Lafarge is one of the biggest and global French company in field of construction material production. In 1994, they chose partner company named the Huaibei Mining Company (HMC) which is state-owned enterprise (SOE). Even though HMC had several problems such as no responsibility, no strict regulation, bad working environment and so on but it was so strategically attractive to Lafarge so that they decided to enter China. Their advantages such as a good location, a good limestone source and nearby a good market were fitted to Lafarge’s objectives. So Lafarge made a decision to conclude with HMC as a joint venture named Chinefarge. At that time they expected enormous synergy by concluding a joint venture but they faced other problems after making a joint venture contract. At first due to Lafarge’s cut off about 650 workers out of 1300 without appropriate reward, it made workers’ demonstration, sabotage and bad media publicity. Secondly their management team was consisted of multinational members so that brought absent of communication. And also workers had very high expectations but it wasn’t that good as they thought so they were depressed, and even more they felt they are working for others. Moreover workers accommodation environment was discriminatory.
Main reason of trouble
To figure out reason of this issue, we should know about Chinese characteristic. It might provide key solution to solve these.
• Chinese Ideology
It is based on Chinese nationalism. They had been thought they are center of the world for since early times. A sense of superiority of them is caused by their own long history and power of culture. It is still remained today.
• Doing Slowly (漫漫地)
In general, the Chinese are never in a hurry and always compose even though they are working. It is Chinese style that is waiting in patience until it can make maximum profits.
• A Thoroughgoing Individualism