...good news for multinationals is that globalization is creating more universal standards of business conduct, and these are becoming more rigorous. As more companies adopt these standards, it becomes increasingly important for every multinational to establish companywide core values, standards of behavior, and relevant policies in tune with the rest of the world's ethics and compliance environment. The benefits of an ethical culture outweigh the costs. Globally ethical companies will be those that maintain a strong reputation in all their markets, experience increased employee commitment and loyalty, garner advantages in attracting and retaining customers, and generate superior levels of performance and success. Keywords: globally ethical companies, business conduct, ethical culture, professional standards, corporate code of conduct Introduction Companies operating in foreign countries find that understanding and complying with variant laws, managing employees far from headquarters, serving customers and relating to suppliers and partners in multiple jurisdictions can introduce significant challenges to developing shared corporate values and realizing a truly global culture. Multinational companies are challenged with three key issues: how to foster a culture of ethical conduct in all countries of operation; how to engage a global workforce in understanding and adopting its corporate values; and how to meet the web of complex legal and compliance obligations that may exist in all...
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...(1)Indian government traditionally undervalue the business activities. Politics and leisure are gained more value than work. While in U.S., American dream emphasis on working hard for personal value, business and politics gain the same social respect. (2)India has many political and legal issues with foreign investors. Indian law to some extent is ambiguous when handling the lawsuits with foreign investors,which may have been the reason causing problems for Coke’s operations in India。 (3) Both countries may have different ways of doing businesses. Foreign investors should consider the fact that every culture is different and they need their own practices (polycentric), if Coke still thinks its American style of business operation is better and practices it in India(ethnocentric), the consumers in India will regard those practices as wrong and inappropriate. This could also have been the reason why India blame on the water contamination and shortage caused by Coke. As the Indian people interpret silence as guilt, thus the representatives of Coke should response quickly: firstly, to apologize for the destroying of water resources in India, and then do some compensation for the local people. secondly,find ways independently or Corporate with authoritative NGOS to solve the problem.It is very important for Coke to built good reputation and consumer loyalty in international market. thirdly, learn from what Pepsi does: doing CSR such as digging village wells, trying...
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...Global Business Today – The Hofstede Study Eniye Olorogun Marketing 505 Dr. Harris Global Business Today – The Hofstede Study The Azure Sky Tea is an American company located in the Rocky Mountains. The herbal tea company boasts of a market share of 9 percent, but has plans to increase its market share through expansion into new markets. The company has a low-key culture and therefore must find markets suitable for this culture. The Hofstede model can help the company find suitable countries having similar dimensions as the United States (The Hofstede Centre, n.d). This is important because the company has plans to maintain its culture in the new office. The Hofstede Model gives national cultural scores for dimensions such as power distance, individualism, uncertainty avoidance, and masculinity (The Hofstede Centre, n.d). High power distance implies acceptance of power differences between members of society. Low power distance implies intolerance to uneven distribution of power and therefore there is need for sharing of power among different people (The Hofstede Centre, n.d). The power distance scores of Great Britain and Australia are 35 and 36 respectively. These scores are closest to United States score of 40. With respect to individualism, Great Britain, Australia, and United States have scores of 89, 90, and 91 respectively (The Hofstede Centre, n.d). These close scores imply Azure Company can operate without much challenges in the two countries. Therefore...
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...University of Phoenix MMPBL 560 Managing in a Cross-Cultural Environment November 9, 2009 Managing across cultures is no easy task for any organization regardless of its economies of scale or long standing reputation in the market; the challenges are many, including coping with the flux of change, managing diverse groups of employees, communicating, and negotiating agreements with host countries. This paper illustrates how Johnson and Johnson, Allstate, Starbucks, Bank of America, Coca-Cola, Shell, Whataburger, and Sony USA address their cultural diversity. Thus, the authors of this paper analyze, evaluate, and assess the various successful best practices of these organizations to help Riordan Manufacturing’s situation. Riordan Manufacturing’s decision to open a new production facility in China has created some challenges involving the scarcity of Chinese skilled employees. Whereas leadership attempts alternative solutions to synergize the company’s strategies to address the situation, Riordan recognizes that the integration of a diverse workforce has the potential to alter the company’s performance (University of Phoenix, 2009). Accordingly, in analyzing cultural synergy strategies to help mitigate undesirable outcomes takes extra consideration, yet it is a necessary task (Hodgetts, Luthans, Doh, 2005). When reviewing Johnson and Johnson, it is evident that the company struggled with managing diversity and cultural differences. However, Johnson and Johnson stepped...
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...develop cross cultural management tactics that meet strategic goals. Remember that your solution needs to focus on the cross cultural management concepts covered in the course (see the mind map in Week Four on your rEsourceSM course page). Be sure to incorporate appropriate citations from your readings and research. NOTE: The word count does not include the tables. Be prepared to propose your solution to your peers and defend your ideas. The instructor will determine the method that this defense will take. Please Note: Please remember that this is a study guide and to use it as such. You still need to put your assignment in your own words. You can summarize, and paraphrase the information in this guide to fit your needs but I would advise that you do not turn it in word for word as your own work or you risk plagiarism. Good luck with your studies! Problem Solution: Riordan In today’s global competitive business landscape, the successful management of a global workforce is crucial to the success of the entire organization. Success in this arena is contingent on many factors some of which are awareness of and adjustments to cultural dimensions, correctly applied management styles, and effective job design. Awareness of and adjustments to cultural dimensions is an important aspect of successfully managing a diverse workforce because of the direct impact these dimensions have on management functions. Cultural dimensions determine people’s values and ethics inventory...
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...Cultural Issues in Global Organization Name: Institution: Global organizations are companies whose operations are not limited by the national boundaries, but expand their operations worldwide. Globalization and advanced technology place an essential role in ensuring the success of these organizations because they help in communicating and giving an understanding of different cultures maintained by different communities, which the organization trades with. Strategic leaders have the responsibility of creating and maintaining the organizational characteristics to reward and encourage communal effort. Organizational cultures help it to cope with the environment. Organizational culture is the basic pattern of shared assumptions, values and beliefs that the company considers as the correct way to of thinking and acting on problems and opportunities that the company faces defining the issues considered of importance. There are numerous cultural issues that affect the smooth operations of global organizations following the differences in the peoples’ cultural practices and beliefs. Some cultural issues that affect global organization include personal beliefs, legal requirements, religious belief, and superstitions. Personal, ethical and cultural beliefs come as a result of the environment an individual is living. Living includes dressing, foods among others. Some of the cultural and ethical practices are recognized...
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...Be Attuned to Business Etiquette [pic] Prepared by: [pic] Jeshua Johnson Bri Johnson Case # March 21, 2002 Dr. Castro’s International Business Class Executive Summary: Many overlook the importance of knowing business etiquette, especially when dealing with business partners from foreign countries and/or other cultures. Oftentimes, business partners in foreign firms have different cultural practices and customs. Being aware of these various customs and practices is crucial to being successful in an international business environment. The importance of these customs to their cultures can vary into such extremes as describing proper manners in situations to outlining how to live a proper life according to the religious practices of the country. These customs can dictate basic protocol for certain situations, guidelines for proper nonverbal communication, ways to show gratitude correctly, and the words you choose to use. There are six considerations to keep in mind when dealing with business etiquette across cultural boundaries: 1. Be prepared, 2. Slow down, 3. Establish trust, 4. Understand the importance of language, 5. Respect the culture, and 6. Understand the components of culture. These components include aesthetics, attitudes and beliefs, religion, material culture, education, language, societal organization, legal characteristics, and political structures. Understanding these basic considerations and components can improve...
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...Case Study On Charles Martin in Uganda Submitted to: Salma Akter Senior Lecturer Department of Business Administration Submitted by Muhammad Nazmus Shakib ID: 2008-2-10-213 ITB301 (05) Date of submission 25-03-2012 [pic]East West University Acknowledgement In preparing this case study, I had the support and co-operation of the personnel of my group members. At the beginning I would like to thank my honorable course instructor. I am pleased to present the Case Study that was assigned to me as a partial requirement of the ITB301 course. I have found the experiences regarding the assignment quite valuable and interesting. I tried my level best to make the case study authentic and worth reading. I really enjoyed the hard work of preparing the paper. I am very thankful to you for giving me such an assignment from which I can enhance my knowledge over cultural influence and other factors affecting international business. I ensure that certain information enclosed in this paper is appropriate and authentic within academic interest. Table of Contents |Serial |Topic |Page number | |01 |Introduction |04 | |02 ...
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...February 2011, Mia Foster became the CEO of Levendary Café, an American franchise chain of restaurants that had engaged in an IPO just one month ago. In 2008, the organisation had started a Greenfield expansion to China, Levendary China. The company did not have a deep understanding about the Chinese market and had left full control of the overseas operations to Louis Chen. When Mia Foster arrived on board, Levendary’s stock market was traded at discount and the Chinese operations were not following the core company’s strategy. After arguing with Chen via videoconference, Foster decides to go to China on May 25 to have a face-to-face meeting with Chen and resolve Levendary’s position in China. Commercial problem The main commercial problem that the company is facing is an uncontrolled an uncoordinated expansion to a new unknown market. It is the first serious international expansion of the organisation and it is a necessary step for the firm in order to increase profits and market share, since it is facing a dramatic slowdown in domestic growth. All in all, the internationalization process is not following the core business values that had made Levendary Café successful in the US. Failure to address the situation could end up in: * Damaging the brand image and losing market share in the US. * Resulting in overall losses and failing to succeed in the Chinese market. * Causing an important fall of stock prices, a capital flight from current shareholders, and...
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...I. TAJ GROPUP OF HOTELS TO NEW ZEALAND (TAJ KIWIS): Our company called, Taj kiwis, has a worldwide chain of hotels and resorts. We are the one of the biggest hotel resorts and palaces business conglomerates in India comprising 66 hotels in 42 locations domestically. Moreover, we had established ourselves internationally with 16 other branches across the world like United States of America, United Kingdom, Africa, Middle East, Maldives, Mauritius, Malaysia, Bhutan, Sri-Lanka and Australia along with 13000 employees. All our Indian Hotels company limited and its subsidiaries are collectively known as Taj group. Our company positioned in a distinct way along with our competitors and we are recognised as one of Asia's largest and finest hotel company. Taj (luxury full-service hotels and palaces) is our flagship brand for the world’s most discerning travellers seeking authentic experiences. Spanning world-renowned landmarks, our group of hotels reinterprets the tradition of hospitality in a refreshingly modern way to create unique experiences and lifelong memories to our customers. Taj Exotica is our resort and spa brand found in the most exotic and relaxing locales of the world. They are cantered around high end accommodation, intimacy and an unrivalled comfort to customers. They are defined by a sensibility of intimate design and by their varied and eclectic culinary experiences, impeccable service and authentic Indian Spa sanctuaries. Taj Safaris are wildlife lodges that allow...
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...Global Leadership Paper MGMT 605 November 28, 2015 Global Leadership The High Noon at Alpha Mills case study written Arif Hassan and Velayutham depicts a story of cross-cultural leadership problems in which a new appointed manager from different country was tasked to run operations in culture and industry that he did not understand or tried to get to know before. The end result was employees without their senior production supervisor, whom they heavily relied on, a deteriorating team performance, loss of morale, and a new manager scratching his head trying to figure out what went wrong. Cross-cultural leaderships should involve managers understanding, learning, and respecting the culture and leadership style of the host country in which they will reside or lead. This will allow cultural awareness, cultural sensitivity, clearly communication which will help to result in productivity efficiency and alignment with the team. Alpha Plantations, a Malaysian based crude palm oil manufacturing plant, has a deep engraved organization culture of militant leaders and loyal employees. The driving force to ensure smooth daily operations was Ang Lee, the senior production supervisor. His long career at the mill earned him the respect as the “gatekeeper” to the mill manager and lead problem solver on the floor. When the market began to decline a new mill leader, Ian Davidson was appointment to change the plant in a positive direction. Ian, who had an Ivy League MBA, was new to...
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...impact on business relationships. Leaders today need a new, specialized set of skills if they are to be successful. 18 Chief Learning Officer • June 2010 • www.clomedia.com ueled by social networks and technology, universal collaboration is becoming a daily business reality. Global data and knowledge are now accessed on devices that people can hold in the palms of their hands. Jim Kouzes, renowned leadership expert, recently described this shift by stating that “while the content of leadership has remained the same over the past 20 years, the context has not.” Leaders striving for success today must be able to master three new levels of competence: • Global business acumen: The new financial, industry, functional and technical skills needed to navigate a market characterized by rapid evolution of business models, markets, products, and mergers and acquisitions. • Global mindset: The capacity to engage in a boundaryless and synthesizing cognitive process that identifies opportunity and innovation in complexity. • Global citizenship: A potent combination of geographic, political, economic, governmental, legal, cultural, technological and environmental savvy that informs business strategy formulation and execution. Global Mindset vs. Global Citizenship A global mindset includes the ability to see beyond the boundaries of the organization, national culture, functional responsibilities and corporate gain to envision and communicate the ultimate contribution and value of the work...
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...Charles Martin in Uganda: What to Do When a Manager Goes Native Question 1: Describe Ugandan cultural attributes that might affect the operations of a foreign company doing business there. Uganda is country, which has a multi ethnic, multi religious and multi language background. From the perspective of a foreign company willing to operate in Uganda the language is a serious if not the main problem because of the different types of languages. Even though English is the official language on that country there a great portion of the population that still speaks indigenous languages such as Bantu and Nilotic. This fact alone, results in a risk to the operations of the company by not being able to communicate with the locals, which result in a serious language barrier problem. So, having employees able to communicate with different people in a diverse set of languages is very important from a business perspective. Another concern is the multi religious background of the country with people practicing many different religions. The company may have to hire employees to work from any religion and also make sure that those belonging to all religious groups are also respected in order to avoid discrimination in the workplace. Also, business in third world countries tends to move slowly, so for example: phone lines may take months to be installed. Additionally the incomes are extremely low and with high payment system. Uganda is considered one of the most corrupted countries in...
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...facility start-up activities that includes obtaining licenses, installing telephones and utilities and securing the initial staff that would hire the full range of local personnel. But Vice president James Green pondered whether to continue employing Martin for the construction phase of the project. In particular, Green was concerned about Martin’s lifestyle, some of his business practices, and his participation in Ugandan tribal rituals. Green worried that Martin’s practices were counter to both HG’s corporate culture and methods of operating elsewhere, that some of his actions bordered on the unethical, and that some might be illegal under U.S. law. Characters in the case Lawrence Lovell * HG’s founder and CEO * A devout Christian and very influential in shaping the company’s management culture * Believed that business activities should embody strong Christian values and that subordinates should be given full responsibility in making and implementing decisions but they should be held accountable for their results. James Green * HG’s vice president * Concerned about business practices and lifestyle Charles Martin * 26 yrs. old * Knowledgeable in developmental issue wherein he was...
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...Cross Cultural Management of Japan & United States One concern of the merger between these two companies involves group interaction and sense of space. People in the United States take great pride in themselves on individualism and informality. The Japanese culture values groups and formality. People in the United States admire a person who excels above everyone else. If this merger takes place and it makes the price of stock to rise, the American company might want to buy more stock and the Japanese might not agree with this and be more cautious which could result in a cross-culture conflict. Cultural differences and cross culture conflicts is the biggest challenge in terms of cross-cultural management that will arise in the merger of these two companies (Chen, 2013). Due to differences in culture in terms of beliefs, priorities and lifestyles, management of cross culture operations will be difficult for both companies. It is because cultural differences affect the human thinking, feeling, acting and behavior that can result in cross culture conflicts within the organization (Adekola and Sergi, 2012). For example, in terms of language, religion, value, and attitudes, there are several cultural differences in both countries: U.S. and Japan, which can affect decisions and choices of employees or people from these countries and can cause to cross culture conflicts (Yoder, 2011). The women who are employed at Tokyo Electron worry that their jobs might be eliminated...
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