Developing Cross-Cultural Capabilities

This article discusses the opportunities and risks of expanding manufacturing operations in China, Vietnam, and Ethiopia. It emphasizes the importance of cross-cultural capabilities in global market expansion. The article also provides insights into the legal, marketing, purchasing, logistics, and human resource aspects of expanding into these countries.

Developing cross
cultural capabilities

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Assessment of opportunities and risk in China...........................................................................3
TASK 2............................................................................................................................................5
Overview of opportunities and risk in Vietnam..........................................................................5
TASK 3............................................................................................................................................6
Opportunities and risk in Ethiopia..............................................................................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Cross-Cultural capabilities helps an organisation to expand its operations at the global
marketplace. The human resource management of a company, should formulate effective
strategies in its operations to achieve good amount of growth rate at the marketplace.
Management of an organisation should also focus on various challenges and opportunities which
are faced by an organisation when it expands its operations (Aboelmaged, 2018). This project
includes a brief preparation of a detailed plan for expanding manufacturing operations of a shoe
company in the global market. This project includes assessment of three different countries that
are Vietnam, China and Ethiopia in order to facilitate human resource department on various
issues. To make understanding of various opportunities and challenges at the global marketplace,
example of Dychurch Lifestyle is taken into consideration. Dychurch Lifestyle is a small size
shoe manufacturing company which is situated in Northampton, UK.
TASK 1
Assessment of opportunities and risk in China
 Legal- In China there are various rules and regulations imposed by the Chinese
government on companies which are about to enter market. There are both formal and
informal rules imposed by the political authority in order to maintain efficient flow of
business. There are various intellectual property rights and taxation policies imposed by
the government to handle various companies. Dychurch Lifestyle will have to fulfil
various formalities of government in order to setup a shoe manufacturing plant.
 Marketing- Marketing is an essential tool which is there for a business to facilitate sales
of products and services of the company. In the marketing of a new established company,
there is a responsibility of marketing department to conduct surveys related to marketing
of shoes. Dychurch Lifestyle should involve various 4 Ps which are price, place, product
and production to attract Chinese customers.
 Purchasing- The small business enterprise should choose an effective planning in order
to purchase land and labour. The purchasing capacity of a person in china is good as it is
a developed country and the shoe company should invest in its operations and production
management (Acosta, 2018). The role of human resource management is to divide
capabilities of the financial department of the company. With purchasing capacity

enhancement of the company it will be easy for the company to setup manufacturing
plant in china.
 Logistics- In order to run a business, there is a utmost responsibility of every business to
include logistic management in its functioning. In order to performance Logistics
management, there should be a responsibility of HR management in order to develop a
comprehensive in hiring good staff for logistics management.
 Human capital- When it comes to establishment of a manufacturing plant in China, it is
essential for a company to hire effective workforce. The human capital includes the
labour force which is indulge in performing manufacturing operations. The management
of hiring human capital is always beneficial as in china there is a situation of stiff human
capital and complex labour situations.
HR analysis
The human resource department of Dychurch Lifestyle should follow all rules, regulations and
legislations that are passed by the government for employment and related issues. The respective
organisation should conduct various advertise the job description that contains all information
about the job requirements and qualifications on newspaper as well as social media channels of
china in order to get efficient employees. To conducts all organizational activities in well defined
logistical manner human resource department ensures that affective and appropriate candidates
must be hired that perform all functions in better manner to attain various sustainable
competitive advantages the all respective competitors within market place. To raise the
operations efficiency proper training and development programmes are conducted by the
respective organisation enhance employees skills, competencies and capabilities to enhance
performance level (Anning-Dorson, 2018). In china market, organisation is able to get highly
skilled as well as dedicated employees who facilitates the organisation produce better quality
products in order to satisfy needs and demand of customers effectively. Human management
department evaluate the skills of employees and allocate the task according to their skills that
enables them to enhance their performance level as well as their productivity.

TASK 2
Overview of opportunities and risk in Vietnam
 Legal- The political situation of Vietnam is very stable for investment purpose, there is a
minimum risk situation in legal factors of the country. Dychurch Lifestyle should include
various legal factors which are arising out due to political situation of the country. The
imposition by the Vietnamese government on the business society are of very normal
degree. For small business there is an opportunity available to every business that wants
to invest in Vietnam and perform general operations related to manufacturing.
 Marketing- To market for shoe product in the Vietnamese market, it is essential for a
business to include all the necessary marketing elements. With the help of good
promotion techniques, Dychurch Lifestyle can easily sell their shoes to the general
public.
 Purchasing- The company should consider in mind the monetary value of various items
which are available in the country and there is a complete responsibility to analyse the
currency value. The purchasing capacity of most of the small businesses is very low that
is why there is a need of proper financial management to handle various marketing
operations.
 Logistics- In Vietnamese market there is a availability of cheap labour at the
marketplace, so the labour for handling logistics and inventory is easily available. The
logistics management in a company is always dedicated to provide the best labour force
in order to formulate an effective operations management (Chang, 2017). Dychurch
Lifestyle should purchase various machines and vehicles which will facilitate its logistics
management in Vietnam.
 Raw material- The availability of raw materials should be there for production of
necessary items. In a business world, the availability of raw material for the
manufacturing process. As Dychurch Lifestyle, is going to setup a manufacturing plant in
the Vietnam, the company has to look for various opportunities which are available in
providing necessary help to select raw material.
HR Analysis
There are various opportunities for the Dychurch Lifestyle organisation to invest in Vietnam. As
there are rules and regulations that are imposed on the organisation are less in numbers so,

respective organisation can conduct all organizational activities in smooth manner. Human
resource management department of respective organisation evaluate all these regulations that
are related to employment their compensation, health and safety and implement them with
organization in order to provide better and positive working environment (Fernando, 2019).
Efficient working environment facilitates the organization by enhancing the performance,
productivity of employees that leads respective organisation towards success. Dychurch Lifestyle
use promotional activities to attract suitable candidates for the organization activities. In
Vietnam the human labour is available at low price that enhance the opportunity to the respective
organisation then it provides the training to them to enhance their productivity level. There are
various monetary as well as non-monetary motivations that enhance the rate of retainment of
employees with organisation.
TASK 3
Opportunities and risk in Ethiopia
 Legal- Ethiopia is a country which is situated in Africa, there is a scope of business
development in the African countries which is related to the development of a business.
The legal factors are considered as crucial when a business manages it expansion in some
other country. The political situation is dominated by various people in African countries.
On the other hand some laws and regulations imposed by the government of Ethiopia is
also a major factor which can be considered by the company. In order to carry different
functions at the marketplace, it is essential for a company to perform legal research
(Kohtamäki, 2018). It is also recommended for the small business enterprise, Dychurch
Lifestyle to conduct all legal operations and critically understand the political mindset of
the country.
 Marketing- Marketing of the shoes by the company should be done in a precise manner
to conduct necessary art of selling various products. The company should perform
various functions related to marketing of product as well as establish different functions
in order to conduct an effective marketing strategy. The advertisement of shoes will be on
media channels of Ethiopia, which will provide business effective and efficient cost in its
marketing operations. In order to conduct efficient marketing operations at the
marketplace, it should include various goals and objectives and use famous models which

were proposed by different scholars. It is essential for a Dychurch lifestyle to perform
different marketing operations in the African countries to attract a large number of
customers. The company should look for marketing experts who performs various tasks
related to marketing activities of the Shoe company.
 Purchasing- In order to perform a good amount of purchase of raw material from the
marketplace. HR management of the shoe company should critically analyse various
factors which are essential for the company to make purchase at the marketplace (Kurpis,
2017). The purchasing capacity of a business should finally include various tasks in order
to setup a manufacturing plant in Ethiopia. As Ethiopia is a country with availability of
various resources at cheaper rates, the Dychurch Lifestyle.
 Logistics- Logistics management is essential element of a business, in order to maintain
various operations from the logistics management it is important for every business to
perform necessary research. The company should deploy effective manpower which is
required in the working environment of a business. As the company is largely dedicated
to setup its manufacturing shoe plant in Ethiopia, the company should take optimum
opportunity. In the field of logistics management, there is a scope of deployment of
proper machinery and labour force in order to receive optimum utilisation of resources.
 Raw material- In the manufacturing process of a company, it is very much essential for
the company to purchase raw material from the market. The availability of raw material
is there in Ethiopian market, to purchase various goods which are helpful in production
process. There is a cheap availability of various resources in the Ethiopian marketplace
that can be adopted by various companies to develop a better product (Li, 2018). For
example in the Ethiopian market there is a good availability of leather at cheap rates. Raw
materials should be purchased by the company from various wholesalers in order to
provide cheap materials to the labour force.
HR Analysis
To open the business in Ethiopia, Dychurch lifestyle organisation's human resource department
evaluate all marketing trends and requirements to products then produce the products
accordingly. The human resource management department of respected organisation prepare
effective human resource planning and adopt the proper process to recruitment and selection to
get right candidate the fulfil all requirements of respective job profile. Analyse their performance

and manage all issues and problems that affects employees performance. There are various
learning and development programs are conduced the enhance the effectively and productivity of
employees (Ott, 2018). There are proper analysation of employees is done by the HRM
department in order to improve their performance level. Respective organization prepare the
career planning for the employees that provides various opportunities of growth and
development to employees and motivates them to retain with organisation for long run.
In order establish a manufacturing plant in different Trompenaars cultural dimensions
 Universalism vs. particularism: It involves the healthy relationship that are based on
the rules and regulation of family members, close friends and other close individuals.
Universalism make the promises and follow them with the certain logical decision. This
type of section defined an accurate field to investing in creating relationship for particular
dimensions. It also call out the particular set of regulative rules that should be get
followed as effectively.
 Individualism vs. communitarianism: Individualistic culture believes in the course of
results as per to the cultures. The decision makers in it make their decisions and do not
consider with any respective. On the other hand, communitarianism believes on the
quality of the life to help with each other. The group make decisions and gives input and
get rewarded for their high group commitments.
 Specific vs. diffuse: Specific culture do not follow the intersection between the two
variables. These culture tend to be scheduled and directly concentrates on the point to
point communication employees that provides various opportunities of growth and
development to employees and motivates them to retain with organisation for long run.
on (Shu, 2018). The company concentrates on their targets more than their relationship.
Diffusive culture believes that their can targets can be accomplished as effectively when
their relationship are strong with others.
 Neutral vs. affective: In neutral culture the emotions are feelings are checked and can be
controlled in the company. They concentrates on those individuals who have cool mind
set and are logical in thinking in the management in the management. In affective culture
the individual share their emotions and feelings with that consider the individual in the
company.

CONCLUSION
From the above stated report it can be concluded that, for expansion in the global market
a business should consider all the necessary factors like marketing, logistics, legal and others.
This is major responsibility of human resource management in a company to perform a brief
analysis of various opportunities and challenges that arise during expansion. It can be concluded
that cross-cultural capabilities in an organisation leads to the management of various aspects and
activities which are required by employees. The application of cross cultural capabilities of an
organisation also helps a business to gain market value in its operations. With the development
of cross-cultural capabilities it is easier for a company to perform strategic planning in expansion
and manufacturing operations.

REFERENCES
Books and Journals
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