UK Organizations

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Over the past few years, many UK organizations have taken advantage of globalization and have established businesses in many different countries. Likewise, many companies from other countries such as India and China are operating in the UK

In this assignment, you will investigate into how organizations are operating across different cultures.

You have been hired as a Management Consultant by a small company in South London called Furniture Works. The company which was trading through one unit has developed a successful 'internet sales' strategy.

Following your successful recommendations on 'alternative organizational and communication systems' to management of Furniture Works, they have decided to use your services again.

Management of Furniture Works is particularly concerned about the problems they may encounter in ensuring that teams are able to function properly within a virtual manner,

TASK 1

  • Carefully, research and select three different organizations which are currently carrying business across different cultures
  • Carry out detailed investigation into these organizations
  • Write a report on the value of cultural understanding that management of these organizations have developed.

SUMMARY

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THREE DIFFERENT ORGANISATIONS:

  1. United Parcel Service (UPS)

  • 95 years of package delivery business
  • Providing services to consumers worldwide in more than 200 countries
  • Do business in 15 different languages and dialects
  • Deliver an average of 13.2 million packages per day
  • Employs 425,300 staff with 358,400 in the U.S. and 67,300 internationally
  • Workforce is multicultural and multidimensional

  1. STARBUCKS

  • Founded in 1971
  • Sells coffee, tea, food and entertainment products
  • Has more than 172,000 employees worldwide
  • More than 15,700 stores in 43 countries
  • Starbucks coffee is available to customers in many major grocery stores across North America and the UK
  • Ethnically diverse communities throughout the country

  1. APPLE INC

  • Designs and manufactures consumer electronics and computer software products
  • Established in Cupertino, California on April 1, 1976
  • Maker of Macintosh computers, the iPod and the iPhone
  • Employed over 75,000 people worldwide

CULTURAL

  1. UPS

  • Long standing company policies such as employee ownership, equal opportunity and promotion from within
  • Operating on a personal basis founded on teamwork and first name relationships
  • Practicing objective, careful hiring methods
  • Providing training opportunities and recognizing accomplishments

  1. Starbucks

  • They hired people for qualities like adaptability, dependability and the ability to work in a team.
  • Employee training and provide comprehensive training to all classes of employees including part-timers.
  • Embrace diversity as an essential component in the way we do business
  • Contribute positively to communities and environment
  • Provide a great work environment and treat each other with respect and dignity
  • Key philosophies was to 'treat people like family, and they will be loyal and give their all.'
  • Comprehensive health benefits includes medical, dental and vision coverage, tuition reimbursement, stock options and vacation.

  1. Apple Inc.

  • Apple's corporate culture is characterized by its intense work ethic and casual dress code.
  • Workplace reflect a 'relaxed', 'casual,' 'collegial' environment with 'long hours, weekends included' and 'no end to challenges and cool projects.'
  • Creation of Apple's electronic campus, employees worldwide use it to exchange information about their work and to gain access to corporate information and work processes.
  • Creating a viable computer system that allows employees to learn from each other so that they can perform their jobs more effectively.
  • Agrees that empowerment is a big issue. 'when people feel like they have an opportunity to contribute and to influence, they feel much more invested in the organization.

Your research should have led you to look at management practice adopted by organizations when faced by different cultural needs.

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  • Write a report on each of your chosen organization describing the different management practice for alternative cultures.
  • In your report also include how these organizations have developed formal and informal multicultural relationships.

INTRODUCTION:

Today, global revolutions are under way in many areas of our lives: management, politics, communications, technology. The word global has assumed a new meaning, referring to a boundless mobility and competition in social, business and intellectual arenas. No longer just an option, having a global vision has become a business imperative. Having a global vision means recognizing and reacting to international business opportunities, being aware of threats from foreign competitors in all markets, and effectively using international distribution networks to obtain raw materials and move finished products to the customer.

Central to any society is the common set of values shared by its citizens that determine what is socially acceptable. Culture underlies the family, educational system, religion and social class system. The network of social organizations generates overlapping roles and status positions. These values and roles have a tremendous effect on people's preferences and thus on marketer's options.

Language is another important aspect of culture. Marketers must take care in selecting product names and translating slogans and promotional messages so an not to convey the wrong meaning.

Each country has its own customs and traditions that determine business practices and influence negotiations with foreign customers. In many countries, personal relationships are more important than financial considerations.

OBJECTIVES:

To focus on the management practice of cultures of UPS, Starbucks and Apple Inc. and how this affects the overall performance of the organizations in terms of their human resource policy.

SUMMARY:

Today, companies are focusing on relationship management, which involves building, maintaining, and enhancing interactions with customers and other parties so as to develop long term satisfaction through mutually beneficial partnerships. In general, the longer a customer stays with a company, the more that customer is worth. Long term customers buy more, take less of a company's time, are less sensitive to price, and bring in new customers.

CUSTOMER RELATIONSHIP:

Starbucks strives to build strong customer relationships and retain loyal customers with the Starbucks Card. It offers the convenience of shopping online and making purchases with a quick, easy-payment method.

Creating and building long-term relationships requires a world-class workforce. The goal of leading companies such as UPS , Starbucks and Apple Inc. is for all workers to add value to every job they do every day. Such firms place a strong emphasis on training and the use of technology to improve worker productivity.

GLOBAL BUSINESS MARKET:

It takes some hubris to bring an American coffee shop to Vienna, the city of cafes, and then to ban smoking in it. But no one has ever considered Starbucks humble. And the move, a keystone of Starbucks's rapid expansion in Europe, appears to have paid off. Since the coffeehouse opened in December 2001, in the smoky, beating heart of Vienna, near the Opera House, it has been a resounding success. Many Viennese believe that their culture has been infected, that Viennese use their 1,900 or so coffee shops to linger and meet, smoke and drink, savor the wonders of pastries, write books and read newspapers. There was skepticism about Starbucks brand, associated with globalization and mass American culture. The smoking issue loomed large as well. Some argued that no coffee shop could possibly ban cigarettes because some 40 percent of Europeans smoke and 60 percent of Italians.

INTERNATIONAL FRANCHISING:

Like any other forms of business, franchising is part of our global marketplace, with many franchise systems already operating units internationally, as international demand for all types of goods and services grows.

An example of this is the UPS Trade Direct Ocean Service. Introduced in 2001 with links between 4 ports-in China, Brazil, New York, and Los Angeles-the service expanded to 40ports in 2003, and is now adding a further 30 origin ports. This expansion is in addition to its UPS stores, located in more than 40 countries outside the United States. For UPS, international franchising is a huge growth opportunity and a strategic part of building the business.

EMPLOYEE EMPOWERMENT:

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Empowerment means giving employees increased autonomy and discretion to make their own decisions, as well as control over the resources needed to implement those decisions. At Apple Inc. they believe that most people will work harder and do a better job if they feel their opinions are respected and that they are trusted to be responsible to make their own decisions. Empowering their employees will likely pay off with respect, loyalty and the high level of productivity that comes from effective teamwork.

CORPORATE CULTURE:

The leadership style of managers in an organization is usually indicative of the underlying philosophy, or values of the organization. The set of attitudes, values, and standards of behavior that distinguishes one organization from another is called corporate culture. A corporate culture evolves overtime and is based on the accumulated history of the organization, including the vision of the founders. It is also influenced by the dominant leadership style within the organization.

Although culture is intangible and its rules are often unspoken, it can have a strong impact on a company's success. Therefore, managers must try to influence the corporate culture so that it will contribute to the success of the company. For instance, the Apple Inc. has committed itself to the development of a culture befitting a more mature organization. Until 1997, the company's culture was described as cowboy-like style. The leadership was described as abrasive, loose and autocratic. Employees were only recognized and rewarded for their intellect and programming skills.

The new CEO, Steve Job, announced in 1997 a new mission for the organization: To enable people and businesses throughout the world to realize their full potential. He has committed to making strides in empowering executives to make their own decisions. He has implemented training and development, strategic planning, and formal performance evaluations. His goal is to create a great company that will be even more successful in the next 25 years than it was in the first.