The increasing globalization of business has focused interest on the issue of cross-cultural management and the qualities needed in global managers. For many years, US companies relied heavily on expatriate managers when expanding operations abroad.
- Identify at least three specific ways that cultural differences would affect doing business internationally.
- What specific skills would global managers need to address these differences?
- Do you think expatriate or foreign-national managers would be better equipped to deal with these challenges?
Please provide all references used for background information.© BrainMass Inc. brainmass.com October 24, 2018, 9:46 pm ad1c9bdddf
Please see response attached for best formatting, which is also presented below. I also attached two informative and supporting articles.
Let's take a closer look through discussion, research and example, which you can draw on for your final copy.
1- Identify at least three specific ways that cultural differences would affect doing business internationally.
a. Cultural Differences in Business Etiquette, Values, and Behaviours (click on the following links for each country, according to Geert Hofstede's Cultural Analysis) SEE ATTACHED REPSONSE FOR LINKS
Africa Argentina Australia Brazil Canada Chile China Colombia Costa Rica Ecuador Egypt El Salvador France Germany Guatemala Hong Kong India Indonesia Italy Japan Mexico New Zealand Panama Russia Saudi Arabia Spain Taiwan United Arab Emirates United Kingdom United States Venezuela
b. Cultural Differences in Communication and Language across workers and customers - lead to misunderstandings and crisis (click on the above links, which most include communication styles for each country)
c. Cultural Differences in Customers Needs and Expectations and the fast speed of these changes. http://geert-hofstede.international-business-center.com/mcsweeney.shtml
2- What specific skills would global managers need to address these differences?
In essence, today managers need new management skills, which are equally effective for managing both local and international business operations. Equipped with these skills one can become like an international soldier capable of fighting international wars.
According to Kottolli (2006), success of managers in a foreign country is never easy. It takes a lot more than technical skills. He argues that the expatriate requires - global soft skills: Ability to understand the cultural difference, ability to work with those difference and take advantage of those difference. It requires a cultural mind shift. For example, even the very small things like where the leader sits at a lunch meeting or where to sit in the car. Some would assume riding shotgun next to the driver in front is where the big boss sits, but in US the seat of power is in the back behind the passenger seat. For example, Kottolli points out that as the Indian economy grows, this problem will worsen because so many managers are sent abroad who are completely unprepared for what they are up against. http://arunkottolli.blogspot.com/2006/07/soft-skills-for-global-managers.html
Therefore, teaching expatriates- managers and top leadership to understand the need for global soft skills will make an impact on the performance & success of the organization.
According to Global Management Skills (n.d.), the following core skills will be required for effective global managers:
1-COMFORT WITH RAPID CHANGE:
Change is not just a fad ...
This solution identifies at least three specific ways that cultural differences would affect doing business internationally, as well as the specific skills the global managers would need to address these differences. Finally, it discusses if the expatriate or foreign-national managers would be better equipped to deal with these challenges. Supplemented with articles of global skills and self-development. References provided.
Company in another country which has started doing business in the United States
Search online resources and find an article describing an experience of either: (1) a US company or division that conducts business in a foreign country; or (2) a company or division based in another country which has started doing business in the United States. Perform searches on "joint venture," "licensing," or "strategic alliance."
Please answer the following questions:
1. Was the company's experience positive, negative, or mixed? Justify your answer.
2. What legal or political barriers did the company have to overcome? What cultural or business differences did the company encounter? What problems did these differences create for the company? What did the company do to overcome the obstacles? Did the company handle cultural and business differences effectively? Why or why not?
3. Companies involved in international trade have to watch the exchange rates for the euro, Japanese yen, Brazil real, Russian ruble , and US dollar. If you were a U.S. exporter, how might a stronger dollar affect demand for your products? How might a weaker dollar affect demand?