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The culture of a society means, people who have a similar lifestyle are sharing the same values, assumptions, attitudes and beliefs which can be adapt through people from some groups like work or family.
The culture of a society is different among countries and people are adopting it through a process of socialization within some society.
It is important for international managers to understand it. Main reason is that managers can not anticipate same effort from employees from other national culture because people from different country have different attitudes and behaviors at work due to differences between national culture and organizational culture. To be part of organization and effective employee, sometimes they need to be trained even though it might be contradictory to employee's national culture.
Even in my class, there are some cultural differences between my classmates. For example, we are mainly come from country with high power distance cultures and I can notice that by seeing when my classmates show proper respect to our teachers. Moreover, I think that people from India are more collectivism and people from China are more likely to be individualism because when it comes to group works, I notice that students from India are more opened and comfortable with working with other people and students from China are not enthusiastically participate in discussions but they are always well prepared for their part.
Due to differences in attitudes toward time, change, material factors, and individualism, operational conflicts can be occur in workplace and international managers have to consider how to overcome these conflicts such as, controlling work organization, schedules, expectation and incentive to motivate workers might helpful to provide better organizational environment and bring benefits to the company.
Time is very important when it comes to business. Different point of view on time among different people who comes from different country might have misunderstanding in business and it can influence work environment. To Korean, they think time is a valuable and limited resource. Usually, they often treat scheduled appointments as something that they have to strictly obey. However, some country has different point of view on time because of their religious beliefs. For example, people from Arab, It can be an insult for them to have deadline. They often relate the amount of time spent on something with importance. Therefore, international managers have to accept these behaviors and try not to distress them.
Some country like America thinks that resource comes from nature is used only for their benefits. However, Korean have different attitude toward nature, protect the nature as it is and worship nature is part of their religious beliefs.
In some non- Western country like Taiwan, when there are some changes have been done in work place and something goes wrong and unrelated incidents keep occur, people often think it is cursed by evil spirits. However, people from Western country, think more realistic way to solve the problem.
Individualism also has lots of influence on management functions, such as incentive system for those who have individualism like American or Canadian, can be very effective to motivate them because they like to receive a reward based on their individual achievement not like Asian culture that they think more significantly on cooperation and teamwork.
Question 3 a)
Jo Barnes and M.Hulot have different characteristics due to their cultural differences which are reflected in their management models. Jo is manager from Australia where people have individualism and independent characteristics. She relies on her own knowledge about expertise in chemical processing and 10 years of working experience in Port Philip Pharmaceuticals. Moreover, she contacts with her other local agencies by only email and having few face-to-face meeting whit them. However, for M.Hulot who comes from French where people are more collectivism, he prefers to have more face-to-face meeting with other managers when they have management issues and discuss the problem with collective responsibility. Moreover, way they solve problem is bit different. Jo focuses on using her management processes and tries to apply that to partners by having a training session about testing techniques and quality control to overcome the problems and comply with their long-term set of objectives. In contrast, M.Hulot prefer to find out the root cause of the problem and set a short-term goals to maintain his competitive advantage by innovating the product with spontaneous coordination even though he has to change his management processes.
Question 3 b)
One of the main difficulties for international business in other country is cultural differences. Lack of knowledge about cultural differences may cause misunderstanding which can be a fatal mistake during operation and management. It is important to learn everything about background of person before you set meeting to make a good impression. Jo also did research about French culture before trip to France but she only thought about outer layers which can be visible rather than inner layers which are feelings of culture that cannot be visible. When she decided to have trip to French, she should have notice M.Hulot about her flight details. For him, he may felt ignored because it was him who invited her to France. Language barriers also can be a problem if company dealing with other people who speak other language. It will take longer time to negotiate. Moreover, level of expectation for each position in organization can be different for each country. Jo's qualification did not satisfied M.Hulot and he might felt she is the not a suitable person who can deal with him. All these problems occurred because of cultural ignorance. Therefore, international manager has to be culturally sensitive.
Question 3 c)
As an international manager like Jo, has to find different management approach for each country because of different characteristics due to different culture. It is important to understand their deeper level of organizational culture such as beliefs and feelings rather than to directly manage organization. Asian countries like Philippines, it is more important them to build a good relationship before they demonstrate performance. Meaning of trust for them is to having conversation which is not relate to work and non-professional topics while they are having dinner or making a pleasant memory during entertainment. Operations and management comes after when you become intimate with constituents as a person. For countries like France, they consider more on performance. When Jo makes a vaunt of performance that French colleagues did and respect their pride in their work, it made a good impression which helped a lot on building relationship and gained their trust. Jo tried to understand cultural differences and adopt their organizational culture to be part of their organization to make positive working environment. Different management approach to making deep socialization for two different organizational cultures brought her successful outcome.
If company wants to prepare their managers for global markets, they have to consider about three dimension of globalization which is culture dimension, economic dimension, and political dimension. Cultural dimension includes communication through internet, organizational culture, and business culture. People from different country with different organizational culture and business culture will have different behaviors and attitudes toward work. Therefore, manager has to understand their culture to train them to be part of company's organization and effective employee for the company. Economic dimensions like exchange of goods and services can influence managers to choose which strategies they have to implement for different country to attract consumer and satisfy them with their products in globalism and open markets. Understanding Political dimensions like work of government, protection, amnesty, climate change, tourism, and donation can be useful for managers to think, how they can innovate their product and services to be suitable for different political situation and to survive in different industry, moreover they can discover new opportunities with their resources.
For entrepreneurs and small businesses with limited resources can target a niche market to concentrate on improving their strength to be an expert and to avoid competition with bigger company. Also, keep business small until business has solid growth to respond quickly for change in global markets. Furthermore, keep differentiate and innovate their products to show advantage of your products to customers and to build good brand image.
Even though globalization has benefits to developing country, it also brings negative effect such as eliminates jobs, lower wages, and exploits workers on standards of living in some country. Therefore some countries are now trying to restrict globalization. Due to globalization, lots of global company like Apple or Samsung tries to manufacture their product in low-wage country to export and import at a very low cost. It can be benefit to developing country. However, it will decrease manufacturing jobs in developed countries. Moreover, because of low-wage in developing country, wages for employee in developed country is underestimated. Even though, the standard cost of living is higher than what they earn. Lastly, there were some serious social issue about Nike that they treated workers in low-wage country very badly, people were working in terrible environment with very low-wage. According to this, global company only thinking about utilize labor force because of low wage without contribute toward productivity in developing country.
Question 6 a)
If, Yahoo tries to dealing with the Chinese government directly, they may face difficult situation involving significant cultural divergence like misunderstanding due to language barrier will effect negotiation between them and progress might takes longer than they expected which is directly relate to their profit. Also, due to globalization, culture is constantly changing so they need some people who are familiar and know well about unique identity of local culture to reduce clashing between two different national cultures. Joint Venture Company may also have great personal connection with their government which might help with negotiation easier and faster. Furthermore, host government has great influence on profit by amount of taxation and their government policies on ownership by foreign company. Therefore allow local joint venture partner to deal with government is more profitable way to deal with these problems.
However, some risk might be occurring. For example, even though, they are joint venture Beijing Founder Electronics may deal with Chinese government on favorable terms for them. Moreover, Yahoo have to keep rely on their partner for problems with government that might happen in future. Eventually, they could lose control system in Chinese market.
Question 6 b)
Strategic alliance is simple situation where two or more companies implement a strategy together such as sharing marketing strategy, technology, or resources.
Joint venture is similar to strategic alliance but it involves a long term investment of funds for developing new products or to expand their markets globally to make equal benefits to both companies.
Advantages of strategic alliance is that companies can build closer relationship between them and share knowledge about technology, management skills, and capabilities like production and design to reach their shared goals with low competition in the market. However, even though they have low competition in the market, competition may occur between partners, moreover, it takes time and need more efforts to maintain relationship between partners because of lack of commitment.
Advantage of joint venture is that it is long-term relationship to make benefits for companies to overcome their shortage of resources and special expertise quickly and it is cheaper. However, even though, they have to exchange their knowledge, they might not fully transfer their technology or skills to their partners and profit has to be shared between partners. Furthermore, different level of technology or knowledge may cause different influences and unbalance their relationship.
Question 7 a)
Brandon Kelly who comes from America where there are lots of managers with low uncertainty avoidance characteristic which makes them to think they are in control of business that will operate in the way he thinks. So, Brandon had a plan on certain outcomes because he thinks that offering equitable profits for both of them will negotiate contract successfully. However, for Mr. Kumatsu who comes from Japan where there are lots of managers with high uncertainty avoidance characteristic which makes them to believe that they have little control over the future so some decisions might be not that serious for them. Moreover, managers from Japan usually start negotiation with highest offer that they want to obtain but Brandon offered something that both managers can accept which led to failure of the deal.
Question 7 b)
To achieve a good international dealing with suppliers in Japan, there are some effective management strategy such as preparation, persuasion, agreement and relationship building and between these strategies, relationship building takes important part of negotiation with managers from Japan. For Americans, they are trying to focus on specific matters which relate to their negotiation and only thing that is part of contract that bring them a benefits to not to waste their time during progress of negotiation. However, some Asian country like Japan or Korea tends to have more time to communicate or interact with negotiators to know them better and to build relationship and trust. They prefer to determine strength of negotiators like talent, passion, persistence, responsibility, and exertion and relate what they felt about negotiators with business success after contract. Therefore, Brandon has to take serious care about relationship between suppliers in Japan other than only focusing on formal contract.