Intercultural Management in Business: Understanding Cross-Cultural Problems and Solutions

This report discusses the importance of intercultural management in business and how to understand and solve cross-cultural problems. It includes intercultural theories and advice for American representatives.

Intercultural
Management in
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Where did the American representatives go wrong?..................................................................3
How could you help the American representatives better understand this cross-cultural
problem?......................................................................................................................................3
Use intercultural theories to explain it and support your discussion..........................................5
What would be your advice to the American representatives?...................................................7
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.....................................................................................................................9

INTRODUCTION
Culture can be defined as proper way of behaving in the organisation. It includes the
values, beliefs and norms that are followed by an organisation. There is need of having positive
culture in the organisation so that the employees are able to work properly (Ping, and et.al 2019).
Intercultural management is required when the company enhance the operations in different
countries. It is important to manage the cultural differences and acknowledge them properly so
that the work can be carried properly. This report is based on a joint venture among a U.S. Based
company and Japanese firm. The issues are being identified in this report and cross cultural
problems are identified.
MAIN BODY
Where did the American representatives go wrong?
Joint venture is the combination of two or more parties that plan to work together and
share profits and losses. They are ready to share risk and are able to develop the market share
together. It is seen that when they come together and meet at a place they must respect each
other. There is need of effective communication so that they are able to know about the need of
each other (Lukasik, 2019). The terms and conditions of work must be discussed so that the
work can be carried on properly. The Americans created a wrong impression and rolled their
sleeves to show their sincerity. Along with that they took off their jackets and they were ready to
discuss the task. This creates a wrong impression on the Japanese team members. The Americans
made the mistake related to cross cultural management. The rolling of sleeves creates a negative
impression and this show them their aggressive behaviour. The same action taken by the people
of different culture can have different meanings in the other cultures. The first impression of the
American representatives was negative (Jurásek, and Wawrosz, 2021). This is one of the biggest
hindrance that is being observed by Japanese people. They will never plan to start a business
with the people that show aggressive behaviour in the starting.
How could you help the American representatives better understand this cross-cultural problem?
To understand the cross-cultural management there is need of understanding the culture
of the other place. The use of proper research related to the culture of the place they are able to
know the actions that they must take. There are certain points that will help American
representatives to better understand cross-cultural problems and solve them effectively:

Conduct research: The Americans must have conducted research related to the culture
of Japan. This step taken by the individuals will help them to know about the norms and values
followed at the place. To start a business with them, it is necessary to know about the culture
bing followed. The chances of successful contract on joint venture enhances in case they will
know about the norms that are followed by them. It creates a positive impression of the people
and they are able to carry on the work properly.
Understand the person and keep it simple: It is important to know about the person
from different culture. It will help to interact properly and discuss all the points that are
important (Xi,NADRI, 2020). For the business meeting, the must keep it simple. The simplicity
will help them to understand each other better. The simplicity is necessary to carry on the
contract effectively and discuss all the important aspects.
There is need of effective listening skills: It is one of the best strategy that helps the
individuals to understand their needs and wants. This will enhance the communication with them
and they are able to work together. The Americans must have listened to the Japanese and
discussed the deal in order to attain success. This helps to know about the important information
and manage the work effectively.
Maintain etiquette and avoid slang: It is necessary to maintain etiquette at the time of
being in any meeting. Some cultures require formality in the beginning of communication. So at
the time business nettings the parties must analyse the requirements of each other and follow the
same. This enhance the friendless among each other and are able to maintain relations. The
Americans rolled the sleeves and that was one of the major issue in cross-culture. This caused
negative impression on the people of Japan (Runde, 2019). According to them, this was against
the etiquettes and created a negative impression in them.
All these are important aspects that must be considered by the Americans. Cross-cultural
management is the study of societal culture by the managers that help them to provide positive
working environment to the organisational members. There are cultural differences measured in
the people that belong to different countries. In order to manage them, all these points must be
considered.

Use intercultural theories to explain it and support your discussion.
Hofstede cultural dimensions theory
It is a framework that is being used for effective cross-cultural communication. It is
necessary to understand the different dimensions that can impact the organisations at the time of
working in different country (Bolten, 2020). This framework was developed by Geert Hofstede.
It assist in understanding the cultural differences across different countries. At the time of setting
the business in different culture, it becomes important to know about the culture. The necessary
actions and decision can be taken after the business organisation is able to know about the place.
The comparison in culture of US and Japan is as follows:
Power distance: It is a fact that all the countries are different. The level of power is also
unequal being observed in the different countries. In regard to Japan, it is at intermediate score.
This shows the people are conscious about the hierarchical position and take actions accordingly
( Maznevski, 2020). The decision making is influenced by the power the one exerts on others.
Along with that Japan is a meritocratic society and the education system shows that everybody
is equal.
Individualism: It shows the degree of interdependence society maintains among the
members. It can be checked with the image of people that they believe in “I” or “We”. This also
impacts the way of working in the country. In collectivist society people work as group and are
loyal that helps them to carry on the work. In America, there is liberty and justice for all. The

manager trust the employees and the work is given to them. The people are able to work
effectively and carry on the work effectively. On the other side, there are more family
businesses. The employees are loyal for the company and carry on the work properly. It is
necessary understand that there is collectivist are experienced by Western standards.
Masculinity: The high score in masculinity shows high competition. High competition in
the market helps the business organisation to use high efforts and carry on the work effectively.
The low score shows feminine shows that the values in society are related to caring for each
other. The score of Japan is high, this shows the business organisations have to face good
competition (Pîrlog, 2021). It promotes more business and profitability in the nation. To win
advantage over others, the businesses work effectively and take desirable actions. At the same
time, the employees are motivated and work effectively to attain advantage over the others. In
America, people talk freely and have clear goals. The targets are being given to the people and
they work on achieving them. There is liberty and justice for all the people who live there.
Uncertainty avoidance: This point deals with the uncertainty of the future. It is seen that
there are various changes that can take place in future. This shows how the people deal with the
situation. It becomes necessary to note that the score of U.S. Is low in this regard. The people
accept the concept and are ready to move towards new ideas. They are ready to use innovative
ways that help their business to achieve success. They do not require any rules and regulations
that can help them to carry on the work assigned to them. There is acceptance being given to the
ideas that are being given by the generation. Japan scores really high in relation to uncertainty
avoidance. There are various disasters like situation being observed in the Japan. That is the
reason they are prepared are ready to face uncertainty. The employees of the place are more
innovative and ready to meet changes. The businesses are ready to take risk and work
effectively. The managers trust the employees so that they are able to work effectively. This
helps to come with new ideas and take business to heights.
Long term orientation: The society has to maintain links with own past at the time of
dealing with challenges in future and present. It is necessary to remember the traditions and all
the events that have taken place in past so that modern culture is followed. The use of right tools
and techniques help to work effectively (Jacobs, and Wursten, 2019). In regard to Japan, the
score is high this shows that people are guided by the old traditions and are ready to take new
initiatives. There is high expenditure made by the country is research and development that

makes the place successful. In comparison, the score of US is low. This clearly shows that the
people are attached to the traditions. They believe that working according the old norms will
make them more successful.
Indulgence: The humans are social animals and they need indulgence with each other in
order to live with comfort. The score of Japan is low. The people believe that they must not
spend time in leisure. It is important to work for self and enhance their image by doing the
business activities properly. In US, the score is higher than Japan. This shows that people have
combination of thoughts. They want socialism and want to work by their own.
What would be your advice to the American representatives?
The American representatives must understand that people from different culture have
different values. They must take care about the actions that they take. The behaviour of the
American might be shown as aggressive for Japanese. There are formal meeting being conducted
in Japan. They were also expecting professionalism from Americans. In future, they must
identify the culture of other party so that they are impressed. The actions taken by them must not
create negative impact. They must understand that keeping the things simple is more beneficial
than doing wrong things. The language and words used also impact the person so they must also
be kept simple. The American representatives must have show etiquettes and asked their name
before so that they are able to know each other. The must have deal formally and discussed
important points. It is important to respect the culture of others, it helps to build effective
relations and work together.

CONCLUSION
From the above report, it is concluded that understanding the culture of other countries is
important in order to do trade with them. Inter-culture management can be understood as the
process of respecting the culture of others and acknowledging them. This report has discussion
related to the wrong actions taken related to cross culture. It is necessary to know the suitable
actions that will help to understand the cross culture problem and the same is discussed in the
report. The inter-cultural theory is important part of this report. In the end recommendation and
advice is mentioned.

REFERENCES:
Books and Journals
Bolten, 2020. Intercultural business communication: An interactive approach (pp. 139-155).
Routledge.
Jacobs, and Wursten, 2019. The Relationship between Doctor and Patient. An Intercultural
Comparison. Journal of Intercultural Management and Ethics, 2(1), pp.35-43.
Jurásek, and Wawrosz, b2021. Trends in cultural intelligence research in the context of
intercultural management.
Lukasik, 2019. Intercultural Management–A Challenge for Contemporary Organizations
(Zarzadzanie miedzykulturowe–dylematem wspolczesnych organizacji). Problemy
Zarzadzania, 82, pp.109-126.
Maznevski, 2020. Reflexive Chapter: Developing Intercultural Management Competencies: The
Next Frontier is Inward Bound. Contemporary Cross-Cultural Management, p.536.
NADRI, 2020. Students’ Skill Needs for Achieving Content in an ‘Intercultural Management
and Communication’Course in a Moroccan University of Economics. International Arab
Journal of English for Specific Purposes, 3(1), pp.93-111.
Ping, and et.al 2019. An intercultural management perspective of foreign student’s adaptation in
Chinese universities: A case study of China Three Gorges University. Engineering,
Technology & Applied Science Research, 9(2), pp.3971-3977.
Pîrlog, 2021. Intercultural dimensions in management of enterprises in the Republic of Moldova.
Summary of doctoral thesis in economic sciences.
Runde, 2019. Managing of Global Business. Beiersdorf's Intercultural Management. GRIN
Verlag.
Xi, The Cost of Thai-Chinese Business Communication from the Perspective of Intercultural
Management.