Issues and Challenges in Business Organisation : Report
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Added on 2020-06-04
Issues and Challenges in Business Organisation : Report
Added on 2020-06-04
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Cross-CulturalManagement
Table of ContentsINTRODUCTION...........................................................................................................................1ASSESSMENT 1 ..........................................................................................................................1CONCLUSION................................................................................................................................4ASSESSMENT 2 ............................................................................................................................6INTRODUCTION ..........................................................................................................................6CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONCross-cultural management can be referred as a study of administration in a differentculture environment. This concept helps in determining influence of societal culture on businessmanagers and managerial activities (Ang and Van Dyne, 2015). Also, it helps in determiningcultural orientations of organization and its staff members. In simple words, cross culturalmanagement means managing teams in that way which considers cultural and practicesdifferences of customers in international business context. There is a potential relationshipamong two big countries such as USA and Mexico, these two countries are concern on gaininghigh growth and success through establishing collaboration with each other. These two countriesshare a 2000 mile border and the bilateral relationship among two counties has a direct influenceon the lives and livelihood of millions of people and society. Different type of issues are faced bythe companies who are significantly conduct various business operations in the country of USAand Mexican. The first issue is related with trade agree if any firm is indulged in tradingoperations than they have to follow legal procedures and sign the legal trade agreement. Thesecond issue is related with the banking system in Mexico as they achieve growth afterstagnation but their interest rate is comparatively high while they are providing loans tocustomers. This report contents the study about issues and challenges that are faced by businessorganisation in which business expansion and export and import cause different issues that has ahuge impact on organisational as well as economic condition of country (Aycan, 2011). Hofstedemodel is widely applied by organisations as their analytical tool and also helps in managing theproblems in effective and efficient manner. ASSESSMENT 1Hofsteded's culture Dimensions theory and various issues that rise through culture.In this modern era the major purpose of each small as well as large business organisationis to expand their operations at wide area through offering variety of goods and services to theirsignificant buyers who are valuable in attaining high growth and success at market place. Eachcountry is concern on establishing good relationship with other neighbour country as to fulfillingthe needs and wants of people (Bar-Tal and et. al., 2013). The government and its authority playsa vast role in expanding business and its operations at global market. USA and Mexico has goodrelationship with each other and conduct various business operations as to satisfying the differentneeds and wants of buyers. The international trade among these two countries helps in1
developing the economic condition which create value in high growth and success of country.Various kind of issues are faced by the companies who conduct different kind of businessoperations all over the world. The government rules and regulation of two countries are differentfrom each other and it is required for each business organisation to follow these rules andregulations as to reaching at higher position in market. The change in government policy has adirect influence on import and export of countries as it is effective in fulfilling the needs andwants of people who belongs to different geographical areas. The banking system in Mexico hasrepresents a sign of growth after the years of stagnation but the interest rate is comparativelyhigh. The changing policies and rules has a huge impact on living standard and livelihood ofpeople and society. Hofstede's cultural dimensions theory is a base for cross-culturalcommunication which have been developed by Geert Hofstede. It explains the effects of aculture of a society on the values of the person living in a society. It also describes about howthese values are related to their behaviour. Geert has done factor analysis for relating the valueswith behaviour. Hofstede proposed a theory related to cross cultural communication whichdescribe the culture of the people of the society with the help of their values, which is related totheir behaviour of the members living in the society (Caligiuri and Tarique, 2012). It analysesfrom structure of factor analysis. Hofstede developed his theory with the help of thesebehavioural factor with respect to culture of the society. Hofsted examine the behavioural factorof employee working in the IBM between 1963 to 1973. Firstly Hofstede proposed fourdimension along with culture values which analyse, individualism- collectivism , uncertaintyavoidance, power distance and masculinity – femininity. Hofsted again explore its research inHong Kong independently and gives fifth six research dimension I.e long term orientation andindulgence versus self restrain. The Hofsted dimension of culture is based on six major models,which are evaluated as below: Power distance index (PDI)individualism vs collectivismuncertainty avoidance indexmasculinity vs femininitylong term orientation vs short term orientationindulgence vs restrain2
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