Cross-cultural management Exam 2021-2022

Question sheet 6
Ahmed Sadat Ameyaw
Question 1 (Volume: 180-250 words):
Individualism vs Collectivism: how is this cultural dimension
implemented in global business? How does it influence the decision-
making process during team work?
Individualist culture are the cultures that put more emphasis on the
individual needs over the group as whole. People in this culture are
mostly independent and emphasis is placed on standing out and being
unique. This dimension is implemented in a global business based on
the traits of the individualist cultures. For example, businesses that look
out for individualistic people tend to put more emphasis on direct
communication with individuals. Policies in such global firms are in such
a way that there is open door policy in which the employees are
encouraged to address their managers with questions, problems. To
implement this dimension in global business, business, that encourage
individualism also often encourage their employees to bring up their
own ideas. Workers who are think critically and creatively are valued.
Lastly, micro-management is often seen as a distraction hence,
managers do put trust in their employees in employees to get important
task done without constant supervision examples of such cultures are
the Americans, Germans etc. On the other hand, collectivist cultures are
those that are put emphasis on group needs and goals over the
individual needs. In a global business, this is implemented in such a way
that, focus is put on members who are team players. For example in a
collective business, employees are expected to be good at corporation
and are expected to work as a cohesive group. Opportunies, equal
rights, responsibilities in this business are given to employees equally.
China, Korea and Japan are also examples of collectivist cultures.
During decision making, those with higher level of collectivism are more
dependent on each other and members of such dimension are not likely
to betray each other which is a vice versa of the individualist dimension.
Decision making for individualist cultures are rational.

Question 2 (Volume: 180-250 words):

Which issues a foreigner should pay special attention to while building
GUANXI with the Chinese? As a CCM consultant to a Belgium-based
company, please provide TWO examples and reasons for them to
support your point of view
Guanxi in China means having a strong relationship and a personal
trust with someone which can go to the extent of involving moral
obligations and favors exchange. Building this guanxi can be in several
ways. In this case, I would suggest that 1. Formal introduction – Chinese
people in fact prefer to do business with people with whom they have a
personal connection with. Hence in this case it will be very logical if the
Belgian company is introduced to the Chinese business partner through
an intermediary. As the higher the social status of the intermediary, the
higher the chances of being introduced to the right people in China who
might be the key decision makers and the easier it will be to build
Guanxi. For example, let’s assume the Belgian company needs a
Chinese supplier based in China, it would make more sense to go
through an intermediary who is close to this China supplier than to go
directly to this supplier.
The second issue which must be paid attention is dining and
entertainment as well as business gifts. In general, Belgians keep their
private and business life separate. You won’t be invited to their homes
unless you are a close friend or a relative. In the same way it is
uncommon for Belgians to exchange business gifts. For example, after
there has been a relationship established, the Belgian company should
be aware that, it is likely that the representative would be invited to
dinners and other forms of entertainment which might be karoke etc.
Even they may be invited to the Chinese partners house which is
generally some kind of honor which should not be turned down. Since
Belgians in general are very formal, they should note that, Dining would
be often used in China to make business propositions without any
formal commitment. And finally, after the business meeting is over or
this could be done at the beginning as well. The Belgians should present
a gift.

Question 3: (Volume: 250 + words):

Please create a mini-case on the basis of the information below. Your
answer must include the following parts: 1) general description of the
initial situation, 2) problem (can be more than one variant, but choose
only ONE), 3) possible cultural reasons for having such a problem, 4)
solution (or a series of solutions), 5) result.
1) Context: Leadership across cultures.
2) Participants: a family-running company from Mexico and a
newly appointed Chief Marketing Official from China
3) Challenge: Although both sides value relationship-oriented
approach in doing business, the family character of the company
clashes with the perception of a newly appointed CMO regarding the
leadership roles.
What could be the problem (can be more than one variant, but choose
only one)? Please provide your ideas how to solve it (describe the steps
and the reason for the actions you are going to take).
A family Mexican company has recently appointed a Chinese Chief
marketing officer who has been operating with success in China for
years. The family recently went to a business trip and heard about this
CMO through a Mexican friend who have been living in China for
almost a decade. The family friend, told the Mexicans about how
successful and good leader this Chinese CMO is. Due to the relationship
and trust with the Mexican friend, the Mexican family decided to
accept the Chinese CMO as their new employee who moved to Mexico
with the family at the end of their business trip.
After few weeks of settling in Mexico, few issues started to arise
between the newly appointed CMO and his employees.
During several meetings, when decision ought to be made, the Chinese
CMO would just go direct discussion without asking about any further
personal matters. This kept on for a while, The employees started
drawing back and did not participate in the meetings anymore but they
talked secretly about how they dislike the newly appointed CMO.
Unfortunately, the CMO heard what was going on and wondered what
he had done wrong. The CMO had been there for almost two years and
nothing had been organized for the employees. The CMO had build
trust using his Guanxi experience among the employees themselves.
But still wondered what the problem was.

The reasons here, could be the following, in order to manage the

Mexican employees, it is important to consider the significant
difference between what the employees in Mexico are motivated by
and the kind of leader they expect.
In Mexico, family is normally the first priority and hence asking nothing
about their family may make the employees feel you are not a caring
manager. Family here does not mean employees family only.
Employees also consider the boss as their own extended family.

Possible solutions are that, the Chinese CMO should build the
relationship which will be extended to the family members of the
employees. Before each meeting, he could take time to ask about how
the families of each employee is doing. Also he should try to promote a
family atmosphere at the workplace. For example, family picnics
together at some weekends. He should regularly check on the
employee’s family by regular .
The CMO employed this measures and then the employees embraced
him and he asked often about their family and visited them and they
succeeded during their meeetings