Culture and International Business Strategies

This assignment delves into the crucial role of culture in shaping international business strategies. Students will examine various cultural dimensions, analyze case studies of companies operating in diverse global environments, and discuss the implications of cultural differences for strategic decision-making. The focus is on understanding how businesses can effectively navigate cultural complexities to achieve success in the international marketplace.

Running head: GREENBURGER
HRMIC Assignment
[Greenburger]
Name of the student:
Name of the university:
Author note:

1GREENBURGER
Executive summary
This paper has covered an important discussion on the cultural differences and its impact on
foreign business. Greenburger is a Chinese fast-food restaurant chain. The success in the home
country China has encouraged the company for the United States. The paper shows the expected
challenges and the opportunities, which is there in the target market. The paper has also
recommended some solutions against the identified challenges. However, the recommended
solutions might also not work. It entirely depends on how the company implements the
suggested strategies or the few others if it is possible.

2GREENBURGER
Table of Contents
1. Introduction..................................................................................................................................3
2. Discussion....................................................................................................................................3
2.1 Question 1..............................................................................................................................3
a) Critically discuss the concepts and theories used................................................................3
b) Application of theories to the impact of IHRM..................................................................8
2.2. Question 2.............................................................................................................................9
a) Critically discuss the concepts and theories used................................................................9
b) Application of theories to the staffing chosen...................................................................13
2.3. Question 3...........................................................................................................................13
a) Critically discuss the concepts and theories used..............................................................13
b) Application of the theories to the recruitment, selection, and others of IHRM................14
3. Conclusion.................................................................................................................................15
4. Recommendations......................................................................................................................15
References......................................................................................................................................18

3GREENBURGER
1. Introduction
Globalization has enhanced the area of responsibility for the international human
resource management in relation to the challenges it contends. Human and cultural problems are
the commonest challenges. International markets are full of opportunities for the multinational
companies as well. In such situations, this is really advisable to follow the footsteps of successful
multinational companies at the global platform (Story, Barbuto, Luthans & Bovaird 2014, p.
131-155). On the other hand, the current study suggests some other points to consider while
expanding to an international market. This provides some theoretical and conceptual background
to guide the expansion of a Chinese company Greenburger in the United States. It recommends
the use of theories as such of Hofstede 6D model & Trompenaar 7D model to better understand
the culture of the target market.
2. Discussion
2.1 Question 1
a) Critically discuss the concepts and theories used

4GREENBURGER
Figure 1: Cultural Differences between the United States & China from Hofstede’s 6D
(Source: Garvey, Momsen & Steinberg, 2016)
The above diagram shows the cultural differences between the United States and China with the
help of Hofstede's 6D Model.
Power Distance-
China scores double of the United States in terms of power distance. This simply means
that inequalities in the society are very much acceptable in China; however, in the United States,
it is considerably low. This further means that people get a high rate of adequate opportunities in
the United States. It is therefore evident that biases will be required to cut off from the
recruitment & selection process. Moreover, this will affect the recruitment and selection process
accordingly (Rosenfeld, 2017).
Individualism-

5GREENBURGER
A comparatively very low score in individualism means that China believes in a group.
The recruitment panel will also be in groups. However, the United States, on the other hand,
believes in an individualistic society, which means that every single will be given fair
importance. Managers and employees have comparatively fairer communication. The interaction
happens in an informal way. This will test the recruitment panel at the time of selection as they
will find different behaviors from native applicants (Hamamura, 2012, p. 3-24).
Masculinity-
Both China and the United States are more or less equal in Masculinity. Both the
countries score fairly high in this regard, which implies that there will be huge competition in
between the employees. Moreover, success will be one of the key factors to judge the
contribution (Yi, Ribbens, Fu & Cheng, 2015, p. 66-82).
Uncertainty Avoidance-
China scores comparatively low than the United States. This implies that Chinese people
are very adaptable and entrepreneurial. The adaptability and the entrepreneurial qualities will
help at the time of recruitment and selection process (Jacques, 2012).
Long-Term Orientation-
There is a huge difference in the way the Chinese people handle a situation than it
happens in the United States. The Chinese people change themselves according to the situations.
Adaptability is high in the Chinese people (De Mooij, 2013).
Indulgence-

6GREENBURGER
Chinese people are very less indulgent than those in the United States. This simply means
that the Chinese people have high concerns about hard work. They do not trust on leisure time.
On contrary to this, the American people trust significantly on their leisure time. Flexibility will
be the key to handle such situations (García & Gracia, 2014, p. 419-433).
Figure 2: Trompenaar’s 7D model
(Source: Peleckis, 2013, p. 91-99)
China is high in Particularism, which means laws and policies are related to the circumstances
they live in. On the other hand, the United States is extremely high in Universalism, which

7GREENBURGER
means that law or policies are universal. Laws and policies have high importance to people
living in the country (Fu, Lao, Strohl & Szalay, 2013).
China is a collectivistic society, which means they believe more in groups rather than an
individual. However, the United States is an extremely individualistic society. They believe
more in individual (Fu, Lao, Strohl & Szalay, 2013).
China is more active than the United States. This implies that China search for ways to
express their emotions. However, the United States is less active in expressing the emotions (Fu,
Lao, Strohl & Szalay, 2013).
Chinese people are highly diffuse. They believe that keeping relationships at the
workplace will bring better results. The United States, on the other hand, are very specific. They
keep their professional and personal life separated (Fu, Lao, Strohl & Szalay, 2013).
Ascription is high with the Chinese people. They respect power, position and so on. The
United States, on the other hand, are very achievement oriented. They respect the performance.
They never respect the position with no valuable performance (Fu, Lao, Strohl & Szalay, 2013).
Chinese people are very much close to sequential time. They keep high values for
punctuality and planning. The United States has a high flavor for synchronous time. They are
flexible with their plans. They often take care of multiple projects at one time (Fu, Lao, Strohl &
Szalay, 2013).
Chinese people are inclined to outer direction. This means that they believe in working
according to the surrounding working environment. However, the people of United States

8GREENBURGER
believe in internal direction. This implies that they believe in changing the environment as per
their convenience (Fu, Lao, Strohl & Szalay, 2013).
b) Application of theories to the impact of IHRM
Both the theories have helped in finding some important points, which needs to be maintained
during the recruitment process and also after the selection process is done. Following are those
important points:
1. Biases- This needs to be implemented at the time of selection process. This will help it
get the best talents. Recruiters might be surprised to see varying cultures at the time of
interview. Biasness is indeed required to understand how to select the best from the all
(Imdorf & Leemann, 2012, p. 57-74).
2. Behavior at the workplace- The recruiters need to keep a check on the behaviors of
applicants. They might look like casual. This is because they like to be in such a way
(Mencl & Lester, 2014, p. 257-272).
3. Success orientation- Success means much to the people living in New York Manhattan.
They are skilled even more than the Silicon Valley. It simply means the recruiters at the
Greenburger will need to frame the selection process in an attractive way (Wimalasiri &
Kouzmin, 2000, p. 614-634).
4. Flexibility- Flexibility is another key, which should be there in the HRM policies. The
American people love to work in flexible shift times. On contrary to this, people living in
New York Manhattan work the longest hours in a week than any other cities (Wimalasiri
& Kouzmin, 2000, p. 614-634).

9GREENBURGER
5. Laws & policies- Universalism is prevalent in the United States, which means that the
HRM need to design the policies in such a way that it is applicable to all the employees
irrespective of their country of origin (Culpepper & Reinke, 2014, p. 427-454).
6. Neutral workplace- The workplace environment needs to be neutral in order to let the
American people feel like their home country. They have less attachment to the emotions
(Mencl & Lester, 2014, p. 257-272).
7. Work-life balance- This is another point, which is differing in nature than China. People
in America prefer working according to their thoughts. There should not be hard & strict
rules imposed on them or else they will look for some other opportunities. However,
Greenburger might find them blessed as they have chosen New York Manhattan, which is
way different to other cities in America. People living in New York work for longer
hours in a week (Mencl & Lester, 2014, p. 257-272).
2.2. Question 2
a) Critically discuss the concepts and theories used
According to the Perlmutter & Heenan’s ERPG model, there are four ways in which
business and their members need to think such as Ethnocentric, Polycentric, Regiocentric, and
Geocentric (Wach & Wojciechowski, 2014, p. 143-156). Geocentric is the most commonly used
strategies in most of the international expansion cases. Following is the analysis of all the
strategies postulated by Perlmutter & Heenan’s:
Ethnocentric-
These are such companies who feel that the home country does provide a superior market
to those. They rarely look for the international market. If they have to expand to the international

10GREENBURGER
market, they expand through opening subsidiaries. They also make some changes in the product
line in order to show their adaptability with the target country. However, despite all such facts
they respect headquarter much than their subsidiaries (Wach & Wojciechowski, 2014, p. 143-
156).
Pros-
It derives the feeling of a national pride, which is very important while representing a
business at a global platform. This will keep the citizens united. Such things might also be
preferred by the national people living in the other parts of the world. Such things can be unique
to many as well. This will provide an opportunity to explore the local cultures at the global
platform. Feelings of belonging will be created. There are many who feel separated in foreign
countries. They miss a home like an experience. If they find a company, which offers the same
culture and tradition to which they belong to, they will probably feel connected to the concept. It
helps people keep their traditional strategies alive, which can also be useful under some
specific situations (Wach & Wojciechowski, 2014, p. 143-156).
Cons-
This might have a limited customer base in the target market. They have already defined
them for the chosen group. It is never a wiser thing to target a particular culture. Market
segmentation should never be based on the cultural group. This should rather be based on some
other factors such as targeting a specific age group or targeting a specific income group. This
might be proven a less effective strategy in an international market (Wach & Wojciechowski,
2014, p. 143-156).
Polycentric-

11GREENBURGER
They think that operating local is better than any other option. They think so because they
believe that each market is unique to each other. They are never in a favor to move to an
international market (Wach & Wojciechowski, 2014, p. 143-156).
Pros-
It has several benefits as well. If a country operates in the local market, this will get
ample of support from the local government. Moreover, the political parties will also support
such companies. It will find much easier rules and policies while operating in the local country.
Customers will also prefer visiting the local companies first (Wach & Wojciechowski, 2014, p.
143-156).
Cons-
In such strategy, the company will not be able to take the benefits of the international
market. For example, labor cost is cheaper in China. Additionally, raw materials are also very
cheaper. Globalisation has made things look easier to operate internationally through different
modes of market entry provided if it researches the market thoroughly before entering into it.
Despite the challenges, which are there in the international market, this is serving good deeds to
many (Wach & Wojciechowski, 2014, p. 143-156).
Regiocentric-
There are some companies who prefer working in their regional areas. In doing so, they
are not operating locally but are limiting those to the regional areas (Wach & Wojciechowski,
2014, p. 143-156).
Pros-

12GREENBURGER
This will help in understanding the culture of the people residing there. This really helps
in attaining the success in the other parts of the world. This is exactly what Uppsala model
teachers to follow (Wach & Wojciechowski, 2014, p. 143-156).
Cons-
However, this strategy does not let the companies follow the other parts of Uppsala
model, which dictates to expand to distinguish culture as well. However, this starts after
succeeding in the unique culture places (Wach & Wojciechowski, 2014, p. 143-156).
Geocentric-
This is very much different to all the strategies mentioned above. Companies under such
strategy follow a slogan, which is "think global, act locally". They are truly the global players
(Wach & Wojciechowski, 2014, p. 143-156).
Pros-
They look for potential global markets. They search thoroughly to find a potential
market. They do extensive market research on the target market before they enter into it.
Additionally, they do also an external environment analysis to understand the competition in the
target market. They plan it accordingly to get the maximise benefits. They get a wider customer
base where they can explore their innovation to earn thousands of hearts. They get elevated
chances to maximise their annual returns (Wach & Wojciechowski, 2014, p. 143-156).
Cons-
The global expansion also has numerous challenges that it offers to aspiring companies.
The first and foremost challenge is the legal framework. Additionally, the cultural values of the

13GREENBURGER
target country are another burden, which is a serious issue. Acquiring talented professionals is
another worry that is common in many countries (Wach & Wojciechowski, 2014, p. 143-156).
b) Application of theories to the staffing chosen
Based on above discussions, it is evident that for Greenburger Company, following the
geocentric approach will be the best thing to do. This is because it preaches the importance of
active local while operating at the global centers. The model encourages the Greenburger
Company that it should understand the local community in New York Manhattan.
2.3. Question 3
a) Critically discuss the concepts and theories used
Employees working in an international country have been divided into four categories such as
the follows (Furham, 2012):
Parent country nationals- It refers to those employees who are from the country where the
companies headquarter is.
Host country nationals- It refers to those employees who are from the country where the
subsidiary center is based.
Third country nationals- These are those employees who have no connection with the parent
and the subsidiary center of the company.
Expatriates- These are all those employees who leave and work in a country with which they
have no other connection. They have rather a different home country of theirs (Luthans and
Farner, 2002, p. 780-793).

14GREENBURGER
Difficulties for Expatriates staffs-
They face cultural challenges as they represent a different culture. It is always difficult
to adjust to a distinguished culture. This can well be understood by comparing the cultural
differences in between the two countries using the Hofstede’s 6S model (Obeidat, Shannak,
Masa’deh & Al-Jarrah, 2012, p. 512-522). This assignment has already covered the study in the
United States and China. The study has provided some very distinctive features and
characteristics found in the American people. However, New York Manhattan is different to
other cities in the United States in few terms such as the working hours and the skilled
workforce. Additionally, the language barrier is an issue, which is challenging for the
Expatriates. Many of them are not very comfortable with the foreign languages. This is for such
reasons they keep them isolated at the workplace. They do hesitate to mix with the culture at the
workplace. Nevertheless, they are very uncertain to retain their job as they can move to their
home country at any point in time (Luthans and Farner, 2002, p. 780-793).
b) Application of the theories to the recruitment, selection, and others of IHRM
The human resource might have to face some challenges while recruiting the expats.
Following will be the challenges to hiring expats in the foreign country:
Stiff competition is expected while hiring the expats-
This is really difficult to hire the expats employees. They are generally those people who
are sent to reputed organizations based on their higher skills and job experiences. They have
ample of job opportunities in the New York Manhattan. The human resource management of
Greenburger needs to plan the selection process to match the best in industry. Providing
opportunities is the one way that attracts the Expatriates (Luthans and Farner, 2002, p. 780-793).

15GREENBURGER
Cultural & language barrier-
There are some expats who try to fit into the foreign culture and the language. They get
better opportunities as well. However, there are some expat employees who feel isolated at the
workplace. They fail to align with them because of the cultural and the language barrier that
exists. This has a negative impact on expats as they lose their focus from work (Festing,
Budhwar, Cascio, Dowling & Scullion, 2013, p. 161-166).
Huge burnout chances-
There are a significant number of expats who feel isolated from the team because of the
language and the cultural barrier. They consequently lose out their focus from their work.
Ultimately they end up losing their job. They prefer returning back to their home country (Adler
& Rigg, 2012).
3. Conclusion
Greenburger should find the United States as a potential market. The country has
probably the best consumers in the world. However, it needs to take care of various issues such
as the language & the cultural barriers, legal policies in the United States and the type of
employees especially the Expats. These are some challenges, which might threaten the success.
They might fall short if they have not researched well before entering the United States. A huge
cultural difference in between the New York Manhattan and China has already been mentioned
is a real challenge for the human resource management.
4. Recommendations
Recommendation for the findings of Question 1:

16GREENBURGER
1. Biasness is an issue, which may keep the company away from getting talented professionals.
There exist various cultures in the United States. It is, therefore, necessary to give importance to
the skills, not to the cultures. This can be controlled by designing the interview procedure in
the governance of the Equality Act 2010.
2. The policies related to everything that the company offers to the staffs should be made
flexible. The people from New York Manhattan are different to the Chinese people. It is,
therefore, necessary to be flexible with the offerings such as the flexible shift time and enough
moment for leisure time. Work-life balance is also required as the native people of America
are different to the Chinese people. They believe in keeping their personal and professional life
separated. A work-life balance will help them connect to the organization.
Recommendation for the findings of Question 2:
1. The geocentric approach is recommended to enter the New York Manhattan. This looks like
the potential option to enter the foreign market. The strategy is full of opportunities. However,
this also provides loads of challenges as well. The legal policies are not so favorable to the
Chinese companies. This will be very challenging to get the required support. However, the
company can follow the footsteps of Huawei which is one of very few successful Chinese
companies across the globe. The company should use appropriate marketing & promotion
strategies to enter the market. Greenburger is supposed to face stiff competition from several
local and international fast-food chains in New York Manhattan. However, the uniqueness in
menu is the one asset, which will help Greenburger promote its business value in the New York
Manhattan.
Recommendation for the findings of Question 3:

17GREENBURGER
1. They need to introduce some unique strategies while advertising the recruitment
requirement. This is because the Expats have ample opportunities in foreign countries. The
recruitment panel of Greenburger needs to design the basic salary packages and the other perks
as per the best in industry. Additionally, they need to promote a potential growth in the company.
This will also help in exciting their interest.
2. For dislodging the issues of cultural & language barrier, an extensive training is required on a
regular basis. This may help to reduce the barrier to some extent.
3. To reduce the burnout chances, it is required to build up such an atmosphere where
everybody gets chances to interact with each other. Irrespective of the cultural & language
barriers that are there, it should be tried to reduce to a maximum possible level. Expats should be
encouraged to interact with the other colleagues on a regular basis. There should also be the
different kinds of cultural program, which will give chances to understand the different cultures.
This will also help in reducing the gaps.

18GREENBURGER
References
Adler, H., & Rigg, J. (2012). Expatriate hotel general managers in Jamaica: Perceptions of
human resource, organizational, and operational challenges. Journal of Hotel and
Business Management, 1(104).
Culpepper, P. D., & Reinke, R. (2014). Structural power and bank bailouts in the United
Kingdom and the United States. Politics & Society, 42(4), 427-454.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
Fee, A., McGrath-Champ, S., & Liu, H. (2013). Human resources and expatriate evacuation: a
conceptual model. Journal of Global Mobility, 1(3), 246-263.
Festing, M., Budhwar, P. S., Cascio, W., Dowling, P. J., & Scullion, H. (2013). Current issues in
International HRM: Alternative forms of assignments, careers and talent management in
a global context. German Journal of Human Resource Management, 27(3), 161-166.
Fu, L., Lao, P. S., Strohl, J. B., & Szalay, L. B. (2013). American and Chinese perceptions and
belief systems: A People’s Republic of China-Taiwanese comparison. Springer Science &
Business Media.
Furham, A. (2012). Culture shock. Revista de Psicologéa de la Educación, 7.
García, F., & Gracia, E. (2014). The indulgent parenting style and developmental outcomes in
South European and Latin American countries. In Parenting Across Cultures (pp. 419-
433). Springer Netherlands.

19GREENBURGER
Garvey, M. J., Momsen, B., & Steinberg, H. (2016). STRATEGIC CUSTOMER SERVICE,
CULTURAL DIFFERENCES, & THE BIG 5 IN CANADA, CHINA, SWITZERLAND,
TAIWAN, AND THE UNITED STATES. ACADEMY OF STRATEGIC
MANAGEMENT, 32.
Hamamura, T. (2012). Are cultures becoming individualistic? A cross-temporal comparison of
individualism–collectivism in the United States and Japan. Personality and Social
Psychology Review, 16(1), 3-24.
Imdorf, C., & Leemann, R. J. (2012). New models of apprenticeship and equal employment
opportunity. Do training networks enhance fair hiring practices?. Journal of vocational
education & training, 64(1), 57-74.
Jacques, M. (2012). When China rules the world: The rise of the middle kingdom and the end of
the western world [Greatly updated and expanded]. Penguin UK.
Luthans, K. W., and Farner, S. (2002) Expatriate development: The use of 360-degree feedback.
The Journal of Management Development 21:9/10, pp 780-793.
Mencl, J., & Lester, S. W. (2014). More alike than different: What generations value and how
the values affect employee workplace perceptions. Journal of Leadership &
Organizational Studies, 21(3), 257-272.
Obeidat, B., Shannak, R., Masa’deh, R. E. M. D. T., & Al-Jarrah, I. (2012). Toward better
understanding for Arabian culture: Implications based on Hofstede’s cultural
model. European Journal of Social Sciences, 28(4), 512-522.

20GREENBURGER
Peleckis, K. (2013). International Business Negotiations: Culture, Dimensions,
Context. International journal of business, humanities and technology, 3(7), 91-99.
Rosenfeld, R. A. (2017). Farm women: Work, farm, and family in the United States. UNC Press
Books.
Story, J. S., Barbuto, J. E., Luthans, F., & Bovaird, J. A. (2014). Meeting the challenges of
effective international HRM: Analysis of the antecedents of global mindset. Human
Resource Management, 53(1), 131-155.
Tait, E., De Cieri, H., & McNulty, Y. (2014). The opportunity cost of saving money: An
exploratory study of permanent transfers and localization of expatriates in
Singapore. International Studies of Management & Organization, 44(3), 80-95.
Wach, K., & Wojciechowski, L. (2014). The size and the strategic international orientation: the
use of eprg model among Polish family and non-family firms. Przedsiębiorczość i
Zarządzanie, 15(7, cz. 1 Firmy Rodzinne-współczesne nurty badań i praktyki
zarządzania), 143-156.
Wimalasiri, J. S., & Kouzmin, A. (2000). A comparative study of employee involvement
initiatives in Hong Kong and the USA. International Journal of Manpower, 21(8), 614-
634.
Yi, X., Ribbens, B., Fu, L., & Cheng, W. (2015). Variation in career and workplace attitudes by
generation, gender, and culture differences in career perceptions in the United States and
China. Employee Relations, 37(1), 66-82.