1 INTERNATIONAL INTERCULTURAL MANAGEMENT Table of Contents 1. Introduction............................................................................................................................3 2. Organisation and Culture Rationale.......................................................................................4 3.0 Comparison of Cultures through Theoretical Aspects.........................................................6 3.1 General Aspect of Cultural Differences Model 1: Iceberg and Cultural Onion Models.8 Iceberg Model of Japan..........................................................................................................9 Iceberg Model of United Kingdom......................................................................................10 Iceberg Model of United States of America........................................................................10 3.2 Comparison of cultural dimensions Model 2: Hofstede’s Model Framework...............13 3.3 Comparisons of cultural dimensions Model 3: Lewis Behavioural Model....................17 3.4 Comparison of Frameworks...........................................................................................20 4.0 Organizational Approach...................................................................................................23 4.1 Cultural implications Model 5: Cultural Intelligence CQ Model Framework...............23 4.2 Cultural implications Model 4: GLOBE Model.........................................................26 4.3 Cultural implications – what they could have done using the model............................28 4.4. Key difference...............................................................................................................28 4.5 Culture issues of the countries.......................................................................................29 4.6 Culture Issues Adaptation..............................................................................................30 5. Implications for future expansions (Recommendations).....................................................32 6.0 Conclusion..........................................................................................................................32 References................................................................................................................................34
2 INTERNATIONAL INTERCULTURAL MANAGEMENT 1. Introduction In the era of globalization and the globalized business environment, there are various organizations operate in the different countries. The different international operations try to provide the different firms with global type of competitiveness which will be helpful in reducingthecostsofproduction,therearedifferentmarketopportunities,knowledge diversity relatedto cross-culturalaspectsof the other country, innovationalong with experience (Xing et al. 2016). On the contrary, it has been noticed that due to the rise in the globalization,ittriestopresentthedifferentmanagerialpositionswiththebusiness environment which is complex, dynamic and uncertain in comparison to the previous scenario. There are different kinds of political, economic and legal aspects which affect the overall international operations in a negative manner, the influence of the culture of the company can present various issues which are difficult to handle. The term culture is one of the most complex aspect wherein the different opinions of the different individuals working in the organization and it can affect the overall international business operations (Wang et al 2017). The respective assignment helps in examining and identifying the cross-cultural differences have affected the overall growth of Walmart in Japan and United Kingdom. With the overall application of the different theoretical aspects such as Hofstede’s dimension model and Iceberg model, both United Kingdom and Japan is required to be identified with the help of the cultural characteristics in comparison to United States of America. It will be consisting of the different challenges which have been faced by the company Walmart along with providing the different recommendations to improve the scenario related to the international expansion.
3 INTERNATIONAL INTERCULTURAL MANAGEMENT 2.Organisation and Culture Rationale Walmart is one of the American retail company which operates in the hypermarkets along with grocery stores. The company is headquartered in Bentonville, Arkansas and the company was founded in the year 1962. The founder of the company is Sam Walton and the number of locations wherein Walmart is operating is 11348 and the areas served by them is worldwide (Walmart.com 2019). The number of employees working in the company is 2.3 million in the entire worldwide and more than 1.5 million in the United States of America. The services which are being rendered by Walmart is inclusive of Walmart MoneyCardPickup TodayWalmart.com and the Walmart Pay. Moreover, the revenue which has been earned by the company has been increased to US$514.415 billion till the year 2019. The organizational culture of Walmart has major four components which should be considered and these components are helpful in guiding the behaviour of the different employees which will be helpful in determining the capacities of the organizational capacities which will add value in provision of retail service along with other related services to the customers in the market. The different cultural components are as follows: Service provided to the different customers Respect for the different individuals Striving for proper excellence Action with Integrity Furthermore,intermsofthedifferentservicestothedifferentcustomers,the organization tries to prioritizes the different customers in the different operations. Moreover, Walmart tries to recognize the different contributions of each and every employee for the overall success of the business. Additionally, the firm Walmart strives for excellence in terms
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4 INTERNATIONAL INTERCULTURAL MANAGEMENT of the overall performance of the different individual employees, teams and the entire organization. In terms of maintaining proper integrity, Walmart tried to promote virtues of the different honesty, impartiality along with fairness in the process of decision-making aspects (Venaik and Brewer 2016). From the overall aspects, it can be identified that Walmart has been able to gain competitive advantage in the market through managing the different operations, however there were different issues in the international expansion in Japan and UKastherewerevariouscross-culturalaspectsthataffectedtheirpotentialtogain competitive advantage in the market. The main strategic goal of the company Walmart is to increase the overall presence andmonetizethefranchiseesintheinternationalmarkets.However,intheeraof globalization and competitive business environment, there were different cultural differences which affected the overall business of the company (Thomas, Alkizimand Mugwima 2016). From the various reports, it can be identified that there are different issues which affected the overall competitive advantage in the market inclusive of the following aspects: In the overall competitive business environment, there are different cultural issues which are being faced by the companies while expansion of the business. While expanding their business in Japan market, it has been identified that Walmart can be one of the biggest retailers in the United States market, however the story is different in Japan as instead of adopting the different business operations in relation to Japanese culture, the company assumed that the customers in the respective market will adjust to the operations of Walmart as it is working in the Japan market. As the customer behaviour is totally different in Japan, it affected the overall aspect of Walmart to continue their business operations in the respective market. Therefore, the report will be based on the overall analysis of the different aspects of the cultural aspects which is
5 INTERNATIONAL INTERCULTURAL MANAGEMENT required to be followed while expanding the business operations in UK and Japan market. However, with the help of the different theoretical models, the examination of the cultures of UK and Japan will be analyzed in comparison to the culture of USA which can affect the growth of the business (Thomasand Peterson2017). 3.0 Comparison of Cultures through Theoretical Aspects USAJapanUK ImplicationsThecultural implicationsof USAarethat peopleinthe USA, prefer the differentkinds ofcurrent norms that will be followed in alltheaspects (Tekeşetal. 2018) InJapan,the individuals prefer to follow theinnovative approaches while commencinga businessina successful manner (Stankov 2015) In UK, the traditional and current norms are beingfollowedto improvetheoverall aspectofbecoming successful(Stahland Tung2015) Culture Similarities InUSA,the making different business- related decisionsare In Japan, the business aspects play a major role wherein all the individuals of In UK, the aspects of commencingbusiness is the major aspect in whichthedifferent individualsare included(Michael
6 INTERNATIONAL INTERCULTURAL MANAGEMENT beingtaken through meetingthe individuals and allagegroups areincluded (Rohlferand Zhang 2016) all age groups play a vital role (Ollier- Malaterre and Foucreault 2017) Clark et al. 2017) Culture Difference Americans prefertokeep the conversation moreinformal than formal and theypreferto befriendlyin theirapproach (Mazanec et al. 2015) Social Hierarchyis essentialin Japanand culture of Japan is collectivist in nature Furthermore, Japanese people prefer to follow thetraditional culturalnorms (Matzleretal. 2016) It is the constitutional monarchyandthe peoplefollowthe differenttraditional aspects which will be beneficialforthe success of the country (Lokkesmoe,Kuchinke and Ardichvili 2016)
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7 INTERNATIONAL INTERCULTURAL MANAGEMENT Walmart USAJapanUK Both USA and UK have distinct differences;however, USA and Japan have major differences, Japan and UK has major differences as well explain them. 3.1 General Aspect of Cultural Differences Model 1: Iceberg and Cultural Onion Models In order to analyse the different kinds of cross-cultural issues which have been faced by Walmart in the other two countries except USA, the proper understanding of the cultures of UK and Japan is required to be analyzed with the proper application of the various theoretical aspects. As commented byLifintsevand Canavilhas (2017), Iceberg Model of the Culture helps in highlighting that the culture comprises of the different kinds of elements which are visible in nature inclusive of learned, conscious and easily changed, on the other hand the invisible elements which are unconscious, difficult and implicit to change. Furthermore, the respective model helps in oversimplifying any kind of culture, on the other hand,Li et al. (2017), haveemphasized that in order to appreciate the visible aspects of the culture, there should be proper understanding of the invisible aspects by researching as well as experiencing them appropriately. The proper understanding of the invisible elements assists in analysing the invisible elements which is helpful in minimizing the different miscommunicationandmisunderstandingsofthecross-culturalaspectsastheseare immensely valuable and important for the international businesses and the same models have been applied for Japan and UK market to understand their culture and improve the overall scenario (Laitinenand Suvas 2016).
8 INTERNATIONAL INTERCULTURAL MANAGEMENT Iceberg Model of Japan Manners- Very well behaved and they greet individuals and welcoming Language- Japanese Religious- All Buddhists in conversion to other religion Nature of friendships- Handshake and greeting someone politely Personal space- Lacking in nature Concept of beauty Importance of time- Arriving on time Communication styles- Epitomised by subtlety and nuance, Literature- earliest recorded Japanese poetry is in the Manyoshu Work of art- Less Developed Clothing- Traditional Kimonos Music- Soft and polite Food- Rice, Noodles and Tofu People’s motivation- Bosses motivate the employees Working styles- Formal Approach Negotiation styles- Formal approach Concepts of fairness- All men and women are treated equally Religious beliefs- Strong
9 INTERNATIONAL INTERCULTURAL MANAGEMENT Iceberg Model of United Kingdom Iceberg Model of United States of America The country follows to respect all individuals Manners- Shaking hands with all the people English language Religious- Christianity and mainly Catholic Nature of friendships- Not too friendly s Personal space- It is a huge issue as they feel awkward Importance of time- Etiquette followed when they are late Communication styles- encompassing both understatement and direct communication Literature- Famous writers and poets are from UK Arts- Graphics and Performance related arts Clothing- Stylish and good quality clothes along with the accessories Music- progressive rock and British folk-rock and punk music is being entertained Food- They prefer the food which is prepared with rich ingredients and locally grown People’s motivation- Self-motivation Role expectations- All the male and female employees prefer to work in all the fields Working styles- Professional approach Negotiation styles- professional and at times friendly Concepts of fairness- All the workers in the organizations are treated equally
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10 INTERNATIONAL INTERCULTURAL MANAGEMENT From the overall analysis of the Ice-Berg Model, it can be identified that it helped in analysing both the cultures of Japan and United Kingdom in comparison to United States of America. Moreover, theHofstede’s cultural Onion Model can be applied and implemented in The country follows to respect all individuals Manners- Polite and sober English language Religious- Christianity and mainly Catholic Nature of friendships- Friendly approach Personal space- It is a huge issue as they feel awkward Importance of time- Etiquette followed when they are late Communication styles- encompassingdirect communication Literature- Not so strongArts- Performance related arts Clothing- Traditional clothing Music- Classical, Jazz and CountryFood- Boiled food as people are health conscious People’s motivation- Managers motivate employees for improved performance Role expectations- All the male and female employees prefer to work in all the fields Working styles- Professional as well as informal approach Negotiation styles- Professional Concepts of fairness- Male workers are provided with more opportunities
11 INTERNATIONAL INTERCULTURAL MANAGEMENT analysing the deeper levels of the Iceberg model and define each of the culture of the different countries appropriately which have led Walmart to different kinds of problems in the United Kingdom and Japan. Through the overall analysis of the Ice-berg Model, it has been noticed that in Japan, the mindset of the customers during purchasing the different products and services are different from United States of America. In Japan, the culture of the individuals is different as customers feel that high price means the quality will be high as well and the respective mentality causes them to buy more than 40% of the luxury goods annually (Kozhin et al. 2018). Furthermore, in the United States Market, it has been noticed that the packaging and appearance of the products did not matter to the customers, however the case is different in Japan, as the customers provide 100%importancetotheappearanceoftheproductswhichwasoneofthecross- culturalclashes and it affected the overall brand image of the company. Therefore, while looking at the different products which are being sold by Walmart, it can be noticed that Walmart does not cater to the different luxury brand customers, and these kinds of cultural misunderstandings led to the failure of Walmart in Japanese culture and it was a huge mishap for the business of Walmart (Koch et al. 2016). On the other hand, the failure of Walmart at United Kingdom was the other cultural issue which was faced by them and it affected the overall profitability of the firm. From the iceberg model, it has been noticed that the culture of Walmart does not fit in all the other countries and they need to take the steps after a careful survey about the cultural aspects of the different countries wherein they prefer to expand their business operations (Kim 2017). It has been noticed that in Europe, there are strict along with high minimum wages aspect which affected their store presence. Moreover, Walmart could not hack the pro-labour union culture of Germany and the other aspect of failure of Walmart in the Germany market is that
12 INTERNATIONAL INTERCULTURAL MANAGEMENT the consumers in Germany prefer the small neighbourhood stores rather than the impersonal chain and it was the major reason for the failure of Walmart in the competitive business environment of United Kingdom. 3.2 Comparison of cultural dimensions Model 2: Hofstede’s Model Framework The Hofstede’s model framework is defined as the framework for the cross-cultural communication which was developed by Geert Hofstede. Furthermore, the respective model has helped in describing the overall impact of the culture of the society on the value of the members and the relation of thesevalues to the behaviour with the proper structure which has been derived from the factor analysis (Khlif 2016). The cultural dimension framework has been able to receive much attention from the respective Hofstede model in analysing the influence of the culture on the workplace values appropriately. However, the Hofstede’s model has faced various criticisms for analysing and assuming that all the individuals who are from different cultures behave in the similar manner. Figure 1: Hofstede’s Cultural Dimension Model (Source:Kathirvel and Febiula 2017)
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13 INTERNATIONAL INTERCULTURAL MANAGEMENT However, on the contrary, it has been analysed that in the era of globalization, it does not equate to the standardization and the ignorance of the culture of the different countries wherein the companies want to expand their business operations (Jackson 2018). The Hofstede’s model is one of the unique aspects through which the proper understanding of the fundamental differences in the culture can be identified. The respective framework will be applied in examining how Japan and United Kingdom differ on various dimensions in comparisontoUnitedStatesofAmerica,thereforetheimplicationsof therespective differences can be identified are as follows:
14 INTERNATIONAL INTERCULTURAL MANAGEMENT CulturesJapanUnited KingdomUnited States Power Distance –This refers to the degree of inequality that exists – and is accepted – between people with and without power. 54-Fromtherespective score,Japanhasscored highonthepower distancewhereinthe customersare emotionallydependent and there is less degree of inequalityamongthe individuals. However, the power is not limited to thegovernment authorities, however it is maintainedindifferent geographiclocations (Gelfand and McCusker 2017) 35- From the score, itcanbeidentified that United Kingdom which is moderate in nature and it can be analyzed that people accept such kinds of inequalities.The individualsaccept formal authority and theleadership initiativeisbeing followed 40-TheUnited StatesofAmerica whichhelpsin reflectingthatthe countryprovides hugeemphasison providingequal rightstothe different individuals and there is proper sense of hierarchy. Individualism - This refers to the strength of the ties that people have to others within their community. 46- Japan is one of the collectivecountries whereintheinterestof the people is in group and theydonotprefer individualism.Thereis hugeinfluenceofthe personalaspectsonthe taskswhicharebeing performed by them and it affectstheoverall scenario 89- It is one of the mostindividualistic countrieswherein thepeopleare individually dependentandthey takecareof themselves and they aremotivatedin their lives and they providerespectfor the tasks which are being performed by them(Favarettoet al. 2016). 91-Thepeoplein theUSAare collectivewherein they prefer to work withoneanother withproper communication. Moreover,the communication which is prevailing among the different individualsare inclusiveofdirect and informal aspects and they do not take much support from thedifferent authorities. Masculinity- This refers to the distribution of roles between men and women. In masculine societies, the roles of men and women overlap less, and men are expected to behave assertively. Demonstrating your success, and being strong and fast, are seen as positive characteristics. 95-Japanhasscored highest in the masculinity aspectwhereinithas beennoticedthatboth men and women play a major role in improving theoverallscenario.In theJapaneseculture,it can be noticed that they prefer rewards and they want to be praised for the different activities which are beingperformedby them (Epifanovaand Hild 2015). 66- In case of UK, thecountryis masculinesociety, however the female employeesare provided with equal opportunitiesinthe country.The achievementinthe different fields is one ofthemost appropriateaspects which is showcased inUKculture (Edwards 2016). 62- In the caseof USA, the American people are driven in order to perform in an extremely proper situationandthey preferthedifferent monetaryrewards whichmotivates them to perform the tasksmore efficiently (Deschachtand Maes 2017). Uncertainty Avoidance- 82- Japan has scored high fromwhichitcanbe 35-InUK,the countryhasscored 46-Thedifferent peopleofAmerica
15 INTERNATIONAL INTERCULTURAL MANAGEMENT Table 2: Hofstede’s Model of Cultural Dimension (Source: Created by author) From the respective model analysis, it can be identified that major difference between Japan and the United States of America is mainly on theUncertainty Avoidance.From the above aspect, it can be made clear that in Japanese culture, the people do not prefer any kind of surprises and they prefer to attach towards the cultural norms which will be beneficial for the overall success of the different activities (Chaudhary 2016). However, on the other hand, in USA, the individuals prefer to undertake the different adventures and they prefer to deliver innovative solutions with the proper usage of the different new innovative techniques. On the other hand, thelong-term orientationis the other aspect wherein there are various differences in the culture of Japan and the United States of America. In Japanese culture, the people are ready to adopt the various situations appropriately without much problems and they can deliver the best results within the stipulated time frame and there is no such hurry. However, in the USA culture, it can be identified that the people strive for quick results after performing the tasks and it is not effective in Japan as well (de Luque, Lelchookand Quigley 2015). Moreover, there are few differences in UK and the USA which is based on few aspects and it helps in creation of positive results. The approach of people in UK is collective and they prefer to work in group. However, in the USA, the people prefer to work in different conditions and they have the idea of innovation which results in gaining successful results. 3.3 Comparisons of cultural dimensions Model 3: Lewis Behavioural Model As identified by Hofstede model, it has been helpful in contributing towards the expansion issues faced by Walmart (Chaudhary 2016). On the other hand, the different businessstartsfundamentallywithpropercommunicationandifthereisfailurein
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16 INTERNATIONAL INTERCULTURAL MANAGEMENT communication, there will be loss of trust and it will no longer matter whether the counterpart is feminine or masculine. Moreover, the CEOs of the organizations believed that when the cross-border communication were to improve, it will be helpful in the overall growth of the companies. However, the overall financial growth of Walmart has been low due to the ineffective cross-cultural interaction and communication. As per the model of Lewis, the different cultures have various types along with communication and lifestyle (Chaudhary 2016). Figure 2: Lewis Model of Cultural Types (Source:Chaudhary 2016) Multi-Active (United Kingdom) Reactive(Japan)Linear Active (United States of America) In UK, the communication betweenindividualsis In Japan, the communication iscourteousandthe The communication is clear and straightforward and the
17 INTERNATIONAL INTERCULTURAL MANAGEMENT impulsiveandthereis frequentconversation between individuals. individualsshowrespect. Theusageofsubtle language is utilized. peoplearecondimentand honest The trade in the business is done through gossip as well as rumour and there is no suchinclusionofrespect betweentheindividuals. There is no such inclusion of authority and they like the concept of strong bosses as they feel bosses will protect them In Japan, the people prefer slowandsteadyaspectin dealing with work. They are respectful towards the other personandthestatusis gainedwithproper education (de Mooij2017) In USA, the proper usage of speech is done wherein it is helpfulformanagingthe different aspects in business (Deschachtand Maes 2017). Thestatusisachieved throughcharismatic personalitiesandithelps theminmanaginggood relationships with others In Japan, there is usage of non-verbalanddirect communicationforthe business which is helpful for theminsucceedingin business The punctuality in business is one of the major aspects in business and business is conductedrapidlywith proper emphasis on building strong relationship Table 2: Analysis of multi-active, reactive and linear-active cultures (Source:Deschachtand Maes2017)
18 INTERNATIONAL INTERCULTURAL MANAGEMENT 3.4 Comparison of Frameworks FrameworksIcebergHofstede’sLewis SimilaritiesItisoneofthe culturaltheories whichmainly focusesonthe differentcultures of the countries On the other hand, asperthe respectivemodel themainaspect which is similar is relating to analysis oftheculture throughsix dimensional approachisbeing analyzed Lastly, the Lewis modelmainly focusesonthe different behavioural patternswhich will be helpful in understanding differentcultures ofthedifferent countries DifferencesAs per the Iceberg model,itcanbe identifiedand analyzed that it is thepartofthe culturewhichis below the surface ofthesociety which is inclusive ofthedifferent beliefs along with Asperthe Hofstede’sModel, it seeks to provide answerstothe different questions whichare essentially essentialofthe human situations. Ontheother hand,theLewis modelis considered of the threetypologies whichisnoton the nationality or thereligionbut ontheoverall behaviour
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19 INTERNATIONAL INTERCULTURAL MANAGEMENT the values as well asthought patternswhich underliethe behaviour Compare and contrast the framework with the countries FrameworksUSAJapanUK IcebergAspertheIceberg Model, in USA the peopletriestobe formalinthe differentaspectsof the life and they do notpreferthe informal behavioural attitudeofthe individuals. Moreover,the peopleprefer professionalismin managingthe differentwork related aspects InJapan,thereis followingofboth formal and informal approachwhich helpsinmanaging thedifferent activities appropriately. However, the people in Japan are punctual andtheypreferto motivatethe employeesworking intheorganization as they feel they are theassetsofthe In case of UK, the self motivation is the mainapproach whichisbeing introducedandthe peoplearenottoo friendlywithone another. They prefer professionalismand all the employees are treated equally in the organization as well
20 INTERNATIONAL INTERCULTURAL MANAGEMENT organization Hofstede’sAccordingtothe Hofstede’sModel, thepeopleinUSA provides equal rights to all the individuals and it is helpful in improvingthe overalleconomy structureofthe country IncaseofJapan, there is less degree ofinequalitywhich isbeingfollowed and there is inclusion ofrewardsand recognition provided toemployees regardingthe different tasks which are being performed by them. Lastly,incaseof UK,thereare different inequalities presentamongthe differentindividuals whichcreatehuge chaosintheentire economy.Thereis inclusionofthe formal authority and theleadership initiative is followed in a strict manner LewisAspertheLewis Model,itcanbe identifiedthat communication between the different individualsworking at the organization is straightforwardand thereisnosuch inclusionofthe honestyinthe conversationofthe AspertheLewis Model, in Japan, the communication which is followed is courteousandthe subtlelanguageis used which helps in managing the overall efficiencyofthe different performanceofthe tasksinthe In case of UK, the different kinds of the communicationis impulsive and there ishugeformality whichisbeing followedwhile dealingwiththe differentaspectsin the workplace
21 INTERNATIONAL INTERCULTURAL MANAGEMENT individualsorganization and the peopleinJapan prefertosteadily dealwiththe different tasks which areperformedby them 4.0 Organizational Approach 4.1 Cultural implications Model 5: Cultural Intelligence CQ Model Framework The cultural intelligence is the overall capability to relate along with working effectively in the culturally diverse situations. It goes beyond existing notions of the cultural sensitivity as well as awareness which will be highlighting set of capabilities which is requiredforaccomplishingthegoalssuccessfullyinculturallydiversecountries (Deschachtand Maes2017). The CQ model can be utilized as Walmart’s ineffective kind of communication has been the major reason for the overall failure in Japan and United Kingdom market. As per the CQ model, the Walmart needs to gain proper knowledge and understanding on the respective cultures and adoption of CQ strategy provides ability to plan for multicultural interactions. CQ builds on Intelligence Quotient (IQ) – Measures intellectual capabilities EmotionalIntelligence(EQ)–Theabilitytoleadandinteractwitheffective emotional sensibilities
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22 INTERNATIONAL INTERCULTURAL MANAGEMENT Cultural Intelligence (CQ) – Focuses specifically on an individual’s capability to effectively understand and adapt to a myriad of cultural contexts The CQ will be beneficial for the overall growth of Walmart in Japan and United Kingdom market as it adds competitive advantage and edge to the business. It will be helpful in improving communication, cooperation along with teamwork and performance. In order to improve the cross-cultural aspects by Walmart, it will be beneficial in adapting to the behavior which is required in United Kingdom and Japan. MotivationalCQ-It will help Walmartin reflectingoverallcapabilityto direct attention along with energy about along with functioning in situations which are categorized by the cultural differences. Cognitive CQ-It will help Walmart in analyzing capability to relate and work more effectively across cultures. MetacognitiveCQ-IthelpsWalmartinreflectingmentalprocesseswhichthe different individuals will acquire as well as understand the cultural knowledge effectively. Behavioral CQ-It will be helpful for Walmart inreflecting the overall capability to exhibit appropriate verbal as well nonverbal actions when interacts with the people in different cultures.
23 INTERNATIONAL INTERCULTURAL MANAGEMENT Figure 3: Cultural Intelligence Model (Source:Deschachtand Maes2017)
24 INTERNATIONAL INTERCULTURAL MANAGEMENT Moreover, CQ can be helpful in enhancement by the active engagement n travel, international assignments along with intercultural experiences. Therefore, Walmart needs to constantly ensure the efficient external and internal cross-cultural communications which are integrated in culture of company through enforcement of regular audit related to CQ and cultural sensitivity training programs. 4.2 Cultural implications Model 4: GLOBE Model Power Distance- On the other hand, the countries having low power distance is supported equality and is highly reinforced Uncertainty Avoidance- It is the aspect in which it will be dealing with tolerance of society for ambiguity and tolerance. HumaneOrientation-It is the degree to which the differentindividualsin companies encourage and reward individuals for being fair and it is followed in TheUnited States of America which will be beneficial for growth. CollectivismI(Institutional)-Itistheaspectinwhichdegreetowhich organizational along with societal institutional practices encourages and rewards the individuals and the same is performed by UK. Collectivism II (In- Group)- It reflects on the aspect in which individuals express loyalty and pride which will be bringing cohesiveness in the organizations. Assertiveness- It is the degree to which companies are assertive and it is followed in UK and Japan Gender Egalitarianism- It is the extent wherein organizations minimize gender discrimination which is followed at UK and Japan Future Orientation- It is the degree in which individuals in companies engage in future-oriented behaviors such as planning
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25 INTERNATIONAL INTERCULTURAL MANAGEMENT Performance Orientation- It is the extent to which the different companies’ rewards employees and it will be helpful for UK and Japan. Figure 4: GLOBE Model (Source:Deschachtand Maes2017) Globe: culture and leadership Performance- The organizational performance is one of the key aspects which is being followed in the UK and Walmart needs to support such to improve performance. Team-oriented- The team orientation is the central aspect in the USA which will be beneficial for the growth of the company in different cultures Participative-Theparticipativeapproachistheotheraspectwhichshouldbe maintained by the USA and UK, and to become competitive, it will be beneficial for Walmart to succeed
26 INTERNATIONAL INTERCULTURAL MANAGEMENT Humane- In the UK and Japan, the individuals have the compassion to showcase the different talents for improving business operations. Autonomous- The autonomous is the other aspect which will be beneficial in being more diplomatic in operations. Self-protective (and group-protective)- The individuals in Japan are self-protective, and Walmart needs to improve the overall team orientation more efficiently 4.3 Cultural implications – what they could have done using the model Besides the implementation of audits related to CQ along with programs related to cultural sensitivity, it will help assess how previous operations influence future overseas projects. After the overall analysis of annual reports of Walmart, there were various negative financial results faced by them in Japan and the United Kingdom. However, with the application of the GLOBE Model, Walmart has been able to understand the different cultural differences through strategic thinking along with expanded its operations in Anglo cluster to the USA. 4.4. Key difference ParticularsGLOBECQ ImplicationsAs per the respective Model, it can be analyzed that the different clusters in the United Kingdom are required to be more assertive and there should be the As per CQ, the companies need to analyze the different culturesofthevarious countries appropriately
27 INTERNATIONAL INTERCULTURAL MANAGEMENT inclusion of team orientation Impact on what companies need to change Thedifferentorganizations need to change as per the teamassertivenesswhich willbebeneficialforthe growth in respective cultures As per CQ, it will be helpful forthecompaniesto understand thecultureand motivationalaspectsare different Key DifferencesThere are major six dimensions of GLOBE model which will be useful for improving the overall success InCQ,thesignificant elementisbasedon understandingthecultural aspects 4.5 Culture issues of the countries Culture issuesJapanUKUSA GLOBEAs per the Globe Model,therecan be issues related to nonverbal communicationas itcanaffectthe growth of the other companieswhich areplanningto move in Japan In case of UK, the bossy culture is the attitudewhich affects the overall efficiencyof performing business in United Kingdom IncaseofUSA, the major issues is relatedtothe differentclusters whichrequiresto bemoreassertive as it can affect the overallgrowthof thecountry negatively
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28 INTERNATIONAL INTERCULTURAL MANAGEMENT CQIn case of CQ, the culture of Japan is differentwhich canaffectthe overallgrowthof theeconomyand business operations negatively In case of CQ in UK,itcanbe identifiedthatthe companiesrequire toanalyzethe various cultures of thedifferent countries as it will bebeneficialfor the overall success of the firm Lastly, in case of USA, the culture is thekeyaspect which is one of the mostimportant factorsin continuingthe business smoothly 4.6 Culture Issues Adaptation Adaptation of Culture Issues JapanUKUSAOutcomes IcebergWhile doing business in Japan, the more formal attitude is required which will be helpful for the business In case of UK, the formal and etiquettes are the major attributes which are required to be followed In case of USA, the different informal and formal aspects can be followed which will be beneficial for The outcome will be successful and it will be helpful in improving the overall sustainability
29 INTERNATIONAL INTERCULTURAL MANAGEMENT continuing the business successfully Hofstede’sAs per the respective model, the masculine preferences are more As per the respective model, the different kinds of feminine culture is being followed As per the respective model, the male population will be receiving more chance in comparison to the female The outcome can be negative due to inequality LewisAs per the Lewis Model, the formal attitude is the main concern which needs to be followed As per the respective model, the subtle language is necessary which will provide positive outcomes As per the respective model, the different formality is appropriate for the overall success of the firm The outcome will be positive as it will be beneficial in improving the overall scenario GLOBEAs per theDue to theTheIt will lead to
30 INTERNATIONAL INTERCULTURAL MANAGEMENT Globe model, assertiveness is the major aspect which will be helpful in orientation of the team assertiveness, it will be beneficial for the growth of the companies assertiveness will be beneficial for the overall success in USA positive outcome CQAs per the CQ, there are different formal attitudes that can be issues for continuing business successfully In UK, it will be possible for continuing business successfully as there is equality in the respective culture In USA, it will be helpful for the companies to conduct business due to the informal and subtle attitude It will be leading to positive outcome 5. Implications for future expansions (Recommendations) In order to improve the overall analysis, it can be identified that Walmart needs to expand its business operations in an effective manner which will be beneficial for the overall growth of the company.In order to become successful in the different countries, it is essential for Wal-Mart to adopt the different cultures wherein it will be introducing their business which will be beneficial for the overall growth of the company in a proper manner.
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31 INTERNATIONAL INTERCULTURAL MANAGEMENT Proper development of the business plan along with strategy is essential for defining the short and medium reasonable goals. Moreover, the establishment of the readiness of the products is the other aspect that should be analyzed by Walmart to meet the cross-cultural perspectives of Japan and the United Kingdom. The organizational readiness is the other aspect which will be beneficial in improving their business operations successfullyas the organization needs to adopt to the different changes that can affect the business operations positively and the growth of revenues will be positive as well 6.0 Conclusion Therefore, it can be concluded that cross-cultural issues along with adaptions by Walmart Company help in confirming that in the era of globalization, the managers are working in the complexbusinessenvironmentwhichincludesdealingwithvariousstakeholders.The different culture of UK and Japan helped in highlighting through the Ice-berg model and Hofstede's cultural dimension model along with proper analysis has been done with the help of the Lewis model. Moreover, the organizational analysis has helped in analysis of the complexity of issues wherein the USA and UK created the huge degree of cultural synergy, however, on the other hand, there is no such synergy between the USA and Japan which created cultural clash. Therefore, from the above, it can be analyzed that in order to remain competitive during international expansion, the firms need to analyze the cultural aspects which will be beneficial for the overall success of the firm.
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