The Important Aspects Of Persuading A Foreign Company

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.

From a relative perspective, effective communication proves imperative in aiding efficient business transactions. The different cultures and nations involved in the launch of the fast-food franchise should aim at understanding one another’s culture despite their differences between culture, language, and way of life. To begin with, proper channels should be put in place to communicate important factors concerning the business without necessarily having an interpreter. In equal measure, some challenges present themselves during the presentation to the various individuals involved with the firm. For instance communicating may prove difficult putting into consideration that not all persons can speak fluently in English. Additionally the fact that American culture is typically made up of low-context practices, it may appear rude and ill-mannered for persons who originate from high-context cultures. A good illustration of the above-mentioned factor is that Chinese culture dictates that individuals should engage in typical chit-chat before getting down to serious business. In this instance, if the individual from any cultural background jumps in immediately to address serious matters, he or she is viewed as rude and insensitive.

Geert Hofstede is an influential Dutch researcher in the fields of organizational studies and more concretely organizational culture, also cultural economics and management. He is a well-known pioneer in his research of cross-cultural groups and organizations and played a major role in developing a systematic framework for assessing and differentiating national cultures and organizational cultures. His studies demonstrated that there are national and regional cultural groups that influence behavior of societies and organizations.

Geert Hofstede believed that national cultures were potentially homogenous with organisational cultures, and that national cultures could be quantitatively identified and compared (King and Lawley, 2013). Hofstede over a four-year period carried out 116,000 morale surveys, from 72 countries, using IBM subsidiaries (Kirkman, Lowe and Gibson, 2006) and from his findings derived a four fold dimensional framework for measuring national cultures. His first dimension, Power Distance, is the extent to which people within a nation are accepting of the unequal distribution of power within institutions and organisations (Hofstede, 1980). This dimension also helps to explain the way in which leaders and subordinates interact and under what pretences (King and Lawley, 2013). His second dimension is Uncertainty Avoidance, which measures the

This paper aims to define cultural foundations in Denmark, and examine their effects on various business practices in this country from management practices to communication, conflict management, performance appraisal, leadership styles, relationship between managers and employees, ethical behavior, and motivation and reward systems. Understanding the basis of the culture helps to form better business relationships, effectively communicate with companies and workers in this country, and become a more efficient trading partner. Danish companies have different approaches in business management compared to US companies, and emphasize on distinct core values. The relationship between companies and consumers in Denmark also affects the values and behavior of these companies. The method of communication, conflict management, and motivation in Danish companies is not the same as US companies and understanding these differences can help better navigate and achieve results when dealing with Danish trading partners. Various sources, including the official website of Denmark, journal articles and papers by Danish universities have been used to collect information about cultural differences and their effects in business environment in Denmark.

Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.

The Netherlands have, like a lot of the rest of the World, a very interesting history, however; I still bet it will be very different than America’s. The first inhabitants, lived their 3,000 B.C. and were thought to be giants called the Huns, but were found to actually be just regular people, kind of like the American Indians. Another cool fact about The Netherlands, is that William Orange, led a revolution of Netherlanders who fought a lot like pirates, against many emperors who wanted control of the area. Also, in WWI the Netherlands were neutral yet in WWII they were occupied by NAZI

Although Eric weiner made it seem like Netherlands is not a place where you can live happy because he believes that how they live their life in Netherlands could get out of hand one day and cause problems that might lead to ciaos in the country. In away this is true but in the other hand I disagree because from my understanding the government provides proper health care system and security for the people just like in Switzerland. The government of this countries has provided an atmosphere for peace

To visit or not to visit? This is the question many people ask themselves when trying to plan a trip. If you are talking about the Netherlands, then the answer to that question very easily would be to visit. Holland, another name for the Netherlands, is located in northwestern Europe, bordering Germany and Belgium (Netherlands). The Netherlands possesses a rich history, many interesting and famous people, and many great tourist attractions.

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

Dr. Hofstede performed a comprehensive study of how values in the workplace are influenced by culture. In the 1970’s, as a Dutch researcher Dr. Geert Hofstede, collected and analyzed data from 116,000 surveys taken from IBM employees in forty different countries around the world. From those results, Hofstede developed a model that identifies four primary dimensions of differentiate cultures. These include: Uncertainty Avoidance (UA), Masculinity-Femininity (MAS), Individualism-Collectivism (IND), Power and Distance (PD). After a further study of the Asian culture by researcher Michael Bond in 1991, Hofstede added a fifth dimension in his theory, Long- and Short-term time orientation (LTO), also referred to as the Confucian Dynamism. His research has framed how cultural differences can be used in professional business transactions. Geert Hofstede 's dimensions analysis can assist the business person in better understanding the intercultural differences within regions and between countries.

The country of Netherlands is lowland and a lot of it is water. The size of Netherlands is 41,526 square kilometers. The highest point there is Vaalserberg and is 321 meters (Amsterdam guide, 2003). Sea storms and floods are natural disasters there but there are now dikes to control them better. The climate in Netherlands is mild (Amsterdam guide, 2003).

The dimension of power distance affect the HR activities by reactions to management authority differently among cultures. There will be greater status and authority differences between superiors and subordinates if the power distance increases. The next factor is individualism which it can up to which people in a country prefer to act as individual in the group. Asian countries more toward to group-oriented meanwhile United Stated more prefer to individualism. The last factor are masculinity and femininity which means masculine is for men and femininity is for women. The person with assertiveness, success, and competitiveness well known as masculine meanwhile feminine known by quality of life, close personal relationships, and

This paper will be about the relation between the cultural dimension ‘power distance’ and three management principles we chose and will also be about the applicability of these management principles. This is quite interesting because even though we know that the cultural dimensions, by Geert Hofstede, and the management principles, by Fayol, have something to do with each other, the more the cultural dimensions differ, the more the ranking of the management principles will differ in the compared countries. We will now try to find out if some of these principles are more linked to a certain cultural dimension, in our case Power Distance, than others and we will find out whether these

In addition to the above institutional differences there are some cultural differences between countries that effect MNCS and HRM. The work of Hofstede focuses on how perceptions and values influence the way people interact and react to each other with the help of five cultural dimensions. Cultural difference namely power distance is the degree to which people in a society perceive the power to be distributed unequally. The high score of PD represents countries with the more organizational hierarchy and more power held by the people at the top levels of the hierarchy. Countries with a high Score of PD include India, China and South American countries. On the contrary, U.S can be one example of countries with low power distance (Hofstede, 2001). The second dimension is of Uncertainty Avoidance. It is the degree to which the individuals in a society are threatened by uncertainty risk. Countries like Saudi Arabia with high power distance and uncertainty avoidance tend to have rigid rules and leaders have more power. For example, India has a unique and diverse culture with a set level of hierarchies. The employees at the top level of hierarchy have more power that can be misused as those in power are backed by governments and unions. The social inequality, poverty and unstable political environment explain the high uncertainty avoidance in the Indian culture. Therefore, HRM uses training and career development programs as means of improving this high level of uncertainty