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This case study will analyse the prospects and the problems of my client who is promoted by his company to make a change in future carrier, therefore many factors will need to be considered by myself as he has to make one of the most important decisions about company. My aim is to examine a situation where internationalisation plays a vital role to a company for survival.Â The objectives of the following report are to perform situation analysis of my client problem and recommends solutions to my client for enter in the UK market and to develop a successful strategy.
Terms of Reference
MY client is working as a manager in a company in INDIA and he would like to change his current career due to several reasons. He is very ambitious to expand his business worldwide. He also wants to think about his future ideal life and how his career would fit into this. He had strong skills and talents. His company is providing an opportunity for him. Due to his vast knowledge in business, his company is appointing him as a manager at their UK base office.
But this client has just set up in other culture and he finds hard to managing people of different cultures. He realized that he is not good at managing across different cultures. He needs help to give more focus on understanding other cultures. He found lack of confidence in him when going in to talk to large groups of people. It leaves a great impact on him.ÂÂÂÂ to improve productivity and gain success of his business; he wants to improve his self confidence while managing his staff. He feels insecure while working in London for three months and suffers from his own low levels of motivation and inspiration to do his job. He wants to be able to take decisions. He wants to mould according to English culture but he finds difficult. He is of stereotyped nature and comes to me to gather information about this culture. He consults his problems with me because he finds himself not able to get ideas of other cultured people. Different types of cultured people are living in UK. Same situation he has to face in his office due to lack of understanding of others cultures who acts differently from him e.g. act of behaving, way of working and talking, eating habits etc.
This all happens due to lack of understanding of cultural differences, lack of training, lack of adaption of new ideas while trying to think of something new, something more exciting. But unfortunately, he is not able to boost creativity which is so important for a person in his profession. His negative thoughts may be come to his way whenever he tries to adopt new thinking.
A Manager has an overall responsibility of an organization. He Provides advice, information and guidance to staff within the organization and Staff will reports to manager. He wants to do best with his abilities for the progress of the company. He came to me for getting solutions of his problems. He wants to develop his self confidence and wants to raise his profile. Coaching will help him to increase his awareness in identify areas of strengthen of his superiors and colleagues. Coaching will teach him techniques to apply structure to his business. His self confidence will improve while handling large groups of people and managing his staff thus overall improving productivity and the success of his business.
Overview of the situation
Problems of my client are given below and he will need to be met with these problems.
Feelings of insecurity professionally: My client feels insecure in English culture in managing his business and he is not sure about way of working in other culture. He thinks that he is unable to move on next step and to take any decision.
Feels Lack of knowledge in thinking of right direction
He needs to go in right direction for getting success and promotion in his business. But without coaching, it may be hard for him to adjust with others who are from different culture. He does not understand what he wants. He might be not sure about direction. As a manager, he would be able to do what he actually wants.
Feels unable to take a right decision
He found himself in difficult situation at the time of taking decisions. His employees could not express their ideas before him as he wants.
Lack of self confidence
With self confidence he can take a considered decision. But he may be unable to show his self worth before others. It all happens due to culture. He feels lack of confidence when going in to talk to large groups of people, which he felt was having an impact on him not securing more contracts.
Unable to communicate his ideas and views
He found himself unable to communicate his ideas with staff members because when he tried to solve any problem and discuss with staff then they kept silence. Reason may be they don't want to listen him and not interested in his ideas. He tried his best in conveying his ideas before staff members but all of these may come on the way of his communication.
Problems with timetable
Problems with staff
He thinks staff members may feel hesitation to share their ideas with him. They may be don't like INDIAN culture.
He knows English language very well but he suffers with listening problems. He found himself in accent problem of British language. He found hard to manage people. He realized his weaknesses and needed to control on his everyday actions.
PEST Analysis of the situation
To be successful in business in other country, it is very important to understand the environment of that particular country. This will be helpful for us in running any company. I am doing PEST analysis to solve the problems of my client. With the PEST analysis want to describe how political, economical, social and technological factors affect the company. These factors usually are beyond of the control of the company and sometime present themselves as threats. TheÂ PESTÂ analysis is particularly useful for strategic managers in international business because they have to operate in a number of different national environments.
Political and legal factors
The impact of political risk needs to be considered that could affect our business. Â Local domestic laws and International laws are Different for each country. These laws will affect on marketing mix in terms of products, price, distribution and promotional activities quite dramatically. In political factors company need to look at any political changes e.g. laws global changes, Legislation on maternity rights, data protection, health & safety and environmental policy. For example, if company of my client has a large number of women employees then company should keep an eye on changes in such legislation. Because changes in maternity rights may have a major impact on such a business - and the aware business will keep an eye out for changes in such legislation.
In the case with UK, it is moderately pluralist society. There are different ideologies of different groups. If a company wants to operate his business in UK then it would be doing so in a democracy, though not in its truest sense the contemporary form of representative democracy is seen.
Political climate of UK is quite stable because Issues like extension of European Union and war against terror have had an effect on the political stability of the government. In theÂ UKÂ an integrated system of taxation is used whereby a dividend credit is given to stockholders to protect them from double taxation. Taxation policies and decision have affected the buying power of the individuals inÂ U.K. currency is again having an effect on the businesses.
Economic factors: Economic environment of a country is always changing and it is essential for a manager to be aware of the economic trends. Cross-border pricing, interest rates, bank charges, price transparency etc. have a great impact on business. Other economic factors include exchange rates, inflation levels, income growth, debt & saving levels and consumer & business confidence. Inflation of the country is one of the economic factors that could affect his company. If all firms in general put up their prices, inflation results. Instance rising in rate of interest rates can depress his businesses, causing redundancies and lower spending levels. U.K economy is benefiting from gradual low inflation rate. Inflation rate falls to 1.6% in September 2009.
Economic system of UKÂ is like a mixture.Â The government of UK is closer to a market economy than a centrally controlled one. A company can measure the economic environment of a country by its income, quality of life and purchasing power in which theÂ UKÂ is among the highest. Â UKÂ is firmly in the high-income bracket. In UK and many developed countries, common law system exists. . Corporation's actions are controlled by legal laws of the nation. At present British business is increasingly affected by EU regulationÂ and directives as well asÂ national lawsÂ and requirements.
Another factor is change of Government has returned many changes in theÂ UKÂ economy.
3. Social and cultural factors: Socio-cultural factors identify social trends demographic and cultural aspects of the external macro environment. It is very important for a company to in order to meet customers' needs and to meet with demand. Because of the culture difference and language difference, both of local employees and foreign manager will react as arrogant, unfriendly and hostile with each other, whenever some managers has transfer to another branches in others countries, such as an INDIAN transfers to UK. In this case, if the manager have knowledge about culture of British people it may be easier for him. It makes work more efficient and faster to familiar and corporate with them. Cultures of India is Particularistic culture, therefore an Indian take more time in discussing and accepting proposal of other and spend more time in building relationship. On the other side UK is a universalise country and it has definite and binding culture. Manager of other country try to win others culture by their way of thinking, but it's sometimes comes across as aggressive and uncivilized behaviour in outer directed cultures for example an Indian believes what he accepts and thinks should be understood by others but management of UK tries to become careful when they speak to the Indian management. Fons Trompenaars (2003).
A manager will have a problem because some western cultures think that they have extensive knowledge about how business operates and their aim is to influence the other side. . Fons Trompenaars (2003).
Advancement in technology plays important role in success of business. These changes impact on socio-cultural attitudes and on the international business. For example, if we want advancement of our company, we should think about these impacts and should look for technology that could make easier in producing our product .Therefore it is essential for a company to be aware of new technology and how they will affect to our organisation. TheÂ United KingdomÂ is one of the world's leading researchers and users of new technology. Developments of technology can reduce costs, improve quality and lead to innovation and can provide benefit to consumers as well as the organisations providing the products. Company need to use of advance technologies e.g. marketing information systems, customer relationship management for giving effective services to their customers.
Solutions and recommendations
We can apply Geert Hofstede five dimension theory to UK andÂ IndiaÂ as analysed below. Hofstedes five dimension theory gives a manger the background knowledge of the country. UK management have to knowÂ India's background information for meetings with Indian management.
Power distance measures the level of equality or inequality between people in the country's society and the effects on the workplace. England's low PDI score of 35 reflects its greater equality of power and wealth within society. This can be compared toÂ IndiaÂ who has extremely high PDI score of 77 well which reflects its inequality within its society. High power distance score indicates that the attitudes still remain. Managers cannot communicate freely with their subordinate employees if they are from a country with a low power distance. It is common to have liberal democracies.
Individualism refers to the degree of strength in which the society reinforces individuals or collective achievement and interpersonal relationships. A high IDV score country indicates that people of that country have more sense of individualism than others. USA scores highest on this and UK is second.
India is a country of Low Individualism which means people areÂ of a more collectivist nature with close ties between individuals.
Â Focuses on the extent to which society reinforces or doesn't reinforce the traditional masculine work role model of male achievement, control, and power. INDIA has High Masculinity rank which indicates the country has a high level of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination and on the other side, there is low level of differentiation and discrimination between genders in UK, because this country scores 66 in Masculinity.Â It means in British culture, females are treated equally to males in all aspects of the society, yet a certain amount of gender bias still exists underneath the surface.Â
Uncertainty avoidance index which focuses on the level of tolerance for uncertainty and ambiguity within the society such as an unknown and unexpected event or situation .UK ranked 34 of 39, it is Low Uncertainty Avoidance and Uncertainty avoidance inÂ IndiaÂ is ranked at a low 40.This means people may have few rules and high tolerance of deviant and innovative ideas. Â
Long-term orientationÂ focuses on the degree the society embraces, or does not hold long-term devotion to traditional forward thinking values. India is a country with high LTO scores 61 which indicate more contemplative cultures that adapt their traditions to a modern context, with limited social demands and status pressures. United Kingdom has low LTO score which is 25. This prescribes that in this culture change can occur more rapidly as long-term traditions and commitments do not become impediments to change.
Fons Trompenaars (2003) in some cultures, when one person stops speaking another starts, such as in India. They don't like interruption of anybody. But sometimes UK management and other western countries interpret this.Indian management is not impressed by this behaviour because they believe it is not right way to behaviour.Â
Both managements should have patient because there are different levels of expertise. UK management should also take a translator to bridge the language difference. In recognized cultures, he or she would be expected to interpret not just the language, but gesture, meaning and context.
In Sequential cultured people schedule tightly, if a person is late it is considered to be unprofessional .Coming late affects the remainder of the schedule. Synchronous cultured people are care less about punctuality meeting. Unexpectedly, instantly meetings would be given greater importance.
There is a difference between the way of working of the management of India and UK. Trompenaars seven dimensions framework will help to understand value of the Indian culture and the way they do business with other countries. This theory is different from Hofstede.
Mangers should behave when dealing with other cultures. This theory illustrates the way to behave and value other cultures when doing business.
Indian manger has cultural pitfalls however to overcome these; an Indian manger should gain knowledge about the British culture. He should have knowledge that the definition of management differs in each culture, which also Hofstede and Trompenaars stated in their theory. The both theorist would help an Indian manger to increase their knowledge about other national country. Â Both managements differ because they both have different values and norms which they believe and way they lead their team is completely different.
Forecasts and outcomes
Managers require high levels of personal artistic ability to respond to challenge, ambiguity and paradox. They need a sense of choice and personal freedom that helps them in finding new patterns and possibilities in everyday thoughts and deeds. They need the capacity to act undependably when stability fails, sympathetically when emotions are raw, non-rationally when reason makes no sense, politically when confronted by unsophisticated self interest, and playfully when fixation on task and purpose seems counter-productive (Crawford, M, 2003: 62).
Now he is happy with his promotion and he wants to do better rather than before and concentrates on his work. Through coaching he found his new role what he had expected. After coaching, my client was able to set himself a realistic action plan in order to achieve his goal of starting up his new career in UK.Â