Analysis of a Media Article on Cross-Cultural Management - Example

NАLYSIS ОF А MЕDIА АRTIСLЕ on cross cultural management (Author’s name) (Date) (Institutional Affiliation) Table of Contents 1. Introduction: 3 2. Cultural and ethical issues 4 3. Cross cultural dimensions, policies and their social consequences 6 4. Conclusion: 8 5. Bibliography 9 Link http://www.thenational.ae/business/economy/cross-cultural-rules-to-help-companies-flourish#page1 Introduction As organizations continue to penetrate the global market, firms hire a workforce from different cultures to understand different markets. Globalization is the process of doing business across different markets and cultural borders. These global markets have integrated systems hence the operations of a company are not restricted to the domestic market. It is undeniable that culture is a great determinant of business operations in global market. For an organization to penetrate in a borderless economy, it has to learn the culture of the market and also adapt to preferences and practices of the consumers in that market (Jack & Westwood, 2009). Once an organization respects and understands cross-cultural factors, its productivity levels improve. Cross cultural management is an area that many international businesses have focuses on to better their services in the global market due to the wide and diverse market. This paper will explore a cross- cultural issues that affect businesses across the globe. It will also identify how culture has affected organization strategies. Businesses are affected by political risk due to some regulatory environments. Some regions like those of English origin rely on common laws, while others are controlled by statutes of civil law (Kapur & Janakiram 2015, p19). The report will also discuss and explain communication across cultures, strategic planning, cross-cultural negotiations and conflicts, through analyzing the media article, ‘Cross-cultural rules to help companies flourish.’ Cultural and ethical issues Every nation in the world has its own beliefs, cultural values and cultures. Scholars define culture as a shared mind programming, systems of values that differentiate a member of a social group from another. Business practices are affected by different ethical and cultural issues. Integration in workplaces has been increasing over the years (Kapur & Janakiram 2015, p17). Therefore, culture issues such as racial identity, ethnic identity, social class, language, ethnocentrism religion and cultural values affect business operations (Autio et al. 2013, p345). According to Hofstede’s model theory, international businesses must understand cultures components which are not limited to language and religion that affect global market. Language affects financial issues because operations such as negotiations between seller and buyer depend on it (Jack &Westwood, 2009). Nations have different word connotations hence language may affect business communication. Hofstede also indicates that meaning of words may affect international business. For example, the meaning of the Spanish word “manana” when literally translated is “tomorrow” however, “not today” is its appropriate meaning in business (McSweeney 2015, p45). Therefore if language is not properly understood across nation it might cause miscommunication and affect international business. Religion and business are interrelated is some countries. Various nations allow crossover between religion and business law while countries like United States does not observe this culture. Nations which is predominated by Islamic religion, sharia law regulate some private and public life aspects. The law prohibits investments in financial risk business (gambling) and other businesses that contradict with values of Islamic religion. Hence, these cultures may affect global business operation for such organizations. According to Trompenaars theory, it is important for international business to research on dimensions along with national culture and check whether the business practices are accepted in that geographical boundary business (McSweeney 2015, p55). As discussed in the media article, international business such Emirate airline requires governance policies that are versatile and clear due to cultural difference in the global market. Corruption is a cultural dilemma faced by international managers (Minkov & Hofstede, 2012). In some developing countries bride is cultural practice for any business to thrive in the region. United States and United Kingdom advocate for corruption free operation. It is the obligation of international manager to comply with the anti-corruption law to help the company to penetrate the United States market. Trompenaars discuses about understanding universalisms and particularism in cultural issues to rule fit any business decision in a global market. Most times people act as groups rather than individuals (Autio et al. 2013, p349). Workplace and global businesses are affected by social organization which is in most cases determined by cultural practices. Organization should not assume one cultural view is a universal factor in all countries business (McSweeney 2015, p40). Class structure, religion ties, work attitude, political affiliations economic stratification and other prejudices are different across the world. These areas have inferences for business practices. Countries such as northern Europe, Canada and United States with weak kinship ties and family relationship ties select workforces on grounds of resumes. By contrast, members of Latin American, Arabic, southern European and central Africa cultures value nepotism to ensure foreseeable levels of accountability and trust. Consequently, it is important for global businesses to operate within cultural restraints to succeed (Minkov & Hofstede, 2012). Basis of confronting situations is the diverse aspects of culture. What one country may consider wrong according to their culture might turn to be ethical in another. Cross cultural communication is affected by environmental presuppositions of culture such as topography, climate, population size and density (Chanlat et al, 2013). These factors affect communication of business –related subjects. Cultural issues also determine involvement of the government in the market. Code laws may be developed based on societal beliefs thus, law structures of international business affected. These issues include business law system, dispute litigation as preferred by culture rather than mediation or arbitration and exclusive verse inclusive statements. Corruption is a cultural dilemma faced by international managers. In some developing countries bride is cultural practice for any business to thrive in the region (Autio et al. 2013, p349). Cross cultural dimensions, policies and their social consequences Increase in interconnections between nations has influenced international managers to develop strategies that can help them in the cross cultural business. Governance framework that is effective is a policy that should be adopted by cross cultural business for the purposes of receiving international financial backing (Jack & Westwood, 2009). To penetrate new markets, governance of the organization should be of the caliber that fits in the host market. Technologies, ideas and practices that are universal are important for global business. Universalism policies pay attention to diversity of culture because it can be apply anywhere. The important policy of cross cultural businesses is to capitalize on production factors that are cheaper. Cultural dimensions discussed by Hofstede help in identifying these production factors (Minkov & Hofstede, 2012). Joint venture and local partnership is another strategy used by international business in new market because local companies have a greater knowledge of the country’s culture. Korea and Malaysia and India market accept decisions from international managers because of the communitarianism system of culture. Cross cultural business policies has impacted managers decision making and has shaped direction the organization take in global market (Apetrei et al. 2015, p1519). For cross cultural business to be successful in new market, it should time its entry in the market. This helps the firm to study the market behavior and its competitors. Businesses fail due to foreign market ignorance and assumption that their domestic markets are similar to those of foreign countries (Kathrani 2012, p370). Because nations have different cultural practices, international business should time entrance to the market once customers have been educated. Global strategy is to stress on the economies of scale and also centralize control on local levels. Region strategy decision making, goal setting on a particular geographical area should be given to the regional managers (Chanlat et al, 2013). Regional preference and taste of products and services should be tailored on cultural practices. Geographic coordination is a strategy that can benefit cross cultural business more than multi-domestic. The incentive of international policies is resource and market seeking and long term economic benefits (Kathrani 2012, p369). There are some cultural and social consequences brought about by cross cultural business. Distinctive cultural differences have been deteriorated and also blended. Some discrete sovereignty of countries has reduced due to cross cultural businesses. Exchange of information such as technological advancement has influence service delivery across the globe (Chanlat et al, 2013). Homogeneous set of beliefs and values has replaced group identity and individualism cultural systems. International economic activities have caused high inflation rates host markets due to lack of local competitors. Conclusion The paper has demonstrated how cross cultural business is affected by ethical issues of language differences, religion, social organization of a region and culture diversity. The report has discussed the impact of region cultural knowledge has on the success of international business. Services and products are custom-made on taste and preferences of the region. Trade across the globe is influenced by cultural differences. Thus, it is necessary for all international business to foster intercultural strength and consciousness of cross cultural business. To penetrate new markets in the global economic, timing entry can determine the business success in the market. Communication is very an important factor in international market. Therefore, the language used should portray the same mean in different regions to avoid miss communication. The report also discusses cultural and social consequences brought about by cross cultural businesses. Cultural individualism and uniqueness has been lost because some superior cultures have colonized regional markets. Cross cultural management by international business can be understood through looking at cultural dimensions discussed by Hofstede and Trompenaars theory. Religion is a determinant of business laws in some nations. In conclusion, cross cultural management is a fundamental factor that should be considered before an organization’s decision on globalization is arrived at. Bibliography Apetrei, A., Kureshi, N.I. and Horodnic, I.A., 2015. When culture shapes international business. Journal of Business Research, 68(7), pp.1519-1521. Autio, E., Pathak, S. and Wennberg, K., 2013. Consequences of cultural practices for entrepreneurial behaviors. Journal of International Business Studies, 44(4), pp.334-362. Chanlat, J.F., Davel, E. and Dupuis, J.P., 2013. Cross-cultural management: culture and management across the world. Routledge. Jack, G. and Westwood, R., 2009. International and cross-cultural management studies: A postcolonial reading. Springer. Kapur, N. and Janakiram, B., 2015. Cross cultural management and it's role in diversity management: Evidence from companies in India. International Journal of Research in IT and Management, 5(7), pp.7-19. Kathrani, P., 2012. Quality circles and human rights: tackling the universalism and cultural relativism divide. AI & society, 27(3), pp.369-375. McSweeney, B., 2015. GLOBE, Hall, Hofstede, Huntington, Trompenaars: common foundations, common flaws. Transculturalism and Business in the BRIC States: A Handbook, pp.13-58. Minkov, M. and Hofstede, G., 2012. Cross-cultural analysis: the science and art of comparing the world's modern societies and their cultures. Sage. Read More