Managing Across Global Cultures: Best Bibs and Tucker Case Study

This case study explores the challenges faced by Best Bibs and Tucker while expanding their business in China. It covers topics such as staffing approach, benefits and disadvantages of multicultural teams, product life-cycle, culture shock issues, and global mindset.

Running Head: MANAGING ACROSS GLOBAL CULTURES
Best bibs and tucker
Managing Across Global Cultures
Australia
6/3/2018

MANAGING ACROSS GLOBAL CULTURES 1
Table of Contents
Answer 1....................................................................................................................................1
1.1 Staffing approach of the company...................................................................................1
1.2 Benefits and disadvantages of multicultural teams..........................................................1
Benefits..............................................................................................................................2
Disadvantages....................................................................................................................2
Answer 2....................................................................................................................................3
2.1 Product life-cycle of Best Bibs and Tucker.....................................................................3
2.2 Utilization of culture in the mechanism through life cycle..............................................4
Answer 3....................................................................................................................................5
3.1The main culture shock issues that the initial workforce might face in relocating to
China......................................................................................................................................5
3.2 The main culture shock issues that the initial workforce might face in returning home. 5
Answer 4....................................................................................................................................6
4.1Key challenges that global team will face.........................................................................6
4.2The concept of global mind-set and how this could be applied in the case......................7
References..................................................................................................................................8

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Answer 1
1.1 Staffing approach of the company
In the recent overseas expansion of Best Bibs and Tuckers, in China, has adopted
Ethnocentric approach of staffing for the new chain. This approach of staffing is adopted by
the new CEO of the company, Mr. Francois Dubois. He has decided to appoint new managers
and employees from the home country Australia. Ethnocentric approach of cross staffing is
the process in which parent company requires the control and management of the new branch
in another hosting country, managers and employee from the home country are selected for
the job. This ensures that the parental values will be maintained in the hosting country as
well. This requires shifting the existing managers and employees from the home country to
the business in hosting country. In this given case new CEO has made the same decision to
employ home country managers and employees for the newly acquired business chain of 30
stores in china. In this way Ethnocentric approach of staffing offers an opportunity to transfer
the root key values of the parent company in the foreign country. Employees worked in the
parent company know the company’s view about its work ethics, productivity, customer
services, and other host issues (Verbeke, 2013). In this manner management staff of the
parent company helps the organization to bring the company values to the other country.
1.2 Benefits and disadvantages of multicultural teams
As per the strategy planning of the company multicultural teams will have to work together in
the hosting country to create a most favourable environment of the organization work.
Working in multicultural teams will have its own benefits as well as disadvantages. These
benefits and disadvantages are as following

MANAGING ACROSS GLOBAL CULTURES 3
Benefits
Better financial result: working with multicultural teams company can perform better in
terms of financial growth of the organization.
Global level competition: Multicultural teams can take an advantage of their cultural
understanding about the other country and will result in competing successful at the global
stage.
Fact based decision making: Diverse thinking will make better decision based on the facts
of the host country.
Creative and innovative thinking: Different minds have different creativity and that can be
used by the company while working with multicultural teams only.
Cross-cultural understanding: Multicultural teams will make a better understanding of
different cultures that can help the organization in making business.
Disadvantages
Difficulty in transitioning: While working in multicultural teams, employee may face
difficulties in transitioning local language.
Short-term cost outlay: Depending upon the time period of company in the new country
extra accommodation can make a significant financial loss to the organization (Verbeke,
2013).
Lack of freedom of speech: Working in multicultural teams, team members can feel a lack
of freedom of speech.

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Increased cost of training: Working in multicultural work environment will increase an
additional cost of training and development programmes for the employees of different
cultures or language difference will require extra training efforts for different employees.
Answer 2
2.1 Product life-cycle of Best Bibs and Tucker
In this business expansion of the company, Best Bibs and Tucker follow a project life cycle
of 4 different stages. This project lifecycle consists of four different stages as, export
strength, beginning of foreign production, competition of export market in foreign
production, and import competition(Maurer, 2010).
Export strength: Company has established its business in the home country very well and
now company is capable for its expansion overseas. This requirement fulfilment makes the
company eligible for its overseas expansion. Business of the company in its home country is
much better and showing a growth rate consistently increasing over the last few years.
Foreign production start: Acquiring the retail store chain of similar business in China will
increase the demand of its parent products manufactured in the home country. This phase will
make it to use the company’s different products in foreign market as well (Maurer, 2010).
This will increase product demand of parent company in the foreign market as well resulting
in increasing the overall production of the organization (Ferraro, & Briody, 2013).
Foreign production competitive in export market: At this phase when company will hire
local employees it will be cut the cost of product with lower cost of the employees in the
local market. This phase will replace the parent company managers and employees with the
local managers and employees. This will cut the cost of foreign employees and will start
making better business for the organization.

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Import competition begins: As the company will start production in foreign country it will
be beneficial for the company to import the same product with a lower cost as the company
itself producing the required product with a lower cost of manufacturing (Chang, Lee, &
Chen, 2014)..
2.2 Utilization of culture in the mechanism through life cycle
First phase: The cross-culture environment of the organization in foreign country will
benefit the company through its product life cycle mechanism. In the first phase of product
life cycle new culture will make a demand for the original products of the company. this
demand will make an increase in the production of the company from its home country and
will export this production to the hosting country (Eden, 2009). In this way cultural diversity
will impact the foreign export of the company in a positive way.
Second phase: Diverse culture will demand for the variety of products which will increase
the production of parental company in the home country. Therefore, introduction of new
products to a completely new culture will help the company in increasing its production.
Third phase: Through this phase company lowering of the cost using the local employees
understanding the culture of the host country can make the business efficient and effective.
Employees of eh new culture will have a better understanding of the culture and its trends
that can be utilised by the company to maximize the exports of the company (Moreland,
Levine, & Wingert, 2013).
Fourth stage: Utilizing the new culture company can make less imports for the new country
and can make the business more cost efficient. This will reduce the cost of import and
maximize the export to the home country. This will increase the import of home country from
its new branch in the foreign country.

MANAGING ACROSS GLOBAL CULTURES 6
Answer 3.
3.1The main culture shock issues that the initial workforce might face in
relocating to China
It has been analysed that Best Bibs and Trucker is an Australian company that provides hats
and bush clothing to the customers. The company has decided to initiate the work in China
therefore various culture shock issues are faced by the company in China (Shi & Franklin,
2014). Some of the culture shock issues have been detailed below.
Language issue: It is one of the significant and foremost issues in China that would be faced
by the company. Best Bibs and Trucker is an Australian company thus, language differences
are encountered by the firm. Australian employees are unable to understand the language of
Chinese people. It has been found that language differences and issues can become a problem
during the business transactions where it is essential to have clear and open communication
(Chapman & Ciment, 2015).
Miscommunication: It has been noted that expatriates managers generally complain that
there is no open communication in the China. Therefore, the employees of Best Bibs and
Trucker Company will feel frustrated when people remain silent during the seminars and
meetings. Along with this, frankness is not esteemed by the Chinese. In this way, Australian
are failed to maintain favourable communication with Chinese. This culture issue could affect
the success and growth of the firm adversely in (China Hopkins, 2016).
High turnover rate: A high turnover rate is not good for the company because it reduces the
productivity and efficiency of the firm. High turnover rate means that employees are leaving
their job at a relatively high rate. If the company initiates its business in China then it leads to
high turnover rate. All these culture issues are entertained by the company while relocating
the business in China (Alesina & Giuliano, 2015).
3.2 The main culture shock issues that the initial workforce might face in
returning home
If Best Bibs and Trucker Company is retuning in home country then ample of challenges
would be faced by the company. Some of the key issues have been elaborated below.

MANAGING ACROSS GLOBAL CULTURES 7
 Re-adoption is one of the significant issues in reverse culture shock issue that can be
faced by the company while returning in home country.
 Reverse homesickness and boredom can also be affected the efficiency and
effectiveness of the workers in the home country (Martin & Nakayama, 2013).
 It has been found that Best Bibs and Trucker Company will have to invest lot of
money on the training and development of employees in home country therefore it
could influence the profitability of the firm.
 Apart from this, the organization will not be able to apply new skill, potential and
knowledge in the home country. It will also lead to anxiety, depression and frustration
among the workers in the home country.
 Special consideration will be paid by the company to renter in the home country
therefore it declines the profit and market share of the firm. All these issues would be
faced by Bes Bibs and Trucker Company while returning in the home country.
Answer 4
4.1Key challenges that global team will face
There are plenty of challenges that would be faced by the company while implementing the
business In China. The major challenges have been discussed below.
Lack of clarity: When working with group members who come from different countries and
follow different culture, then translation issues are occurred at the workplace. It also affects
the communication and collaboration of the employees within the organization.
Slow decision making: Due to lack of clarity, the employees are unable to make effective
decision at the workplace for conducting business activities in China.
Disjointed conflict resolution: If the employees are working predominately through email
then it is quite complex to deal and manage the harsh issues and obstacles. Tone and body
language also play a vital role in effective communication and without these nuances,
effective and delicate circumstances can be hard to manage and control correctly.
Conflicting corporate culture: Great and effective company culture depends on the
interaction and bonding of the team members. Such type of amity can be more quite complex
for global team to define, initiate and ultimately attain. Such types of issues can be faced by

MANAGING ACROSS GLOBAL CULTURES 8
the team in the global market. If Best Bibs and Trucker Company initiates its business
activities and operations in China then culture can become a big issues for the firm in the
foreign market. The company needs to focus on these key challenges to stand out against the
competitors in the global market (Gunn, 2017).
4.2The concept of global mind-set and how this could be applied in the case
It is one of the significant concepts that help in gaining competitive advantages in the China.
The global mind-set may be defined as a combination of openness and awareness of diversity
across the cultures and markets with a capability to see common patterns across the markets
and countries. The global mind-set is important just because it helps in attaining desired goals
and objectives (Cavusgil, Knight, Riesenberger, Rammal & Rose, 2014). Furthermore, it also
helps to cope up with the competitors in the international market. It has been noted that Best
Bibs and Trucker Company can use global mind-set strategy to attract maximum number of
customers in the Chinese market. By using global mind-set concept, the company has been
able to integrate the products and services in the competitive market. The organization is
thinking that providing growth opportunities to low or unskilled employees will help them in
developing and boosting their financial position and show their commitment to local
involvement and expansion. By using global mind-set strategy, the firm has been able to
build a deep insight and appreciation for the organizational values and management style in
the workplace. Along with this, effective and unique policies, plans and strategies are made
by Best Bibs and Trucker Company to destroy the competitors in the foreign market
(Katzenbach & Smith, 2015).

MANAGING ACROSS GLOBAL CULTURES 9
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York: NY: McGraw-Hill.
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