Identifying Culture Specific Preferences in International Business Context

This report discusses the case study of American representatives going wrong in a joint venture with Japanese counterparts due to cross cultural problems. It explains the importance of understanding culture specific preferences in international business context and provides recommendations for American representatives. The report also evaluates intercultural theories to support the discussion and provides advice for planning cross border joint ventures.

1Demonstrate the following knowledge
and understanding Identify culture
specific preferences in international
business context and develop appropriate

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
CASE 1............................................................................................................................................3
Explaining the American representatives went wrong................................................................3
Understanding the cross cultural problems..................................................................................3
Using intercultural theories to explain and supporting discussion..............................................5
Advices and recommendations to American representatives......................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International business is defined as the trade of goods, services, technology across the
national borders of the different country. The current report is based on the case study 1. This
will outline that where the American representatives go wrong. Further this report will outline
the American representatives in order to understand the better cross cultural problems. Further
this report will outline the intercultural theories in order to support the discussion. At last this
report will include the advices to the American representatives.
CASE 1
Explaining the American representatives went wrong
As the US equipment manufacturer used to decided that they will explore the
manufacturing with them by having the joint venture. This is because the Japanese has the
enormous interest in the golf game which makes them do so. The joint venture is basically
termed as the combination of two or more parties that used to come together in order to do some
profitable projects and shares the risk accordingly (Nippa and Reuer, 2019). In order to make the
joint venture they have decided to met in San Francisco in order to discuss the further work.
They used to met and they were siting opposite side of the conference table. The Japanese used
to show the sincerity at that conference table in order to have the work done nicely. But the
Americans used to take off their jackets and rolled up their sleeves which shows that they have
no sincerity related to their work and thus here the American representative went wrong. This
was very unethical behaviour done by them at the meeting. In that meeting one of the
representative of America counterpart part the table and ask their name misbehaviour. Here also
the American representative went wrong by asking their name on the conference table. This
shows that they were not having organizational etiquettes in order to attend the meeting. By
taking of the jacket and rolling up the sleeves shows that they were not having the etiquettes in
order to behave the in meeting to form the joint venture.
Understanding the cross cultural problems
Cross culture refers to dealing or having the comparison between the two or more
different countries or the cultural areas. The cross cultural problems includes the
miscommunication, hurting other unintentionally, being judged, etc. These are basically the big

cross cultural problems that used to affect the management and work in the company or in order
to form the joint venture (Leonard and et.al., 2020). As it is very important in order to understand
the cross cultural problems because it helps them to have the proper communication between
both the parties. The cross cultural problems must be understood by the American
representatives which is described below:
Miscommunication: It is refers to the failure of having the clear communication which
used to affect the work. This problem can be occurred by having the ambiguity or making the
assumptions by the people. This is the big problem for the companies while having the
international business (Connelly and et.al., 2019). As in the given case study it is seen that the
there was the big miscommunication between both the parties. The American representatives
were not communicated properly with the Japanese people that makes them not to do joint
venture with them. This was the wrong doing make by the American representatives which has
affected the having of the joint venture in the future.
Hurting intentionally: This is another cross cultural problem that used to affect the proper
management of the work. As the American has hurt the Japanese representative by behaving
unethically and thus affected the future happening of the joint venture. This was very unethical
done by them on the conference table that used to create the cross cultural problem. This will
have the great effect on having the cross cultural joint ventures and mergers of the companies.
As in order to do the international business it used to create lots of problems in management. But
in the meeting the American representatives went wrong which hurt the Japanese representatives
on the conference table.
Different communication styles: This is the another big cross cultural problems which
may be faced by the parties in order to trade across the borders. In the given case study both the
nations were different and both have their different communication styles. This will have the
great effect on having the cross cultural joint ventures and mergers (Fernández and Abe, 2018).
By having the different communication style in the America the Americans talk them unethically
which mismanages the situation. As it is very important in order to understand the cross cultural
problems because it helps them to have the proper communication between both the partners.
This makes the things went wrong and affected the happening of the new joint venture.
Difference in Decision-making style: The role of the person plays an important role in the
decision-making that is different from culture to culture. As in US the decisions made by them

are frequently delegated which helps them to have the proper functioning of work. But in Japan
the decision-making is done by having the decisions of the people as well. As in the conference
meeting the American representatives did not perform well and ask them to know each other
before starting the venture. This has affected the work in the meeting at San Francisco and did
not let joint venture happen. This will have the great effect on having the cross cultural joint
ventures and mergers.
Using intercultural theories to explain and supporting discussion
In order to trade in the international market it is very important for the companies to
follow the intercultural things which helps them to survive in the market. There are some
intercultural theories in order to support the given discussion is as described below:
Hofstede's Cultural Dimensions theory: This theory helps to understand the differences
occurs in the culture across the different countries. It makes to have the difference between the
national cultures, dimensions of culture and its impact on the business setting. The elements of
this theory is described below:
1. Power distance Index: This element used to show that up to which extent the
inequality and power is tolerated by the people. By having the high power
distance index it shows that it used to accept the inequality and power differences.
This used to encourage the bureaucracy in the market. Low power distance index
shows that the culture focus on the best organizational structure that makes to
have good decision-making. In the given situation there is lots of inequality and
power differences which has affected their work.
2. Individualism vs. Collectivism: These elements shows that the societies are
basically integrated into various groups and are dependent on each other. In the
Individualism the person used to focus on achieving the personal goals while in
the collectivism the high importance is given to the well-being of the whole
group. As the Americans has decided to work collectively in order to attain more
profits and goals but the things went wrong.
3. Uncertainty Avoidance Index: In this element of the theory indicates that up to
which extent the uncertainty and ambiguity are tolerable. The high uncertainty
avoidance index shows that that is low tolerance of uncertainty, ambiguity and
risk-taking (Hofstede's Cultural dimensions and differences across cultures,

2022). On the other hand the low uncertainty index shows that there is high
tolerance of uncertainty, ambiguity and risk-taking. As in the given situation it is
seen that there was low uncertainty of index as there was big confusion created
among the both the parties in order to form joint venture.
4. Long term vs. Short term orientation: In this element of the theory it is shown that
up to which extent society used to view its time horizon. The long term
orientation used to have focus on the future and also involves the delays in short
term success. In the short term orientation the culture used to focus on the short
term success in order to grow in the market. As there was no confirmation or deed
of having the joint venture, so they don't have to focus on the short or long term
orientations.
5. Indulgence vs. Restraint: In these factors it is considered that up to which extent
the society used to fulfil it desires. In the indulgence it used to show that the
society used to allow the free gratification in order to enjoy life and have fun. On
the other hand restraint indicates that the society does not provide free
gratification and regulates by having the social norms.
Confrontation model: The confrontation model used to aim in order to have change in the
individuals by aggressively compelling them by acknowledging their failures and weaknesses.
This model is applied when there is conflict between the parties who used to confront each other.
The confrontation can be happened at any scale that is between the number of people, between
nations or different culture (Srivastava, Singh and Dhir, 2020). This used to create the negative
image as number of people used to confront each other that is not the pleasant things. The
confrontation may happen between the members or among the various groups. As each team has
its own point of views which used to create the conflict among the different culture. The
confrontation may be happened by the provocation of the single member which used to affect the
group as a whole.
As in the given situation same thing happen that leads to has conflict ad does not make
happen of joint venture. As Americans used to take off their jackets and rolled up their sleeves
which shows that they have no sincerity related to their work and thus here the American
representative went wrong there. This makes to have the conflict between the Japanese and

American representatives. As one of the American representative Harry also did not talk properly
with the Japanese which mismanages the situation of having the joint venture.
Advices and recommendations to American representatives
There are some advice and recommendations to the American representatives which is
described below:
1. It is advised to American representatives that they must act nicely and
sophistically that helps them to have the joint venture with another party. As they
did not behave nicely with the Japanese which has affected their work that time.
As if they talk and behave properly this will lead to have joint venture which
helps them to have more profits.
2. In order to create the joint venture the party must plan carefully that with whom
they will create the joint venture (Barmeyer, Bausch and Moncayo, 2019). As
they were planning to have the cross border joint venture with the Japanese as
they were more interested in golf game. But this did not work and lead to the
conflict. So it is advised to the American representative that they must plan
carefully with whom they have to do co- projects.
3. It is further advised to the American representative that they must not ask directly
about the another party work. They must make them feel comfortable and firstly
must discuss the new project on which they have to do work (Bouncken and et.al.,
2018). This makes the other party to build the trust and helps them to monitor the
performance of the another party.
4. It is also suggested to the American representative that they must know about the
partner's national culture. By knowing the national culture of the another party or
partner helps them to have known about how to behave accordingly.
CONCLUSION
From the above report it is concluded about where the American representatives went
wrong. Further this report has summarized about the American representatives in order to
understand the better cross cultural problems. The cross culture problems are miscommunication,
different nation styles, difference in decision-making styles, etc. Further this report has evaluated
about the intercultural theories in order to support the discussion made at meeting. At last this
report has suggested some advices for the American representatives.

REFERENCES
Books and Journals
Barmeyer, C., Bausch, M. and Moncayo, D., 2019. Cross-cultural management research: Topics,
paradigms, and methods—A journal-based longitudinal analysis between 2001 and
2018. International Journal of Cross Cultural Management. 19(2). pp.218-244.
Bouncken, R. B., and et.al., 2018. Cross-cultural diversity management in service
firms. European Journal of International Management. 12(5-6). pp.510-535.
Connelly, B. L. and et.al., 2019. Shareholder influence on joint venture exploration. Journal of
Management. 45(8). pp.3178-3203.
Fernández, A.L. and Abe, J., 2018. Bias in cross-cultural neuropsychological testing: problems
and possible solutions. Culture and Brain, 6(1), pp.1-35.
Leonard, T. and et.al., 2020. Legal review of share ownership in a joint venture
company. International Journal of Innovation, Creativity and Change. 11(8). pp.332-
45.
Nippa, M. and Reuer, J.J., 2019. On the future of international joint venture research. Journal of
International Business Studies. 50(4). pp.555-597.
Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business research: A
review and research agenda. International Business Review. 29(4). p.101709.
Online
Hofstede's Cultural dimensions and differences across cultures. 2022. [Online ]. Available
through:<https://blog.oup.com/2017/03/hofstede-cultural-dimensions/#:~:text=Geert
%20Hofstede%2C%20in%20his%20pioneer,avoidance%2C%20and%20masculinity
%2Dfemininity.>