Cross-cultural Management

Running head: INTERNATIONAL MANAGEMENT
INTERNATIONAL MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Rationale for the selected country..............................................................................................2
Industry of operations of the two organizations.........................................................................3
Objectives of the partnership.....................................................................................................4
Analysis of the internationalization process..............................................................................5
Cultural dimensions of the organizations in operational perspectives.......................................6
Advantages and disadvantages of the Joint Venture..................................................................7
Issues around the governance.....................................................................................................8
Understanding partner cultures and implementation of operations...........................................9
Application of internationalization and cultural management theories to the JV....................10
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
The report is focused on the analysis and evaluation of the business prospects of a
joint venture that would form as a result of partnership between two companies from two
different countries. Cultural aspects are very important in determining the internationalization
of businesses and cross cultural management. The chosen organizations for the report are
TESCO Plc from the UK, representing the high context culture and the Future Group from
India, representing the low context culture. Tesco is a retail marketing chain form the UK and
the Future Group is an Indian conglomerate operating in the industries of insurance, logistics,
media and retailing. The Joint Venture would be started in the Indian market. The report
would discuss the various cultural dimensions that are present concerning the starting of the
new Joint Venture. The objectives of the partnership are stated. Additionally, the cultural
factors that affect the operations of the two organizations and their respective markets are
discussed. The feasibility of business concerning the various advantages and disadvantages
that can be faced by the Joint venture is discussed. The market choices become important in
determining the business potential of Joint Ventures. The different cultural, physical,
economic and social factors affecting the market as well as the two organizations need to be
discussed much importantly. The cultures of the two organizations need to be evaluated to
understand their potential for supporting the Joint Venture. TESCO has been one of the best
performing retail chain for a long time in the UK. Similarly, The Future group has been
effective in establishing some effectively functioning retail chains across India.
Rationale for the selected country
The selected country is India, where the future group already operates its business.
The market is one of the fastest growing markets in the world. Tesco Plc and the Future

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group would get into a joint venture to open an exclusive retail market for food items in
India. The Future group has significant expertise in the market due to their long standing
presence in the retail market of the country. The retail sector of the country is deemed to be
one of the most dynamic sectors in the world. It is expected that the total consumption
expenditure of the country would reach nearly 3600 billion US dollars in 2020 (India and
India 2020). The market was chosen as it can provide a strong foundation for a food only
joint venture business. Moreover, the high cultural context of TESCO can be combined with
the low cultural context of the Future Group to develop a strongly balanced growth structure
(About Us | The Future Group Company Profile 2020). In this case the market of India can
provide an effective foundation for the development of the joint venture. The knowledge of
Tesco can benefit the Future Group. In turn the future group can guide the market operations
of Tesco. The Indian market is completely new for the Tesco Company. In this regards, the
organization can reap better rewards by promoting its brand value in India. The fast growth of
the Indian retail sector provides more value to the developmental needs of the new Joint
Venture. There are various social reasons for the selection of India as one of the most
important markets. This is because India has a growing number of urban middle class. There
are more people that are moving into apartments in urban areas.
Industry of operations of the two organizations
The industry that the Joint Venture would operate in is the retail industry. The retail
industry of the county is witnessing rapid development over the course of a few years. The
total consumption expenditure of the country would reach nearly 3600 billion US dollars in
2020. It is important to note here that the JV would be in regards to a food only retail store
chain. The Future Group from India and TESCO from the UK are both familiar with the
different aspects that are connected with the retail business for a long time. This gives them