Cross-Cultural Management

Scenario“Brazil Inc.”

You work for an international company, which provides management advice to a number of multinational organisations, such as Al Jazeera, Google, Shell International and a new ICT company called Brazil Inc.

Your company has been invited to deliver cross-cultural training to this major new client Brazil Inc.  The client is expanding its international activities and needs to send a manager from the United States of America to Brasìlia, Brazil, for a 2-year assignment and they have a few questions that you must answer in your capacity as a professional cross-cultural consultant.

What is globalization in terms of international business? Give a practical example using the source from class.

Globalization is a process operating on an international scale. Regarding international business, the firm may identify different potential markets to grab new customers and compete with other global rivals. Operating in different countries is a big challenge for organizations in various industries. Typically, the primary objective of a firm is to explore new markets, expand the business, and increase profitability (Thomas and Peterson, 2014). However, there is a need to see a larger picture to make a difference. For Instance, business stakeholders must understand the causes of globalization. No doubt, prior business commitments are in the limelight. Besides, the current economic downturn in countries has compelled corporations to move on. In terms of international business, effective globalization can be justified by streamlining global ambitions.  In this contemporary business era, an organization must create and sustain the brand image in the home country. The need for international business expansion must be assessed by the management to shape global business strategies. Globalization process makes the business more responsible because it has to contain more considerations like cross-cultural management, diversity management, and international human resource management.  Competing across borders has become a prominent issue, but it can be overcome by maintaining effective global strategies (The Economist, 2018).

For example, Tesco, a multinational British retail company, is a global firm. Apart from the United Kingdom, it has successfully operated in Ireland, India, Hungary, and Malaysia.  International business ambitions and Cross-Cultural considerations have been streamlined by the company to meet global business objectives. In the home country, it sustained the brand image and moved to other countries (Wood, 2011).

Why do macro and micro level facts matter when an expatriate moves to another country? Give two examples, one of which a class source.

Macro and micro level facts matter when an organization moves to another country.   Interestingly, organizations can use strategic analysis tools to derive these factors, and accordingly, shape different strategies. Based on these facts, management can increase its cognitive ability to understand the unknown. The concept of Meta-Cognition comes into life when moving to another country. In the international business process, it seems imperative to know about the market, customers, competitors, distribution channels, and different industry trends.

On the other hand, relative to the macro environment, political, economic, social, technological, legal and environmental factors must be considered to make an effective market entry strategy.  However, the most critical aspect is culture or society.  When conducting the macro analysis of a country, different cultural insights can be obtained to improve cultural intelligence. In the international business process, cultural integration can help the firm to be relevant and lucrative in the competitive landscape. In global markets, the firm has to integrate with facets of cultural intelligence, such as cognitive, motivational and behavioral to come up with pertinent outputs for natives (Earley, 2002).

For example, Unilever, a consumer goods company, has sustained business in different countries due to the successful integration with culture, customers, and market needs. Another example is Barclays PLC, a multinational bank, which altered its business outputs Financial Services) in international markets to enhance customer satisfaction and develop local communities. Different technological, environmental, and social trends have been followed by this financial giant to emerge string in global markets (Marr, 2018).

What is the culture in terms of international business and why are factors such as survival, language, and climate important? Please give an example of how this may affect bi-cultural individuals, using the class source.

Culture is an essential element of international business, a process, as far as the internal business environment of the company is concerned. When operating in a different country, the company cannot sustain strategies executed in the home country. Different norms, values, beliefs, behaviors, traditions, and traits highlight a new culture for global business, and accordingly, it has to shape appropriate international business strategies (Thomas and Peterson, 2014). For Instance, when dealing with the native workforce, the company has to depict a pertinent work culture, performance appraisals, and reward systems. Factors such as survival, language, and climate are necessary due to the possible impact on business operations. For Instance, it has been revealed that speaking the same language and existing in the same cultural background leads to employee satisfaction. The employee may feel comfortable when sharing ideas in the same style (Gelfand, Erez and Aycan, 2006).  On the contrary, employee resistance may occur if there is a language difference. The communication gap may cause impaired management-employee relations in the global business process. Language and climate are entirely different in Brazil as compared to the United States of America. Thus, before making a successful entry in Brazil, language and business climate, including industry and cultural trends must be understood to survive in the long run.

For example, bi-cultural individuals in the new country may depict useful work and ensure business sustainability. Understanding business and social norms, languages, behaviors, and traditions may help him to engage with people or stakeholders effectively. Interaction across cultures and investments can be justified if bi-cultural individuals better believe in egalitarianism (Siegel, Licht and Schwartz, 2011)

Give a brief value comparison of the USA based on Hofstede’s work in comparison to Brazil. Ensure that you make the analysis relevant to an executive. Give a practical business example related to the USA vs. Brazil.

According to Hofstede’s cultural dimensions, Brazil is entirely different from the United States. When moving from the United States to Brazil to work on an assignment, these cultural differences must be understood.  Cultural differences can be recognized by navigating five cultural dimensions.

• Power Distance

Power distance is quite prominent in Brazil.  The score shows that the hierarchy is respected in this country. Conversely, in the United States, power distance is low because people in the corporate sector love to be engaged or involved. Power distance in Brazil exists because the boss or the head of the department takes the responsibility instead of delegating the process like US corporate culture.

• Individualism

Brazil is a different country due to various cultural differences. For Instance, Brazil does not integrate with individualism, as people love to live in families and create cohesive groups.  True and long-term relationships trigger Brazilian society. On the other hand, people in the United States like to move one (Hofstede-insights.com, 2019).

• Masculinity

Brazilian society seems moderate regarding masculinity, as women are encouraged to work or participate in liberal communities. However, the United States scores more, which depicts a useful contribution of women (Hofstede, 1993).

• Uncertainty avoidance

Brazil scores are high in uncertainty avoidance. People seem to be risk averse and like to follow the law and regulations to structure their lives. The United States depict a strong response regarding uncertainty in both society and business environment.

• Long-Term Orientation

Brazil looks intermediate according to score.  Based on the nature of work and ambitions, people do long-term planning. However, People in the United States like to alter plans and like change.

• Indulgence

Both Brazil and the United States are Indulgent societies. The United States is ahead, as people are more optimistic, liberal, and willing to realize desires and impulses. Brazil is also the same, but just behind (Hofstede-insights.com, 2019).

For example, in Brazil, corporations like to do business with people instead of considering companies.  US corporate sector ignores personal relationships (Barreto, 2012).

What is cultural distance and what are two limitations of country culture research? What must a culturally intelligent executive be aware of? Give 1 practical example.

The cultural distance is a difference between values and communication styles. It seems harsh for an individual to sustain in a different society or culture without understanding or adapting appropriate communication styles and values. Two limitations in county culture research are possible diversity and globalization. It has been revealed that the world has become a global city, and a combination of local and international culture made it tough to derive genuine cultural insights. Conversely, finding natives in a potential market is quite severe as diversity has taken place in the business environment. Thus, strong culture research is needed, but it may take a lot of time for the company. The culturally intelligent executive must be aware of ethical responsibly as well. For Instance, he must understand and believe in utilitarianism. Despite observing cultural differences in the new country, he must take initiatives to create maximum outputs or benefits for maximum people equally. Business output cannot be compromised when offering products or services in a new market. Brazil Inc must have to revise its prior commitments, and cultural intelligence along with utilitarianism is an appropriate consideration (Thomas and Peterson, 2014).

For example, Mark & Spencer is using big data technology to judge people’s behaviors in different markets and justify the business fit.  The purpose is to come up with maximum benefits for maximum people around the globe. The most important thing is to produce people-oriented products in global markets, and cultural intelligence is the primary driver in this regard (A Medium Corporation, 2018).

References

A Medium Corporation (2018) Decoded and Marks & Spencer create the world’s first retail Data Academy, 30 July, [Online], Available: https://medium.com/@info_52044/decoded-and-marks-spencer-create-the-worlds-first-retail-data-academy-d982a730d0c8 [28 March 2019].

Barreto, J. (2012) Seven ways Brazilians work differently than Americans, 31 March, [Online], Available: https://atlascorps.org/seven-ways-brazilians-work-differently-than-americans/ [28 March 2019].

Earley, P.C. (2002) ‘Redefining interactions across cultures and organizations: Moving forward with cultural intelligence’, Research in Organizational Behavior, vol. 24, no. 1, pp. 271-299.

Gelfand, M.J., Erez, M. and Aycan, Z. (2006) ‘Cross-Cultural Organizational Behavior’, Annual Review of Psychology, vol. 58, no. 2007, pp. 479-514.

Hofstede, G. (1993) ‘Cultural Constraints in Management Theories’, The Executive, vol. 7, no. 1, February, pp. 81-94.

Hofstede-insights.com (2019) Country Comparison, 1 January, [Online], Available: https://www.hofstede-insights.com/country-comparison/brazil,the-usa/ [28 March 2019].

Marr, B. (2018) The Amazing Ways How Unilever Uses Artificial Intelligence To Recruit & Train Thousands Of Employees, 14 December, [Online], Available: https://www.forbes.com/sites/bernardmarr/2018/12/14/the-amazing-ways-how-unilever-uses-artificial-intelligence-to-recruit-train-thousands-of-employees/#43bd8f6274d5 [28 March 2019].

Siegel, J.I., Licht, A.N. and Schwartz, S.H. (2011) ‘Egalitarianism and international investment’, Journal of Financial Economics, vol. 102, no. 3, pp. 621–642.

The Economist (2018) Competing across borders: How Cultural And Communication Barriers Affect Business, 10 January, [Online], Available: https://www.observatoireplurilinguisme.eu/images/Economique_et_social/Economie_des_langues/competing-across-borders_en_reduit.pdf [28 March 2019].

Thomas, D.C. and Peterson, M.F. (2014) Cross-Cultural Management: Essential Concepts, 3^rd edition, SAGE Publications.

Wood, Z. (2011) Every little brand helps: Tesco boss unveils new global retail strategy, 10 May, [Online], Available: https://www.theguardian.com/business/2011/may/10/tesco-boss-outlines-new-global-strategy [28 March 2019].