Intercultural Management Analysis

Running head: INTERCULTURAL MANAGEMENT ANALYSIS
INTERCULTURAL MANAGEMENT ANALYSIS
Name of the Student:
Name of the University:
Authors Note:

1INTERCULTURAL MANAGEMENT ANALYSIS
Table of Contents
Summary............................................................................................................................2
MBI Analysis:.....................................................................................................................6
EXCELL Cultural Scenario Map......................................................................................10
Recommendations for a Business Solution.....................................................................12
References.......................................................................................................................15
Appendix..........................................................................................................................18

2INTERCULTURAL MANAGEMENT ANALYSIS
Summary
1. Case: Blue Ridge Spain agreed into a joint venture with Terraleum S. A., a
Spanish company. On the other hand, the joint venture is recently in the edge of
dissolution because of the existing cultural issues. The report aims to analyze the
differences in culture through cultural models, dimensions and scores. The most
appropriate course of action is obtained by the application of MBI framework.
This framework helps in the analyzing of the scenario through mapping, bridging
and
2. Management Issues: the key business issues that have arisen is that Blue Ridge
Spain has to forcibly get dissolve despite long hard effort.
3. Goal: the main goal is to evaluate the most adequate alternative that can be used
against the dissolution for joint venture.
4. Key players: the main players related to this case study are Yannis Costas,
Greek American (Blue Ridge Managing Director), Mikael Sodergran, American
(Delta food corporation vice president) and Carlos Marin, Spanish (Terralumen
Company President).
Cultural Models and Dimensions selected for MBI
Kluchholn and Strodbeck’s identified six major cultural dimensions, which are as,
Nature of people: the basic nature of an individual is generally considered to be either
good or bad. If the people are socially oriented then they are termed to be good while
on the other hand, a bad person is considered to be selfish (Carroll 2015). The next
dimension is known to be as the existing relationship with the nature. Most of the
people believe that the people should live in harmony with a supporting attitude towards
each other. The duties towards others people is also highly relevant to know the nature
of the individuals as it helps to know whether it is relevant to give more importance to
self or to group of people (Hynes and Veltsos 2018). The mode of activity is the next
dimension that focuses on being where and what activity is more important than being
with the people. The next dimension is privacy of space that is owned by the individuals
(Reiche et al. 2016). It showcases whether it is important to have open partnership,

3INTERCULTURAL MANAGEMENT ANALYSIS
where people can easily meet and greet other people or meetings should be made
inside the closed door. The last factor is temporal orientation, this shows that either
past, present or future factor should be given more important (Kwiatkowski 2016).
The cultural models that is identified by Kluckhohn & Strodtbeck is considered for the
Ridge Spain Case business thus, indicates various major cultural differences. The
observations from the case study indicated three cultural models that are showcased
through the major three key players. They are namely Yannis Costas, Sodergran and
Carlos Martin. YannIs Costas strongly represents the combination of both Greek and
American culture model. Sodergran has presented the cultural model of America and
Carlos Martin; the last key player represented a Spanish cultural model (Amster and
Böhm 2016)
.
Duty towards others:
Sodergran: Sodergran showed a strong individualistic trait, he laid a greater
emphasis on himself and his goals instead of others. Moreover, he also used to brush
off the suggestions provided by others without creating any values.
Yannis Costas: Costas has showcased very well-built sense for social hierarchy.
Nevertheless, he further showed that he is also capable of performing his main duties
towards different groups and individuals. It is also ascertained that instead of being
unable to get the promotion that he deserved, Yannis was very encouraging towards the
manager that was hired lately.
Carlos Martin: Carlos displayed his nature that distinguishes the social classes
greatly. He gives more importance on his own duty than to others. He also was very
supportive to Balaguer’s insult towards to Sodergran and referred toward his
intellectuality.
Mode of activity:

4INTERCULTURAL MANAGEMENT ANALYSIS
Sodergran: he tends to give more importance on his decision making power and
designation to a great extent. He only gave more importance to his power and decisions
and discarded all the suggestions that he used to obtain without giving any
considerations.
Yannis Costas: Costas always believed that the achievements led to increase his
status but he was always more than ready to recommend essential support to all the
distinctive classes.
Carlos Martin: Carlos believes that help in expressing more emphasis on the
present social class.
Privacy of space:
Sodergran: Sodergran lays more emphasize on the personal space as he is
more individualistic. Moreover, he tends to avoid all such contacts that are related to
outside his work. Personal contact is also of not much importance or greater
significance to him.
Yannis Costas: Costa has balanced his action quite well while on the other hand
has maintained a distance from the managers of America. Moreover, Costa was also
quite ready to make contacts with Spanish managers and it would be a great way to
make such personal contacts. Costa was able to greatly balance his action.
Carlos Martin: Carlos has always put more importance to the individual contacts
that relates to the performance of the business.. In addition to this, the subjective nature
of the venture has also been ascertained through these actions (Xing et al. 2016).
Hofstede’s Cultural Model of Dimension:
The Blue Ridge Spain is a joint venture that was established between a Spanish
agricultural company called Terralumen and American fast food chain. This has also
led to the contribution of the success of Delta in the foreign market. After 15 years of the
harmonious joint venture between the groups Costas was highly shocked to know that

5INTERCULTURAL MANAGEMENT ANALYSIS
the new owner Delta is keen on ending the partnership despite of the joint venture
profitability.
Therefore, various cross-cultural conflicts between the parties of various
nationalities resulted in the dissolution of joint venture between Terraleum and Delta. As
the American and Spanish Joint ventures partners cannot relate to the common polices
and goals. Therefore, they failed to work together as a group. The Hofstede’s Model has
helped in demonstrating all the individuals that lives in a particular country to share
similar values by bringing all such similar values that brings value to the firms in which
they work.
According to the Hofstede’s power index, the individuals living in a particular
nation often tends to have similar values that lead to bring values to the firm for which
they work accordingly. The major difference present between the mangers of
Terralumen and Delta makes is quite difficult to make sure the longevity and success of
Blue Ridge Spain. Yannis Costas is of Greek nationality and Greeks are relatively very
high on power index besides the uncertainty avoidance (Barmeyer and Franklin 2016).
Being a Greek, Costas often value the main interpersonal trust and relationship
that has been built over the years. Costas also values the interpersonal trust and
relationship to create a successful joint venture. Costas with such a great personality
was therefore often employee so that the relationships between the partners can be
easily mended (Rees and Smith 2017). The ethics related to the company’s strategy
was also questioned by Yannis Costas so that he can gain the upper hand in the
negotiations. Carlos is from Spain and represents Terraleum. Therefore, he also shares
the similar characteristics with Yannis Costas that includes both mutual respect and
patience. This is the reason that has caused the partnership between Carlos and
Costas to grow strongly since the last few years. Both of them can easily understand
the intangibles related to business, relationship and cultures (Trittin and Schoeneborn
2017). Whereas, Mikael Sodergran, who represent Delta is from Finland.
According to Hofstede’s, Finland, shows that both USA and Finland are having high
individualism countries. In both the countries, personal opinions and decisions are

6INTERCULTURAL MANAGEMENT ANALYSIS
highly important. Sodergran have strong work ethics that lays major emphasizes on
quick result with short-term orientation. He wanted a more aggressive and rigorous
growth from Blue Ridge Spain for gaining maximum profit. Whereas the others mangers
of the company were content with the existing growth rates and also protest on
Sodergran’s rapid expansion plans (Barmeyerand Haupt 2016). Personal relationship is
given less important by the people in Finland.
PDI IDV MAS UAI
0
10
20
30
40
50
60
70
80
90
100
U.S.
Spain
 The preference for Power Distance is 40: 57.
 The preference for individualism/ Collectivism is 91:51
 The preference for Masculinity/Feminity is 62:42
Individualism vs. collectivism: it is the degree to which the individuals present in
the groups are integrated. The IDV ratio is seen between America and Spain at a
degree of 91: 51. The masculine cultures values are mostly due to competitiveness,
power, assertiveness and materialism (Tjosvold 2017). On the other hand, feminine
culture places generally much more emphasis on the quality of life and relationship.
U.S. is seen to have high Individualism and collectivism between the groups.
Uncertainty avoidance is generally made to decrease the incidence of unusual

7INTERCULTURAL MANAGEMENT ANALYSIS
conditions. This leads to processing implementing and planning the policies, rules and
regulations, and laws.
MBI Analysis:
Mapping:
The Spanish culture strengths are that they mostly give high significance on the
social status. In addition to the Spanish people mostly believes that personal contacts
are of relatively high importance to for the increase in business performances
(Barmeyer and Mayrhofer 2016). The major weaknesses of the Spanish culture are that
they are greatly dependent on the subjective nature of the business. They take
immense pride while executing their business actions that is strongly noticed while
dealing their business deals. As the Spanish people have this social status centric
business approach, therefore the Spanish people are in some way not dependent on
the relative social factors. (Liu, Volcicand Gallois 2014). Major emphasis by the
Spaniards is led on the personal contacts that lead to the growth of the ventures
performance. While the subjective nature of the business makes it difficult to make the
business more flexible and its growth. While the social pride of the people hinders the
venture of the business with all the foreign companies.
The Greek culture mainly focuses on business with an action oriented approach,
moreover on the same time necessary biasness is also led on the social position. The
Greek also shows more biasness related to the social position. While from the industry
perspectives, major decision-making business is made from the subjective perspectives
(Mockaitis, Zander and De Cieri 2018). Moreover, major emphasis is given on the social
status, which hinders the existence of present creative ideas. The biased approach
while dealing with the businesses hinders the growth and profitability approach of the
businesses. According to the Greek culture, the personal contacts to a great extent
help in increasing the profitability and growth of the business.
The American focus on a quick business advance that lays major emphasis on
the reliability of the businesses. Moreover, the Americans are also highly individualistic
in nature. The flexible and immediate business background helps to make major

8INTERCULTURAL MANAGEMENT ANALYSIS
business decisions within a very time. The individualistic viewpoint of the American
people creates high stress on the individuals business. The uncertainty culture
avoidance of Spain is very high.
Comparing the cultural differences in the two countries would assist in
understanding the difference in the behavior and attitudes of Yannis Costas and
Michael Sodergran. The best way to analyze the cultural differences is by the use of
Hofstede’s cultural dimension scale. The comparison between the culture of Costas and
Michael’s countries would reveal their individual thought processes (Stein and Scholz
2016). Costas is from Greece, Michael hails from the United States, and hence the
Hofstede’s comparison has been carried out between these two nations. The results of
the comparison indicate clearly the reason behind Michael’s refusal to continue the
partnership with Costas.
As per the Hofstede’s cultural dimensions, Greece score 60 in the power
distance index (PDI) that implies the country is acceptable to inequalities and believes
in hierarchy. The U.S. on the other hand scores 40 in the PDI that reveals the country’s
opposition to inequalities and hierarchical structure. Further, the Individualism score of
35 in case of Greece and 91 in case of the U.S. demonstrates the tendency of the
Greeks to depend on and stay connected to in-groups like immediate family and
extended families (Salgado 2018). While in the U.S., people are more independent and
do not accept instructions or orders from others. The next dimension is Masculinity in
which both countries have similar scores. However, the low score of 57 for Greece in
this dimension shows that the country possesses qualities of care and respect for
others. America, on the other hand, apart from being individualistic and independent, is
highly masculine, meaning the people in the country always crave to be the best even if
it means at the cost of someone else’s wellbeing.
Greece as a nation has displayed the characteristics of being uncertain about the future.
In the Uncertainty Avoidance Index, the country scores the highest that is 100 as
compared to 46 score by the U.S. the score of 100 clearly indicates the Greeks are
highly concerned and unwelcoming of uncertainties. The high score of UAI also means
that Greece places high regards on laws and rules. America, on the other hand, scores

9INTERCULTURAL MANAGEMENT ANALYSIS
low on UAI that reveals its nature of welcoming new and innovative ideas. In the Long-
term Orientation dimension, the U.S. has, scored low (26) compared to Greece, which
indicates that its society believes in maintaining time-honored norms and traditions
while suspecting any changes in the society. Greece in this case, has scored 45, which
indicates that the society is takes a more realistic approach to view societal customs
with doubt. The sixth dimension is Indulgence, which represents a society’s ability to
indulge or restraint from social norms. Greece scored 50 on the dimension that makes t
difficult to analyze whether it has an indulgent or restrained culture. In contrast to it, the
U.S. has score quite high with 68 that reveals the country has a restrained culture.
However, when put in comparison with other dimensions, the U.S. society presents
contradiction (Ooi 2015). On one hand, the country wages war against drug addiction
and on the other; it has one of the highest rates of drug addiction.
Bridging:
To bridge the cultural differences in this joint venture, the statement is highly
important for intercultural management (Rees and Smith 2017). There are vital three
necessary strops that s highly important for effectively bridging the capacity of the
various cultural dilemmas. The steps that involve the bridging processes are as follows:
Prepare: it is highly important for all the parties that are involved in the Blue Ridge joint
venture to properly use the inspirational techniques for clear perceptive through proper
motivation. Communicating the intercultural differences is highly important to bridge the
cultural differences. The leadership should be effectual enough to sustain assurance
through the effectual communication skill (Reiche et al. 2016). The owners require to be
positive so that the existing company venture would lead to provide encouraging
outcome. Mikael Sodergran should come up with an effective strategy to expand their
businesses. On the other hand Delta is opposed to the idea of joint venture businesses;
therefore, it is important to bridge the gap as this decision of ending the joint venture
would impact the future joint ventures in Spain and other part of the countries
(Mockaitis, Zander and De Cieri 2018). It is important for Sodergran to concentrate on
building an effective relationship rather than separating himself from the current
business.

10INTERCULTURAL MANAGEMENT ANALYSIS
De-center: it is highly significant for the joint ventures parties to properly explain the
problems without blaming it to others (Liu, Volcicand Gallois 2014). Moreover, the
conflicts and the problems need to be effectively solved without considering the motives
of others at the time of sending and receiving the messages (Mao and Hale 2015).
Re-center: it is important to accurately set efficient communication as they necessitate
to effectively sharing the considerate about the situations (Rothlauf 2015). It is crucial to
find a universal position on which the people can equally have the same opinion.
Moreover, it is also important for them to create a business approach with a proper
perceptive.
Integrating
It is important to manage the cultural difference by integrating the bridging
components (Robinson-Easley 2014). The key elements of the Blue Ridge venture
usually focuses on two crucial factors that are as follows:
Building Participations: the joint venture needs to establish routine and effectively
monitor the participation rate to create effective participation (Thomas and Peterson
2017).
Conflict Resolving: it is important for the business to identify the main cause for
the creation of conflict and disagreement between the members (Austin et al. 2017). It is
important to address the proper techniques to resolve the disagreement or conflict
between the members. Moreover, it is also important to focus on avoiding the negative
disagreement (Grobelna 2015).
EXCELL Cultural Scenario Map
Scenario: The manger of the joint venture manger attempts to demonstrate the cultural
mending procedures to the other parties related to the Blue Ridge joint venture.
Social Competency: The manager is highly capable of identifying the existing conflicts
and should also act accordingly to it (Buzzanell 2017). The managers of the Blue Ridge

11INTERCULTURAL MANAGEMENT ANALYSIS
Analysis are also adaptive to understand the existing body languages of the other
members.
Preparation steps: it is important to send email so that the every responsible le
mangers of Blue Ridge Joint Ventures can be easily called upon. The mangers should
also confirm the time and meeting related to the place (Rockstuhl et al. 2015).
Stage Verbal Behavior Non-Verbal Values Cultural
Dimensions
A. Approach Getting with
good-natured
remarks
Entering the
business
conversation with
the other people
Creation of eye
contacts
smile
longing to
improve the
sympathetic of
the managers
on all other
cultures
Duties towards
others
B. Bridging Main focus should
be made solely
on the venture
instead of
blaming it to
others.
Asking for the
response of other
members.
To consider
every comment
by bridging with
much greater
attention.
It is highly
important to
find out the
common
position within
the joint
venture
business
approach
(Martin and
Nakayama
2015)
.
Collective
Approach.
C. Commenting There is a crucial
contentment to
conduct the
business in a
better
To face every
mangers
Significance of
feedback at the
beginning

12INTERCULTURAL MANAGEMENT ANALYSIS
environment.
D. Developing It is also
important to
achieve success
with the mutual
contribution.
Smiling
More eye contact
Positive
response from
others mangers
(Timothy and
Boyd 2014)
Recommendations for a Business Solution
Deltas foods are currently facing the problem is to expands its business in
Germany and France besides opening more of its stores in Spain. Moreover, in this
condition, the major problem responsible for Blue Ridge is that the company has
developed effective profitable relationship with Terraleum. Thus, the decision made by
Delta to dissolve its partnership with the companies has led to create a negative impact
on two major countries. It is highly recommended for Delta foods to not to go in
dissolution with the Blue Ridge Spain. From the case study, it has been itself analyzed
that the company has been a long standing partner of the Blue Ridge Spain. Moreover,
the company has also lead to the accumulation of reasonable profits. The collaboration
made between the both parties has highly benefitted both the organization. Hence forth
the decision of dissolution will negatively affect both the parties involved.
Yannis Costas: it has been raveled from the case study that Yannis Costas is the
main and key member involved. He is the central figure as he makes effective strategies
so that a dissolution strategy can be made that can help Delta to get involve into the
joint venture with Terralumen. In the current scenario, Costas has also developed a
smooth and positive relation with Terralumen; therefore to form dissolution strategy is
also highly inappropriate. Therefore, it is recommendable for Costas to ensure that all
the goals and targets that are providing to Terraleum must be available and reasonable
enough. Meanwhile Michael Sodergran is also concerned about the profitability of
Terralumen. Henceforth, Yannis Costas also leads to revise the present targets so that

13INTERCULTURAL MANAGEMENT ANALYSIS
the targets set are easily achievable. This would provide advantage to both the parties
and also make Terraleum become the joint partner with the new business.
It is recommended for each of the partners to mend their existing relationships or
should go and try to make it work. It is crucial for the Delta Company to consider the
cost of the buyout besides all the possibilities that would get affected by the decisions.
Most of the mangers of Blue Ridge Spain’s restaurant would be acquired by Terraleum.
Reflection:
It has been revealed that Delta and his teams does not like joint ventures and
henceforth wants to put into practice a strategy for the increased profit and growth of
Blue Ridge Spain. Michael Sodergran wants to gain an increased growth for its
business in Spain so that the markets can be easily developed in France and Germany.
Moreover, it was also seen that there was a large communicational between the
members, which it made it quite difficult to handle the business. Moreover, they also
belonged to various cultural backgrounds. The cultural background made it quite difficult
for the people to carry the business. Yannis Costas questioned the business doing
ability of Sodergran and though that he does not have any idea of running the business.
I therefore think it is inappropriate to do business in such country, when the
cultures, values and communication styles are not known from before. In addition to
this, most of the business generally belonged to the different cultural background.
Generally, each culture has their own definition of ideas for their success in business.
The idea of starting a new business in different culture is not feasible, if proper
procedure for maintaining the strategy is not effectively maintained. I think reactive
communication should be avoided by creating an effective proactive cross-cultural
communication. Moreover, it is important to mange pre-existing cultural perceptions. As
it becomes important to understand the cultural sensitive people as it is highly important
to build rapport of a person through the phone and e-mail. It is highly important to
increase self-awareness and adapt an effective leadership style. The very first step
responsible for admitting and acknowledging the existences of cultural differences

14INTERCULTURAL MANAGEMENT ANALYSIS
includes the difference in interpretations, perceptions and proper evaluation of the social
situations that creates them.
It is important to find an effective solution to understand and simplify the
complicated process of behaving in an effective cultural condition. The cultural
differences should not be easily ignored as later on this becomes the major source of
disagreement between the various managers. I think it is important to minimize the
cultural difference by carefully managing the intercultural differences. In the current era
of globalization, globalization, it is highly relevant that globalization is found in the
workplace. The potentials and resources of the organization should be optimized
effectively without any differences. Through effective communication strategies the
existing gap between the organizations can be bridged. Moreover, good knowledge of
the foreign language will also prove to be very helpful for the firms. The case study
clearly shows that due to huge gap in communication among the leaders the issue got
more complicated. It was therefore necessary to discuss all the problems among
themselves so that an adequate solution can be obtained from the business.

15INTERCULTURAL MANAGEMENT ANALYSIS
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Appendix