Culture Clash: A Case Study of Rover and BMW

Abstract

This paper examines the culture clash at Rover when BMW took over the company from British Aerospace. Research has shown that the globalisation of business across national and cultural boundaries has resulted in some culture-clashes and there has also been an increase in interest in the impact of culture on business. This paper explains the breakdown in communication and the different approaches to car manufacturing in Rover under BMW’s ownership. Both Rover and BMW were symbols of national pride and therefore deeply embedded in their own culture. When BMW took over the Rover group, the company was making profits and Rover had won numerous quality awards. Six years later, BMW decided to sell Rover at a substantial loss but retained the new mini which has been very successful. Although some of the problems faced by BMW were outside their control, the culture clash certainly exacerbated the problem.