How Could Culture Affect International Business or Relationships in a Business Settings - Essay Example

Management Table of Contents Introduction 3 Differences Between two Cultures 4 Culture of Mexico 4 Culture of Germany 5 Conflicts 7 Solutions 8 Conclusion 9 References 10 Introduction The essay intends to explain the concept of culture associated with international business. It also provides details regarding conflicts that are raised due to differences of culture and accordingly, recommendations are prescribed to reduce the problems and do businesses successfully. This essay will shed light on the cultures of two countries that include Mexico and Germany to explain the effect of cultural differences on the performance of international business. The culture of Mexico is different from the culture of Germany based on the time issue, gender roles, business concepts and thinking of the people of both the countries. Culture is a complex phenomenon, which involves beliefs, morals, arts, knowledge, customs and habits of a society as followed from traditional period (Oatey, 2012). Due to cultural differences, there can be conflicts among the employees within an organisation due to which employees face complexities in performing their operations in a cooperative as well as coordinated manner. Therefore, in the present day context, it is essential to study about the cross-cultural concept and to obtain the knowledge essential for performing operations in a collaborative manner. It helps to reduce cross-cultural issues or conflicts to perform operations sustainably and cooperatively in overseas locations (Zion & Kozleski, 2005). In addition, cultural diversity in different countries is identified to be affecting international businesses for various factors that include behaviour, communication and belief among others. Differences Between two Cultures Culture of Mexico Hofstede Score (Source: Greet Hofstede, n.d.) The Mexican society is recognised to be hierarchical, as the score in 81 in terms of power distance and therefore, the people follow a hierarchical order. Hence, a hierarchical society affects business performance in terms of organisational structure. Mexico is identified to be a collectivist society, as score in individualism in 30. As a collectivism driven society, the people work together for performing activities cooperatively. Moreover, culture of Mexico is driven by masculinity rather than femininity, as masculinity score is 69 (Williams, 2015). Mexican people have greater preferences to avoid the uncertainties for scoring 82 in terms of uncertainty avoidance. To avoid uncertainty, the people of Mexico are recognised to be hard working, consistent and innovative. By avoiding uncertainty, the Mexican society helps in improving the performances of the businesses because uncertainty in business operations can also affect the performance of a business. Additionally, culture of Mexico is normative, as the score of long- term orientation is 24 and accordingly, the people of the Mexican society have a strong concern to develop the truth in relation to thinking. People of Mexico also pay attention on effort to attain quick outcomes. Indulgence score is 97, which signifies that the people are indulged in different activities for satisfying their desires (Greet Hofstede, n.d.). Based on GLOBE, it can be evaluated that leadership in Mexican society is dependent on group work to achieve future goals and perform international business in an effective manner. In the Mexican society, leaders are also identified to be less inspirational, as they believe in hard work along with group work to avoid uncertainty for performing business operations effectively. In this respect, the Mexican society is also identified to be based on integrity, as the employees in an organisation work as a team depicting sincerity as well as trustworthiness (Brodbeck, 2002). Based on Lewis model, it can be evaluated that people of Mexico are multi-active revealing that they are impulsive and emotional among others, as the region belongs to South America (Granli, 2012). Culture of Germany Hofstede Score (Source: Greet Hofstede, n.d.) World War II in between the year 1939 to 1945 had an impact on German culture. World War II had a negative impact on economic growth of businesses in Germany. During that time, Hitler was the leader of Nazi Party. Hitler played a vital role in the improvement of the businesses along with the improvement of economic growth (Browaeys, 2011).Culture of Germany can also be evaluated through the Hofstede dimension theory. As per the dimension of power distance with the score of 35, it can be stated that the German culture is reorganised and it is supported by middle class people to a large extent. Moreover, people of Germany believe in individualism as its score is 67, the German culture is fully individualistic. The people do not believe in collectivism for the outcome, which can be a negative aspect for the improvement of a business. The people believe that they can get prompt results through self-dependence and self-actualization perspectives rather than collectivism (Safer Brain, n.d.). The German culture is based on masculinity society rather than femininity society for scoring 66 in masculinity. Therefore, females generally do not possess greater opportunities to work and develop an effective professional life. Among other countries, Germany is also considered as uncertainty avoidance country for the score of 65, which signifies that the people prefer uncertainty with due consideration of compensation. As a pragmatic country, the people of Germany are practical and they rely on the situation. The people Germany also have the ability to change the situation for attaining the long-term results. They are also identified to be restrained in activities to accomplish their desires (Greet Hofstede, n.d.). Based on the GLOBE model, it can be evaluated that the German society believe in the facet of individual work rather than group work, therefore the individuals are assertive in achieving the business goals. The individuals also focus on future planning to improve performance in international business. People of Germany do not believe in group work and it affects the performance of international business. In this respect, it can be comprehended that the people are inspirational and lack integrity (Brodbeck, 2002). Based on Lewis model, it can be evaluated that the people of Germany are very linear active for belonging to Western European region, which signifies that they are cool, decisive planners and factual. Subsequently, the people devise effective plans before implementing strategies to attain business objectives (Granli, 2012). Conflicts People of Germany are identified to be having loosely defined gender roles owing to which the society is based on modernised concept as females are able to wear western outfits and are able to work at higher positions. On contrast, the Mexicans are recognised to be conservative in their approach due to which the females are not offered every opportunities as mentioned above for generating feelings of discomfort (Shimutwikeni, n.d.). With regard to the dimension of culture, people of Mexico have their belief in the power of collectivism for quick results, which also depicts trust amid individuals and on the other hand, the people of Germany have their belief in individual power due to lack of trust for the outcome. Therefore, the people are unable to maintain a strong collaboration for the improvement of performance of international business owing to which leaders face complexities in coordinating business operations. There can also be conflicts in the business process, as the thinking or perception of the people of both the countries is different owing to the fact that people of Mexico are normative and on the other hand, people of Germany are practical in their approaches. The key difference in culture between Germany and Mexico in relation to the type of culture includes linear active and multi active factor which can affect international business operations to a large extent (Deari & Kimmel, n.d.; Ghemawat & Reiche, n.d.). For example, based on ‘Trompenaars model of national culture differences’ relating to sequential vs. synchronic dimension, the people of Germany know the value of time and they also maintain punctuality in their working life by performing operations at a time representing sequential culture. On the other hand, the Mexicans do value time to a minimum extent and perform operations with flexible timing relating to synchronic dimension. Therefore, conflicts can be raised during the time of international business among these two countries. (Business News, 2014; Lindholm, 2013). Solutions The conflicts or problems, which have been raised due to the differences of culture of Mexico and Germany, can be reduced by increasing awareness amid the people regarding the benefits of international business. In this regard, it can also be evaluated that people should also increase awareness about cross-cultural study to enhance performance and sustainability in international business (Dimension data, n.d.). Gender biasness should be reduced in international business with the aim of ascertaining that male and female members are able to have equal opportunities in professional ground, so that workforce competency can be increased. Germans and Mexicans both should realize the value of time and should align business concepts for performing international business effectively. In addition, international business should develop a system based on cross-culture mechanism with the aim of building a healthy relationship among the employees engaged in international business to enhance business performance as well as improve long-term economic growth. To reduce conflicts, businesses operating in Mexico and Germany should adopt the changes and work together (Business News, 2014). Conclusion From the above discussion, it can be stated that culture of a country can be defined based on attitudes, beliefs and thinking of people along with customs and norms. Culture of Mexico is different from Germany based on thinking and beliefs of the people. Cultural differences also have an impact on the growth of international business. It has been identified that the differences in culture have a negative impact on international businesses for raising problems or conflicts among the employees on the basis of different factors that include gender, perception and working approaches. Cultural differences also raise problem in achieving quick outcomes due to the problem of individualism and collectivism. In this respect, it can be concluded that Mexican culture is based on collectivism and work as group members to attain quick outcomes. On the other hand, German culture is identified to be based on individualism for long-term growth. In this respect, for the sustainability in international business, cross-cultural aspect is needed to be adopted by an organisation with the intention of mitigating language and communication issues, which in turn facilitates in developing an effective workplace environment in accordance with which employees are able to perform their operations in a cooperative as well as aligned manner. 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