Developing Cross-cultural Capabilities

Developing Cross
cultural
capabilities

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Impact of cultural differences during completion of global business ........................................1
Differences between managing workers in UK and Vietnam ....................................................2
Effect of Cultural differences between Vietnam and UK on HR practices of Crown
Northampton...............................................................................................................................4
Identification cultural differences between UK and Vietnam with help of Hofstede's cultural
dimensions...................................................................................................................................5
CONCLUSION ...............................................................................................................................7
REFRENCES ..................................................................................................................................8

INTRODUCTION
Business organisations aim to expand their manufacturing process to other nations in
order to cut cost by recruiting cheap labour or by gaining tax exemptions from a particular
region. Expansion of manufacturing process is complicated process because of legal and
logistical requirements of a particular country. This process is further complicated by cultural
differences in working environment and employee behaviour between domestic region and
region selected for expansion. The company selected for this report is Crown Northampton
which is shoe manufacturing company in UK. Crown Northampton produces footwear for men
and women which reflects traditional British shoe design. The British shoe manufacturing firm is
focusing on expanding their Manufacturing process to the south-east Asia Country Vietnam.
This report covers HR related issues in context of Crown Northampton expanding their
manufacturing process to Vietnam. Cultural factors which impact effective completion of
expansion are discussed in this report. In addition to this Hofstede's cultural dimensions and
Hall's cultural framework are used to understand differences between working environment of
Britain and Vietnam.
MAIN BODY
Impact of cultural differences during completion of global business
According to Reynolds (2017) businesses organisations which aim to expand in various
global, markets face various barriers in context to culture and international business. In order to
ensure smooth functioning of a business firm, HR managers need to understand affect of culture
in three common areas of business firms which are communication, etiquette and organisational
hierarchy.
Effective communication is key to smooth functioning of a business enterprise but in
context of cultural differences it is important to ensure that effective exchange of information is
not disrupted by inadequate translation. In order to ensure communicate effectively with
multicultural or cross cultural workforce, knowledge about non-verbal communication methods
unique to the culture is crucial. Such non-verbal communication methods include greeting
costumes, ways to present certain information and maintaining eye contact during conversations.
The barrier of navigating cross cultural differences need to be approached with the open mindset
and sensitivity to foreign costumes. It is important for business firms to research about
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