Developing Crosscultural Capability

This report discusses the challenges of cross-cultural management, including culture shock, cross-cultural communication, and cross-cultural conflict. It also explores the strategies for building teams across different locations. The case study focuses on Rosewood Hotels and Resorts, a global hospitality company. The report provides insights into the impact of cultural differences on the company's operations and profitability.

DEVELOPING CROSS-
CULTURAL CAPABILITY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A. Challenges associated with culture shock...............................................................................3
B. Challenges of cross-cultural communication..........................................................................5
C. Cross-cultural conflict affect business....................................................................................7
D. Company need to consider in terms of building teams across locations................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Cross- cultural management shows the impact of society and culture on the management
and policies of the company. It acknowledges the difference among the culture of different
nations. In this report Rosewood hotel and resort, which belongs to the hospitality industry has
been defined. It is an international hotel which operates round the glob. This report states the
cultural differences faced by the hotel and various tactics implemented to overcome the
behaviour, preference and social indifferences and communication challenges among people of
various origin. Conflicts arise due to cross-cultural and its impact on the profitability of the hotel
has been elaborated in this report.
MAIN BODY
A. Challenges associated with culture shock
Rosewood hotel and resorts, which wants to expand themselves globally have to make
sure that the culture shock is being taken care of so that the challenges are going to reduce for the
company. There are a lot of differences which are present between location to location which
needs to be monitored and controlled by the company. There is a different in beliefs,
communication, language, behaviour, religion, values, etc. which are going to be present.
Rosewood hotel and resort want to make sure that they are providing the best of services and
quality of living which is going to match the standards of the clients which is going to be present.
Therefore, Rosewood transfers their employees from place to place so that they can set the base
which has been followed in the company (Jung and et.al., 2018). The language and
communication gets a lot of gaps which is going to be there and the performance and efficiency
of the company is going to be mismanaged. There is a feeling of frustration, loneliness,
homesickness, irritability, isolation, rigidity, etc. which are going to be there and that is not good
for the brand value and reputation. The further report is going to be discussing this factor in
detail.

 Honeymoon
In this stage, everything looks like a wonderful idea and the company will be able to
make a profit as well when the company expands themselves. This is going to be a good
adventure which Rosewood hotel and resorts can have in different markets but there are a lot of
factors which have to be considered to be able to have a long run in the market.
 Frustration
This stage the company is going to realize the drawback and challenges which are going
to occur for expanding themselves in countries which have different culture, religion, values,
beliefs, etc. One can not understand the gestures and language which makes it difficult to be able
to communicate is going to make the performance of the organization be affected overall
(Charoensukmongkol, 2020).
 Adjustment
Getting used to the surrounding is going to start in this stage with the food, culture,
people, language, etc. The frustration is going to reduce in this stage so that there is going to be
higher operations and functioning which is going to be present. The fear of shifting is going to
reduce and understanding the environment would be present which is going to be good for
adjustment in the future.
Illustration 1: Culture Shock
(Source: Paszkowska-Rogacz, 2020)

 Acceptance
With the help of the people around and settling down in the location is going to be
present in this stage. Culture is not going to be completely understood but acceptance is going to
be present for the surrounding people and environment so that there is going to be higher
productivity and operations which would be present. This stage can come in within weeks,
months or even years.
B. Challenges of cross-cultural communication
Challenges related to cross-cultural communication are many which can rise and that is
not going to be good for the performance and productivity of the company and its sales. It is
important for the employees which are hired in the organization to must work as a team and
specifically it is important in a hospitality industry. Tasks in hand are many and well distributed
in a hospitality industry so that there is going to be effective working which is going to be
present. The guidelines are also going to differ which needs to be considered and that is going to
help in the working of the company. It is according to the market that there are effective working
measures which are being decided by the company to be able to operate effectively (Darawong,
2018). There are going to be a lot of theories and models which can be used to understand this
aspect and is being used by Rosewood Hotel and Resorts as well so that there is going to be
higher competitive advantage which is going to be present. With the help of iceberg
communication model there is going to be a stable understanding and working which is going to
be present and would be discussed in the further report in regarding Rosewood Hotel and
Resorts.

 Outcomes
This includes the performance, experience and culture which the organization has
gathered in the market. Rosewood is having good experience of expanding themselves in
America, Europe, Middle East and Asia which is having a common ground and culture and
communication gap is not going to come up which is going to be a great factor. Expanding in
China, Japan, India, Brazil, etc. which are developing countries are going to be a task for
Rosewood because of the cultural and beliefs differences which might rise.
 Structure
It is important for Rosewood Hotels and Resorts to have a framework and common
grounds for all the employees so that there is going to be higher operations which is going to be
present. Having a plan and well-designed direction in which the organization must operate is
very essential so that there is going to be higher profitability and brand value is going to increase
since the customers are going to be satisfied (Kaya, Erkut and Thierbach, 2019).
 Beliefs
Customers have to be sharing their beliefs and while decision-making and other factors,
Rosewood Hotel and Resorts will have to be considered their way of working. All individuals
have different agenda's which have to be matched by the company so that they can be motivated
effectively. Beliefs have to be same which is going to make all the individuals be able to have a
Illustration 2: Iceberg Model
(Source: Harper, 2018)

sense of team work and make Rosewood Hotel and Resorts be able to expand themselves with
different cultural and language backgrounds like China, India, Brazil, etc.
C. Cross-cultural conflict affect business
It is very essential to have healthy environment and morale in the organization so that
there is going to be effective working which would be present. There has to be harmony which
needs to be existing in a workplace which would motivate to have more creativity and ideas can
be generated. With the help of Hofstede's cultural model there is going to be higher
understanding of the differences which Rosewood Hotels and Resorts are going to have so that
there is going to be effective working which is going to be present.
 Power distance index
There has to be acceptance which has to be present in the organization so that there are
fewer chances of inequality which would be present. Hierarchy is followed in Rosewood so that
there is going to be effective establishment which is going to be present.
 Uncertainty avoidance
Rosewood Hotel and resorts can not have uncertainty in the working which has to be well
maintained and understood so that there would be higher performance which would be present
(Mahadevan, 2017). Behaviour, guidelines, laws, truth and beliefs have to be present so that
there would be more ideas and creativity which can generate.
 Individualism vs. collectivism
All the individuals of Rosewood will have to know their roles and responsibilities
individually and also as a group so that there is going to be higher performance and objectives
are going to be achieved. Conflicts are going to be present if there would be no common grounds
which is going to be bad for the overall influence.
 Long-term orientation vs. short-term orientation
From the current challenges and actions there must be effective decisions and planning
which is going to be required. Short term goals is not something which Rosewood Hotels and
Resorts is aiming for which needs to be controlled and monitored so that there is going to be
effective working which is going to be there. It is important for the company to make sure that
there is good working and cultural values in the organization so that there is going to be higher
outcomes.

 Masculinity vs. femininity
There are a lot of rewards which are being provided to the employees of Rosewood and
having any discrimination related to gender or any other aspect there have to be right decisions
which have to be taken. In society, it is believed in a lot of locations that women are less
competitive and assertive in nature which is not what is followed in Rosewood Hotel and Resort
but it is on their quality of working.
 Indulgence vs. restraint
Desire of having enjoyment in life and fun is something which all the individuals want
which is important for the company to provide. Due to cultural and value differences there are
going to be a lot of differences and restraints which are going to come up and that is not going to
be effective in nature for Rosewood's long run in market.
D. Company need to consider in terms of building teams across locations
To be able to expand Rosewood Hotels and Resorts there have to be effective working
and efficiency which has to be present so that there is going to be higher performance. Strong
team work is important in a hospitality industry so that there is going to be effective working
which is going to be present. A balance between work and professional life must be present so
that there is going to be higher working and sharing of culture is going to be there. Individuals
must get time to interact as well so that there is going to be strong base which is going to be there
and a common ground of working and planning for the management would be present. For being
able to expand in China, India, etc. developing countries for Rosewood there has to be good
operations which must be present (Anning-Dorson, 2019). Good vibes have to be present and
that is going to help in tracking the working and operations and also provide a healthy
environment for the workforce to have which is going to be a great factor. Language and culture
and the two most important factors which Rosewood hotel and Resorts must have to be able to
operate effectively in the market. Support has to be present like providing translators and
activities to be able to find a common ground which is going to help the team to be build
effectively. Creativity and ideas are present in different locations because they have a strong base
in the market which must be present which is going to make the performance of the organization
be higher. Training and development is important for the cultural differences to be removed in

Rosewood Hotel and Resorts which is going to help the company be able to expand themselves
and also make sure that there is good competitive advantage as well (Ju, Jin and Zhou, 2018).
CONCLUSION
By analysing the whole report it is concluded that it refers the various challenges and
difficulties of cross-cultural faced by the hotel. Apart from this numerous challenges associated
with culture shock has been discussed. It also explains the strategies form by the hotel to
overcome the communication gap and differences among the people and the employees as well.
This report describes how the particular hotel expand its business to developing countries and for
that how they form new structure of plans and policies to draw the attention of people living their
as it is a luxurious hotel so it has targets the upper class and wealthier people of the society.

REFERENCES
Books and Journals
Anning-Dorson, T., 2019. Complementarity of capabilities across cultures: Innovation, customer
involvement, and competitiveness of service firms across India and the UK. Cross
Cultural & Strategic Management. 26(4). pp.567-585.
Charoensukmongkol, P., 2020. The efficacy of cultural intelligence for adaptive selling
behaviors in cross-cultural selling: The moderating effect of trait mindfulness. Journal
of Global Marketing. 33(3). pp.141-157.
Darawong, C., 2018. Dynamic capabilities of new product development teams in performing
radical innovation projects. International Journal of Innovation Science.
Ju, M., Jin, J.L. and Zhou, K.Z., 2018. How can international ventures utilize marketing
capability in emerging markets? Its contingent effect on new product
development. Journal of International Marketing. 26(4). pp.1-17.
Jung, T.H and et.al., 2018. Cross-cultural differences in adopting mobile augmented reality at
cultural heritage tourism sites. International Journal of Contemporary Hospitality
Management.
Kaya, T., Erkut, B. and Thierbach, N., 2019. Entrepreneurial intentions of business and
economics students in Germany and Cyprus: A cross-cultural
comparison. Sustainability. 11(5). p.1437.
Mahadevan, J., 2017. A very short, fairly interesting and reasonably cheap book about cross-
cultural management. Sage.
Online
Harper, L., 2018. [Online]. Available Through: <https://futureconsiderations.com/iceberg-
model/>.
Paszkowska-Rogacz, A., 2020. [Online]. Available Through:
<https://www.researchgate.net/figure/Phases-in-culture-shock-in-the-U-
model_fig4_311440032>.