The Cross Cultural Management Commerce Essay


The purpose of the following essay is to address the extent and the depth of cross-country differences in management practices which are attributable to national culture. Through our evidence gathered from research, we will argue for the fact that one cannot rely on cross-country differences in management practices being attributable to national culture. In order to reach this conclusion we will

Cross cultural management:

Nancy Adler (2002: 11) identified that cross-cultural management describes organizational behaviour within countries and cultures; compares organizational behaviour across countries and cultures; and, perhaps most important, seeks to understand and improve the interaction of co-workers, managers, executives, clients, suppliers, and alliance partners from countries and cultures around the world

Growth strategies for long term sustainability:

Differences and similarities:

Extent of national culture's influence:

Human Resources management practice:

Differences and similarities:

Extent of national culture's influence:


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Regarding the part of the recommendations towards GlaxoSmithKline and based on the critical evaluation on how to enhance the two management practices we used to implement in the four nations - subsidiaries we chose and / or globally: our main focus for guidance and recommendation is the emerging economy of the Bangladesh as is the only area which is regarded to be the Lower Developed Country (LDC's by the World Bank characterization) by the global market and in the same time full of future potential for profit and development. Meanwhile, as the other countries of our sample (UK, USA, Denmark) are providing us with useful data; we consider them as some of the most developed countries in the world with no extreme limitations, big margins for development and investments; therefore our suggestions in these countries are less than Bangladesh's as most of the difficulties have already been overcome. We will present our suggestions domestically to each market, as globally oriented too.


Recommendations for GSK Bangladesh Ltd:

Poverty reduction Strategy Plan contrived by pharmaceutical companies (GSK) along with the collaboration of the government

GlaxoSmithKline Bangladesh Ltd. seeks more freedom and flexibility from the headquarters to comply with the country's general position and rules

The implementation of patent protections as it will be beneficial for all the stakeholders.

A fairly extensive public research community is ideally positioned to assist local drug makers, especially in biotechnology and reverse engineering.

Rising healthcare spending will benefit drug makers and medical device manufacturers.

The construction of an active pharmaceutical ingredients industrial park to reduce the reliance on imported raw materials and boost export revenue potential.

Settlement of corruption and an unsettled political situation will continue to discourage investors

Remedy the influence of Indian and Chinese market into Bangladesh to stop the fluctuation in the prices of the commodities and specifically of the imported drugs

Recommendations for USA / UK / Denmark Ltd:

High population economies do not necessarily determine market population.

Reduce health care cost in USA. As the USA does not have price controls and because of the negligence of the government's officials in the healthcare sector and the insurance system, the USA has the most expensive health care system in the world, but the expenses don't match the expected level of service. Many Americans (homeless and helpless, recently including children) do not have health insurance. Life expectancy for Americans is low by international standards.

The pharmaceutical industry's weaknesses could contain high-risk business modeling, disconnected Boards of Directors and Shareholders, poor branding and marketing or even low staff morale extracted from business routine mostly in United Kingdom and USA.

Implement a customer leading incentive compensation system for sales in USA.

Enhancing the Global Supply Chain management for reduced exports and imports and reduced final costs.

A potential increased government evolvement with regulations will lead to a malfunction in the pharmaceutical sector, in a declining economy and in increased research and development (R&D) costs.

GlaxoSmithKline Ltd based in Denmark adopt new marketing and sales techniques to reboot the branding awareness of the public for their products.

As R&D productivity may decline and development periods were extended, as clinical trials are becoming more complex and costly there was sharp rise in R&D expenditure in Denmark.

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A global slowdown or recession will have an adverse effect in pharmaceutical and healthcare sector, along other companies in various industries, but mostly those whose products sell in economies that experience the worst declines.


Expand in online services to focus on convenience, facilitation and accommodation of the people's needs.

Innovative patents are considered as strength of this sector but due to limited time for patents had become their weakness.

More focus on controls and medical sensitivity as some of these products from this sector may have serious side effects

The products take long time in development such as clinical trials which takes 10-15 years and maybe up to 20 years.

It involves high cost primary ingredients such as investments on R&D, advertising.

One of the major weaknesses are regulatory and legal issues by FDA in each country and weak control systems in other.

Customer loyalty does not exist, in this sector they do not have particular brands but needs

Extent and availability of massive range of substitutes in markets

Entry barriers to some countries - existence of authoritarian regulations


To sum up and in the same time trying to answer the question that is heartrending us; to what extent are cross-country differences in management practice attributable to national culture; we examined thoroughly our findings and through our research we concluded to a convincible, credible and in the same tame precocious answer. As a group and after a lot of debates and discussions along with an extremely detailed conceptual analysis we argue that indeed, national culture operates as a fundamental element - one of the most deciding factors - to modify the behavior of an organization - the four (4) GlaxoSmithKline's subsidiaries in our case.

On the other hand, although national culture is proved to be of outmost importance, other factors, both internal and external, can shape the behavior of an organization. Psychological and cognitive factors, contextual factors as business related and business oriented (both in professional and organizational context) and lastly environmental issues - factors can ultimately alter the professional behavior of an organization. Both cultural and non-cultural factors can transform the professional behavior of an organization, as supported from the academia and with the most detailed opinions being contradictory with each other.

As Laurent (1983, 1986) found out, in the same multinational company, cross cultural differences are easier to be revealed and pronounced among the employees of different levels than in different organizations in different and various countries. House et al. (2004) claimed for the findings of the Globe Project that ''organizational cultures reflect the societies in which they are embedded'' (2004: 6, 37).

Hence, national culture differences in different management practices are believed to have an influence on the professional organization; while the only unpredictable element is the depth and the extent of this; as all the responsibility lies on the hands of the people on the top management positions and the extent they will allow national culture affect them and integrate into. Cultural and non-cultural factors that affect the behavior of an organization can be justified by various reasons, as Child (1972) suggests, that the environment can be ''managed'', he also adds that, strategic choice is a political process in which constraints and opportunities are a function of the power exercised by the decision makers, in light of ideological values.

Moreover, as it has been suggested from recent and previous studies that often people resist new leaders - managers when the new leader behaves in a manner inconsistent with perceivers' expectations or stereotypes (Hanges, Braverman & Rentsch, 1991; Hanges, Lord, Day, Sipe, Smith & Brown, 1997; Sipe & Hanges, 1997). Moreover, various individual different variables (e.g., personality, stereotypical attitudes), as well as situational factors (e.g., mental workload, job-context), have been found to increase or diminish this resistance to accept new leaders (Hanges et al., 1997; Sipe & Hanges, 1997). Justifications can found in arguments like, organizations that operate in multiple countries must decide how much they want to localize their organization culture and related business management practices to fit within the country's context they operate and how much to strive to maintain consistency or standardization. (Bartlett & Ghoshal, 1989; Perlmutter, 1969; Rosenzweig & Nohria, 1994).


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Bartlett, C.A., & Ghoshal, S. 1989. Managing across borders: The transnational solution. Boston: Harvard Business School Press

House, R.J., Hanges, P.J., Javidan, M., Dorfman, P.W., & Gupta, V. 2004. Culture, leadership, and organizations: The globe study of 62 societies. Thousand Oaks, CA: Sage Publications.

Perlmutter, H.V. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4: 9-18

Rosenzweig, P.M., & Nohria, N. 1994. Influences on human resource management practices in multinational corporations. Journal of International Business Studies, 25: 229-251.

Child, J.(1972). Organization structure, environment and performance: The role of strategic choice, Sociology, 6(1), 1-22

Hanges, P. J., Braverman, E. P., & Rentsch, J. R. (1991). Changes in raters' impressions of subordinates: A catastrophe model. Journal of Applied Psychology, 76, 878-888

Hanges, P. J., Lord, R. G., Day, D. V., Sipe, W. P., Smith, W. C., & Brown, D. J. (1997). Leadership and gender bias: Dynamic measures and nonlinear modeling. In R. G. Lord (Chair), Dynamic systems, leadership perceptions, and gender effects. Symposium presented at the Twelfth Annual Conference of the Society of Industrial and Organizational Psychology

Sipe, W. P., & Hanges, P. J. (1997). Reframing the glass ceiling: A catastrophe model of changes in the perception of women as leaders. In R. G. Lord (Chair), Dynamic systems, leadership perceptions, and gender effects. Symposium presented at the Twelfth Annual Conference of the Society of Industrial and Organizational Psychology

Marie - Joelle Browaeys & Roger Price (2008). Understanding Cross-cultural Management. Essex: Pearson Education Limited. p16.