Challenges for Todays International Managers in Cross-Cultural Management - Essay Example

Challenges for today’s International Managers in Cross-Cultural Management Student’s Name Institution Date Challenges for today’s International Managers in Cross-Cultural Management Cross–cultural management is a key part of business management in different countries. Managers working in international countries need to be aware of various cultural issues that have an impact on the way their firms operate. The increase in globalisation has made many business firms to expand their business operations into other countries abroad. As a result, business firms appreciate the value of cross cultural management because it helps them have a positive impact in different countries they choose to operate in. This paper will focus on Google and Nestle to find out how their managers have approached the issue of cross cultural management in different facets of their operations (Lillis & Tian 2010). This paper will look at the management approaches used by these two firms to find out how they conform to different cross cultural ideals observed in various countries they operate from. Google has had to alter its operations to help it penetrate several international markets. For instance, in China, Google has been forced to censor some websites to conform to internet service standards enforced in the country. Hamilton, Knouse and Hill (2008) reveal that Google has been forced to implement policies that differ with their long term business practices. The company has been forced to enforce policies that go against ethical principles it has been known for in many countries to protect its business interests in China. The firm was forced to institute censorship policies to ensure some Chinese internet users do not have access to websites that advocate for democratic and human rights. The firm has been compelled to alter its business strategy to ensure it satisfies the expectations of the government. A manager needs to use an effective approach to manage employees working under him in a particular organisation. Multinational firms such as Google and Nestle have to institute effective workplace policies that take note of human resource diversity in different environments they operate in. Culture has an influence on people’s personality and behaviour and makes them have their own perspective on different issues (Karahanna, Evaristo & Srite 2005). Business managers need to observe different cultural traits that are practiced by their employees to find out how they affect their overall commitment to their firms. Human resource managers need to encourage strong diverse recruitment policies (Koslowsky, Sagie & Sashevsky 2002). This makes their organisations well prepared to deal with different labour issues that affect their employees in their respective workstations. They need to take note of social, religious and cultural issues that have an impact on the way employees behave while at work. Employees’ attitudes to work are influenced by their cultural and social backgrounds. Nestle and Google have open organisational cultures that are influenced by their American business backgrounds. Their employee advancement policies are used to motivate their employees to help them register positive results in their duties. It is important to note that these multinational firms have workplace systems that encourage workers to contribute their ideas to the work process to male their operations more competitive. Every business firm needs to institute proper policies that nurture and develop employees’ talents in different locations they operate from (Tian & Borges 2011). Global markets have become more interlinked due to rapid advances that have been made in technology and business integration. As a result, multinational firms need to incorporate beneficial cross cultural practices in their operations to make them more competitive in different markets they choose to operate in. For instance, there are more opportunities in emerging economies and major multinational firms have initiated expansion strategies into these markets. For instance, China, Russia, Brazil and India have witnessed a rise in the demand of high quality products due to an increase in the number of middle income and wealthy consumers. Therefore, both Nestle and Google have localised their products and services to make them more suitable for their customers living in such countries (Schmidt 2007). The two firms have taken time to study different market conditions that exist in various countries to come up with business strategies that help them build strong relationships with consumers in different regions. For instance, Nestle has altered its product development processes in the Middle East to ensure they conform to Islamic religious practices observed by many consumers in the region. Many of its products sold in the region are certified as halaal to make sure they measure up to high quality standards observed by many Islamic consumers living in the region. Multinational firms need to use different tactics to measure the performance of their individual divisions spread out in different global regions. As a result, managers need to understand the best methods they can use to make employees working under them register positive performance in their respective workstations. They need to adopt functional systems that help their firms to perform their respective functions more effectively to boost their efficiency and productivity (Ferraro 2006). For instance, Google and Nestle observe different sets of labour practices in their operations in Asian countries to make them more competitive in their respective industries. Asian economies such as India, China and Bangladesh have put in place favourable investment policies that encourage many multinational firms to set up their operations in these regions. As a result, multinational firms are often attracted to these locations by low labour costs and other incentives that help them increase their profits. Some countries have specific business practices observed by professionals from different disciplines due to their cultural backgrounds. For instance, companies operating in China need to take note of bureaucratic licensing procedures enforced by the government before setting up their operations. Even though the country has implemented capitalistic economic ideals, the Chinese government is influenced by communist ideologies in its administration. Therefore, an international manager needs to be flexible to adapt to local business practices which are observed in the country. A manager that intends to work in China needs to polish his negotiation skills to enable him deal with Chinese bureaucrats and business people, who are known as hard bargainers (Sheer & Chen 2003). Business managers need to understand effective branding approaches that need to be used in different markets they operate in. They have to decide on appropriate product concepts, pricing methods and distribution channels to enable their firms to compete effectively in their target markets. A manager needs to focus on giving consumers in different markets a lot of value for their expenditure by taking time to sell them products which appeal to their lifestyles and social perceptions. A manager needs to make products and services sold by his firm more responsive to different cultural and social sensitivities which are cherished by people living in a particular country. For instance, Google has managed to make its customers in different countries understand that its technological processes are innovative. As a result, the firm has customised its products in different countries to make them more suitable for consumers’ lifestyles (Karadeniz 2009). Communication messages that are used to appeal to consumers in different market segments need to be taken into consideration carefully. Business firms need to understand language and key interaction methods used by people living in different countries to come up with effective communication strategies. This will help them avoid giving out messages which do not add value to their marketing campaigns in different global markets they seek to penetrate. Communication approaches used by different firms are likely to have an effect on relationships they build with consumers in different global markets (Mariampolski 2006). International managers need to carry out studies to find out the best method through which they can build beneficial relationships with their clients based in different regions. Advertising, promotion and positioning strategies need to reflect the general lifestyles of people living in particular regions. International managers need to take note of different market segments in a country to understand consumers’ habits and general attitudes. This will help them come up with effective marketing strategies that appeal to consumers in such segments to make them have favourable perceptions towards products and services sold by their firms. Business firms need to take note of demographic, social and cultural factors that have an impact on peoples’ lifestyles in different regions they operate in. This will allow them to come up with effective business practices which conform to consumers’ expectations in different regions. A business manager needs to use appropriate language in adverts and other promotional processes to ensure his business firm makes a positive impact to a particular target market. Business firms should avoid using inappropriate language that is likely to be misconstrued by customers as insulting or demeaning to their cultural practices (Kotabe & Helsen 2001). This will help them avoid unnecessary conflicts with their clients in different regions they operate in. Many western countries have put in place laws that require multinational firms that operate in their countries to apply universal standards of practice in all their global operations. Therefore, many business firms are compelled by their governments to implement stringent environmental, labour and human rights policies that are observed in their home countries. A business manager needs to be aware of different policies and ethical standards put in place by his firm to understand how to enforce them effectively. This will make its processes more competent to ensure they satisfy different standards of integrity which have been implemented by senior executives (Cordeiro 2003). However, in some instances, managers may find it difficult to enforce universal legal and ethical practices as envisaged in their global corporate blueprints. Some countries have high rates of corruption and poor fiscal discipline which makes it difficult for business firms to institute high corporate standards. Business firms need to know how to position themselves in different global markets to help them obtain different benefits from such markets. A product is likely to be perceived differently in a new market compared to how it is perceived in its traditional markets. Managers need to look at different forms of consumer behaviour in various countries where their operations are based. This will make them understand the strength of their products in different markets they operate in. Managers also need to observe general attitudes of policy makers in countries they seek to establish their operations in to understand how they are likely to impact on their firms (Panda 2008). This will enable them make appropriate decisions to help their firms overcome different challenges in countries they choose to operate in. Business managers need to take time to understand general corporate policies which are observed there to enforce effective practices. Google and Nestle have managed to put in place localised management strategies which have enabled them to stand out in different foreign countries. However, the censorship requirements enforced by the Chinese government have affected the firm’s human rights and internet privacy standards. The firm has been forced to compromise its stringent ethical and human rights ideals to protect its market share in the country. The firm is facing a moral dilemma because without complying with the censorship requirements enforced in the country, it will not be allowed to operate. Therefore, this is likely to make it lose a big chunk of its advertising revenues because China has the largest population in the world and it is also the second largest global economy. The firm needs to take note of how its interests are likely to suffer as a result to ensure its operations in the global market remain competitive (Samovar, Porter & McDaniel 2007). Nestle is one of the largest beverage makers in the world. The firm has managed to differentiate its products to make them more suitable for consumers in different global regions. The firm needs to decide about the market approach it intends to use to make a positive impact in different countries (Chang 2003). The firm needs to take note of different lifestyle changes that are observed in different market segments to come up with appropriate products that satisfy consumers’ interests. The firm also needs to conduct specific market studies which are intended at obtaining crucial customer feedback from different sets of consumers to ensure it produces products that satisfy consumers’ needs. In conclusion, business managers need to take note of various cross cultural issues that have an impact on their operations. They need to put in place effective human resource systems to make their firms compete effectively in different regions. This will help them make a positive impact in different regions they operate in. Business firms should not compromise their ethical standards in their foreign operations because this affects the quality of their brands. 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