Cross Cultural Management

4004 Words Feb 8th, 2012 17 Pages
Executive Summary

The aim of this report is to provide a framework for understanding the differences in the cultures of India and China and to highlight the adjustments that will need to be made by ABC Ltd. which is based in Northampton, UK to succeed in the innovation & co-operation of solar technology solutions in these two countries (Bhasin, 2007).

In this paper we have used the historical background of cultures in India and China to define value, traditions, and attitudes. It also highlights the various cross cultural problems and adjustments which the company has to make in order to succeed in India and China. The Conclusion has been drawn after the extensive research in different cross cultural areas where making a small
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Hofstede (1993) believes that since companies are spreading their business in global stage the core issue which comes out from this is how they should manage various national and regional differences. “There is something in all countries called ‘management’, but its meaning differs to a larger or smaller extent from one country to another” (Hofstede G. H., 1984).

It is important for the companies to understand what culture actually means, Hofstede (1984), defines culture as “collective mind programming which differentiate one group from another culture through set of values”. So these values and fundamental assumptions held by a group of individuals are manifested into people’s attitudes and behaviors. Thus, culture difference can lead individual to view similar things in quite different ways.

Since India and China’s economy is the fastest growing economy in the world. In the past few years these two countries has experienced an explosion in the field of foreign direct investment. Doing business in India and China provides a very good platform for international organizations, however, it is extremely important for the companies to at the same time there are number of cultural challenges that can create misunderstanding, conflict as well as huge direct or indirect costs to the organization if overlooked.

In this report we will discuss and highlight the various cultural differences in management style of Indian, Chinese and British

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