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Case Study on Sap's Globalization

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Submitted By moeeza06
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1. What global attitude do you think characterized SAP prior to 2002? How do you know? What global attitude do you think most characterizes it now? Explain.

Before 2002: Ethnocentric attitude. The parochialistic belief that the best work approaches and practices are those of the home country. Leo Apotheker as the second-in-command at SAP Software Company can speak several languages fluently and try to turn SAP into a dominant global player. But his perspective is not embraced by the rest of SAP, especially at company headquarters in Walldorf of Germany.

Now: Geocentric attitude. A world-oriented view that focuses on using the best approaches and people from around the globe. SAP executives hired thousands of programmers in various foreign locations and SAP set eight global software labs. Besides, recruiting hundreds of foreign managers was happened in SAP Company. Top executives at SAP say that they will continue this practice.

2. Do some culture research on Germany, the United States, and India? Compare the culture characteristics of Germany and United States. What similarities and differences exist? How about with Germany and India. How might these culture differences be affecting the situation at SAP?

American management style can be described as individualistic in approach, in so far as managers are accountable for the decisions made within their areas of responsibility. As has already been stated, India is an enormously hierarchical society (arguably the most hierarchical in the world) and this, obviously, has an impact on management style. It is imperative that there is a boss and that the manager acts like a boss. The position of manager demands a certain amount of role-playing from the boss and a certain amount of deferential behavior from his subordinates. Managers in Germany are expected to be technically capable in their respective areas and to show strong, clear leadership.
The differences may cause some conflicts between staff because diverse value systems. For example, Germany staff may think being late will be a very serious mistake, but Indian staff may not. And some American approaches could be used to solve the problems better; however, Germany staff with Parochialistic perspective will not agree to solve it in American way. These samples may delay working process and decrease efficiency.

3.What could SAP managers do to support, promote, and encourage cultural awareness among the various global locations? Explain.

Managers could use Hofstede’s Five Dimensions of National Culture to help employees to understand different cultures. To know the values of different countries help people avoid ethnocentric and create global perspective.

4. What might other managers learn from SAP’s experiences in going global?

Managers can firstly learn to separate work into several parts which will be finished efficiently and effectively in the proper countries. And then they could employ people with different nationalities.

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