Cross Culture Management in International Business Expansion: A Case Study of Oktra

This report discusses cross culture management in international business expansion through a case study of Oktra. It includes theoretical frameworks, Pestle analysis, and literature review of cross culture in organizations. The report also covers the importance of management strategy and its responses to overcome cross culture issues. The research methodology used is secondary data collection. The report provides recommendations for effective cross culture management.

International business

Executive summary
Organizational cross culture contains the beliefs, attitudes, conduct, standards and artefacts that
unite the firm's members. Like other cultural contexts, with the cooperation of members,
organizational cross culture evolves over a long time. Company need to evaluate an organization
cross culture while international expansion. These report include theoretical frameworks, Pestle
analysis and Literature review of organization and role of cross culture of the organization.
Every individual have different essence to work in a work field. Therefore, the personnel is only
one who are essential for the success of the organization in international market. cross culture
issue is one of the major issue in expansion process of the business organization, it is very clear
that every business have be careful in managing culture of the people. employee who belong to
diverse culture tend to provide company, a competitive edge.
TABLE OF CONTENTS
Executive summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Literature review..............................................................................................................................3
concept of cross culture:..............................................................................................................4
Pestle analysis..............................................................................................................................5
Management strategy and it's importance....................................................................................6
RESEARCH METHODOLOGY....................................................................................................7
ANALYSISNG AND DISCUSSING..............................................................................................7
Critically analysing relevant management responses to overcome cross culture issue:..............7
recommendation:.........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
As globalization increases company try to operate their business as international. This crossing
of the companies in geographical borders help world as a multicultural organization and in which
country the companies expand most business also enhances their country position in the market
and increase in their GDP. This report includes the information about the Oktra company who
wants expand their business in US and therefore, Oktra company which is designer company and
it creates a space for the people and customer preferences. This report also includes the effective
knowledge of cross culture of organization sees the influencing, impact of their team to
acknowledge the uniqueness of the organization and change them. In each and every
organization every individual or team workers is effect a surrounding culture, politics The
concept of a cross culture assess the psychology, affection, and knowledge of an organization.
When company motivate the personnel of organization their working perception will change and
the worker will work in positive way. It effects the people working values and regulation of the
company. Hence, it sees the relation between the company and their workers and the
connectivity of the company and their personnel are basic analysation. As the culture changes
rapidly and according to time organization also need to change their perception and techniques,
models to manage their business while expansion. The cross culture of an organization always
affiliated to the organizational behaviour.
MAIN BODY.
Literature review
Effectively manage the organization and understanding the cross culture diversity is the most
essential thing nowadays therefore, organization need to enhance their culture according to the
market where they situated. Company communication and influence power pattern is also
essential in international expansion (Chen, Ho, and Ahmed, 2020).
Objective of this report is;
Concept of cross culture
Pestle analysis
Management strategy and it's importance

concept of cross culture:
Cross culture is basically determined to recognize the difference between the business and
market where they situate as the Oktra is planning to establish their business in Us and therefore,
they should have to be look forward towards the backgrounds and community as well.
The concept of cross culture also determine the sustainability resources or training by which the
organization attract their customer's in new Market while expansion. For example; if Oktra
employee also transfer to another country like from UK to US because the company expand their
business therefore, they ned to master the cross culture and should learn the language by which
they communicate with the people and attract them to wards their company for more profitability
and recognition (Kafetsios, Hess, and Nezlek, 2018).
Social structure is also necessary in the organization and religion system to adopt in the company
and their activity by which the people of the place where company us situated help them to grow
and attract towards the company. Follow public policy is also necessary and reflects the culture
value of the country. Work motivation is also necessary and enhancement of the employee
workflow by proper management in the international market.
Person culture: this culture include the employees. In Oktra the employee is the
essential key for the organization. The better the employee get motivates the better they
will work.
Role culture: role culture identify the organization employees role for the particular task
they are assigned for. In the Oktra the person who is assigned for the task and the role of
the work they are assigned for are completely their responsibilities to completer the role
and task by productive way in order to establish their productivity of the organization.
Power: power indicates to the authority of the top management of organization. The
superior of the organization has power to motivate the employee of the organization as
positive for the betterment of the organization and give their best to enhance their ability
of in regard to increase the productivity of the organization in better way for more risk
and Oktra are using those power to motivate their employees of the firm for the better
productivity and increase their network of the organization. Top management of the
organization also enhance the feelings and thoughts of the employee of the organization
of Oktra by motivate them (Zhang, and Yang, 2018).

Pestle analysis
Oktra is basically is designing company who create space for people do their things.
Below is a description of Pestle analysis of Oktra by expanding their business in US.
Political: Political factor of the country defines the political stability of government and safety
measure in the country where organization try to set their business. The country has the powerful
administrative system. US is the second largest democracy in the globe. If Oktra expanding their
business in US therefore they should have to be very careful about the these things like,
COVID-19 affect the country very much and many organizations as well. It is very clear that
every business organization get effected with the changing policy of the government. Political
factor may include tax and tariff policy, trade restriction and most importantly stability of the
government which affect the organization when they expand their business in the country.
Government made changes in casual zero hour labour contract impacting businesses and its
structure
Economic: Economic factor determine the country GDP and diverse economy by which
organization get help to establish their business. This describes the stability of the economy, in
every business organization have to keep eye on the movement of the economy and impact of its
factor. Economic factor of the country include, interest rate, exchange rate, inflation rate and
employment and unemployment rate. Recent exchange rate of economy of US impacted each
and every entrepreneurship, after COVID-19 impact government took certain step to bring up
fallen exchange rate, with the help of multinational companies many countries get a benefit
because of their exchanges across the globe. Oktra should look after all the aspects of the country
to establish their business in.
Social: Social factor determine the population and health care system of the country which help
the entrepreneur to determine their income level. Basically, this factor determines the customer
and their lifestyle, every business organization greatly get impacted by the social factor. These
social factor include, taste and preference of the customer, liking and disliking, cultural belief
and value and income and education level. This has brought major impact on the brand image of
the companies in the market. Company should know about the culture and the society where they
go to set their business up because it totally depends on the culture and the society preferences.
Nowadays the lifestyle of the people changes rapidly that's why entrepreneur need to look after

the culture and the society they have. Social factor totally depend on the culture, education of the
society which enables the people preference and their choice of product ans sentiment towards
the organization company should bring the awareness among the people with which they can
attach with the people emotions by promoting their product (Hartono, Suparto, and Hassan,
2021).
Technology: Country has the world largest research and technology institutes available.
Thereafter, the technology consist invention and development by which country attract the new
entrepreneurs. Technological factor means the advancement and betterment in technological of
the industry as a whole. Nowadays Industries being using latest and fastest technology in the
process, every entrepreneur have to adopted advance technology in the process. Oktra should use
latest and advance technology in their business operation, this provides high quality browsing
line and easy assess website to the customer to improve their experience. Increase in technology
and e-buying give the organization advantage to take their products one step forward in order to
get the attention of the consumer and people.
Environmental: the geography of US has very diversified. US faces the toughest weather
condition therefore organization should set their business according to the country weather and
their situation. The climatic disaster in country are often occur that's why they also faces much
financial damaged. It causes disruption as technology also develop. Different norm and standard
of the US affect the Oktra and their profitability.
Legal: legal environment of the country also indicates the right of the organization when they
establish in a new country. Organization should have to be very careful and always lead toward
the competitive edge which can be beneficial for the company and their productivity to attract
the new customers in a new market by their legal compliances and performance.
Management strategy and it's importance
Management strategy in cross culture are organization should focus and understand the
disagreement among the culture and anticipate the expressing way of society towards the
company and their work. Oktra should understand the culture and perspective of the place where
they expand their business.
When company expand their business in international market they should also build a relation in
the market and supplier as of that particularity place by which they will make profitability and
recognition.

Changing demographics is one of the main reason for the emergence of diversity. Cross culture
management refer to the people behaviour of different place worldwide. Managing cross culture
workforce is essential because it creates employment in the country where company is going to
establish. They should consider and face the conflict in the organization by establishing their
business in cross culture. Managing culturally diverse workforce in the organization is also
necessary by the company. For better management in the organization they should select
carefully the worker or employee for better and effective workflow in the company. In Oktra
management strategy is also important because they have to express their work in a creative to
the people who will appreciate and the creative should also involve in the culture of society (Liu,
Kanso, Zhang, and Olaru, 2019).
RESEARCH METHODOLOGY
For the completion of this study, secondary source is being used to collect qualitative data.
this secondary data includes information of cross culture issue which is collected from published
books, internet, website, magazine and published journal. all collected data is being used for the
purpose of understanding cross culture concept, the collected data have allowed this report to
become more effective and provide clear understanding of cross culture issue. every secondary
data which been collected in this report will identify every key element in cross culture in the
workplace of business organization.
ANALYSISNG AND DISCUSSING
Critically analysing relevant management responses to overcome cross culture issue:
When business organization plan to enter foreign market, then they face certain issue. these
issue become barrier in smooth process of expansion. management of the company know that,
cross culture is one of the most challenge issue in the process of expansion (Thomas and
Peterson, 2016). management of Oktra need to follow these responses to overcome cross culture
conflict in the workplace, these responses are:
watchful selection: selection process of business need to be carefully undertaken to avoid any
kind of conflict, selecting right people at right job is most important consideration of
management. Oktra have practice HRM to hire right people in the workplace, when business
organization fail to perform watchful selection then they hire people who do not suit in culture of
business which result in rising cross culture issue. watchful selection process, unlocks various
opportunity for the business when expanding to international border. if management tend to hire

those people who meet the requirement of company’s culture. If Oktra is planning to expand in
the US then they have to carefully select people and need to analyse their culture which suit best
for the company.
on board training: training is best way to improve employee’s performance in the workplace,
training allow company to sharpen the skill level of employee. on board training to employee is
one management response to overcome cross culture barrier, effective training solves certain
issues of cross culture for example if Oktra is facing language barrier which means people from
diverse culture many find difficult to communicate with each other because they are not familiar
with local language (Romani and et.al., 2018). this issue can be solved by the management if
they tend to provide effective training program which cover communication improvement part.
when Oktra will perform expansion in US then language barrier will be major issue.
management of Oktra need to effective respond to this issue to overcome cross culture conflict.
financial benefit: financial benefit is one of the best way to improve productivity of employee,
when business organization try to provide benefit including financial one, have opportunity to
solve cross culture issue. management of Oktra can provide financial benefit to employee
according to their performance (Richter and et.al., 2016). sometimes employee from diverse
culture feel left out in the workplace because company do not provide financial benefit to them,
they often feel discriminated which increase chances of cross culture issue. Oktra need to avoid
any such activity of discrimination in the workplace mainly when providing financial benefit. in
expansion process of Otkra, employee might get transferred to US where company is planning
expansion, which will increase their overall expense resulting in dissatisfaction, to overcome this
management have to provide financial benefit and incentives to employee to avoid any cross
culture conflict in the workplace.
re-entry: re-entry means when employee return back from a foreign task often face cultural
barrier in the workplace of their home country. when employee fall under habit of enjoying
benefit of different culture then re-entry to home culture become the biggest barrier, Oktra name
this situation as cross culture re-entry (Bird and Mendenhall, 2016). employee of this company
will going to face this issue in the workplace when they tend to leave their home country where
company is located. when they will enjoy the diverse culture of US then they will find difficult to
adjust in the workplace after long period of time. management of Oktra can response to this issue
with effective short term training program, in this training, management of the company tend to

reconstruct the situation for employee. readjustment strategies can be used by Oktra to manage
this cross culture issue.
Hofstede’s cultural dimension: many successful business organizations use Hofstede cultural
dimension to manage people their culture in the workplace. Oktra have opportunity to use
Hofstede model to manage cultural diversity, there are certain element of this model such as:
power distance index (PDI): power distance index state that inequality exist in power
distribution in the workplace which result in cross culture issue. Oktra need to distribute power
according to the position of employee in the workplace for example if manager did not get
sufficient power, then their management will tend to decrease and they often create cultural
barrier in the expansion process. management of Oktra need to response effectively on this by
providing right power to right employee (Favaretto and et.al, 2016).
individualism vs. collectivism (IDV): interpersonal connection between employee play vital role
in the workplace, both individualism and collectivisim are important in maintaining cultural
diversity. Oktra need to analyse both terms for effect management of cross culture issue,
employees are often divided in to:
individualism: individualism means achievement of personal goal, every employee have sense of
individualism which allow them to create personal benefit in the workplace. Oktra’s
management can examine individualism in the workplace to overcome issue of cross culture. for
example; employee from different culture often look for personal benefit which can disturb
healthiness of business.
collectivism: collectivism means togetherness, if Otra is planning to expand in international
border then they need team which can make this possible. team from diverse culture collectively
contribute in the achievement of organizational goal. collectivism is very beneficial for those
organization who are planning to expand like Oktra.
recommendation:
HRM practice: it is recommended for Oktra to use HRM best practice in managing any kind of
cultural issue in the workplace, these best practice will solve any issue occur during expansion
process of the company mainly related to cross culture issue. HRM best practice will allow Oktra
to achieve proficiency in cross culture which is key element in success at international market.
flexibility: adopting flexibility in the workplace is one of the best way to manage cross culture
issue, it is recommended for Oktra to bring and adopt flexibility in their management of people

and their culture. flexibility allow company to adjust in any market condition and improve
capacity to face risk in the market where they planning to expand.
CONCLUSION
this report has discussed international expansion process of business organization and
various issue that arise in the smooth expansion flow. this report has discussed cross culture as
one of the most common issue faced by business in the expansion process. later this report has
discussed research methodology and literature review, in literature review, this report has
provided concept of cross culture issue and has discussed various external factors which impact
the business. to understand external factors. this report has provided PESTLE analysis for better
understanding of the issue. later this report has discussed management strategy of business in the
management of cross culture issue in the workplace. later this report has provided clear
understanding of management response to overcome issue of cross culture in the workplace. at
last this report have provided recommendation.

REFERENCES
Books and Journals
Chen, S., Ho, W.K.Y. and Ahmed, M., 2020. Physical activity and its relationship with life
satisfaction among middle school students: A cross-culture study. Sustainability.
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Kafetsios, K., Hess, U. and Nezlek, J.B., 2018. Self-construal, affective valence of the encounter,
and quality of social interactions: Within and cross-culture examination. The Journal of
social psychology.158(1). pp.82-92.
Zhang, X. and Yang, H., 2018. Impact of Cross-Culture on Behavioral Information Security.
Journal of Integrated Design and Process Science.22(2). pp.63-80.
Hartono, H., Suparto, S. and Hassan, A., 2021. Language: a ‘mirror’of the culture and its
application English language teaching. Linguistics and Culture Review. 5(1). pp.93-
103.
Liu, F., Kanso, A., Zhang, Y. and Olaru, D., 2019. Culture, perceived value, and advertising
acceptance: a cross-cultural study on mobile advertising. Journal of Promotion
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Thomas, D.C. and Peterson, M.F., 2016. Cross-cultural management: Essential concepts. Sage
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Romani and et.al., 2018. Cross-cultural management studies: state of the field in the four
research paradigms. International Studies of Management & Organization, 48(3),
pp.247-263.
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
Richter and et.al., 2016. Using cultural archetypes in cross-cultural management studies. Journal
of International Management, 22(1), pp.63-83.
Favaretto and et.al., 2016, September. Using group behaviors to detect hofstede cultural
dimensions. In 2016 IEEE International Conference on Image Processing (ICIP) (pp.
2936-2940). IEEE.