Critical Success Factors for International Projects - Assignment Example

Name of Student Course Instructor Course title Date of submission International Management Workshop Week 3 There is a close relationship between the Internet and culture. In Internet turns all cultures around the world into a single monolithic culture where people share important background assumptions and beliefs that are similar. When participants from different cultures of the world interact, normally there emerges a certain culture which is free from historical backgrounds that allows every local culture to have its separate identity (Hongladarom 9). An example of this is a culture of international conferences. During internet communication among people from all parts of the globe it is much easier understand each other because of the use of common language, fro example English. It would be more difficult if the same people faced each other while communicating to observe all the non-verbal signs as these signs might be understood differently (Hongladarom 10). Thus, through the Internet, participants can share some sets of assumptions and values together. Both the Internet and culture determine each other. However, the Internet is an opening to the world where various cultural aspects are shared therefore it can be seen to affect culture more. Both owners of a business and managers in foreign business having different cultures are likely to create managerial challenges. In addition operational conflicts normally occur in international companies employing people from different cultures. Operational conflicts may occur due to differences in timeliness in appointments (UK Essays par 18). For example, the US and other European countries value the time so much and failure to come to an appointment or business meeting on time may result to conflict and misunderstanding. Some countries, such as New Zealand are more strict on the number of hours worked therefore may not be interested in stressing their employees by making them to work for more hours. For individualism, western cultures, such as UK, Germany, Sweden and US are believed to be highly individualistic (UK Essays par 24). Thus, conflicts may arise due to inability to control a person, maintain social structure and being more aggressive. On the other hand, Asian culture believes in teamwork and cooperation and is mainly dependent to one another. For example, conflicts in Philippines occur when people rely on others to do their work thus causing delay of task. Foreigners hold some stereotypes about Australians. They believe that Australians are naturally wiling to help others and that Australia is a nation of generous people. Also, foreigners believe that there are social divisions among Australians. There are also stereotypes that Australians are intolerance and ignorance. Foreigners hold these stereotypes due to the fact that stereotyping is a natural human function and is common among people who use it to create classifications if individuals, for this case Australians. Also, they use stereotyping to express their critical sense and this is unavoidable (Budapest 11). Personally, I have stereotypes about foreign culture. For example, I consider French as helpful, friendly, romantic and sophisticated people. The common image I have for a typical Englishman is the one wearing a bowler hat and a pin striped suit, holding a newspaper under his arm. Also, consider Italians to be sociable and friendly which may not be true. Week 4 Growth of social media has proved to beneficial to global business communication. Social media promotes sharing of ideas in global business. Social networking services that are web based make it possible for people in global business to connect to share interests and activities related to economic, political and geographical environments across borders (Baruah 8). Social media helps to bridge communication gap in global business. It provides platforms for global business partners to share the similar interests and establish virtual cultures based on interests they share. Global business can also use social media as a tool for crisis communication (Baruah 8). The business may use it extensively to communicate with the public about any crisis situation likely to grip the business. Thus, corporate communication teams in global business have to know how to use social media to the advantage of the business (Baruah 8). In addition, social media provides a platform for customer interaction, customer support and customer feedback across the globe. There is a close and complex relationship between language and culture because to a large extent, it is very difficult to understand the cognitive processes of people when they communicate. In order to understand or appreciate a particular language, a person must have knowledge of its culture and vice versa (Elmes 11). The structure of any given language determines in manner in which people who speak that language understand the world. On the other hand, people’s culture is reflected in the language they speak. People understand their language in a manner that reflect what they do and value. Therefore, the structure of language determines how people use it while cultural values determine how people use language (Elmes 12). However, people from the same language may still not understand each other because they may not understand the actual power of both the words and actions they use to communicate during their interaction (Elmes 12). For language to be understood among people who are communicating it has to express what they think, believe and understand. Different cultures interpret body language in different ways making it difficult to understand what people from various cultures communicate. For example, gestures have different meaning across cultures. Some cultures use gestures as a pointer while others may consider it to mean different things (Topan 139). Personal space is also interpreted different across cultures. Some cultures get freaked when a person tries to make personal contact while some cultures see it as normal and require more space when engaging in a business deal (Topan 138). No-verbal communication is a very powerful form of communication in business relationships and it is important to know to use it well to avoid miscommunication, especially with clients. Body language can be used a the best tool for realizing a sale, successfully dealing with customers in business and even getting a contract (Mujezinovic 42). Therefore to be successful in business, an individual should have adequate skills in non-verbal communication and understand how and when to apply them well in business relationships. Week 5 As indicated earlier, people from different cultures show different non-verbal behaviours during communication. Facial gazing is perceived different across culture. People from Japan and Asian cultures consider extended facial gazing as being aggressive and disrespectful while for people from Britain it is normal (Mujezinovic 16). Touching is also interpreted differently across cultures. People who come from Latin cultures are comfortable with touching while for people from Japan, England and Scandanavia touching is not encouraged and may be seen as offensive. People from different cultures also interpret small talk differently. Unlike the American culture, some cultures experience difficulties in engaging in small talk as it is not a cultural thing to them. For example, when a person say ‘How are you?’ it may not be appropriate to talk much, but statements, such as ‘fine’ or ‘excellent’ are expected (Diener par 7). In the same perspective, some cultures do not expect people to interrupt when engaging in a conversation therefore, it is important to understand non-verbal behaviours of different cultures before using them. There are substantial differences in risk tolerance among various countries in the world and this depends on both economic and cultural conditions. People in countries that are richer are more risk averse in regard to gains, but they are more likely to seek risk in losses. However, the latter effect is not highly evidenced. Another difference is that men are generally less risk averse in gains in many countries across the world. In addition, men are less risk seeking in losses compared to women in most countries (Rieger, Wang & Hens 2). Risk propensity plays an important role in decision-making process. It helps people to be risk averse when they believe they will gain from the decision they make and to become risk seeking when they perceive to be in domain of loss (Fenton-O’Creevy, Emma and Willman 3). This means that through risk propensity, people are able to rethink before they any decisions in regard to taking risk and avoiding risk depending of the prevailing circumstances. There is no doubt that business people in German are normally experienced in negotiations and doing business with people from other cultures. However, while engaging in negotiations with them, you should have different expectations. A person would expect to know the Germans better as conduct the negotiations. Germans are known to be very cautious, more reserved, and proceed in a slow manner (Freedman and Lothar 1). Although the official language in the country is German, most business people speak British English therefore you would expect them to communicate in English. Communication with Germans is expected to be done more directly so to get best out of the negotiations (Freedman and Lothar 2). One would also expect the Germans to know him or her before the negotiation. This means that it is important to establish trust with and a sense of loyalty with Germans during negotiations because they believe in long-term commitment. Also it would be necessary to communicate directly to the Germans by sharing issues, opinions, feelings and concerns more openly (Freedman and Lothar 1). It is would also be appropriate to schedule the meeting some time in advance so to get to know each other better. Week 6 Exporting entry strategy can either be direct where the company handles its own exports or indirect where the company works through international marketing intermediaries that are independent. It is advantageous because costs of manufacturing are avoided. It can also help the organization achieve location economies and experience curve. In addition, the organization can have a centralized location for manufacturing products and export to other international markets to achieve economies of scale from international sales volume (Lingnan University 12). For Turnkey projects, it is most useful in countries where governments have restricted Foreign Direct Investment (FDI) as it is less risky. The organization may use this strategy to export process technology, such as petroleum, chemical, and pharmaceutical. Also, it involves the use of know-how to assemble and run technology process that is complex which helps earn economic benefit from the asset (Lingnan University 12). The merit of wholly owned subsidiary is that it gives the organization strong control over operations in a foreign country. In case of technological competences, the strategy helps reduce the risk associated with losing control (Lingnan University 14). Normally, when a firm decides to enter global operations it encounters some opportunities and challenges. The organization that enters global operations will get new customers for its products or services. It may also access new suppliers for both its products and materials. In fact, locating operations globally leads to lower cost, more so in new markets. A part from saving labour costs, the organization would have the opportunity to develop and sell new products or services in foreign markets (Deloitte Development LLC 9). A firm going global in its operations may face challenges in purchasing, selling and establishing operations in foreign countries. The firm may have problems managing cultural differences since issues of culture are available in all aspects of global business operations. Other challenges firms are likely to face in global operations include managing implications of income tax, complying with legal and regulatory requirements, availability of skills and the issue of bureaucracy (Deloitte Development LLC 9). There are good reasons why Koreans drive cars made from their country. First, cars in Korea are built better than those made, for example in America. People have different tastes in cars and most Koreans believe in cars made in Korean-made cars because of the perceived quality compared to cars made from other countries. Korean car manufacturers have adopted measures to promote quality manufacturing, especially the aspect of quality control (Bourgeoisie par 3). Thus it can be argued that most Koreans are interested in promoting their own and it is also a way of expressing their culture. To successfully enter this market a firm must develop a good market entry plan that involves proactive exporting by use of Korean employees to change their mindset. A firm must be proactive and do homework first so to develop practical and flexible plans that can help create not only a profitable, but also a sustainable market in the country. In short, the entry strategy plan should incorporate a well defined target market, quality distribution channels and accurate market pricing. Week 7 There is an increase in number of mergers with companies in different industries due to various reasons. There is need for efficiency gains in business operations. Companies are interested in increasing their scope of business operations so to promote high profitability, market share and transition costs (Dong 494). The current boom in cross-industry merger is also due to pressures of competition in the international market, more liberal antitrust enforcement and financial innovations. Also, most companies are tying to diversify and this act as an important motive for mergers. Companies are convinced that mergers will help them become more productive than they are operating as individual companies (Dong 495). In addition, companies are motivated to enter into mergers to acquire management so to achieve efficiency gains. Cross-border alliances normally experience compatibility problems mainly due to cultural differences between countries. Differences in culture affect the ability of management to quickly achieve the anticipated economic benefits. In deed, clashes that occur in cross-border alliances due to differences in company and country’s culture can easily hinder the success of such alliances. Differences in resources and capabilities may also cause incompatibility in cross-border alliances (Schuler, Tarique & Jackson 104). Other factors include lack of autonomy and flexibility as well as lack of clear management control. To reduce these problems, cross-border alliances should be occur between companies that have equal capability and resources. There is also the need to understand cultures of border countries before engaging in cross-border alliances (Bleeke & Ernst par 4). Companies should also ensure they secure a clear management control other than financial ownership. During strategy implantation process, organizations identify and interpret strategic issues. National culture is likely to influence the entire process of strategic implementation since it has an impact on the nature or organization’s relationships, its environment and the nature of relationships between employees within the very organization. Cultural attitudes towards man-environment relationships are likely to influence the way organizations interpret and respond to their environments and this affects adaptation to the external environment (Ayoun, Baker, and Patrick 7). In addition, attitudes towards relational orientation may influence have an impact on the nature of internal integration. Variables that promote this include attitudes towards status of power as manifested in hierarchical relationships and authority, importance of relationships and attitudes towards the group versus individual (Ayoun et al 10). Thus, the natural culture might affect the scanning, selection, interpretation, information validation, and prioritizing issue in strategic implementation. Week 8 There are different underlying factors why MNCs have to customize their business operations to local situations despite thinking global. This strategy allows MNCs to perform satisfactorily and optimally in their global entities. They can also avoid replication of business models processes, practices, and organizational structure in different countries with a deep appreciation of the fact that they have to organize and manage risks in different ways while in foreign countries (Parnell 21). In deed, acting locally gives MNCs an opportunity to understand local factors and in turn identify the right responses to them, especially when designing, setting up as well as operating businesses in global markets. In so doing, they are able to adjust first to market behaviour, business policies and processes, regulatory frameworks and work environment in foreign markets (Parnell 22). To achieve this, an organization may emphasize the synergy it creates by serving various global markets, but develop a competitive strategy for individual markets that is tailored to fit a particular unique situation (Parnell 22). The actions for an organization should reflect both globalization and localization There are various factors that would drive restructuring of the firm on a global perspective. They include a combination of economic and technological factors. Also changes in government policies may facilitate restructuring. The need to lower production costs and increase access to protected markets may also facilitate global restructuring (OECD 14). For example, when an organization engages in labour-intensive manufacturing, it may see the need to reduce costs by relocating its labour-intensive operations in countries wages are substantially lower or acquire cheap labour. Also, excess capacity in certain sectors of within the organization they motivate restructuring on an international basis (OECD 15). This would provide an opportunity to the organization to phase out non-competitive business operations and rationalize essential functions to achieve more economies of scale. I would suggest introduction of third generation communications services to help in monitoring business operations, such as Internet-related services through mobile telephony (OECD 26). A transnational organization is a business entity that has adopted common interests, rules and institutions of states. Such an organization is conscious of particular common interests and values from different nations and members conceive of themselves to be brought together by a common set of rules in their relationship (Kobrin 7). Working is such an arrangement would not be felt well because you would be forced to adopt a very different and new culture which is very challenging. As borders are fed away through transnational business structures it means the instruments of national states are constantly being eradicated. It would even be impossible for the individual states to dictate the rules which organization operating on this structure can follow (Kobrin 18). What does this mean? Working in such an organization would imply that you may not be protected by the government if when your rights are violated, especially when working in a foreign country. Week 9 The role of HRM is very complex in the international context because it extends beyond the normal basic functions, such as staffing, training and development. HR managers have to understand the needs of all employees from different cultural orientations (Treven 178). It is really challenging for HR managers to perform HRM functions, such as labour relations and remuneration and benefits in a way that is satisfactory to all employees from different countries. Complexity also occurs in the management of expatriates since they come in a foreign country with different expectations which has to be met, otherwise it main be difficult to retain them (Treven 185). However, HRM is important in international business operations because it involves development of formal policies and day-to-day practices for managing people in the workplace. When HRM policies and practices are effectively matched to the international company, the chances of the company being financially successfully are higher (Schuler, Tarique & Jackson 107). In many cases, international businesses experience expatriate failure due to various reasons. Cultural inflexibility is one of the reasons. It is common for expatriate managers who are not experienced in international issues to taken by surprise when they encounter deep cultural differences in foreign countries (Treven 186). Thus, expatriate many experience culture shock making them go back to their country. Family stress may also cause expatriate failure. Many expatriate find it difficult to spend most of their time alone and away from their family which makes them infective in their performing their duties. Expatriates also experience the problem of physical breakdown (Treven 186). Due to excitement about achieving international experience, they end up working long hours when they are posted in foreign countries and they eventually experience burn-out. Emotional immaturity also causes expatriate failure since they may find it difficult to handle expanded responsibility and social status in international operations (Treven 186). Although I have not had an opportunity to work in a foreign country as an expatriate, I can be a good expatriate because of the characteristics I posses as an individual. I am able to perform job assigned to me competently and handle a new cultural environment. I am always ready and willing to learn how to live in a new culture without any difficulties. Thus, cultural sensitivity is one of my strengths. The other strength is emotional maturity and this would help keep myself grounded on my role as an expatriate and avoid self-destructive temptations in foreign countries. The main weakness I have is that I do not experience in international operations therefore, there would be need for training so to understand how to work abroad and life experience in foreign countries. Work Cited Ayoun, Baker, and Patrick J. Moreo. "Does national culture affect hotel managers' approach to business strategy?." International Journal of Contemporary Hospitality Management 20.1 (2008): 7-18. Baruah, Trisha Dowerah. "Effectiveness of Social media as a tool of communication and its potential for technology enabled connections: A micro level study." International journal of scientific and research publication 2 (2012): 5. Bleeke Joel, and Ernst David. “The way to win cross-border alliances.” (2014). Retrieved from http://hbr.org/1991/11/the-way-to-win-in-cross-border-alliances/ar/1 Bourgeoisie. “Why Korean Made Is better than (north) American Made.” (2014). 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