Essays on Cross-Cultural Management - Airbus A380 Case Study

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The paper "Cross-Cultural Management - Airbus A380 " is a good example of a management case study.   Cross-cultural issues played a major role in the delays of Airbus A380 introduction to the market. According to research, the company wanted to utilize the benefits of cultural diversity by sharing the construction of the Airbus among the four countries. However, issues such as poor coordination, software compatibility, variations in understanding among the engineers, and cultural orientations of power distances, variations in management styles, and government need to protect their local interests are among the most vocal cultural issues in the project.

This report seeks to discuss cultural management issues in the case of Airbus A380. Question One: Economic Patriotism By definition, economic patriotism refers to coordinating and promoted organizational, consumer behavior aimed at promoting, or favoring goods and services produced within a given country or in other words, a group of countries. Economic patriotism can be executed through a process of demand simulation that involves the encouragement of consumers to purchase goods and services produced within their country or through the protection of supply that involves the shedding of domestic markets from the entry of foreign firms that may result in the unnecessary competition (AFP).

The latter method of executing economic patriotism by protecting domestic firms from the competition of foreign firms can be achievable through the application of quotas and tariffs imposed on foreign companies. In most cases, the greatest players in promoting economic patriotism through protectionism are the government and political powers. In the case of the Airbus Company, for instance, economic patriotism was orchestrated by the government and led to the eventual problems faced by the company.

The need to draw the workforce of the company from various countries according to the national ownership stakes saw the workforce being geographically distributed and thus far from each other. Although diversity could be a means of improving efficiency, it failed since economic nationalism in the event where people from different countries supported their national respective rights. Additionally, the governments of various countries also made a decision to alter their private transactions to suit their thoughts and local practices in an attempt to protect their country’ s economic interests. Discrimination of foreigners by other countries to protect national interests included preservation of employment and attraction of economic activity.

The company’ s motives in its strategy were also to attract rents abroad in a monopolistic market. The overall result was a failure of the company’ s failure in its patriotic approach. This eventually damaged the company’ s reputation as it conflicted with the ideas of the government. Question two: Reflection of the Company Organization One of the most outspoken causes of the delayed wiring of A380 was complex software compatibility that came with 500,000 models that were to remain in a sync situation.

Despite the fact any slight mistake in the wiring could result in various technical problems, the company decided to run its operations from different countries, resulting in further complication of the wiring system (Wallace, 2006). Additionally, the communication gap between employees, especially the engineers located in Germany, England, and Spain is another major factor considered. Engineers in Germany and Spain used the older version of V4 CAD to carry out the design of the wiring while those in France and England used an updated V5 version.

This is viewed as the company’ s flaw of taking risks by using different versions even though the software developer claimed that the two versions were compatible, eventually resulting in loss of data.

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