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Case Study- International Management

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Intercultural Management – Case study

1. Brief summary of the case
The text describes the business activities and the development of a seven-headed Taiwanese family named Teng. Their field of activity includes a drygoods store from the very early beginning and later on the family business was accredited as official dealer of products of a Swedish motor manuacturer (Swedsa) in Taiwan who brought richness and success for the Tang family. In general the educational levels between the family members are completely different but everyone tries one’s best. After a business study one son proposed to reorganize the family business in order to progress the bad financial situation by giving fixed areas of responsibility to each member who did not bring the expected success.
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The case talks about a family business in Taiwan having problems to adapt to changing conditions concerning business thinking, globalization and modern strategies. They aren’t competitive anymore.
On the one hand they form a corporate business with a Swedish company on the other hand they miss to open up their strict traditional views so in the end they have to face that profits stagnate.

2. Problem statement
The problem in this case is the difficult compatibility of business and family in one company.
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Family vs. business ( Family is more important than the success of business
The organigram of the company structure underlines this statement because all leading positions are equally divided among the family members.

3. Situational Analysis

3.1 Country Specific Cultural Issues
In Taiwan it is a typical phenomenon that family and friendship counts more than courses of any businesses. A formal structuring is less common as well as formal job titles or to be tied to a single area of responsibilities.
At first the family business was not structured at all. After the reorganization

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