International businesses are facing new challenges to their internal communicationstructures due to major reforms brought about through internationalization, downsizing,mergers, acquisitions and joint ventures.Lack of investment in cross cultural training and language tuition often leads to deficientinternal cohesion. The loss of clients/customers, poor staff retention, lack of competitiveedge, internal conflicts/power struggles, poor working relations, misunderstandings, stress,poor productivity and lack of co-operation are all by-products of poor cross culturalcommunication.In a global context the management and development of people inevitably leads toconsiderations of diversity and related challenges. The major challenges have to beidentified so as to be able to develop practices which balance global competitiveness,multinational flexibility and the building of a worldwide learning capability.Achieving this balance will require organizations to develop the cultural sensitivity andability to manage and leverage learning to build future capabilities.1.1BackgroundTulip Lab Private Ltd. is an upcoming pharmaceutical company from India, which hasrecently started its business operations in CIS markets. For effective marketing of itsformulations the company has registered and opened representative office in Ukraine andhas employed local Marketing & support staff. The representative office in Ukraine is headedby an expatriate –Country Manager from India.The finished products are imported from India to Ukraine by local Ukrainian distributorswhile the marketing& sales activities are being coordinated by the company’s representativeoffice with the support of local managers.Among CIS countries Ukraine is the first country where Tulip Lab registered and startedmarketing its products while Georgia is the second in line where the company plans to startits operations.1.2 ObjectivesTo analyse the market potential, have an initial feedback of local distribution systemsrelated to marketing & sales, an analysis of probable competition and to plan productportfolio for next 2 years.1.3 ProcedureThe country manager was assigned Ukraine as the first country to set up the Representativeoffice, negotiate with Distributors, find the product registration procedures from the Ministryof health(MOH), select the marketing & Support staff & subsequently go ahead within 1 yearfor setting up Georgian operations on the same parameters as both the markets are fromCIS.
Culture of two different countries(Ukraine & Georgia) in context as perceived by a person fromHome country (India)
2.1Examples from UkraineIn Ukraine the official language is Ukrainian however the usual conversational languageis Russian (being an ex Soviet Union country). Services of an English speaking