In today’s globalized world, establishing and operating overseas subsidiaries is an unavoidable topic for multinational corporations. However, even though the goal is the same—setting up a subsidiary—the approach varies greatly depending on each country’s cultural background and values. Sometimes strict, sometimes flexible, and occasionally completely unexpected.
This piece sets aside serious international business theory and humorously imagines “what would happen if each country establish a local subsidiary,” using jokes to illustrate the differences. It’s a quirky “introduction to business cultures” that lets you learn about global diversity while laughing.
- Japan: Strongly Influenced by Headquarters
- USA: Speed and Scale Are Everything
- UK: Gentlemanly but Drowning in Paperwork
- France: Subsidiaries Driven by Aesthetics and Pride
- Germany: Discipline and Precision Conquer the World
- Italy: Passion and Improvisation Save the Day
- Canada: The Kindest Subsidiary Ever
- Nordic Countries: Flat Organizations to the Extreme
- China: Overwhelming Speed and Scale
- Russia: Surviving Through Connections and Flexibility
- Conclusion
Japan: Strongly Influenced by Headquarters
When Japanese companies establish overseas subsidiaries, the first concern is whether they can replicate the headquarters’ methods. Managers dispatched from Japan are usually middle-aged men in suits. Meetings are conducted in Japanese, and real opinions or complaints often emerge after the meeting, with decisions made post-discussion. Local employees are left puzzled: “Wait, this wasn’t translated…” or “Why didn’t they say that during the meeting?” Manuals are thick—sometimes hundreds of pages—and often just literal translations from Japanese, making them hard for local staff to understand. Decisions require HQ approval, and it’s common for meetings to end with “We’ll check with headquarters.”
Cultural Background
Japanese corporate culture emphasizes collectivism, long-term employment, seniority, and internal consensus. Trust and internal coordination are prioritized, so overseas subsidiaries are often treated as extensions of HQ. Localization takes time, but stability and quality assurance are top-notch.
USA: Speed and Scale Are Everything
American companies focus on expanding market share and maximizing shareholder value. Young MBA holders are sent from HQ, and the initial slogan is “IPO in 3 years!” Understanding local culture? That’s secondary. “America No.1!” If problems arise, call a consultant. Offices overflow with PowerPoint slides, and weekly KPI reviews are standard. Good numbers earn praise; bad ones may lead to immediate layoffs. No excuses.
Cultural Background
American business culture values performance and speed. Risk-taking is encouraged, and success leads to rapid expansion. However, local culture and sustainability are often overlooked, leading to criticism of short-termism. If the results are good, everything’s fine.
UK: Gentlemanly but Drowning in Paperwork
British companies tend to trust local talent when setting up subsidiaries. Local managers send polite email reports, always ending with “Kind regards.” Behind the scenes, paperwork reigns. Reports can be 100 pages long, written in overly polite language. Meetings are filled with sarcastic jokes and subtle criticism—the British way. The beautiful wording often hides the real message, so beware.
Cultural Background
The UK retains elements of a class-based society but is flexible in using local talent. Formality and etiquette are valued, resulting in a workplace culture that blends irony, humor, and excessive documentation.
France: Subsidiaries Driven by Aesthetics and Pride
French companies prefer offices with historical charm over modern designs. Cafeterias are unusually high-quality, and wine at lunch isn’t surprising. Initial investments may be costly, but “that’s life.” Executives speak French, and some resist using English, which they see as vulgar. Labor unions quickly get involved and strongly influence management decisions. Strikes may occur even before the company is established.
Cultural Background
France has strong cultural pride and emphasizes the “French way” in business. While valuing food and art, workers’ rights are also fiercely protected. Flexibility and negotiation are essential. Beauty and pride matter more than efficiency or profit.
Germany: Discipline and Precision Conquer the World
German companies start with thick manuals detailing safety, procedures, and quality assurance—even desk placement is diagrammed. Everything must be managed. Process matters more than results. Reports are always submitted on time. Meetings are efficient and joke-free. They excel at executing plans but struggle with improvisation. “It wasn’t in the plan, so we can’t do it.” They overanalyze and never cross the bridge.
Cultural Background
Germany values discipline, precision, and efficiency. These traits, rooted in manufacturing and engineering, shape subsidiary operations. Though lacking flexibility, their management is highly reliable.
Italy: Passion and Improvisation Save the Day
Italian subsidiaries often involve local politicians or relatives. “Let’s give this post to my cousin.” Meetings are lively, full of gestures and passionate speech. Decisions come at the very end. Efficiency? What’s that? Passion is key. “We’ll figure it out somehow.” First, let’s eat pasta and pizza. Accounting is often delayed, but social events are top-tier. Fun is essential.
Cultural Background
Italian business culture values relationships and flexibility. Networking over formality, passion over efficiency. Even if plans go awry, they’ll “make it work.” The country’s north and south also differ significantly in business style.
Canada: The Kindest Subsidiary Ever
Canadian companies prioritize local culture. Their first words: “Sorry for coming.” Workplaces are friendly, and employee satisfaction is key. Meetings focus on consensus, which can slow decision-making.
Cultural Background
Canada promotes multiculturalism and inclusivity. Corporate culture reflects this with empathy and respect. Subsidiaries are praised for being great places to work, though they may lack speed.
Nordic Countries: Flat Organizations to the Extreme
In Nordic subsidiaries, titles are nearly nonexistent. Even the CEO is “just a team member.” Everyone is a “manager,” regardless of age or rank. They hire trustworthy locals and let them lead. Meetings involve everyone’s input, and decisions take time, but employee satisfaction is high. Benefits are generous—locals are shocked by how much time off they get. Emailing in June? You’ll get an auto-reply: “On summer vacation. Back in August.” No emails or laptops during holidays. HQ may not respond for two months.
Cultural Background
Nordic countries value equality and work-life balance. Their democratic, human-centered business style is globally unique.
China: Overwhelming Speed and Scale
Chinese companies send many managers from HQ before hiring locals. HQ’s orders are absolute; local customs are secondary. Unrealistic goals like “50% market share in six months” are common, and 24/7 operations may be implemented. Subsidiaries resemble mini Chinatowns.
Cultural Background
China’s business culture is heavily influenced by national policy and prioritizes growth. Speed and scale dominate, but sustainability and cultural adaptation remain challenges.
Russia: Surviving Through Connections and Flexibility
Russian subsidiaries are often led by “old friends from Moscow.” Unexpected expenses frequently appear in the books, and locals accept it as normal. Contracts always end with a vodka toast.
Cultural Background
Russia values personal connections over formal rules. While flexible and resilient, opacity is a common trait.
Conclusion
As we’ve seen, each country’s approach to subsidiary management is like a different world. Japan relies on HQ, the US values speed, the UK loves paperwork, France emphasizes culture, Germany focuses on process, Italy thrives on passion, Canada on kindness, the Nordics on equality, China on scale, and Russia on connections. Though humorous, these scenarios reflect real experiences in international business. Understanding and respecting cultural differences is the first step to success. Finding common ground is key. Global business is deep and fascinating precisely because it involves such diverse styles.
