Intercultural Management in Business: Understanding Cultural Dimensions and Strategies for Cross-Cultural Situations

This report discusses the importance of intercultural management in business, with a focus on understanding cultural dimensions and strategies for managing cross-cultural situations. The report uses the example of Tesco, a British multinational retail company, to illustrate key concepts. It covers the cultural dimensions of regularity and variability, frameworks for investigating the impact of culture on international business, and strategies for managing cross-cultural situations in the workplace.

Intercultural
management in
business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Demonstrate your understanding of different cultural dimensions of regularity and variability
and produce frameworks to investigate the impact of culture on international business............4
Evaluate different strategies used in international business context in managing cross cultural
situations in the workplace..........................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business management is a major approach which helps the business entity to develop
effective operations according to contemporary business environment (Barnett, and Carter,
2018). In the recent times, intercultural business management is also applied due to presence of
vast culture in the business organisation. The management of culture is also an essential function
of a business entity which helps in overall development and maintain effective working
environment. In this project example of Tesco company is taken into consideration which is a
British multinational retail company established in the year 1919. The headquarters of Tesco
are located in London, United Kingdom and the company is operating in 11 countries all over
the world. In this report there is a brief explanation of understanding various dimensions of
regularity and variability. This project will cover impact of culture on global business. The
project will cover different strategies applied in international business context in management of
cross cultural situations.

TASK
Demonstrate your understanding of different cultural dimensions of regularity and variability and
produce frameworks to investigate the impact of culture on international business
Understanding of different cultural dimensions of regularity and variability
In the era of stiff competition between companies it is essential for a business to focus in
key aspects and dimensions of culture (Bolten, 2020). The major dimensions of culture should be
understood by business entity in order to develop most effective and well defined environment
for business. The cultural dimensions of regularity and variability of a business are also helpful
in providing competency edge to a business. The cultural dimensions which are proposed by
Greet Hofstede in context of Tesco company are mentioned below:
 Dominant values- The dominant values are considered as key dimension of a culture
which defines the key values of employees and employer. The main task of a business is
to analyse the dominant values of employees in order to provide them effective culture.
Maximum employees and their values should be respected by a company in order to
increase the self respect of employees.
 Principles- The principles are norms which are followed by employees to establish a
code of conduct in the organisation. Principles should be followed with ethics and
integrity in order to serve the company in a precise manner (Chan, and Du-Babcock,
2019). In the recent times, it is one of the major roles of a business to set set of principles
which should be followed by and organisation to develop systematic approach.
 Beliefs and attitudes- The beliefs of employees are result of their culture and traditions
which are to be followed by a business. Most of the successful companies in international
and national marketplace focus on the beliefs and attitudes of employees to develop
major and effective standards. The beliefs of employees are essential to be determined in
order to increase chances of getting success at the marketplace.

Frameworks to investigate the impact of culture on international business
In order to investigate the impact of culture on international business it is necessary for
Tesco to take into consideration the application of Hofstede Dimensions of culture. This
framework is mentioned below in detail:
 Power distance index- The power distance index considers that to which limit of power
and inequality are tolerated. It is the major function of a business to focus on following
low power distance index in order to increase chances of effective decision making and
employee participation (Gowan, 2021). The power distance index also includes key
factors which are responsible for increasing bureaucracy, power differences and show
high respect for rank.
 Collectivism vs individualism- It is one of the major roles of a business to develop a
major distance between societies and groups (Holtbrugge, 2022). The individual
approach is more inclined towards achievement of personal goals and objectives. In the
collectivism, the main focus of a business is on group of people achieving a mutual goal.
 Uncertainty Avoidance Index- This index shows to the extent which, ambiguity and
uncertainty are tolerated. The uncertainty avoidance index is should be neutral in order to
tolerate ambiguity and risk taking of company. This enhances organisational capability to
deal with various consequence of working environment.
 Feminity Vs Masculinity- The male and female employees who are working at Tesco
should be given equal importance. It is major role of a business to focus on feminity and
masculinity in order to dominate the marketplace (Vargas-Hernández, 2022). The
feminity should be also handled with precise care and development in order to achieve
key goals.
 Short-term Vs Long term orientation- It is major role of a business to focus on long
and short term orientation in order to achieve key targets (Jemielity, 2018). The short
term and long term orientation should be developed according to the nature and scope of
business operations to achieve effectiveness in business tasks and functions.
 Restraint Vs Indulgence- The indulgence vs. restraint dimension considers the extent
and tendency for a society to fulfil its desires (Matveev, 2017). In other words, this
dimension revolves around how societies can control their impulses and desires.

Evaluate different strategies used in international business context in managing cross cultural
situations in the workplace.
The management of cross cultural situations is necessary for a business in order to
achieve key goals and objectives. It also helps and support the business organisation in relation
to maintaining effective internal environment of a business. Tesco is a multinational company, it
performs operations according to the dynamic environment of business. There are different types
of employees who are belonging to different cultural backgrounds (Matveev, 2017). Managing
the culture is one of the most crucial functions of human resource management of a business
which helps in increasing chances of employee and culture management. The main strategies
which are used by international business performed by Tesco in managing cross cultural events
are mentioned below:
 Policies and planning- The policies and planning are two major pillars for strategic
development of culture in the global business. It is the major role of higher level
authorities and management of Tesco to design effective plans and policies for
management of employees. The planning should be done according to the consequences
which are together faced by employees and organisation (Pikhart 2018). It will result in
development of an optimum hierarchy and will lead to encourage and develop motivation
in employees.
 Promote open communication- The open communication is considered as one of the
major approaches which helps companies to develop effective operations. Tesco should
promote open communication for the employees so that they can freely talk with each
other (Runde, 2019). This will result in making employees more friendly with each other
and develop more harmony with themselves.
 Relationship management- Management of relationship is one of the most crucial
functions of a business. The development of relationship helps an organisation to increase
employee satisfaction and participation (Tuleja, 2021). Relationship management is also
one of the major roles of a business to increase chances of growth and stability.
Relationship development also enhances the growth and expansion of a business along
with its development. Majority of companies in the domestic and international
marketplace focuses on building relationship between employees to increase chances of
systematic growth.

 Listening to all employees- The management of all employees is necessary for a
business and most important task is to listen to their opinions. This will support the
company in taking most crucial decisions of the organisation in tough times. In order to
increase chances of competitive growth, it is necessary for business to increase
participation based approaches (Usunier, 2018). Listening to problems of employees is
one of the major functions of management in order to increase competitive growth based
chances. The management of employees is very much essential along with listening to
key challenges and consequences faced by employees.
 Team building and development- Development and formulation of a team in order to
increase the chances of employee participation. The development of team is also crucial
for the Tesco company to take crucial decision with the suggestions of all employees. It
makes an organisation more effective and efficient at the marketplace (Zelenková, 2020).
The team building and development is also important for the business to increase the
welfare of employees by taking different actions.

CONCLUSION
From the above analysis it can be concluded that management of culture is most essential
function of an organisation to develop employee values. This project concludes that in order to
gain competitive advantage it is necessary for the business firm to develop precise and
systematic culture. This report concludes that in order to manage cultural in the international
working environment, it is necessary for companies to focus on analysing internal working
environment, wants and needs of employees. This project concludes that to manage all the
employees and their conflicts, it is essential for the higher level authorities of a business to
develop strategic actions.

REFERENCES
Books and Journals
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intercultural interactions and knowledge management: research From Thailand. In ICMLG 2018
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Bolten, J., 2020. Intercultural business communication: An interactive approach. In Exploring
the rhetoric of international professional communication (pp. 139-155). Routledge.
Chan, A.C. and Du-Babcock, B., 2019. Leadership in action: an analysis of leadership behaviour
in intercultural business meetings. Language and Intercultural Communication, 19(2), pp.201-
216.
Gowan, S., 2021. The Role of Inclusion and Emotional Labor in the Intercultural Management of
Australian Organizations. In Intercultural Management in Practice. Emerald Publishing Limited.
Holtbrugge, D., 2022. Intercultural Management: Concepts, Practice, Critical
Reflection. Intercultural Management, pp.1-100.
Jemielity, D., 2018. Translation in intercultural business and economic environments. In The
Routledge handbook of translation and culture (pp. 533-557). Routledge.
Matveev, A., 2017. Intercultural competence in organizations. Management for Professionals.
https://doi. Org/10.1007/978-3-319-45701-7.
Matveev, A., 2017. Intercultural competence in organizations. Management for Professionals.
https://doi. Org/10.1007/978-3-319-45701-7.
Pikhart, M., 2018, August. Technology enhanced learning experience in intercultural business
communication course: a case study. In International Symposium on Emerging Technologies for
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Runde, S., 2019. Managing of Global Business. Beiersdorf's Intercultural Management. GRIN
Verlag.
Tuleja, E.A., 2021. Intercultural Communication for Global Business: How leaders communicate
for success. Routledge.
Usunier, J.C., 2018. Intercultural Business Negotiations: Deal-making Or Relationship
Building?. Routledge.
Vargas-Hernández, J.G., 2022. Socio-Intercultural Management Competencies.
In Interdisciplinary and Practical Approaches to Managerial Education and Training (pp. 270-
286). IGI Global.
Zelenková, A., 2020. Using Cultural Taxonomies to Understand Intercultural Relations in
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