Cross-Cultural Management: A Comparative Analysis of Lebanese and Dutch Cultures


Added on  2019-12-03

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Cross-Cultural Management: A Comparative Analysis of Lebanese and Dutch Cultures_1

Looking at the present current state in global market, every company is making valiant efforts toenhance its business operations to attain growth and sustainability. In this context, companiesoften face a major issue termed as cross culture. The successful international trade of thebusiness enterprise depends upon the smooth interaction of employees from different cultureregions. In the present given case, a new financial institution Clever Clogs International aims atexpanding its business operations from Lebanon to Amsterdam, the Netherlands. However, thiswould be a 2 year assignment for which experienced Muslim employee (Female) has beenselected. Thus, researcher focuses on delivering a cross cultural training to the new managerfrom Clever Clogs International.Clever Clogs International focusing on expanding its business to international market.However, it is the duty of senior authority to recognize the challenges and accordingly preparethe plan for them so that expansion process can be carried out in effective manner. There areseveral challenges that management of Clever Clogs Finance Institution management could facewhile expanding its business operations from Lebanon to Amsterdam, Netherlands. Language is one of the major issue regarding expanding business from one place toanother in international market. However, in order to establish business it is important for theentrepreneurs to understand the people by their own language so that they can connect to themeasily and set a better image within their minds. In the present given case, Lady Manager fromLebanon is selected for the expansion to Amsterdam. However, in Lebanon language is Arabicand in the Amsterdam, Dutch language is followed. Thus, it will be very difficult for the ladymanager to establish the financial institution where language is a major concern. Another major challenge for the selected executive will be cultural issue. However,culture of exiting country consist of Arabic, French or English languages. While on the otherhand, in Amsterdam, Dutch language is followed. However, being the capital of Netherlandwhich consist of diverse culture reflecting regional differences as well as the foreign influences.Therefore, in order to establish financial institution in the selected place it is important for theexecutive to understand the culture deeply and mould the functioning of business accordingly sothat smooth entry can be achieved. Lastly, norms and regulations is another major challenge that could effect on theexpansion of the financial institution. However, operating in Lebanon, Clever Clogs Internationalundertakes the Islamic financial norms and regulations to carry out the operations. However, it1
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would create a major concern as the population of Islamic people in Netherland is relatively lowthus, to execute the operations of financial institution, executive lady manager has to understandthe Dutch rules and regulations for carrying out smooth expansion. There are several macro level facts of Netherlands that top level management of CleverClogs International Financial Institution has to consider before making any decision regardingexpanding business operations within its capital. Considering the political environment of the Netherlands it can be stated that, as per theDutch foreign Employment Act an employer must be in possession of a work permit for a nonEEA national who will perform employment activities in the Netherlands. Along with this, aresidence permit for a highly skilled migrant allows a non EEA national to reside and worklegally in the country. However, this procedure is valid only if employer stage longer than 90 to180 days. According to present given case, lady manager of financial institution have to stay for2 year assignment. Social environment of the country is relatively beneficial for the workers as there arevarious strict rules and regulations regarding wages and salaries that employer has to follow inorder to carry out its business operations. In terms of economic environment, the Dutch comply with European Union reciprocityprovisions in banking and investment services. Furthermore, rules and regulations related togovernment incentives, national rules of incorporation are administrated on a non-discriminatorybasis. In addition to it, business laws are based on the international legal practices so that foreigncompanies can enter smoothly and operate with Dutch companies.Hofstede’s cultural dimension theory can defined as the framework for cross culturalcommunication. The main purpose of this model is to illustrate the effects of culture on thevalues of its members. There are several major dimension of this model which assist inelaborating different aspects of the nation such as: power distance, uncertainty avoidance,individualism, masculinity, long term orientation and indulgence. In the present study, twodestination has been selected on the basis of given scenario, as top level management of CleverClogs International wants to expand business operations from Lebanon to Amsterdam,Netherlands. Thus, Hofstede model will be applied on these two places to evaluate the effect ofculture on the values of the individual. 2
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