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Cross-Cultural Issues in International Business.The Audi organization - Essay Example

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This paper seeks to critically compare two cultures of different organizations, Audi organization that wishes to establish a manufacturing operation in the Far East and Asia, the Audi Car Company going to China.The paper will use the Chinese culture dimensions…
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Cross-Cultural Issues in International Business.The Audi organization
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Download file to see previous pages Finally, the paper will propose a solution that details the management style, structure and reporting methods that will provide a solution to the issues identified. The Establishing organization will have to work routinely with the new culture and background of the established company in China. Usually this relationship works well since the differences in culture are enriching and interesting. However, things may go wrong in some cases for reasons that may not be understood by the organization’s management. This is the reason why mastery of cultural differences is important, in order to work more effectively with people, and avoid misunderstandings (Ray, 2010). The Seven Dimensions of Culture is very essential in enhancing the mastery of cultural differences when effectively applied. The model was identified by Trompenaars Fons and Hampden Charles, management consultants, who published it in their book, "Riding the Waves of Culture." The founders found out that majority of people coming from different cultures do not just randomly differ from each other; but they are different in very unpredictable and even specific ways. This is due to the fact that every culture has its own way of thinking, its own beliefs and values. Different cultures also place different preferences on different varying factors. Trompenaars Fons and Hampden Charles concluded that wherever these preferences fall is what makes the differences in culture compared to one another as described on each of the seven dimensions of culture. These cultural dimensions include: universalism versus particularism, specific versus diffuse, individualism versus communitarianism, neutral versus emotional, sequential time versus synchronous time, achievement versus ascription, and internal direction versus outer direction (Schneider and Barsoux, 2003). The organization in Europe that wishes to establish an organization in the Far East can use this model to understand and master people from this region, who practice a totally different culture. This will enable the Audi Car Company to avoid misunderstandings with the people and enjoy a good working relationship. This is very significant when the company will be doing business with different people around the region who have different cultural background. Hence, it will ease the management of the diverse groups of people from different cultures. The Seven Dimensions of Culture will also help the management of the organization to understand that there is no particular culture that is worse or better than the other; this is because of the assertion of the model, that people coming from different cultural backgrounds are not necessarily different, but simply make differing choices. In contrary, the Seven Dimensions of Culture does not explain how the management can measure the preferences of people on the seven dimensions (Hampden and Trompenaars, 2000). Therefore, it will be in the best interest of the establishing company to simply use the Seven Dimensions of Culture as a general guide when dealing with the people coming from different cultural backgrounds. The model will enable the organization to explore the strategies that can be used among people fitting the highlighted characteristics of each of the dimensions as described below: The seven dimensions of culture The first cultural dimension is universalism and particularism; according to the model, universalism is characterized by people who place much emphasis on rules, obligations, laws, and values. These people attempt ...Download file to see next pages Read More
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