The Management Challenges In Cross Culture Commerce Essay


Managing in cross culture which means that a firm has to operate parts overseas has different challenges. These challenges if they overcome correctly , efficiently and effectively by a company, firm it may enjoy a wide range of benefits of operating in cross - culture (overseas).

The main challenges which arise is caused by a situation where by the Management of the company operating in a foreign country not having full understanding or knowledge of the culture of the country in which its officers are operating.

As any organization is so involved by culture this may course other problems in management working procedure if culture of the concerned country is not well understand.

There are different studies where have been indicated related to cultural differences. One of them is the study conducted by Gerad Hofstade and INSEAD Institution where is a school of business and research Institution.

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Hofstade found out that there are cultural differences in national and regional level which affects overall behavior of people within the society. As a result bringing a certain influence in organizational or firm operations.

These differences in cultural practice found to change as time changes.

INSEAD Institution studies tend to show that people under estimate or on the other side over estimate cross cultural differences. For example note only at national culture when seeking to operate their company in a foreign country.

But the thing is there is also education culture, rank culture, gender culture, religious culture and so on. So it is suggested that when looking at culture factors of a society or country etc these issues has to be talented by the concern Management of the organization. For example in Hofstede way of assessing culture six dimensions of culture have been found.

On the other hand INSEAD which is a business Institution administration Institution has conducted several researchers which have come up with different solution concerning cross culture business relations.

INSEAD is based in Paris France with other campuses in Asia and Middle East it has studies of cross culture in matters like Marketing, Operations Management, Ethics economies, organizational behavior and many more.

These studies helps students who will later on became involved in cross culture business to be well understood in may fields.

Also the INSEAD concerns service team helps companies in recruiting graduates. In case of modern a home Mechanical and electronic firm which has its main office in Seattle USA and is trying to expand its operations in Argentine several cross culture issues has to be tackled in order for it to prevail.

For example the difference in language, as language is a urge informed in culture although the company has decided to choose local managers but for the main future to have good control of Argentine branch. The thing is how much Spanish the administration in settle knows in order to deal with the Argentina market. It has learned also as so what extent does Spanish or English on the other hand is spoken by business community in Argentina.

On the case of Hofstades six dimension of culture several things has to be discussed.

For example Individualism against collectors in a concerned Argentina culture. In order to have good leadership of the office in Latin America the local officer has to know as to how people defines themselves in group membership.

Individualistic culture people display them Individual personalities and choose their own affiliations.

On the other hand collectivist culture people act mostly of members of a group knowledge of this will help the main officer on the situation like how to make decisions and flexibility

Majorinity against femininity is another cultural issues which has to be sort out by the Seattle Land officer. This dimension which in other words is called Quality of Life.

Quality of Life is very important although it sometimes depends on other dimensions. This if well addressed will help the company to be aware of what to do with its operations in Argentina.

Another dimension which has to be discussed concern the subsidiary in Argentina is long against short term orientation.

This is how people make decisions and value actions and attitudes that affect the future.

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In long term cultures people value actions and attitudes that affect the future persistence. And in short term people values attitudes which are affected by the past in the present.

So on modern in order the company to operate efficiently and effectively in Argentina these are and several culture issues has to be put clear and tackled. This will help the company's management to operate well of gain control of the Argentina Market.


The definition of culture as solution to a problem of external adaptation and Internal Integration could be taken as a fitting definition of strategy.

In devising and implementing strategies organizations need to assess their external environments as well as their internal capabilities.

Strategy is considered to be the means for archiving corporate objectives.

Cultural assumptions regarding external adaptation are particularly relevant to strategy, as it is very purpose is to align the organization with its environment.

Assumptions regarding Internal Integration are relevant to questions such as which is involved and who takes the decisions.

This is for true due to the belief that environments can be analyses and known that helps them to know the different techniques such as strategic forecasting or scenario planning as well as to conduct the Market research.

Due to the environmental studies Managers are likely to precise greater uncertainty when focused with similar environments and perceive less control on what will happen.

In order to proof that, there are two cultural models of strategy seasonal on cultural assumptions such as follows:-


This controlling model can be characterized as centralized and formalized

Top Management may call in expert consultants to assist in devising strategies.

Formal strategic planning units may be established to Management or the Board for deliberation.

Formal scanning units may also exist that are responsible for tracking environmental events.

Scanning is focused and in depth in order to obtain the necessary information.

Information is obtained from Industry reports or Consultants and tends to be quantities and objective forecasting econometric models, and structured scenarios are used to analyze the Information.

Board on this Information and analysis top Management makes the decisions and then hands them down to be implemented.

Implementation entails through planning, setting near and specific targets, explicit communication of what is to be done and how persistent follow through and then linking performance goals with rewards.

The cultural consumptions embeddable in that model are:

Environmental can be known as Intelligible and Predictable.

Specific Information can be obtained (by actions and focused scanning) and analyses to reduce environment uncertainty.

Truth is determined by facts and figures manipulated by mathematical models.

Strategic versions can be expressed as concretes targets explicitly and tangible

Decisions are taken by those presumed to have the most power or knowledge namely top Management who are assumed to make the best decision in line with Individual Interests.

The Monochromic view of time as liner and segmented means that strategic decisions are seen as desecrate events and action steps can be planned within a time task.

Thus implementation is highly task and achievement oriented.

Concrete actions can be planned and the results measured.

Due to cultural models of strategy, controlling model seen to be used to the

Argentina People this is far true because the all decisions are made by top officials in Seattle USA such as the Local Managers takes the approach of centralized decision-making rather than devolving decision to the department Managers.

Also there is very little delegation used by the local or department Managers to the staff.

Also controlling model seen to be used by Argentinean People as administrative Model example. The Argentinean administrators want to study the environment something that is impossible to study the environment and control them because environments can change accordingly it depends on situation.

Despite to these perspectives the purpose of strategic Management is to achieve control of what happens both outside as well as the organization hence controlling.


Is more decentralized and informal responsibility for strategy is differenced through out the organization scanning and broaden based and less systematic information is gathered from personal sources, friends and colleagues and the observations (friends visits) and this finds to be more qualitative and susceptive.

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Information is interpreted through home grower Intuitive models.

Intense discussion is encouraged involving many people from all levels within the organization.

Strategic decisions are expected to be reached through consensus socially (constructed).

Rather then desecrate strategic decision per use a strategic damnation tends to emerge.

Supplementation is the locally determined keeping within these general strategic flames.

Adjustment can then be made to unforeseen events and strategy can be refined on an ongoing basis.

Responsibility and accountability are assigned the collective.

Due to this cultural model of strategic American seen to utilize this model because of the following assumptions:

Environmental cannot be really removed or controlled because the Modcon top officials in America are flexible and prepared to meet to unforeseeable environmental events.

Also the personal relationships and Interactions in America are considered key to developing shared understanding, thus information successes are more personal and susceptive.

Also in America, truth and reality or knowledge is more likely to be arrived at through a sixth source, feeling or institution.

Also strategic version in America is often vague and philosophical.

Due to those assumptions, the American seem to utilize and adopting model because strategy implementation is considered to hinge on the development of Internal capabilities, knowledge competences, and learning in order to be able to continually improve hence adopting.

According to these Models, controlling model and adopting model the adopting model is relevant to Modcon company because adopting model believes that environmental cannot be really known or controlled its changed according to the situation.

Also adopting model is relevant to Modcon company because before expansionism into Argentina to be done the Modcon company top officials were done a research are now concluded that Argentina would be a viable opportunity to conduct their business.

Due to these two Models of strategy adopting Model is seen to be more useful and profitable than controlling model of strategy.


Because now days the world is like a village as a result of globalization many organizations and business firms operates in different parts of the world.

Organizations and business firms tend to find themselves engaging in operations with different culture because they have offices and branches in different countries.

This for example the case of Modcon which have a Local office in America with a subsidiary in Argentina so far these and others reasons it has been important and in suitable for people to have a full knowledge of cross cultural issues.

This may help them as well as the organization they are working for to tackle the challenges facing operating in different culture.

Although this and other knowledge information concerning cultural differences may be good, it may on the other hand scale of the coin lead to overdependence on cultural stereo types.

This overdependence on cultural stereo types may develop a negative changed image of a stereo type group (convened group of people).

As some times this negative generalized or assumptions of characteristics of members of a certain group may be wrong, it may lead to false engaging of things like communication between them, the different of people belonging to different of culture.

As there might arise a communication problem because of the negative image, these members of different cultural group carry on each others. It may be different fro effective business conduct to take place. So the knowledge and information of differences in culture must be applied at the very best in order to avoid overdependence on cultural stereo type.

As it is known that stereo types are generalizations or assumptions that people make about the characteristics of all members of the other group, based on an image (sometimes wrong) about what people in that group are like.

Whom it comes to stereo types those are "in groups" out group. In groups are viewed and assumed to be normal or superior whole the other are considered to be not good or inferior to the other groups.

As it is mentioned before it is not always right that the other group considered being the out group to say that it is an inferior one. Some times it may be done to false interpretations of a certain matters of that group.

Now days were the media sectors widening, mostly due to globalization stereo types can be carried for to all parts of the world.

Stereo types can be obtained from a certain group of people belonging to a different culture from the one published or broadcasted by Media.

As the stereo type might be positive or sometimes negative it depends with the matter itself and how the group of people getting it will perceive.

It is good for countries trying to get good foreign Investments to use the world wide Media in a good way possible that will help to attract business firms from different parts of the world as the overall culture and organizational culture of the country concerned is well pointed. Let us say for example in the case study the head offices in Seattle could handle of the cross cultural issues it's subsiding in Argentinean easily if these is some sort of Information of the local culture on Media like newspaper publications, the Internet.

Stereo typing also enables organizations for example business firm or any International organizations to have the overall idea in generalized Information about the culture of the group or people they are interesting with.

It is known that if the company or organizations is about to establish itself in another country it had to have the overall or generalized idea of the culture of the people concerned.

It can not to sort out people as individuals so stereo typing helps in solving the difficulties in complexities of dealing with the culture in whole.


Today more and more companies are turning towards teams as a way of managing increasingly complex and dynamic environments.

- Teams are now seen as solutions to problems of external adaptation to problems of external adaptation responding to complexity by bringing together a variety of perspectives while responding to dynamic changes by encouraging teams to make decisions at the frontline where the action is.

- Yet in order for the teams to be effectives to provide successful solutions to problems of external integrations this means developing strategies for managing the team's primary task as well as its process.

What is the Team? Is a any group of people organized to work together independently

and cooperatively to meet the needs by the customers by accomplishing a purpose of


Teams are created for both long term and short term interaction.

- A product development team an executing leadership team and departmental team are long lasting planning and operational groups.


- Short term teams might include a team to develop an employee on barding process, a team to plan the annual company parts or a team to respond to specific customer's problems or complaint.


These are strategies that used by a teams to get good performance and also enable them to

get the best performance when are on performing their tasks.


Under this process strategy the team members are advised on participation to the tasks that are going to perform. Due to this the team members are supposed to provide their efforts as well as specifications as to get the best input.

- Participation means that everyone has helped move the team forward in their own way.


This involves the establishment of mechanizing or ways of resolving conflict. In order to get performance in a team a team has to establish the ways of resolving the conflict between team so as to avoid misunderstanding between team members.

- Modes of conflict resolution have been clarified according to degree of assertions

and cooperativeness competing collaborating compromising, accommodating and avoiding.


To ensure effectiveness teams have to evaluate their progress continuously both in terms of tasks and process.

- To discuss the dynamics and resolve the differences.

Due to those process strategies in order to get the best performance of the teams,

teams are supposed to follow above key process strategies.


In order to get Team performance and effectiveness the following are supposed to be taken such as:

(i) Diversity of skills and personalities when team members use their strength in full but compensate for each others weaknesses.

(ii) When different personality types balance and compliment each other.

(iii) All the team efforts are directed towards the same clear goals the tem goals this relies heavily on good communication in the team and the harmony in member's relationship.

(iv) Building efforts and activities.

(v) Trust and opens.

(vi) Coordination between team Members.

(vii) Good team leader who is able to deal with all such team work issues.

(ix) Team has to make sure that teams goals are totally clear and completely understood and accepted by each team member.

(x) There is complete clarity in who is responsible for what and avoid overlapping authority.

Due to those conditions indicates how team is supposed to work so as to get good and

least of the best performance of the organization or company as well.



Is a function in an organization that focuses on recruitment of Management of and

providing direction for the people who work in the organization.

- Human Resource Management can also performed by line Managers.


Is organization function that deals with issues related to people such as compose time, hiring performance Management organization development, safety wellness benefits, employee motivation, communication, administration and training.

- Human Resources Management is also a strategic and comprehensive approach to managing people and to work place culture and environment.

- Effective Human Resources management enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

In spite of the introduction of Human Resources Management they there is a key issue in Human Resources Management that the modern subsidiary company are supposed to utilize them in order to get good company workers, such as follows:


Finding the right people is often one of the most important challenges, particularly when unfamiliar with the nature of the local labour market or available human resources.

- This makes difficult the task of finding those candidates who have the competence to get the job done and who seen likely to fit in with the existing cooperate culture.

- This may mean that a company has to look in very different places to find the same kind of people in terms of abilities as well as behavior beliefs and values.


This designed to have high contact validity through a clear relationship with the job.

Due to this the Modcon subsidiary in Argentina has to decide to use this method by doing job analysis.

- Modcon company have to use this method because this method used the high contact validity is build into the test this is because is the most direct relationship between the test and job would be shown through contact validation.

- The tasks and duties performed on the tests could be compared to the tasks and duties performed on the job.

- Also high reliability this is because the workers are doing the tasks related to their duties and professional.

- Also it uses law advice impact.

- Also Modcon have to use this method because of the relationship to the job tests are typically viewed more favorable by examine them opted personality tests.

- Also it useful for Modern company because it is difficult for applicant to take job provisionary which helps to increase the relationships between score on the tests and performance on the job.


The external recruitment process is a very complex human resource process which includes many parties and the clear follow up of the individual process steps of the individual process.

- The HRM faction are to push the Managers to deliver clearly defined job profiles of vacancies and the job profile cannot be changed during the recruitment process.

Due to this it helps the Modcon Company on the recruitment process of their workers because the recruitment process enables them on defining the job profiles of the vacancies.

Also recruitment process is so useful for Modcon Company because it's helps to cancel the search and starts a new one again if the job profile has to be changed.

Due to this recruitment process helps to the avoidance of candidates unsuitable for the job position.

Also recruitment process is so useful for Modcon Company because it helps to be aware of danger of being late with inviting the job candidates and the late decision taken.

Also recruitment process is useful for Modcon Company because if the candidates got a good contract the modern company will expect quality of the candidates and basic competences which has to be met.

Also recruitment process is useful for the Modcon Company simply because it's provide communication during the selection their will let the Modern company to get good workers.

Due to those key issues in recruitment process the Modcon Company has to know the most crucial condition for the successful recruitment process is clear decision line and the agreement about to find person to decide about the new hire to the Modcon Company.



Are a variety of human societies or cultures in a specific region in the world as whole.

Diversity is nothing more then a difference from the majority in any culture there is a majority and many universities.

Culture is a set of norms that set standards for a society of what is acceptable behaviour.

In every culture there are basic standards for social interaction such as personal space distance, eye contact, amount of body language displayed in a public as well as negotiating style.


Is a means by what a firm Managers to keep making money and sustain its position

against its competitors.

In reality diversity gives business a key advantage in the world market place.

Due to this I believe that cultural diversity is a source of competitive advantages.

Through the following advantages of cultural diversity such as:-

Cultural diversity it increase ability to communicate and work efficiently with colleagues from other national factional and company cultures this is for true been use workers are not familiar with each other so it let them to take the huge attention when communicating with other people from different cultures.

Also cultural diversity it increased and improves cross - cultural meetings decision and implementation of actions due to the far true that people are able to work through actions rather than talking that will let them to be more efficiently.

Also helps people learn about themselves through learning about others that led into existence of company culture that brings units.

Also is increased comprehensive sharing of ideas skills and other resources between the true cultures that led into cooperation of workers.

Increased generation of business this is because the specific business are able now to be conducted into different nations due to the workers also are from different countries that brings trust to the customers this is because some of people or customers are making trust on its only goods made from their countries such as China and Japan hence cross - cultural helps to the business expansionism.

Also helps to acquire a greater market share in the respective markets that are operating in due to the trust that these goods made by people from different countries or region are usually quality due to the belief that goods during the making process workers were shared its ideas skills and resources.

Also cultural diversity it helps to develop interpersonal skills as well as listening skills, this means helps to let them know how to listen for what to listen and how to interpreter what they hear. Naturally that led into good communication as well as good and quality products.

Cultural diversity it motivate as well as it build trust between them because workers are feels like the people from the same country due to the development of company culture which led into natural motivation as a result of production of good and quality products.

And the last one cultural diversity it encourage confidence among workers because are now working with different people from different countries and because familiar on them who are able now to work confidently from any other company or countries which led into production of good and quality productions.

Due to my opinions I believe that to work in cross - culture is so useful and productive then working people with the same culture this is far true because working with cross - culture people or workers are so much seriously due to the unfamiliar of each other while working with the same culture will emerge negative stereo types that will eventually break down this quality and good productions of goods and services.