Developing Cross Cultural Capability

This report discusses the concept of cross-cultural capability in business expansion. It focuses on the case of Crockett & Jones, a shoe manufacturing company, and their plans to expand to Ethiopia. The report explores the Hofstede cultural dimensions of Ethiopia, China, and Vietnam. It also provides recommendations for successful international business expansion.

Developing cross
cultural capability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of the selected organisation and chosen country for business expansion...................1
Hofstede cultural dimension of Ethiopia................................................................................2
Hofstede cultural dimension of China and Vietnam...................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Appendices.......................................................................................................................................8
Literature review on cultural analysis of Crockett & Jones in Ethiopia....................................8
RECOMMENDATION..............................................................................................................8

INTRODUCTION
Cross culture refers to a concept that helps in recognising the differences among people
of businesses of different nations, ethnicities and backgrounds and many more. Due to the
globalisation and liberalization cross cultural term is very trending and important within business
industry that helps in performing the activities systematically. To understand the concept of cross
culture communication is highly beneficial that helps in growth of the global business. This
report is based on Crockett & Jones that is a shoe manufacturing company founded in 1879 by
Charles Jones and Sir James Crockett. Now the organisation wants to expand their production to
other countries to enhance their profits and revenues. This report includes the explanation related
to theories which is quite effective in examine the culture of different countries in effective and
efficient manner so that operations can be done productively and proficiently. This report also
involves the information related to HR functions and elements which are valuable for a business
enterprise to sustaining for longer time (Presbitero and Toledano, 2018).
MAIN BODY
Overview of the selected organisation and chosen country for business expansion
Crockett & Jones is a British shoe manufacturing company that is founded in 1869 by
Charles Jones and Sir James Crockett in the city of Northampton, England, UK. The company
was specialised in manufacturing of Goodyear Welted footwear and produces footwear for both
men and women. The organisation can manage 11 retail shops within UK and several other
regions like New York, Paris etc. Now manager of Crockett & Jones are highly focus on
expanding their business to gain more profits and revenues and for this they choose the Ethiopia
country. Ethiopia is a country that is highly known for Federal democratic republic that represent
as a land locked country in horn of Africa. The main reason of expanding the business in
Ethiopia is the country fastest growing economy that creates more opportunities for Crockett &
Jones in their profits and revenues (Volpone and et. al., 2018). Further the government of this
country are very supportive towards global business that are very useful for Crockett & Jones to
operate their production without any issues and complexities. That helps the company to operate
their business within Ethiopia in effective manner that reflects more profits and revenues in their
long term survival.
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In context of Crockett & Jones, manager also focus on other countries to expand their
business like China and Vietnam but they select the Ethiopia because it is not highly developed
country due to which Crockett & Jones can enjoy the large profits with their limited scale of
production. This helps the business not to invest high amount of capital to sustain in the country.
This will reflected as a best opportunity for Crockett & Jones to expand their production in
Ethiopia by maintaining strong position. In Ethiopia population is high due to which firm
attracts the large base of customers with their products and services that helps in gaining
profitable results. In terms of China and Vietnam both are highly advanced countries where
number of multinational companies are operated having high competition that will creates threats
to Crockett & Jones to sustain effectively with low amount of resources and capital. To avoid
the risk of facing issues related to losing profits and sustainability Crockett & Jones select the
Ethiopia country where they get high profitable results (Menard, Warkentin and Lowry, 2018).
Hofstede cultural dimension of Ethiopia
There are several models which is useful to analyse the cultural differences within
countries so that organisation can expand their business effectively and efficiently. In this
manager of Crockett & Jones are focus on adopting the Hofstede model so that they can
appropriately acknowledge the cultural differences between home country and international
country so that expanding the business operation can be done proficiently. In terms of Crockett
& Jones, hofstede model are to be used that can be elaborated below on Ethiopia:
 Power distance index- In this people believe that inequalities is to be reduced among
people. In Ethiopia this aspect reflects the inequality between higher class and working
class people. In terms of Ethiopia, here people of the society thinks that no individuals
are equal they score high in this dimensions where power is to be divided as per the
position hold by the individual person. In context of Crockett & Jones manager can focus
on providing the high power to leaders and manager related to taking decision that are to
be followed by employees it helps in attaining targets effectively and on specified time
frame. In this company follow the hierarchy structure where one person holds power to
take decisions due to this targets are to be achieved on time (Ott and Michailova, 2018).
 Collectivism vs Individualism- This dimension is highly concentrated to the degree
where individualism and collectivism are two different factors on the basis of which an
organisation can take their decisions related to expanding the business operations. In this
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collectivism focus on attaining the targets within groups rather than individual. Country
like Ethiopia score moderate on collectivism where goals are to be attained within team
that will create loyalty and achievement of task effectively and efficiently. In this
Crockett & Jones manager cannot face the issue related to employee conflicts because in
Ethiopia promotion and hiring are to be done within group by satisfying all team mates
so targets related to production of goods provides positive results (Acosta, Cresp and
Agudo, 2018).
 Uncertainty Avoidance Index- This dimension is focus on how member of society deals
with the situation. It reflects the degree of feeling uncomfortable with uncertainty and
ambiguity. Ethiopia scores high within this dimension they cannot avoid the risk factors.
In context of Crockett & Jones, within Ethiopia rules and regulations are stable as they
cannot fluctuate frequently that helps in attaining the operation's effectively. But at the
same time company cannot do innovation in production of goods and services which
impacted the company profits because here people cannot take the risk. This will create
challenge for HR to provide the effective training to their employees so that they can
accept changes for benefits of company.
 Femininity vs. Masculinity- This dimension is reflected as a tough and tender. In terms
of Ethiopia, this country also score high in masculine factor which means the people of
society are highly values the organisation system and focus on attaining goals towards
whole life of the company. In term of Crockett & Jones this dimension is effective and
supportive. In this HR of firm focus on hiring the candidate who are experts and attains
the targets on time so that production can be done effectively as per market demands and
more customers are attracted towards it (Anning-Dorson, 2018).
 Short terms vs. Long term orientation- This dimensions states that every society has
to maintain some factors by experiencing from their past which is useful to deal
effectively and facing the challenges effectively. In this two types of factors are to be
included that are normative and pragmatic. In terms of Normative societies they prefer to
time focused tradition while reflecting the societal change. On the other hand pragmatic
approach is the one that encourage thrift and efforts for preparing the future. To expand
the business enterprise within Ethiopia, manager of Crockett & Jones focus on adopting
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the pragmatic approach where people are focus on accepting the change for enlarging
their future standards.
 Restraint vs. Indulgence – Indulgent nature is explained as in which people of society
are willingly to realise their impulses and desires to enjoy their life to have fun. In
context of Ethiopia country they have high score on restraint dimensions in which society
focuses on gratification of needs that are to be regulated by following strict social norms.
In case of Crockett & Jones management can face the issue to managing the employees
and hiring the candidate by adopting proper laws and regulations. In this company also
need to hire a local people who is experienced so that firm cannot face the issue in
adopting the laws and regulation of particular country (Shu, Ren and Zheng, 2018).
Hofstede cultural dimension of China and Vietnam
Power Distance Index
China power distance is high and people of China believe in people which have power
and Crockett & Jones have to work according to rules and regulation of China.
Vietnam have high power distance index which means people over there follows order
from their seniors and believes in hierarchy and it will help in Crockett & Jones to deliver role
and responsibilities for their employee in order to achieve goals and objectives.
Individualism and Collectivism
China have collectivism culture and it can help Crockett & Jones in achieving their goals
and objectives by effective coordination among their employees by building relationship among
employees and organisation.
Vietnam is a collectivism society and it can help Crockett & Jones in building
relationship with their employees which can result in effective communication of goals and
objectives.
Masculinity and Femininity
China is masculine society which focus on achieving goals and objectives and people of
China sacrifice their families and put work on priority. Crockett & Jones have to make sure that
organisation should give men and women fair chance and should treat men and women equally
in organisation.
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Vietnam is considered as feminine society where people focuses on quality of life and
Crockett & Jones have to make sure that their products should satisfy needs of consumer which
can help in building effective relationship among organisation and consumers.
Uncertainty Avoidance Index
China have low UAI which can help Crockett & Jones in setting their goals and
objectives and influencing their employees to achieve goals and objectives.
Vietnam have low uncertainty index which is explained as extent where society have
very relaxed attitude and it can help Crockett & Jones in attracting consumer which can help
them in satisfying their needs and it can also help organisation in hiring employees which are
focused and goal-oriented.
Long term vs short term orientation
People of China have focuses on long term development and it can help Crockett &
Jones in implementing necessary plan and strategies which can help organisation in boosting
their revenues and help in maximising productivity and profitability of organisation in
environment of China.
Vietnam focuses on taking pragmatic approach by adapting to changing conditions and it
can help Crockett & Jones in hiring employees which can work by adapting to market scenario
and implementing effective plan and strategies for organisation.
Indulgence vs Restraints
China people follows Indulgence culture which allow people of China to enjoy their life
according to their wish and it can help Crockett & Jones in setting their business in society where
people want to enjoy their life and it can help organisation in reaching out to consumer by
providing them quality products.
Vietnam have restraint culture in society which leads to strong control of emotions and it
can help Crockett & Jones in hiring employees which are put their efforts in achieving desired
goals and objectives despite any desire or emotion.
Literature review on cultural analysis of Crockett & Jones in Ethiopia
According to Heben Mehari, Ethiopia is a country that shifting their trends to
privatisation. In this government of the country support the internationalisation of business.
Ethiopia government highly emphasis on encouraging small and medium size business for
developing their economy effectively. This nation is highly avoiding the risk that creates
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challenges in accepting changes due to which outcomes are affected negatively. Within this
manager of an organisation focus on developing culture as it is everything for getting the higher
success (Mehari. H., 2021. Effective Change Attends to Cultural Nuances).
Different countries have different culture and they are differentiate on the basis on
language, religion, race, values etc. As per the viewpoint of Hofstede culture it is studied that it
is mainly based on values. It reflects that an organisation hire different manager according to
location to maintain the proficiency and productivity with business enterprise. In this for
attaining the group goals Ethiopia is the best because they follow the collectivism dimension
that helps in attaining objectives within team so that it provides the positive outcome in long
term survival.
RECOMMENDATION
By examine all the above analysis there are some recommendation which are provided by
the management team of Crockett & Jones that helps in performing all the task in appropriate
manner. This recommendations are based on internationalise business which are adopted by
businesses to earn high profits and revenues that are presented below:
 Provide training and development session- It is the best recommendation that is
provided by the management of Crockett & Jones for expanding the business globally.
For expanding production within Ethiopia it is very necessary to provide the proper
training and development session to employees so that they work effectively for benefits
of company.
 Legal and regulatory barriers- To work effectively and attaining the targets
appropriately it is very essential for Crockett & Jones to examine all the legal laws and
barriers that are present within country so that activities and functions are to be developed
accordingly. It helps in reaching the targets on time.
 Proper motivation- To perform all the task in appropriate manner within Ethiopia it is to
be recommended for manager of Crockett & Jones that they can motivates their
employees by offering monetary and non monetary benefits so that they perform the task
proficiently and productively. It is very essential for concerned company when they
internationalise their production within Ethiopia.
 Proper research the market- To expand the business within Ethiopia it is to be
recommended that manager of Crockett & Jones focus on proper researching the market
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and their trends so that goals can be attained effectively and firm will gain the success in
the global market (Fernando, Jabbour and Wah, 2019).
CONCLUSION
By above mentioned report on cross culture capability it is to be concluded that it is one
of the significant concept in today's business environment because it helps the business
enterprises to enhance their market growth and progress by attracting number of customers from
all over the world in appropriate manner. This report inculcates chosen countries in which an
organisation wants to expand their business to get the fast results and growth so that more
opportunities are to be captured. Further this includes Hofstede culture model that helps in
examine the several factors available at new country marketplace so that businesses are to be
expand effectively.
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REFERENCES
Books and Journals
Acosta, A.S., Crespo, Á.H. and Agudo, J.C., 2018. Effect of market orientation, network
capability and entrepreneurial orientation on international performance of small and
medium enterprises (SMEs). International Business Review. 27(6). pp.1128-1140.
Anning-Dorson, T., 2018. Customer involvement capability and service firm performance: The
mediating role of innovation. Journal of Business Research. 86. pp.269-280.
Fernando, Y., Jabbour, C.J.C. and Wah, W.X., 2019. Pursuing green growth in technology firms
through the connections between environmental innovation and sustainable business
performance: does service capability matter?. Resources, Conservation and Recycling.
141. pp.8-20.
Menard, P., Warkentin, M. and Lowry, P.B., 2018. The impact of collectivism and psychological
ownership on protection motivation: A cross-cultural examination. Computers &
Security. 75. pp.147-166.
Ott, D.L. and Michailova, S., 2018. Cultural intelligence: A review and new research
avenues. International Journal of Management Reviews. 20(1). pp.99-119.
Presbitero, A. and Toledano, L.S., 2018. Global team members’ performance and the roles of
cross-cultural training, cultural intelligence, and contact intensity: the case of global
teams in IT offshoring sector. The International Journal of Human Resource
Management. 29(14). pp.2188-2208.
Shu, R., Ren, S. and Zheng, Y., 2018. Building networks into discovery: The link between
entrepreneur network capability and entrepreneurial opportunity discovery. Journal of
Business Research. 85. pp.197-208.
Volpone, S.D. and et. al., 2018. Minimizing cross-cultural maladaptation: How minority status
facilitates change in international acculturation. Journal of Applied Psychology. 103(3).
p.249.
Online
Mehari. H., 2021. Effective Change Attends to Cultural Nuances, [Online]. Available Through: <
https://addisfortune.news/effective-change-attends-to-cultural-nuances/>
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