Globalisation has dramatically changed the international business landscape. Corporations are now presented with unprecedented opportunities for growth, development and multinational expansion (Dobbs et al, 2013). With increased market and technological integration also comes the immense movement of people; connecting different cultures and nationalities from across the globe. It is now widely considered that diverse organisations are the most successful organisations, with cross-cultural collaboration often improving overall work efficiency by ‘integrating collective wisdom and strength’ (Li, 2011, 114). However, cross-cultural collaboration can also generate an organisational challenge, as disparate cultural backgrounds can often cause unintended misunderstandings (Li, 2011). The primary aim of this paper is to provide an analysis of an organisational merger between an American and a Chinese healthy food company, which will be situated in China. The authors of this paper will be acting as consultants, aiming to identify the cross-cultural barriers between the United States and China. Both organisations have identified the international merger as beneficial to their strategic objectives, however certain cross-cultural differences must be acknowledged as a potential challenge. Therefore, using relevant cross cultural theories, models and literature, this paper will advise how cultural challenges could be minimised. The paper will focus on issues surrounding communication and
Task 2c: Evaluate the impact of cultural differences on international business performance in the international market D2
Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.
In multinational workplaces understanding how important the significance of cultural differences is larger than we might think. Organizations that are diverse have to work together because their functionality impacts the productivity of the workplace. It is vital to have an understanding the different cultures to develop a strong organization. Certain principles will help you acknowledge that different cultures exist within the organization. As a manager, you have to analyze the reasons for the development of the differences and
Some businesses in America transfer into bi-cultured after starting out as monoculture. This typically happens when one company buys out the other or they join each other and sub-merge. Every now and then this happens globally. Companies face changes when a merger takes place such as how the business will operate, wages, and or if there will be interference from the government. Once the merger has begun the rules are changed to better serve the company whether people are with it or against it. Company success stories are sent over to a list which is created called the Globe Project list. This list gives pointers and advice for globalized managers to practice based on several key items and characteristics required during a successful merger. Daft states, “Some of the characteristics are assertiveness, performance, and human orientation” (Daft, 2013 ).
Food is closely related to people's lives and it is considered the most important element in Chinese culture. Chinese food is famous all over the world too. American Chinese cuisine differs significantly from the traditional Chinese cuisine and even though the variation in taste can be so it is still attractive to many people. When it comes to food, Chinese people always care about the color, taste, smell and shape of Chinese dishes. In 1784, a group of passengers on the ship Empress of China became the first Americans to land in China and they were also the first group of people to eat Chinese food; it was the
Cultural differences are apparent from one group of people to another. Culture is based on many things that are passed on from one generation to the next. Most of the time people take for granted their language, beliefs, and values. When it comes the cultural differences of people there is no right or wrong. People should be aware of others culture and respect the differences that are between them. The United States and China are two very large countries that have cultures that are well known through out the world. There are many differences between the United States and China, but there are many contributing factors that shape the cultures of these two countries.
In the case “Managing a Global Team: Greg James at Sun Microsystems, Inc. Tsedal Neeley states that lack of inappropriate communication, leadership and decision-making is root of the crisis of HS Holdings. Generally, cultural diversity is based on many things one being the idea that certain characteristics should not be completely disregarded but regulated and valued as important. With this in view, diverse cultural issues can result in organizational problems. First, we must view your techniques to manage your global team and recognize the primary root of the problems. Secondly, you will need to identify who should be responsible for the crisis of HS Holdings because of miscommunication and inefficient leadership. Thirdly, defining roles and job descriptions is extremely important in an open work environment and
It doesn’t matter what kind of ethnicity you are, or how you were brought up. Everyone is deeply rooted in their own culture. “Culture” has a different meaning to everyone. Comparing American culture to Chinese culture we will find many different meanings to the word “culture”. For example, we Americans are always looking for something bigger and better for our future, and the Chinese are content with a small reserved lifestyle with no intentions of changing it for something bigger. A culture is a way of life of a group of people-the behaviors, beliefs, values, and symbols that they accept, generally without thinking about them, and are passed along by communication and imitation from
With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.
Mismanaging cultural differences can render otherwise successful managers and organisations ineffective when working across cultures. As stated byOsland (1990, p. 4) ``The single greatest barrier to business success is the one erected by culture''. Hofstede (1983) defines culture as "the mental programming of the mind which distinguishes the members of one human group from another" (Hofstede 1983 p. 25). Through the comparison of Chinese culture and Australian culture using Hofstedes five cross-cultural dimensions: power distance, uncertainty avoidance, masculinity, individualism, and long-term orientation an insightful view into the differences and similarities of the cultures can be obtained (Chong & Park 2003). Human Resource Management
Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S.
In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.
This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach.
According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.
In this era of Globalisation, cross cultural management is the biggest challenge that is faced by the organisations. Within the business context, cross culture refers to interaction between different cultures. Cross cultural management refers to managing the employees from different cultural background in one environment (Adler, 2008). Cross culture management is a significant issue within the organisations as the success of an organisation depends upon the smooth interaction of the employees. This paper is aimed at providing insight on the cross cultural management and the main issues and challenges relating to cross cultural management. For the purpose of this paper, two articles, “Cross-cultural Differences in Management”, by Amman & Jordan