Cultural Differences of Brazil, China and Nigeria - Essay Example

Cultural Differences Study of Brazil, China and Nigeria and potential opportunities and challenges for Stipel Marketing Company Although Brazil, China and Nigeria are in three different continents they have several things in common. These countries have large populations and represent some of the fastest growing economies in the world. Any business that wants to establish a global footprint has to develop close working relationships with these three countries. This has led to an increase in the number of foreign investments within these countries. Despite this rush for foreign investments, these three countries each has a different culture and any foreign company that wants to be successful in their operations has to adapt accordingly to these cultures. Like any other company, Stipel Marketing has to prepare itself for this process and this reports highlights some of the factors that need to be considered to enable a smooth transition. Table of contents 1. Introduction 2. Exploration of potential challenges and opportunities a. Opportunities Increased level of innovation and development Use of technology Unique cultural differences b. Challenges Different management systems Language of communication Influence of third parties and political instability 3. Practicality of the literature to the relevant scenario 4. Conclusion 5. Recommendation Introduction Human resource is very important to any organization. This is because it provides the organization with skilled manpower that helps it to achieve its objectives. Our organization provides an open type of communication platform where employees and their supervisors get to interact freely and share their thoughts and ideas. Given that we are a marketing company, communication is core in our business and this must be enhanced at all costs. At the United Kingdom head office, the staff has adapted to this open plan network and it has proved beneficial to the company so far (Green, 2011). As the company seeks to expand and explore other business opportunities around the globe it is important for the company to analyze the communities in these target markets so as to know which approach to use to get the best talent. In some areas around the globe, workers are not allowed to mingle freely with their supervisors and this is what will make them perform optimally. However, in other parts of the globe, employees are free to interact with their superiors (Gordon-Reed, 2008). This gives them a sense of togetherness and they are able to perform more efficiently. All these factors are to be considered if the organization is to establish sustainable and rewarding working relationships with these colleagues from other countries. The countries that are in focus in this report are Nigeria, China and Brazil, each of which has its own distinct culture. The role of this report is to showcase the opportunities and the challenges that may arise as the organization tries to establish cross cultural operations (Golden, 2005). As the manager of Stipel Marketing it is my duty to ensure that this process of expansion goes on smoothly and all the cultures of the three countries and the company are able to blend in together to ensure that the process is profitable to this company. Exploration of potential opportunities and challenges Stipel Marketing is a company that specialises in marketing activities. Most of our clients are seeking foreign markets for their products and services. This means that we also have to increase our marketing activities in these countries so as to remain relevant in the market and beat the competition (Gaynor, 2004). On close analysis of these target countries, there are various opportunities and challenges that present themselves to the company and the theoretical explorations based on various literature models. a. Opportunities Increased levels of innovation and development When people from different cultures interact there is an increase in the levels of innovation among them. This is because they get to exchange ideas about various topics that will guarantee development of new business ideas (Franklin, 2010). In these countries, people have achieved a considerable amount of success in regards to money and they are willing to try out new products and spend on them. There is short term orientation in some countries such as China and Brazil unlike in the UK where there is long term orientation (Piepenburg, 2011).This has led to companies having to come up with new products and services that will meet the demand of the consumers. This is most probable in the China and Brazil where new products are being produced each and every other day. Innovation is a process and leads to the introduction and development of new ideas into the market (Field, 2008). Given that each of the people that will work for the company comes from different background, they are able to bring together this cultural difference and come up with innovative solutions that will cater for all their needs. In China, Brazil and Nigeria there is also a sense of collectivism while in the UK there is a sense of individualism. People in these countries re therefore more open to new ideas and innovation possibilities. Recently, there has been an increase in the number of angel investors who have realised the viability of Africa as the innovative centre of the world and they are beginning to open up offices in this region to tap this talent (Fallows, 2008). A move by Stipel Marketing to venture into these countries is therefore highly encouraged. Use of technology In the past, communication between people was a long process whereby mails were used and telephones were the preferred mode to share information. As a result, communication between foreign branches of the company was a long and hazardous process. However, technology has made communication much easier and a company can ensure effective communication of people in all parts of the world. Emails enable faster transmission of documents; there are electronic signatures instead of traditional signatures (Emond & Steind, 2011). Due to a low degree of uncertainty avoidance in these countries, people are willing to test new ambiguous technology on a regular basis. As such there is better understanding since companies are making use of teleconferencing facilities that enable live transmission of voice and images across the world. In all the three countries, Nigeria, China and Brazil, the mobile networks are well developed and there is efficient internet connection that enables use of these modern forms of communication (Ellroy, 2011). They are well connected with fibre optic and satellite networks and therefore companies do not have to set up physical locations in all these sites but can operate from cloud networks that are accessible from any location in the world. Unique cultural differences Despite the difference in their cultures, interaction between people in these cultures is very high. UK has low level power distance culture, while China, Brazil and Nigeria have a high level power distance culture. As a result people, in these countries people are various levels care about each other and want to know what is happening in the lives of others within the same community (Duong, 2002). This is extended to the workplace and workers are concerned with each others’ welfare. Given this setup, the people are able to share information between them and their individual experiences and this makes it easy to use them as a source of knowledge. People are therefore enabling to use these as platforms to expand their personal knowledge and become better people and more useful people in the future (Diaz, 2008). This will establish a network of knowledgeable clients that will be in a better position to push the organisational goals and not only attract new clients but ensure they are retained. b. Challenges Different management systems Every country is unique in its own way of management that is different from others. These management systems have evolved over the years and are taken to be the norm (Das, 2012). Nigeria is a country on the African continent and like other countries on this continent, the issue of traditions is taken very seriously. Although over time modernization has caught up, there are still traditional beliefs that the people in this country follow and believe in and this plays an important role in their day to day lives. Part of these traditions is the belief in the hierarchical system. There is a firm belief in the separation of classes whereby the ruling class was considered very different from the subjects (Chestnutt, 1999). This is a result of the established power distance. This has been passed on to the workplace and the bosses are also expected to have absolute authority. They do not have to consult with others when making their decisions and whatever instructions that they give have to be strictly followed by the employees. The instructions that are given out by the boss have to be spelled out in detail as this is a sign that the leader knows what should be done and has full grasp of the business operations. An outsider may confuse this to mean that the employees are lazy and inefficient and cannot perform without close supervision (Choate, 2008). In China rules have to be strictly adhered to. According to the philosophy of the people, all types of relationships cannot be said to be equal. It is therefore only natural that these relationships are respected. Respect should come from all corners and as such, the older people should respect the younger people while at the work place the senior employees should respect the junior employees and their subordinate staff. This guides all of the business operations in China and foreign behaviors such as open access to all information by all people and empowerment are not tolerated in this environment (Cerrito & Patricia, 2010). The hierarchy system has to be maintained at all levels particularly in the workplace and it is regularly emphasized that the group is much more important than any single individual. The management style usually involves senior managers giving the required instructions to the lower managers and the information is passed down to the junior workers. Once it gets to them, the workers cannot question these instructions as it will be a sign of disrespect to the management team. All these aspects are different to the culture in the United Kingdom where freedom is encouraged between the boss and their subordinates (Callahan, 2006). The company therefore has to adapt so as to come up with systems that fit within these cultures. There is also the aspect of masculinity and femininity that affects the operations in the work place. In the UK emphasis is on masculinity items while in these countries the femininity aspect prevails, it is therefore a challenge to pass such masculinity goals to these cultures. Language of communication There are over 300 languages in the country although majority of the population can listen and talk in English (Butcher, 2013). The people have a preference to address people with their titles as it is considered a sign of respect. Business communication may often steer a way to personal matters and this is important as it is seen as a sign of trust and prolonged friendships. English spoken by these people is however influenced by their native languages and will take some time for one to be able to understand properly and communicate effectively. Although there are many English speakers, Chinese is the official language and this can prove a challenge to foreigners. An individual therefore has to communicate slowly so as to ensure that what he is saying is properly understood (Bryman, 2004). Unlike most foreigners, the Chinese are rigid and do not uses much body language, preferring to keep their reactions to themselves. This can be misinterpreted by foreigners to mean that the Chinese people are cold towards them while this is not the case. Communication with foreigners is fairly easy since most of the mangers in the country speak excellent English having undertaken their education in foreign nations. Despite this, Portuguese is commonly spoken among the people and most middle and low level workers. Unlike in the west where a lot of emphasis is placed on written agreements, Brazilian usually establish verbal agreements and the documents are dealt with later (Bolt, 1995). Unlike their Asian business counterparts, Brazilians are very expressive in their reactions and this is a normal part of their daily communication. Most maintain close eye contact when speaking with their business counterparts and this may be quite intimidating for any foreigner who is reserved. Influence of third parties and political instability According to Berka & Rauch (1999)), it is important to note that the communist party has a strong influence on the business decisions made in China and has a level of authority that cannot dismissed. Most of the senior managers have connections with the party and have to consider its policies before making business decisions. However, there is a shortage of quality and experienced managers in the country and any company that wants to perform well in this environment will have to invest in recruitment, training and retention policies to ensure they have the best managers (Benson, 1999). Nigeria on the other hand is known for being one of the most corrupt countries in the world and any business that wants to succeed in this environment has to pay some bribes so that it can operate without influence of the authorities. Practicality of Literature to Relevant Scenario In the sections above, there have been various opportunities and challenges that have been presented based on the literature sources that have been viewed. However, not all of them are practical based on the activities and the resources of Stipel Marketing Company. The development of new technology that enables easier transfer of information and knowledge is in direct relation to the activities of this company since marketing involves passing on information to our clients. Due to this, we must be .open to new ideas and be willing to explore new opportunities that will ensure that our clients are able to reach their target audiences. The mode of communication of these new ideas is important as it will help predict the uptake process by the citizens in these countries. Like in any other industry, the role of stakeholders is very important and should be considered. This involves our clients, the customers and our employees. Each of these have an important role to play in regards to the success of the business. The customers have their own set of customs and beliefs and this should be part of the campaigns that we plan for our clients. A marketing campaign that is successful in Brazil will not necessarily be successful in other parts of the globe. Our clients expect us to have a formula to cater for all these differences and find ways in which they can penetrate these markets. As stated by Baez & Golenbock (2012). These economies are also growing and represent potential markets for the companies’ products. The people in these countries are open to new ideas and products. This is well documented in the literature and if the company can penetrate these markets then it would ensure that it will be assured of an increase in revenue in the near future. Most of the challenges outlined above have been presented in various literature sources and there is evidence to prove their existence. People in these three countries have different attitudes towards work and a clear indication is their approach towards the work place, the working hours and the personal goals of each of the employees (Alex, 2010). There should be a personal score card to evaluate the performance of individual employees in these three countries and the topics covered should extend from the basic instructions given by their supervisors to other roles that not only benefit the company but improve the personal capacity of the employees. People have different approaches to in formation and it should not be assumed that information passed on will be received with the same attitude in these three countries, the reception of information is dependent on various factors such as the cultures of the people and their personal beliefs. This is highlighted in the literature and there should be allowances to cover for the differences of each particular group of people. The United Kingdom, where the companies head office is based is an open environment and people are open to new ideas from across the globe. In some of these target countries, there are stereotypes that prevail such as giving of bribes to get preferential treatment and this might affect the operations of the company in these markets (Alexander, 2010). To cater for this problem, awareness should be created among the company employees of the need to be open minded as the marketing industry is all about embracing new ideas and the ability to explore options that are out of the ordinary so as to give our clients the best results. According to the literature, effective communication plays a very important role in guiding the company towards success. This can be a big challenge given the presence of numerous languages from Chinese Mandarin to Brazilian Portuguese, the best way to deal with this is to have an all inclusive mode of communication that can be understood across board and makes sure all the stakeholders understand what is expected of them. Conclusion Considering the opportunities and the challenges that have been outlined earlier in this report it is important for the company to adapt to the cultural needs of these countries. These three countries each have their own way of doing business and the best approach should not be a general approach but one that is tailor made to fit each of the countries. In China and Nigeria, there exists traditional values that maintain the hierarchal system and all these factors have to be considered when coming up with a management system that fits all these different culture. At the main office, the workers have a lot of freedom and freely interact with their superiors. This approach cannot be used in these two countries and therefore a specific approach needs to be considered. The opportunities are an indication that the company should expand to these areas to take advantage of these factors, however, the challenges should also be considered and ways to tackle them clearly established. This is because they may prevent the growth of the business in these markets if they are not properly dealt with at the beginning. Overall, this process should be taken as a learning process and should be done carefully so that all the expected results are achieved. The main goal should be to not only establish a platform to start operations in these countries but to establish long term connections in these countries. Recommendation Based on this report, there are several recommendations that need to be taken into consideration: 1. There should be different approaches to cater for these three different cultures because people in these countries react differently to information that is made available to them. 2. There is a close relationship between business and personal life particularly in Nigeria and Brazil, therefore the approach used should not be too formal but should include small talk to build acquaintances. 3. In the United Kingdom, English is the common language and is understood by everybody. In China, Mandarin is the preferred language of choice and the company should hire Chinese speaking individuals who have experience in doing business in China. In Nigeria, most of the business class speak English while in Brazil the executives are excellent English speakers. These have an understanding of the best communication channels to the people and should be used to help the company meet its objectives. 4. The cultures of these countries particularly china and Nigeria have an influence on the business practices in the country. It is important that we understand all these customs as any violation might be taken negatively by the target market and lead to low performance in these markets. 5. A manager in the United Kingdom should not be assumed to be capable of leading operations in these locations. 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