017). “Ford Motor Company”, in contrast, has a more
individualistic culture that places a higher value on personal success and
recognition (Hofstede Insights, 2023). Particularly in the decision-making and
goal-setting processes, these cultural differences can cause misunderstandings
and disputes between American managers and Vietnamese personnel (Yates &
De Oliveira, 2016). For instance, American managers can favour making
decisions

based

on

individual

contributions

and

accomplishments,

but

Vietnamese workers might put more emphasis on group harmony and
consensus. The two groups may get frustrated and at odds as a result of this
(Borton & Ryder, 2000). Additionally, American managers could be more
inclined to give workers individual goals, but Vietnamese workers might feel
more at ease with team-oriented objectives. This can lead to conflict and
miscommunication between American managers who value individual success
and Vietnamese workers who value collective cohesion (Indeed Editorial Team,
2022a).

4


2.3 Communication Barriers
In any organization, interpersonal communication is essential, but it's especially
important when working across cultures (Thrive Qube, 2021). Meyer's cultural
dimensions

theory

highlights

the

importance

of

understanding

cultural

differences in communication style (Meyer, 2016). Vietnam is categorized as a
high-context culture, where communication is often implicit and relies heavily
on nonverbal cues and context. This means that Vietnamese people tend to
communicate

indirectly

and

rely

on

shared

cultural

knowledge

and

understanding to convey their message (Manuel, 2019). On the other hand,
Ford Motor Company, being a low-context culture, emphasizes explicit and
direct communication. American managers from Ford may be more likely to

state their message clearly and directly without relying on nonverbal cues or
shared

cultural

understanding

(Van

Vliet,

2023).

These

differences

in

communication style can create barriers and misunderstandings in crosscultural communication. For example, an American manager may give direct
feedback to a Vietnamese employee, which may be perceived as confrontational
or disrespectful in the high-context Vietnamese culture. Similarly, a Vietnamese
employee may use nonverbal cues or indirect language to convey a message to
their American manager, which may not be understood or interpreted correctly
(Athiya, 2023; Varadanin, 2023).

2.4 Differences in Time Orientation:
The significant distinctions between Vietnamese employees and Ford Motor
Company overseas managers in terms of how they perceive time are highlighted
by Meyer's theory of cultural dimensions (Meyer, 2014). Time is seen as more

flexible and less organized in Vietnam because of its polychronic culture. This
suggests that Vietnamese workers are more prone to multitask and value
interpersonal relationships as a key component of work activities. In contrast,
the Ford Motor Company operates in a monochronic culture that sees time as a
limited resource that must be organized and handled effectively. Because of
this, American managers tend to focus on one task at a time and prioritize
meeting deadlines over building relationships with employees (Bartleby, 2021;
Project

Practical,

2021;

Indeed

Editorial

Team,

2022b;

Robby,

2022).

Differences in timeliness and time management, as well as misunderstandings
and difficulties in fulfilling deadlines and scheduling, may result from the
conflicting views of time between Vietnam and Ford Motor Company.
5

Vietnamese workers might regard deadlines as being more pliable and less
rigorously regulated, which would cause them to value relationships more than
the prompt delivery of deliverables. However, American managers can view this
as a sign of a lack of dedication and professionalism, which could create issues
with scheduling and fulfilling deadlines. Differences in timeliness and time
management may sometimes lead to workplace conflict. For example, American
bosses could perceive tardiness as a sign of contempt and unprofessionalism
while Vietnamese employees might not consider punctuality to be a crucial
component of business meetings. In summary, the different ways that Vietnam
and Ford Motor Company perceive time can cause issues with deadlines and
scheduling as well as disparities in timeliness and time management (Pant,
2016).

3

Discussion

3.1 Summarize
Differences in Power Distance: Vietnam has a high-power distance culture
where hierarchy and status are respected. This can clash with Ford's low power
distance culture where authority is more challenged. This can lead to
communication issues and conflicts between Vietnamese employees and
American managers (Hofstede Insights, 2023).
Differences in Individualism: Vietnam has a collectivistic culture that values
group harmony while Ford has an individualistic culture that values personal
success. This can cause misunderstandings in decision-making, goal-setting,
and workplace behaviours between the two groups (Hofstede Insights, 2023).
Communication Barriers: Vietnam is a high-context culture that relies on
implicit communication and nonverbal cues. Ford is a low-context culture that

values direct and explicit communication. This can lead to misunderstandings
and ineffective communication between American managers and Vietnamese
employees (Manuel, 2019; Van Vliet, 2023).
Differences in Time Orientation: Vietnam has a polychronic culture that sees
time as flexible and values relationships. Ford has a monochronic culture that
sees time as limited and values efficiency. This can cause issues with meeting
deadlines, timeliness, and scheduling between the two groups (Pant, 2016).

6


3.2 Alternative Solutions
3.2.1 Cross-Cultural Training
One solution to addressing the identified problems is to provide cultural
training to both American managers and Vietnamese employees. A variety of
approaches, including coaching sessions, online courses, and live seminars, can
be used to give cultural training. It is an adaptable solution that can be tailored
to the requirements of the business and its staff. Additionally, cultural training is
not an approach that can be applied to everyone; instead, it calls for thorough
consideration of the organization's unique difficulties and its particular cultural
environment (Hahn, 2021).
Advantages: Cultural training may improve intercultural sensitivity and
understanding,

which

can

improve

collaboration,

productivity,

and

communication. Additionally, it can contribute to fostering a more welcoming
and varied workplace culture, which will enhance worker satisfaction and
retention (Chebium, 2015; Indeed Editorial Team, 2023).
Disadvantages:

In particular, if it is done for a large number of employees,

cultural training may be time-consuming and expensive. Measuring a training
program's

success

and

its

effects

on

intercultural

cooperation

and

communication can be difficult. Additionally, some workers might not find
cultural training interesting or may not think it applies to the duties of their
position (Chebium, 2015; Traliant, 2018).

3.2.2 Cross-Cultural Communication Strategies
Another solution is to implement cross-cultural communication strategies that
can

help

bridge

the

differences

in

power

distance,

individualism,

communication style, and time orientation. For example, American managers
can learn to be more indirect in their communication style and pay attention to
nonverbal cues. Vietnamese employees can learn to express their opinions and
ideas more directly and explicitly (Xu & Wang, 2021; Wang & Wuhong, 2021;

Kuesoongnern, 2018).
Advantages: In addition to fostering respect and understanding amongst people,
it can assist reduce misunderstandings and confrontations. Additionally, they
can foster a more favourable work climate and increase cross-cultural
collaboration and productivity (Hall, 2021).

7


Disadvantages:

Implementing and maintaining this strategy can be difficult,

particularly

certain

if

Additionally,

some

workers

workers

show

could

find

reluctance
it

or

lack

challenging

to

commitment.
modify

their

communication style or adjust to new standards and expectations. Additionally,
time-consuming,

cross-cultural

communication

tactics

demand

ongoing

evaluation and modification (Hall, 2021; Best Colleges Online, 2021).

3.2.3 Diversify the Workforce
The third option is to increase the number of Vietnamese workers or promote
them to managerial positions to diversify the workforce. This approach may
contribute to a more inclusive and varied work environment by increasing the
representation of Vietnamese culture and values in the workplace (World Bank
Group, 2013; Vietnam Investment Review, 2021). A more balanced decisionmaking process may be achieved by adding more Vietnamese managers to
assist overcome the differences in power distance, communication style, and
time orientation (Waldman, 2021).
Advantages: It can enhance intercultural communication and collaboration and
foster a more welcoming and varied workplace. Additionally, it may improve the
company's standing for inclusion and diversity while boosting employee
happiness and retention (Winstead, 2022; Rosew, 2021).
Disadvantages: It could be difficult, particularly if there are not enough
Vietnamese candidates who meet the requirements. The recruiting or promotion
process may be viewed as prejudiced or unjust by current employees, who may
become resistant or tense. Additionally, a more diverse workforce could not fully
solve all cultural differences and difficulties in cross-cultural cooperation
(Reynolds, 2022; Vaughan, 2021).

4

Conclusion

It is essential to understand the cultural differences between two groups to
manage cross-cultural teams effectively. Providing cultural training is an
excellent solution to address the identified problems. It's important to note that

cultural training should be a two-way process to ensure that both American
managers

and

Vietnamese

employees

understand

each

other's

cultural

differences and expectations (Penn LPS, 2020).
In conjunction with cultural training, proactively endorsing diversity and
inclusivity in the workplace represents an alternative resolution to proficiently
8


manage cross-cultural teams. Enterprises may foster an environment that
encourages personnel from varying cultural backgrounds to operate together as
diverse teams. This approach can promote cultural awareness and sensitivity,
mitigate instances of misunderstanding and discord, and amplify ingenuity and
originality. Moreover, a diverse leadership team can further advance inclusivity
and comprehension. By appointing leaders from diverse cultural lineages, the
enterprise can ensure that all employees are esteemed and heard, and cultural

differences are acknowledged (O’Donoghue, 2023; Tomar, 2019).
Ultimately, maintaining transparent communication channels is fundamental in
addressing any cultural misunderstandings or conflicts. Regular feedback
sessions,

team-building

activities,

and

cultural

events

can

engender

a

favourable and inclusive workplace, where employees can express their
opinions and concerns without reservation (Markman, 2021).

5

Recommendation

Based on the evaluation of alternative solutions, the recommended solution is to
provide cross-cultural training to both American managers and Vietnamese

employees. This solution addresses all four problems identified, namely
differences in power distance, individualism, communication barriers, and time
orientation. By providing cross-cultural training, American managers will gain a
better understanding of Vietnamese culture and the impact of power distance,
collectivism,

high-context

communication,

and

polychronic

time

in

the

workplace. Similarly, Vietnamese employees will learn about American culture
and

the

importance

of

low

power

distance,

individualism,

low-context

communication, and monochronic time in the workplace (Bross et al., 2000;
Tanneau & McLoughlin, 2021).
It should be thorough and address a variety of cultural variations, including
beliefs, attitudes, communication methods, work ethics, and decision-making
procedures. Besides, it should also incorporate experiential learning activities
like role-playing, simulations, and case studies to help participants understand
the practical impacts of cultural differences at work (Tanneau & McLoughlin,
2021). The following tactics should be used to guarantee the cross-cultural
training program's effectiveness:
Needs assessment: To determine the precise cultural differences that are
generating problems in the workplace, a requirements assessment should be
carried out before constructing the training program (Learnit, 2022).
9


Customization:

To

specifically

address

the

demands

of

the

American

management and Vietnamese staff, the training program should be customized.
The content should be delivered in a way that respects the learning styles and
cultural backgrounds of the participants (Kiet, 2022; Glowacka, 2022).
Follow-up: Following the training, subsequent meetings should be held to assess
the training's success and resolve any lingering cultural obstacles. This may be
accomplished through coaching, mentoring, and feedback surveys (Beus, 2016;
Tanneau & McLoughlin, 2021).
Integration: Ford Motor Company's regular training and development programs
should incorporate the cross-cultural training program to make sure that new
hires receive it and that it is regularly updated (Chebium, 2015).
A group of qualified trainers with experience working in both American and
Vietnamese cultures and cross-cultural communication expertise should lead
the cross-cultural training program. To ensure that both viewpoints are included
in the training, the team should include both American and Vietnamese trainers.
The ability of the trainers to facilitate experiential learning activities should be
considered along with their cultural sensitivity and communication skills.

6

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