Contents 1. Introduction 2 2. Case description 2 Management style 3 Staff behaviors 3 Communication systems 4 3. Conceptual framework 4 4. Data and Analysis 5 Management style 5 Staff behaviors 7 Communication System 8 5. Managers embarking upon the issues 11 6. Conclusion 11 7. Recommendations 12 8. Personal Experience 12 References 14 Appendix 16 Low vs. high power distance 16 Individualism vs. collectivism 16 Masculinity vs. femininity 16 Long vs. short term orientation 16

1. Introduction
Businesses in these times of rapid growth are experiencing globalization and economic development that tends them to expand and grow at international level (Bennis and Nanus, 1985). For the expansion of the business at international level, firms tend to exchange their cultures and during the exchange conflict is natural to arise as the minds of people in different areas differ greatly.
Due to the advancement in technology, physical barriers affecting the expansion of the business internationally have been overcome but there exist a number of cultural barriers thereby complicating the cross-cultural management for the managers (Adler and Graham 1989 referring Mishler; 1965, p.517).
This study focuses on the cross-cultural management of two companies’ i.e. a Swedish company and its subsidiary in China. The two companies have entirely different cultures and therefore they are facing difficulties in exchanging the cultures (Martinsons & Hempel, 1998). The differences in management styles, communication systems and staff behaviors of these two companies are elucidated. We will use Hofstede’s model of culture for highlighting the barriers to cross-cultural management as the model emphasizes that the barriers of cross-cultural management usually comes from the nation’s culture that influences the behavior of the people at