International Business Culture and Diversity - Case Study Example

Case Study: International Business Culture and Diversity Work behaviors vary from one culture to another. Even the organizational culture in place in a multinational company cannot totally dispel the influence of national culture. Organizational culture, in fact, has been known to blow up the members' national culture and gives emphasis to it (Adler 2001). In the light of the foregoing, culture does figure importantly in the day-to-day affairs of a company, whether or not it is actively into transactions that involve importing or exporting. Even companies that cater purely to local markets are confronted by cultural diversity amongst their employees, their suppliers, their clients, and other people that they do business with. At the onset of globalization, it was believed to bring about some sort of similarity, if not uniformity, of the world's cultures with one another. Although globalization did bring about an awakening to millions of people who used to think that life in their country is almost all there is to living in this world, it failed to make people of different races embrace a new culture that can be said to represent all the people of the world. In fact, it is when people of different cultures get together that their distinct traits, beliefs and habits become their source of identity, security and confidence. (Cornell & Hartman 1998) And so it was in the case of Ray Cisneros, who flew from Los Angeles to Buenos Aires to close a business deal. While his bosses believed him to be the best choice as the company representative because of his culture - his Hispanic background and capability to speak in Spanish - and his drive to excel, he found himself having to cope with issues that basically originated from the culture of the other party, the Argentinean executives. Cross-Cultural Differences Author Wederspahn names two levels that people of two or more different cultures go through before coming to the point when they are able to use the uniqueness of their individual cultures for the good of their common cause. The first level is where cultural dominance reigns. Each party would try to influence the other based on nothing but just culture. In this level, neither party acknowledges that there are cultural differences to be considered; each party would assume that the other will submit to his culture. (1989) Thus, Ray Cisneros flew to Buenos Aires with intentions of doing his presentation shortly after his arrival and with the belief that the Argentinean executives would agree to stick to his planned schedule. Meanwhile, the Argentinean executives arranged to let Ray Cisneros go sightseeing during his first days in Buenos Aires and then to meet him two days later. They were two parties from two distinct cultures, and each one naturally assumed that the other would agree to the designed schedule. This scenario illustrates the first level where cultural dominance is the name of the game. The second level brings in cultural compromise and the synergy that is achieved through it. In this level, the concerned parties learn to meet halfway to come up with alternatives that would be mutually beneficial. This can be attained even with the existence of cultural differences; it is a matter of acknowledging such differences and focusing more on common values and priorities. (Wederspahn 1989) This second level would ideally bring about a fruitful ending to the uncomfortable initial part of the negotiations between Ray Cisneros and the Argentinean executives. In this level, both parties would look beyond their individual feelings, reservations, plans, intentions and hopes for the meetings that are to be held and would instead dwell on the success and benefits that can be generated for both sides by a well-concluded discourse. The motives, plans, moods and behavior of Ray Cisneros and the Argentinean executives could be traced to the general characteristics of their respective cultures. Indeed, adequate information on the American culture and the Argentinean culture would serve to enable one to easily understand why things happened the way they did, as related in the case study. According to social scientists, the differences among cultures are based on their respective ranking or order of preference placed on specific values, habits, practices, beliefs, norms and traditions. These unique set of preferences of each culture distinguishes it from the rest. (Kluckholn & Strodtbeck 1961) Americans thrive in a fast-paced rat race where those with slow moves are left behind to languish as second-best contenders or as losers. This headlong drive for success comes from the main beliefs that one must work hard to be successful and that each minute wasted is equivalent to wasted opportunities and chances to accomplish more. These beliefs explain the Americans' tendency to press forward, to rush things up, and to extract results the earliest possible. (Lewis 1999) Above all, Americans are known for their superiority complex. They naturally assume that their ideas are the best ideas, and that their opinions are the most valuable of all. The typical American considers his own analysis as something that the rest would have to submit to. (Hall 1989) Meanwhile, Argentines are known to be serious, formal and sober. In discussions, they are less inclined to be open and to welcome new ideas. It has been said that they are generally against globalization, especially since the economic crisis that hit their nation in 2001. Argentines value strong personal relationships. When there are moves to be made, they are less concerned with the move or act; they give more importance to the effects that would arise from it. Thus, they have a strong tendency to avoid uncertainties and to shun risks, and they do not easily welcome change. The general pace of business negotiations in Argentina is, therefore, slow and it would usually take more than one trip to their country to close a deal with them. (Morrison & Conaway 2006) In the light of the foregoing, Ray Cisneros' plan to get started with the meeting shortly after his arrival in Buenos Aires makes sense. The plan of the Argentinean executives to hold the formal meetings two days later yet makes sense, as well. Even the turnout of the meeting with the Argentines - how it concluded with no concrete agreement finalized - becomes understandable. And Ray Cisneros' frustration about the turnout of the first day agrees with the general characteristics observed amongst Americans. Risks Presented by Culture The risks presented by culture in the given case are not to be dismissed as insignificant. Given how Americans value time, Ray Cisneros would understandably be trying to bring the negotiations to a close. (Lewis 1999) Without meaning any harm, he would probably push the others to agree to the terms offered by his company - and probably, too, he would be completely misunderstood. On the other hand, Argentines are bound to take time to make a decision and would contemplate each option presented in the course of the negotiations, only to cause Ray Cisneros to be frustrated about the slow pace of the negotiations. Author Marx wrote about a pattern of characteristics known as Type A. (1999) Common to managers of Ray Cisneros' kind, the Type A characteristic is considered as neither healthy nor commendable. Such characteristic makes managers impatient, pushy, restless and aggressive at an unreasonable extent. (Marx 1999) Getting to understand a certain culture takes time. When people of varying cultures meet, little of what is really in their minds would be said aloud in words. Beyond the usual and plain exchanges of polite pleasantries, little more is said. (Trompenaars & Hampden-Turner 1998) Thus, the undercurrents that prevail in an exchange between two cultures are not to be dismissed as insignificant. These issues can either make or unmake a partnership; they can seal a deal or completely shelve it; and they can set up a partnership or establish it as an impossible undertaking. Indeed, culture is no less abstract than a thought. Still, culture is not to be underestimated. It has a power of its own; one can either wield it as a mighty sword or become a victim because of it. (Schein 2004) The foregoing lines speak of fundamental truths about the American and Argentine cultures that lead to reasons why differences between them might adversely affect the business negotiation. Such differences can lead the parties involved to dislike each other and not anymore want to consider what could have been a synergistic opportunity for their companies. Thus, a great plan can go wrong no matter how thoroughly it was concocted. Many untoward things can happen when cultural differences are considered too insignificant to even be worth including in the preparatory works. Improving Ray Cisneros' Situation If I were Ray Cisneros' manager, I would have adequately prepared him for his encounter with the Argentinean executives in terms of knowledge regarding their culture, temperament and traits. More than being able to speak Spanish and having a Hispanic family background, understanding the Argentinean culture would enable Ray Cisneros to successfully conclude his trip. The same understanding of such culture would curb Ray Cisneros' Type A characteristic and make him aware of the importance of also valuing what the Argentinean executives had in mind as to the planned schedule and later, as to the prospective partnership of their companies. Ray Cisneros' keen awareness of what Argentinean culture is like would also have spared him from the stress and tension that he subjected himself to. Ray Cisneros was actually being very hard on himself, wanting to accomplish a lot as early as his first day in Buenos Aires. If I were Ray Cisneros' manager, I would have him acquainted with the Argentinean culture days before trip to Buenos Aires. A schedule would be put together even before the trip, and the Argentinean executives' opinion on the schedule would have to be solicited. On the other hand, Ray Cisneros' manager would do well to remember that studying a foreign culture in preparation for an important meeting is not a small feat. Culture is a complex combination of programs that a person's mind has been imbibing constantly from people and the environment around him. One is, therefore, not born with a culture but is rather developed as somebody belonging to a culture. (Hofstede & Hofstede 2005) Given how Americans tend to view themselves as above other nationalities, Ray Cisneros' manager also should have ensured that Ray does not think of himself as superior to the Argentinean executives that he was scheduled to meet. After all, cultural relativism states that no culture is to be deemed higher or better relative to another. (Hofstede & Hofstede 2005) There is a way to use existing cultural differences between two nations to achieve synergy in an undertaking that they are participants in. In the same way, there are tactics for successful global negotiations, as written by author Adler (2001). If I were Ray Cisneros' manager, I would have him get all the necessary inputs to learn such tactics in preparation for the meeting in Buenos Aires. Being in the know as to the peculiarities of various cultures in the world also serves to be a competitive advantage. Coupled with a vision of where a company should be headed to be at the top of the industry, knowledge of cultural diversity is a potent management tool. (Wederspahn 2000) As Ray Cisneros' manager, I also will have him trained in the causes and solutions for culture shock. Culture shock is the experience of foreignness that grips a person who is in contact with people or an environment that is alien to him. It presents both hazards and opportunities, depending on the way it is handled. Culture shock affects people in three aspects: emotions, thinking style, and social skills and identity. (Marx 1999) All three aspects can spoil the chances of a successful negotiation. Emotions make one unable to think logically and objectively, and the thinking styles of people from other cultures are different from one's own and would have to be studied and comprehended. Meanwhile, keeping social relations healthy despite the tension and detected differences among the negotiating parties definitely requires social skills. Through it all, one must know his own identity so as not to get carried away by the other parties or lost in the course of the arguments. (Marx 1999) Indeed, learning how to do these things to deal right with culture shock is a feat that should have to been tackled by Ray Cisneros before his departure for Argentina. If I were Ray Cisneros' manager, I would have taken all the trouble of ensuring that he has been adequately oriented or reoriented on these subtle but very important things pertaining to culture. Inputs on handling stress during the negotiations are equally necessary. Authors Lazarus and Folkman describe three strategies for it: anticipation, emotion-focused coping, and problem-focused coping. (1984) Ray Cisneros should know his own self well enough to anticipate his tendency to be short of patience when dealing with the Argentinean executives. This anticipation by itself means that the battle is half-won. Emotion-focused coping goes after being aware of the ongoing undercurrents within one's self. It involves knowing how to calm down one's nerves so as to be able to think clearly and without bias. These first two strategies would help identify the issues at hand. The third strategy then acts on such issues. Problem-focused coping results to concrete solutions to the problems that surfaced during the negotiations. (Lazarus & Folkman 1984) Ray Cisneros' manager could not do much to help Ray out in Buenos Aires or to change the way things would go during the meetings. But competently overseeing his preparation for the trip - in terms of being well-tuned to details of the prospective deal, the Argentine culture and the American culture - would have been the best way to ensure the success of the negotiations. After all, differences among people of varying cultures really exist; priorities, perceptions and norms also vary from one culture to the next. It is a matter of being ready to deal with them. The wise thing to do is to not expect people of different cultures to think in the same way and to see things from the same viewpoint. (Mitchell 1999) Leaders, then, emerge as those gifted people who could make out such differences and adaptively progress in the transactions with other people despite such differences. (Schein 2004) Without a doubt, the world would be a better place to live in if people of different cultures would try to meet each other halfway to attain common goals. There is much that can be gained by simply being aware of the existing differences among nations and races. (Gallagher 2001) If Ray Cisneros were German It does not matter what culture Ray Cisneros represented. The success of his negotiations with the Argentinean executives depended on his ability to mesh well with them and to synergistically use existing differences to veer toward common goals. A culturally synergistic group is one that benefits from the best aspects of all the cultures represented by the members. (Adler 2001) Indeed, whatever Ray Cisneros' culture is, he could pull off the same synergy with the right mindset, attitude and manners. If Ray Cisneros turned out to be German, he would have exhibited the general characteristics of German people. He would have been the type to deliberate on the details with careful precision. Their unhurried pace, being part of who they are, would just have to be tolerated. Ever so cautious, they try to find loops in the arguments and opinions of the other party. But when Germans give their word, one can bank on it because they deliver what they have committed to. (Lewis 1999) While Americans are known for wanting to seal the deal the soonest possible, Germans are known to prefer to work on the details first. Thus, it is a matter of having to identify a new set of cultural traits and characteristics, and a new set of similarities and differences with Ray Cisneros as a representative of the American culture. That aside, the rules for a successful negotiation are the same. List of References Adler, N. (2001) International Dimensions of Organisational Behavior. Cincinnati: South Western College of Publishing Cornell, S. & Hartman, D. (1998) Ethnicity and Race: Making Identities in a changing World. Thousand Oaks, CA: Pine Forge Press Gallagher, T. (2001) Understanding Other Cultures: The Value Orientations Method available from [accessed 27 April 2009] Hall, E. (1989) Beyond Culture. New York: Bantam Doubleday Dell Publishing Group, Inc. Hofstede, G. & Hofstede, G.J. (2005) Cultures and Organizations Software of the Mind. McGraw-Hill Education Kluckholn & Strodtbeck (1961) Variations in Value Orientations. Evanston, III: Row, Peterson Lazarus, R. & Folkman, S. (1984) Stress, Appraisal, and Coping. New York: Springer Publishing Company Lewis, R. (1999) When Cultures Collide - Managing Successfully Across Cultures. London: Nicholas Brealy Marx, E. (1999) Breaking Through Culture Shock - What You Need to Succeed in International Business. London: Nicholas Brealy Mitchell, C. (1999) A Short Course in International Business Culture. United States of America: World Trade Press Morrison, T. & Conaway, W. (2006) Kiss, Bow or Shake Hands 2nd Edition. Avon, MA: Adams Media Schein, E. (2004) Organizational Culture and Leadership. San Francisco, CA: John Wiley and Sons, Inc. Trompenaars, F. & Hampden-Turner, C. (1998) Riding the Waves of Cultures: Understanding Diversity in Global Business. United States of America: McGraw-Hill Companies Wederspahn, G. (2000) Intercultural Services: A Worldwide Buyer's Guide and Sourcebook. United Kingdom: Butterworth-Heinemann Read More