Lego case study: Danish vs. British culture

Résumé du document

Modern companies can not longer hold on to a "go-it-alone" philosophy in the modern networked business world. Global companies look for business opportunities outside their traditional boarders and have therefore to deal with cross-cultural issues in its everyday life. Human interaction in cross-cultural organizational contexts is more and more complex. Our case study examines the interaction between Denmark-based group Lego and one of its subsidiaries Lego Media in London. Lego is a notable example of how managing a cross-boarder venture may be difficult if cultural peculiarities are not fully understood by both protagonists. Through the comparison of values and attitudes of both Danish and British cultures, we will investigate the cross-cultural issues raised. Lego has a policy of playing down its national origins as a Danish company as far as its brand is concerned. However, managerial practices in the Group headquarters are strongly influenced by Danish culture. Lego Media's employees, mainly British, have their own national culture and sets of values. London managers are encouraged to compose with "internal" Danish way of working.

Extraits

[...] Our case study showed how difficult was the set up of a British Lego subsidiary. As Hofstede cross-cultural comparison showed, Danes and British managers differ mostly at the level of cultural values. In order to improve managerial practices between Danish headquarters and the British subsidiary, Lego developed the concept of “millennium meetings” which take place periodically and involve managers from Denmark and from Great Britain. These meeting were the building blocks of new cultural understanding. Employees were encouraged to discuss cross-cultural issues. [...]

[...] Difference in cultural values and managerial practices has therefore raised cross-cultural concerns. Next section highlights the main attitudes and values characteristics between Danish and British managers. II. Cross-cultural differences between Danish and British managers 1. In the everyday life context From the very beginning of the setup of the new British subsidiary of the Lego Company, the Danish managers felt there were substantial differences between their English counterparts and themselves. As the time was going on, these differences were gradually appearing in daily life situations. [...]

[...] The Danes working with the British Lego subsidiary had a rather strict ethic, and an orientation towards results and performance. Danish managerial values are based on an egalitarian democratic system: individualism is less noticeable than in Great Britain, and that was precisely one of the problems they had to confront. Hierarchy dimension: Power distance Cultural differences also included the sense of hierarchy, which pretty much differed according to the national culture. Whereas the Danish employees were used to a participative and co-operative management style, they felt the British ones as more hierarchical. [...]

[...] Lego case study : Danish vs. British culture Table of contents Introduction 2 I. The company's background Lego: a pure Danish toy maker Lego Media International: the British subsidiary 3 II. Cross-cultural differences between Danish and British managers In the everyday life context Exploring cross-cultural theory as it relates to Denmark and Great Britain 5 Identity dimension: Individualism/collectivism 5 Hierarchy dimension: Power distance 6 Truth dimension: Uncertainty avoidance 6 Gender dimension: Masculinity/femininity 7 A global cultural chasm separating the two protagonists? [...]

[...] One big challenge faces Lego Group is looking for ways to ensure that knowledge about its values and identity is shared by everyone in the company whereas brand control guidelines are centralized in the Danish headquarters. Moreover, Lego Group has pursued since its creation a core model of development where it imposes its cultural Danish values and managerial practices to it subsidiaries. In the 1990s, the company faced its first losses and recognized the need to extend its product range to educational software, a highly lucrative sector. Following Lego's CEO at that time, the choice of entering this new business area is that “children are getting older younger”. [...]