BUS6003 International Management Report: Air Pie's Expansion

This report analyzes Air Pie's expansion into international markets, specifically Japan and the USA. It examines the impact of cultural differences on management, organizational strategy, and operations. The report covers strategies to overcome cultural barriers, including understanding foreign cultures, respecting cultural differences, and managing workforce diversity. It also highlights the importance of self-awareness and sensitivity to cultural diversity for effective international business operations. The report concludes by emphasizing the role of organizational culture in successful international ventures and provides references to support the analysis. The report addresses key learning outcomes related to understanding the role of culture in international business, managing diverse contexts, and creating value through a global workforce.

International
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1: Covered in PPT....................................................................................................................1
2.2: Implications to management, organisational strategy, and operations................................1
2.3: Strategies to overcome cultural differences.........................................................................2
2.4. Importance of self awareness and sensitivity to diversity in culture...................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Organisational culture refers to the values, customs, rules and regulations which are
followed by an organisation with the purpose of maintaining healthy atmosphere at workplace.
Every organisation has different culture in different countries which need to be understand if the
company wants to expand its business operation to different countries. The management are held
liable to consider all aspects related with the culture and accordingly adopt suitable plans and
policies with a motive of surviving their business in other countries. In the present assignment
report, Air pie which is one of the fast growing fast food restaurant in UK wants to expands its
venture to Japan and USA with a motive of operating their business at international level. The
project covers the role of culture which supports business top run at international level. The
importance of self awareness and sensitivity that may arise due to cultural diversity are also
summarised under this report.
TASK 2
2.1: Covered in PPT
2.2: Implications to management, organisational strategy, and operations
Expanding business operation of Air pie to Japan and USA will make impact on the
management, organisational strategy and operations which are defined as below:
MANAGEMENT: Cultural differences pressurize management to implement suitable
plans and policies in order to cop up with such differences in an effective manner. For this, they
need to assign roles and responsibilities to top level authority to manage and control such risk
(Thomas and Peterson, 2017).
Accountability: The managers should take roles and responsibilities to manage business
activities in an effective and efficient manner through formulating plans and policies regarding
identifying and understanding culture exist in Japan and USA such as providing training and
learning programs to their employees, conducting research etc. Air Pie should required to have
efficient members who are capable to implement corrective actions in order to deal with complex
situations (Ahammad and et. al., 2016).
1

Formulation of corrective policies: Management need to formulate an effective policies
which help them in operating business activities in new market segment without facing any
difficulties.
Organisational strategy and operations: The strategies has required to be formulated
by the management of Air Pie which are as follows:
Managing Human Resources: In order to achieve desired goals of Air Pie i.e. reaching
their business to Japan and USA, they must need to have sufficient human resource which
support them using their skills and knowledge to adjust in complex new environment arises in
different countries. Employees having Better communication skills and acknowledging different
languages help restaurant to deal with people comes from different backgrounds and culture.
Implementing effective techniques and Tools: It is important for Air pie to have
effective and efficient tools and techniques which are used in producing fast food products which
helps them in meeting customer's needs and demands of people of Japan and USA so that they
can able to enhance their image and goodwill in new market areas (Baier, Rammer and
Schubert, 2015).
2.3: Strategies to overcome cultural differences
Different countries have different culture due to which organisation may face difficulties
and challenges in operation business at international level. Thus, the management of company
are held responsible to understand such dimensions and differences through implementing
following strategies which will ensure company in getting favourable result to company:
Good knowledge of foreign culture: The management of Air Pie need to first identify the
differences between cultures of UK and Japan and USA so that they can take further steps to
cooperate and handle such differences. The cultural differences may be related with perceptions,
interpretations and evaluations of social situations which restricts Air Pie business to operate
more smoothly. The management of Air Pie need to focus on recognising the culture of Japan
and USA so that they can easily communicate and coordinate with the people of Japan and USA
having different culture (Dalkir, 2017).
Respect of a foreign culture: It is important for Air Pie to respect other countries culture
thus need to educate their members to respect and accept the difference between cultures without
any judgement. Thus, the management need to teach their employees to respect culture of Japan
and USA and should not be dominate their culture.
2

Helpful steps in the relationship to a foreign culture: The members working in Air Pie
having different cultures need to communicate and understand each other so as to gain
knowledge about new culture. More interactions with different people will help in getting
sufficient knowledge and become easy to adjust in complex environment.
Ignore the cultural differences: At some stages the managers of Air Pie should required
to ignore differences in cultures as it becomes irrelevant sometimes. Their main motive is to
bring all employees together and motivate them to work in a team which help employees in
learning and understanding about each other's cultures and practices.
Minimises differences: The managers of Air Pie should give their efforts in reducing
problems of differences through reducing cultural diversity. They need to focus on selecting
either culturally consistent workforce or attempt to socialise all employees into behaviour
patterns of dominant culture (Greenberg, 2017).
Managing differences: It is important for Air Pie to first identify the advantages and
disadvantages of cultural differences so that the manager can able to take corrective steps to use
such advantages for the betterment of company and try to cope up with disadvantages. Their
main motive should be managing such cultural differences rather than ignoring them. For this,
the manager of Air Pie need to provide sufficient learning programs and training sessions to their
employees which help them in recognising cultural differences between UK and Japan and USA
and bring out advantages by using cultural differences for the organisation.
2.4. Importance of self awareness and sensitivity to diversity in culture
Air Pie is ready to launch their business in Japan and USA hence, they have to face lots
of diversity in culture system so that they can able to function properly. There will be
government rules and regulations that have to be incorporated in the company. Non- compliance
of these policies will impose them huge problems and will have negative result. Hence, it is
essential to know the behaviour and other aspects that impact the employees in several ways
(Kersiene and Savaneviciene, 2015).
Self Awareness refers to finding out ourself so that they can able to know various
opportunities and threats that are available and handle it accordingly. Importance of self
awareness and sensitivity is described below: Helps in understand culture exist in an organisation: This refers to acknowledging the
culture exit in an organisation sop that they can able to make changes in relation to cope
3

up with different countries' cultures. Being a head of international development
consultant it is essential to have proper knowledge of distinctive cultures so that there is
proper carrying out of work process (Luthans, Youssef and Avolio, 2015). Helps in minimising Conflicts: There are number of areas that leads to generation of
conflicts among different parties that are present in the organisational system. Hence, if
there is proper awareness and sensitivity is present work can be conducted in correct and
appropriate mode.
 To impose new and modern concepts: If there is self awareness and sensitivity of
different cultures that are present in society and therefore, all new things that are coming
up in the market place have to be introduced in company system. This aid them to run in
accordance to current condition and situation.
CONCLUSION
From the above report it has been concluded that Organisational culture plays a very
important role in the company which have to be operated in successful manner. Air Pie have stop
their working in UK due to market saturation and hence is shifting to Japan and UK. Thus, there
are difference in working process that need to be consider by company. There are several
strategies that implied to overcome the cultural differences. On the other hand there is
importance of self awareness and sensitivity in culture diversity.
4

REFERENCES
Books and Journals
Ahammad, M .F and et.,al , 2016. Knowledge transfer and cross-border acquisition performance:
The impact of cultural distance and employee retention. International Business Review.
25(1). pp.66-75.
Baier, E., Rammer, C. and Schubert, T., 2015. The impact of captive innovation offshoring on
the effectiveness of organizational adaptation. Journal of International Management,
21(2). pp.150-165.
Dalkir, K., 2017. Knowledge management in theory and practice. MIT press.
Greenberg, J.S., 2017. Comprehensive stress management. McGraw-Hill Education.
Kersiene, K. and Savaneviciene, A., 2015. The Formation and Management of Organizational
Competence Based on CrossCultural Perspective. Engineering Economics. 65(5).
Luthans, F., Youssef, C. M. and Avolio, B. J., 2015. Psychological capital and beyond. Oxford
University Press, USA.
Thomas, D. C. and Peterson, M. F., 2017. Cross-cultural management: Essential concepts. Sage
Publications.
Tung, R. L., 2016. New perspectives on human resource management in a global context.
Journal of World Business. 51(1). pp.142-152.
Vaiman, V., Haslberger, A. and Vance, C. M., 2015. Recognizing the important role of self-
initiated expatriates in effective global talent management. Human Resource
Management Review. 25(3). pp.280-286.
Online
Organisational Culture. 2016.[Online]. Available through: <http://www.hrkatha.com/news/911-
7-steps-to-creating-a-great-organisational-culture>.
5