AOL Assignment 2

Subject : Intercultural Business Communication

 Important Characters in Case Study

1. Alex Li : CEO & Founder of Mundo Clothing Co.

2. Lucas Li : His son and soon to be CEO
3. Gabriel Marcos : Mundo’s COO
4. Barry Smithers : CEO of BEST CLOTHING
 Character Analysis with Hofstede’s Model

Dimension Lucas Li Alex Li

1. Power Distance Low High

2. Uncertainty Avoidance Low High

3. Masculinity vs Femininity Femininity Masculinity

4. Collectivism vs Individualism Individualism Collectivism

5. Long Term vs Short Term Long Term Short Term

6. Restraint vs Indulgence Indulgence Restraint

Character Analysis with High and Low Culture Model

SCALE ALEX LI LUCAS LI

COMMUNICATING High Context Low Context

EVALUATING Indirect Negative Feedback Direct Criticism

PERSUADING Principle First Persuasion Application First Persuasion

LEADING Hierarchical Leadership Egalitarian Leadership

Introduction

The Mundo Clothing Company had a

HIGH CONTEXT
COMMUNICATION.

It means that rather than direct

communication, Indirect
communication is preferred.

We can also see a preference for

‘INDIRECT NEGATIVE FEEDBACK’
as he criticised him after the
meeting.
Mundo Clothing Co. Background

Here is another example

illustrating the high-culture
context pertaining to the
Chinese culture.

Even though the company was

run in Brazil, the company’s
work mindset held the
essence of the Chinese
culture.

Lucas Li was sent abroad for

pursuing his studies so that he
could continue the family
legacy to develop a global and
modern business mindset.
Cultural Restructuring

The Leadership Style

highlighted here is
HIERARCHICAL LEADERSHIP
STYLE in Mundo.

Since, there is no
decentralisation of power and
no autonomy is given to other
workers.

Whereas, LUCAS LI preferred

EGALITARIAN LEADERSHIP
STYLE, a more share leadership
style.
Flor Textile Co.

High Culture

No open communication
between Alex Li and Gabriel
Marcos.

Layered communication in order

to maintain the relationship.

Uncertainty Avoidance is high.

Business Negotiations with BEST Clothing

We can see that Mr. Alex Li, is on

the HIGH side of ‘Uncertainty
Avoidance’.
Thank you!
Prepared by Group 3 Section A