Cross-culture Management

This report discusses the challenges faced by Morrisons, a UK supermarket, in entering the Chinese market. It explores the use of Hofstede's cross-cultural dimensions analysis to understand the country and the challenges faced by Morrisons. The report also provides recommendations for building relationships, improving communication skills, and handling negotiations in the Chinese market. Find study material and solved assignments on cross-culture management at Desklib.

Management
Cross-culture management
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Cross-culture Management 1
Executive summary
Morrison is one of the well-known supermarkets of United Kingdom, Hence, this report will
majorly highlights about how Morrisons will be discovering the potential market chances in
China. By the use of hofstede’s cross- cultural dimensions analysis, it helps in knowing more
about the country and the encounters, faced by Morrisons for maintaining it worth and
assistances in company to sustain for the longer period.
The major challenges, which Morrisons faces while moving to china were communication
barrier, collectivism, working scenarios, lifestyle differences and ethics, morals and standards
were the major topics of concern. For this, certain recommendation like usage of guanxi in
order to build relationship with the people of china will help the Morrison to grow. Moreover,
working over communication skills by adoption by china culture helps them to perform better
while negotiating, overall performance and relationship in between the countries.

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Contents
Introduction....................................................................................................................2
Hofstede cross culture dimensions.................................................................................3
Trompenaar’s cultural dimension..................................................................................5
Recommendations..........................................................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................8

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Introduction
Morrison’s supermarket is one of the well-known chains of United Kingdom, which is
majorly engaged in the operations of the retail supermarket stores. This particular company
offers various products such as grocery items, fresh foods items that are uniquely sourced,
processed and are sold through their own manufacturing facilities. On the daily basis, around
11 million households enjoy the Morrisons services. The services provided by them are of
lower prices as they are committed towards helping to their ultimate customers by saving
their money on every day basis (Williams, et al, 2010).
Hence, this report will majorly highlights about how Morrisons will be exploring the
possible market opportunities in China. By the use of hofstede’s cross- cultural dimensions
analysis, which helps in knowing more about the country and the challenges, faced by
morrisons for maintaining it worth and helps in company to sustain for the longer period of
time.
In terms of china, it is the world third largest country, which is the most developed
after Canada and Russia. Hence, this ensures that it is the most populated country, which
needs more of consuming articles and grocery items and eatables. Hence, Morrisons has
decided to open one of its outlets in china as a new entrant but before that, the company
should analyse that changes such as communication barrier, leadership, ethics, negotiations
and marketing aspects, which can be major, affected. Through hofstede cultural dimensions,
it will be easier for Morrisons to make a new market entry and will generate by ensuring the
best services to the ultimate customers (Dickson, et al, 2012).

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Hofstede cross culture dimensions
(Source: Hofstede, 2010)
High or low power distance:
This dimension highlights or expresses the attitude of the culture towards the
inequalities. Moreover, associates of institutions admit that there must be an unequal
distribution of power within the country. In terms of china, their larger power distance, this
states that communication in between employees with their superiors is diverged. Hence, they
gain respect due to the intrinsic nature of employees. However, in terms of Australia, their

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low power distance hence top management are totally relied on employees and flow of
communication is informal, direct in comparative to china (Hofstede, 2011).
Individualism v/s collectivism:
This issue highlights about the degree of independence, as individualist only look
after themselves or their family and while collectivist people majorly care for group in
exchange of loyalty aspect. In terms of Australia, they are highly individualist in comparison
to china. Hence, Australian is more concern for themselves and the immediate family
member rather china belongs to collectivist. In which, personal relationship are lesser
important over task or company (Hofstede, 2010).
Masculinity v/s femininity:
This aspect of hofstede cultural highlights about the society which majorly focuses on
success and accomplishments gained by masculines and whereas femininity highlights about
quality of life. In terms of china, people out there are more success oriented. They sacrifice
their families over their work. Hence, this aspect generates the gender stereotype and biasness
in china. Similarly, Australia is also considered as Masculine society in which achievement
and success highlights the higher score, which generates dynamism in the society. Hence,
Australian also having a mindset of lives to work in order to obtain monetary rewards and
consequently attains the higher status and more (De Mooij, 2015).
Weak v/s strong uncertainty avoidance:
Uncertainty avoidance highlights about the community tolerance for uncertain
behaviour and vagueness. China in this term is deceived because of weak uncertainty
avoidance, which tends to be those where people are relatively free. In terms of cultural
acceptance, people of china out there tend to obey laws, rules and regulations and need strong
assistance and guidance rather than considering decisions on spot. However, in terms of
Australia, people and management both are open to new ideas, acceptance while trying out
something new. Other than this, they are managerial risk takers and are less emotional. They
work in more of organised and structured form, which highlights their culture (Werner,
2009).
Long term and short-term avoidance:

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In this aspect of hofstede, china follows the long-term orientation aspect, which
highlights about some links with the past while dealing with the current and future
challenges. China with 87 % score highlights about the practical culture, in this people of
china is more relied over truth, which are part of the situation, context and time. Hence, this
highlights the adoption of traditions to the changed conditions. In terms of Australia, they
carry nominative culture, they do have respect for tradition but they do not think of
propensity to save for future and tries to achieve quick results.
Indulgence v/s restraint:
This aspect majorly highlights the extent to which an individual able to control their
desires and impulse. Whoever is weak at controlling are known as indulgent and relatively
who are strong at it will be considered as restraint. In terms of Australia, people out there are
highly indulgent, which tends to enjoy their life and possess positivity and higher degree of
leisure time. However, comparatively, china comes under a category of restrained society. As
they do not put their much time in fulfilling their desires and enjoy their leisure’s. Although
they control the gratification of their desires and thinks of indulging themselves is wrong to
their image (Cui, Ting, 2009).
Trompenaar’s cultural dimension
Universalism v/s particularism:
In terms of universalism, Australian gives more emphasis on values, rules, ethics and
obligations and they do not prioritize relationships. While China belongs to particularism for
them, relationships matter more. Hence, Morrison an Australian based company will face a
major challenge while following various negotiations, forming marketing strategies as they
are very direct and work with rules and avoid relations whereas, Chinese people majorly rely
on relationship building.
Individual v/s communitarianism:
In this aspect, individual highlights about the personal freedom and achievement,
Australian people believe and forms their own decisions. Whereas China culture adopts
communitarianism, in which they think and form decisions in groups as they avoid
favouritism and provide helps in exchange of loyalty. Hence, Morrisons while moving to

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china should adopt the collective attitude while performing their management skills (Stephen,
Joshua, and Robert, 2014).
Specific v/s diffuses:
Being specific highlights that personal and work life are to be separated and believe that
people can work together without focus over mending relationships. However, in terms of
diffuse, work and personal are considered as same entity. In addition, people of China thinks
that it is mandatory to build relations, as they are good for both business meetings and rather
being socially. Hence, Morrisons while making a new market entry has to face challenge by
being more socially active along with the business meetings (Hill, 2008).
Neutral v/s emotional:
Being neutral highlights that people work without showing or highlighting emotions
at workplace rather being emotional. Moreover, being emotional highlights one expressing
their how he or she is feeling. Hence, this factor did not affect Australia while shifting as
china’s culture being neutral while working in an organisation.
Achievement v/s ascription:
Achievement aspects highlight about performance no matter who is achieving it.
Whereas, ascription aspect highlight about the power, title and position which matter and
needs to be recognized time to time by being performing at their best.
Sequential time v/s synchronous time:
Sequential time aspect highlights about the punctuality, planning of the individual. In
this time is money culture is adopted and people do not appreciate it when it schedule is
thrown off. In addition, synchronous time is adopted by Australia where their people sees up
past, present and future at once and views plans and commitments as flexible. Hence,
Morrisons needs to sequential rather than being synchronous.
Internal v/s outer directions:
In Australia, Morrisons follows internal directions in which they control nature and
work accordingly in order to achieve goals. Whereas outer direction highlights that china
people or employees are controlled by environment in order to achieve gaols and whatever
being told to them is performed by them by avoiding conflicts. Hence, Morrisons while

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entering china needs to follow top management sayings by avoiding conflicts and achieving
goals (Ferraro, and Briody, 2013).
Recommendations
Morrisons making a new market entry in china has to face various challenges such as
communication with the various stakeholders, issues in handling negotiations working in
different environment and ethics and marketing strategies helps in suggesting that they should
follow strong relationships before closing deals.
Chinese culture mainly relies on Guanxi, which highlights about the close
relationships or social or business connections, which are totally based in mutual interest and
benefits. This aspect is best when Morrisons by the use of guanxi build relationship with
government officials, which will further helps in any issues (Bian, & Zhang, 2014).
Improving communication skills and greeting skills is also one of the most important
aspects that Morrisons need to work upon it. Flow of communication should be formal and
direct rather than being informal as it affects the overall performance and relationships in
between countries.
In negotiation concern, china business negotiations are occurred at slower pace. As
decisions are taken in longer time as, they are clearly reviewed. China culture adopts strong
uncertainty avoidance, as negotiators of china are shrewd. Hence, without forcing them for
the quick decisions accepts their delays and as patience in this concern are appreciated (Jiang,
2013).
Conclusion
From the above report, we can conclude that, while entering into the different culture,
organisation needs to face many challenges. However, if they are altered timely, their deals
are made and revenue are generated and objectives are fulfilled. Similarly, when Morrisons
an Australian based company is entering into china certain challenges in terms of language,
business management and while negotiating issues are faced but they can be altered timely by
accepting the different culture, their culture practices and behaviour for overall success.

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References
Bian, Y., & Zhang, L. (2014). Corporate social capital in Chinese guanxi culture.
In Contemporary perspectives on organizational social networks (pp. 421-443).
Emerald Group Publishing Limited.
Cui, Y., Ting, Z. (2009) Cross-culture perspective Retrieved from
https://hh.diva-portal.org/smash/get/diva2:286121/FULLTEXT01
De Mooij, M. (2015) cross-cultural research in international marketing: clearing up some
confusion. International Marketing Review, 32 (6), pp. 646-662
Dickson, M. W., Castaño, N., Magomaeva, A., & Den Hartog, D. N. (2012). Conceptualizing
leadership across cultures. Journal of world business, 47(4), 483-492
Ferraro, G.P., and Briody, E.K. (2013) the cultural dimension of global business. Upper
Saddle River. Pearson.
Hill, C. (2008) International business: competing in the global market place. Strategic
direction.24 (9).
Hofstede, G. (2010) Cultures and organisations: Software of the mind. United
States.McGraw hill
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online
readings in psychology and culture, 2(1), 8
Jiang, Y. (2013). Business negotiation culture in China a game theoretic
approach. International Business Research, 6(3), 109
Stephen, S., Joshua, B., and Robert, P. (2014) The role of culture in international relationship
marketing. Journal of marketing. 789 (5), pp. 78- 98.
Werner, S. (2009) Recent developments in international management research. Journal of
management. 28(3), pp. 277-305.
Williams, J., Memery, J., Megicks, P., & Morrison, M. (2010). Ethics and social
responsibility in Australian grocery shopping. International Journal of Retail &
Distribution Management, 38(4), 297-316

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