Assignment

On
Course title: Global Business Environment
Course code: SBUS-4004
Submitted By
Mr Arafhat Islam
Student ID: 1204669
Date of Submission: 14 January 201!
School of Business
Universit of !ales: "rinit Saint #avid
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"able of contents:
$ame of the content %age $o&
Abstra"t '
A"#no$led%ement '
Introdu"tion '
Ba"#%round of the international &oint 'enture '
(nderlyin% theories on im)a"t of "ultural differentiation in mana%ement 4
*on"lusion (
+eferen"e and Biblio%ra)hy )
Abstract:
,his re)ort has )re)ared on the basis of des"ri)tion of underlyin% theories that illustrates
"ultural affe"ts in doin% business internationally- ,he re)ort has detailed #ey "ultural barrier
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in international business emer%en"e and rele'ant theories and )ro)osition underlined this
"ultural "onte.t-
Ac*no+ledgement:
I $ould li#e to e.)ress my s)e"ial a""olade to my "ourse tea"her Mr- +i"hard Small for his
%uidan"e assistan"e and en"oura%ement for "om)letin% this re)ort su""essfully-
,ntroduction:
,he su""ess in international business is lar%ely de)endent on "om)etiti'e ad'anta%e that
ma#e in different forms- In order to ma#e international business in su""essful $ays
mana%ement "an )lay a 'ital role in "ollaboration the di'erse "ulture- A""ordin% to the 'ie$
of (/*,AD 020041 international &oint 'entures are a ma&or means of %lobal e.)ansion for
multi2national enter)rise $here effe"ti'e mana%ement role is 'ery 'ital-
,he follo$in% re)ort $ill be based on the dis"ussion on the )resentation made by the author
in order to "om)ly $ith the study re3uirement on the dis"ussion on the role of su""essful
mana%ement on the &oint 'enture )ro&e"t- ,he underlyin% )hiloso)hies of su""essful
mana%ement in international mana%ement $ill be dis"ussed under this re)ort-
Bac*ground of the international -oint venture:
Due to the effe"t of %lobalisation the nature of international business has "han%ed
dramati"ally- Multi2national "om)any has started their business o)eration %lobally- More and
more &oint 'entures are also formin% %lobally in order to ma#e business su""ess- A""ordin% to
(/*,AD 020041 states that &oint 'entures are the )rimary means of %lobal e.)ansion for
multinational enter)rises- Durin% the formation of &oint 'entures it is a )rime issue to be
"onsidered in the ho)e of le'era%in% on the interest of the ea"h )arty- 4n the o""asion of
%lobal &oint 'entures the both "om)any need to be "onsidered the issues of "ulture in both
"ountries- *ulture has a stron% influen"e on international business be"ause "ulture )ro'ides
us $ith the blue )rint for ho$ to most effe"ti'ely fun"tion $ithin so"iety-
Underling theories on im.act of cultural differentiation in management:
5ofestade 019601 ,rom)enaars 5od%etts and 7uthans 019941 and S"hein e.amined the
thousands of em)loyees and mana%ers a"ross the $orld to identify #ey 'alues from $hi"h
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they "an de'elo) the multi)le dimensions used to define the "ulture of the or%ani8ations and
nations- ,he theories on "ulture define the number of the similar dimensions and in fo"usin%
the im)ortan"e of 'alues and beliefs as a dri'in% fa"tor behind the "ultural norms of a %rou)-
All the abo'e stated authors resear"h su%%est that im)ortan"e for or%ani8ations to understand
the im)a"t "ulture has on multi2"ultural business en'ironment-
,he author )resentation on im)a"t of "ultural differen"e in mana%ement in %lobal business
en'ironment has underlined basis of 5od%etts and 7uthans 019941 'ie$s and "ultural
e.)lanation of 5ofstede 019911- 5od%etts and 7uthans theories 019941 states that the "ultural
im)a"t on mana%ement is refle"ted by basi" 'alues attitudes beliefs and beha'iour of the
)eo)le thin# and beha'ed- ,hey also )ro'ide the further illustrations of their 'ie$s that
identified the ma&or #ey "ultural barriers that im)ede the %ro$th and de'elo)ment of the
international business e.)ansion- In this re%ard 5ofestede9s "ultural dimensions theory
e.)lains that "ross2"ultural "ommuni"ation e.)lains the effe"ts of so"ieties on the 'alues of
its members- ,hese 'alues "an be analy8ed from fa"tor analysis- A""ordin% to 5ofestede
dimensions of national "ulture ha'e an effe"t on )o$er distan"e inde. indi'idualism and on
"olle"ti'ism mas"ulinity lon% term orientation effe"t and indul%en"e 'ersus restraint-
:or an e.am)le )o$er distan"e inde. sho$s 'ery s"ore in Asia and 7atin Ameri"an "ountries
Arab $orld and Afri"an "ulture as $ell $hi"h is 'ery fra%ile in ;uro)ean "ountries- Another
e.am)le has re'ealed that in (nited States has a 40 on the "ultural s"ale of 5ofstede9s
analysis- In <uatemala )o$er distan"e is hi%h 09=1 and in Israel is lo$est 01!1- In ;uro)e the
hi%hest is in >oland 0661 follo$ed by S$eden and (nited ?in%dom != and !! in S)ain- In
terms of indi'idual inde. there ha'e a "lear %a) bet$een de'elo)ed and @estern "ountries- In
Asia Afri"a and 7atin Ameri"a ha'e stron% "olle"ti'e 'alues $here as in de'elo)ed "ountries
ha'e stron% s"ores- In "ase of un"ertainty s"ores the a'oidan"e s"ores are the hi%hest in 7atin
Ameri"an "ountries Southern and ;astern ;uro)e "ountries in"ludin%
+esear"h ha'e sho$n that some "ountry differen"e su"h as shared lan%ua%e %eo%ra)hi"al
)ro.imity histori"al ba"#%round "ommon %eo%ra)hi"al )ro.imity reli%ious beliefs and
)ra"ti"e and identi"al )oliti"al influen"e )lays a 'ital role in international business- In fa"t
$hen it "omes to business "ulture )lays a "ru"ial role in business- :or an e.am)le if fashion
+etail *om)any $ants to start &oint 'enture in different "ountries instan"e in Middle ;ast
;uro)e and Asia they need to "onsider that )arti"ular "ountries beliefs fashion habit and
"ulture in ta#in% de"ision of )rodu"t )ri"e and )la"e sele"tion- ,he "om)any also need to
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"onsider in "om)lyin% the trade la$ in ea"h "ountry- A%ain A""ordin% to the 'ie$ of
Bernard the "ross "ultural issues li#e as lan%ua%e life2style of the )eo)le so"ial system
$eather fashion2habit and "urren"y )lay an im)ortant role in international business and in
formin% the &oint 'enture business a%reement- 5o%%ets and 7uthans 019941 states that "ultural
im)a"t on mana%ement issues on the fa"tor of basi" 'alues attitudes beliefs beha'iour of
that )arti"ular "ountry9s )eo)les- 5e also identified that "ulture "an affe"t in te"hnolo%y
transfer mana%erial attitudes and %o'ernment Abusiness relationshi)s- :or an instan"e in
retail business in $estern "ountries use self ser'i"e "he"# out system $hi"h is 'irtually absent
in south Asia as soon as ,es"o start o)eration in India they brou%ht this system in India- 7ater
on other retailers in India start usin% this te"hnolo%y $hi"h a"tually transfers te"hnolo%y-
,he abo'e issues im)a"t on mana%ement of the "om)any and or%ani8ational "ulture as $ell-
A""ordin% to 7uthans 019941 or%ani8ational "ulture "an be influential as national "ulture
$hen an or%ani8ation $ill start their business o)eration in different "ulture-
,herefore "ulture )layed stron% influen"e in international business and de'elo)ment of
business in %lobal mar#et- If any business or%ani8ation $ants to be su""essful in international
business they need to re"o%ni8e these issues and try to address these barriers or "om)ly $ith
this-
Conclusion:
In "on"lusion it "an be said that the "ross2"ultural trainin% 'aluin% the di'ersity and
familiari8in% to the "ulture "an minimi8e this "ross2"ultural %a) in international business-
/eference and Bibliogra.h:
Barnard < 0199=1- B*ross2"ultural "ommuni"ation A A )ra"ti"al %uide9- *assell
7ondon (?
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:arren *aela and /elson Bob 019991 C+etainin% Di'ersityD Executive Excellence
/e$ Delhi: Sa%e July )%-E-
5ayes ;ri#a 019991 C@innin% at Di'ersityD ;.e"uti'e ;."ellen"e /e$ Delhi: Sa%e
July )%- 9-
5ofstede <- Cultures and organizations: Software of the mind. London: McGraw-
Hill1991-
5od%etts + M and 7uthans :red 019941- International Mana%ement /e$ For# :
M"<ra$ 5ill-
7aurent A- 019661 C,he "ross2"ultural )u88le of international human resour"e
mana%ementD Human !esource Management "# $$. %&-&'".
S"hein ;- 5- 019911 @hat is "ultureG In >- :rost 7- Moore M- 7ouis *- 7undber% H
J- Martin 0;ds-1 !eframing organizational culture: 24!22=!- /e$bury >ar# *A:
Sa%e

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