Analyzing Intercultural Competence in Business: MAR0131 Report

This report delves into the critical importance of intercultural competence in the business world. It examines a case study involving a manager, Mark, who faced challenges in establishing a new office in Saudi Arabia due to a lack of understanding of local cultural norms and communication styles. The report analyzes Mark's missteps, highlighting the significance of researching cultural values and communication methods before entering a new market. It then explores strategies to improve cross-cultural understanding, such as studying communication styles, acknowledging cultural differences, and developing effective communication. Furthermore, the report applies Hofstede's cultural framework to explain the intercultural issues, focusing on dimensions like power distance, individualism vs. collectivism, and masculinity vs. femininity. The report concludes by providing recommendations for Mark, emphasizing open communication and patience. The report underscores the negative impact of a lack of cultural understanding and the benefits of adopting a positive approach when dealing with different cultural standards. It emphasizes that understanding cultural values enhances team member motivation and improves business outcomes. The report references various books and journals to support its analysis and recommendations.

Intercultural Competence in
Business MAR0131

Table of Contents
Abstract:...........................................................................................................................................3
Introduction:.....................................................................................................................................4
MAIN BODY...................................................................................................................................4
Case study-2.....................................................................................................................................4
Where did the Mark go wrong?..................................................................................................4
How could you support Mark to better understand cross-cultural problems:.............................5
Use inter-cultural theories to explain it and also support your discussion..................................6
What would be your advice to Mark?.........................................................................................7
Conclusion:......................................................................................................................................7
References........................................................................................................................................8

Abstract:
This report will represent the impact of different behavioural as well as communication
problems regarding difference in culture and habits. The report will also highlight relevant
cultural theories in order to understand intercultural awareness in various business interactions.
In last, the report will also provide recommendations for minimising the negative impact of
cultural difference.

Introduction:
The term business culture is refereed as key component which have a influence on
strategic way of business. The business culture impacts management decision making power and
all business functions as well as processes. The low level of cultural knowledge can negatively
influence the competitive position of organisation in international market. The study of corporate
culture of international countries supports the firm in gaining good business deals with large
investments. This report will answer the questions related to the Case study 2 by undertaking use
of intercultural theories. This will allow business manager to gain insight about different cross-
cultural problems which can result in loss of business contract. In last, the report will also
provide recommendations for solving cultural issues in most appropriate manner.
MAIN BODY
Case study-2
Where did the Mark go wrong?
The Manager of a large English airline firm Mark Parsons has decided to set up a new
office in Dhahran, Saudi Arabia. Mark has came from the culture that sees no problem which can
not be solved through hard work and commitment. The manager was shocked to hear the word
'inshallah' from local employees which means if the god wills it then only its going to happen but
if the god not wills it then it will not happen(Pontinha and do Vale, 2019). This can been seen as
the cultural difference which Mark was not understood fully before starting new office in Saudi
Arabia. In order to gain insight of cultural values, the mark should have studied their habits as
well as cultural values which represents their actions in doing day to day business tasks. The lack
of knowledge about new cultural values can make the new business deals less valuable and
important. Therefore, it has been analysed that Mark should have researched their cultural
customs well before starting the new office in the country of Saudi Arabia.
How could you support Mark to better understand cross-cultural problems:
The Mark can effectively understand this cross-cultural issue by making strategies to
avoid cross-cultural misunderstandings in proper manner. Below mentioned points reflects some
strategies which are:
Understanding communication styles of different culture:

The people of different culture act differently in terms of communication. The Mark
needs to first understand the type of communication style which the workers of Saudi Arabia are
practising in their day to day activities. There are various communication styles which can be
classified as Passive, who are patient and easy going(Reeves, 2017). The other one is Aggressive
communication style, who are always advocating personal opinions and the other important style
is Assertive, who are capable to solve problems by providing various alternatives.
Knowing that difference in cultural values are common:
The Mark should also understand that each culture has its own values and traditions in it.
He must know that all cultural thinkings are not same but are distinguished in terms of behaviour
and actions. After gaining proper knowledge about how culture of Saudi Arabia operates, mark c
an easily bridge the gap that exists between his cultural values and that of workers of Saudi
Arabia.
Developing effective communication style:
The other strategy that can support Mark to understand this cross-cultural problem is to
develop an open communication style that can become more flexible towards different culture
like of Saudi Arabia. This will support Mark to receive feedbacks from local workers that will
lead to improvement in his cross-cultural communication abilities. The high level emotional
intelligence can allow Mark in making promising relationships with its co-workers.
Avoiding being frustrated:
In order to better understand difference in cultural values, the Mark needs to control its
emotions of becoming frustrated easily. The frustration and prejudice behaviour can ruin its
relationships with local workers of Saudi Arabia. For combating this problem, the manager
should be open towards the custom values of Saudi Arabia by learning about habits that
represent certain behaviours(Tsang, 2022)
Use inter-cultural theories to explain it and also support your discussion.
In order to assess the inter-personal interactions of different cultural people in business
situations, the Hofstede's Cultural framework is taken into consideration. The application of this
model will support Mark for evaluating the impact of cultural values on the workplace actions
and behaviour. In addition to this, it will also allow the business manager to analyse cultural
differences of Saudi Arabia in the most effective manner. This cultural model represents six

dimensions which shows the elements which distinguish countries from each other. The
following explanation describes about dimensions of Hofstede's model which are:
Power Distance Index:
The societies with higher degree of power distance index accepts working in the
hierarchical oriented business culture which makes them to respect that everyone has a place that
needs no justification. On the other hand, the societies with lower power index people prefer to
work in the organisation where the power is distributed in equal manner. In relation to the case
study, Mark should understand the work culture of Saudi Arabia is high power index in which all
the people are required to follow hierarchical work standards(Yulianto and et.al., 2022).
Individualism vs Collectivism:
The term Individualism refers to values in culture that promotes individual actions rather
than collective actions. Whereas, collective actions are values of society that fosters making
business decisions with the support of team members. In context to case study, the manager
needs to make business decisions after consulting it with other co-workers.
Masculinity vs Feminity:
The Masculinity work culture shows that society members strive towards achieving
bigger success as well as favours material rewards for success. On the other way, the Feminity
work culture promotes the feeling of cooperation and more work life balance. In context to Case
study, it is important for Mark to know that Saudi Arabia work culture shows Feminity
characteristics.
Uncertainty Avoidance:
This shows the degree to which the team members of business organisation feels
uncomfortable with uncertain situations. In context to case study, the Saudi Arabia country
maintains its rigid code of behaviour towards avoiding the uncertainty in proper
manner(Sihombing and Piay, 2022).
Indulgence vs Restraint:
The Indulgence is considered as type of society which allows people to take pleasures of
basic as well as human drives that connected with enjoying fun. Whereas, the Restraint
characteristics of society suppresses pleasures of fulfilling desires by making strict social
regulations.

What would be your advice to Mark?
It has been analysed that lack of cultural understanding can negatively affect the
operations of the organisation. In order to eradicate these problems, it has been recommended
that Mark should adopt open communication strategies in order to gain necessary information
about their cultural norms in effective manner. This will help Mark to know their cultural values
which leads him in making cordial relations with local worker of Saudi Arabia. In addition to
this, it has also been recommended that Mark should understand their actions as well as
behaviour that governs day to day actions. Moreover, the manager should also be patient when
accepting different cultural values of the society members of Saudi Arabia. This will allow Mark
to understand cross-cultural problems and make in the most appropriate manner(Maimone,
2018).
Conclusion:
It has been analysed that knowledge of international business culture is critical for any
manager in order to attain financial success. It was also concluded that understanding of cultural
values can substantially decrease the inter-cultural issues in better manner. The report has also
assessed that positive approach is best behaviour when dealing with different cultural standards.
This report has taken Case study2 for study and analysed that gaining knowledge about cultural
values of the country can benefit the manager in enhancing the motivation level of team
members in effective manner. In addition to this, the report has also recommended that Mark
should practise open communication techniques in order to gain feedback from local workers of
the country.

References
Books and Journal:
Pontinha, V.M. and do Vale, R.C., 2019. Brand love measurement scale development: an inter-
cultural analysis. Journal of Product & Brand Management.
Reeves, R.B., 2017. Inter-cultural mentoring for newcomer immigrants: Mentor perspectives and
better practices. International Journal of Evidence Based Coaching and
Mentoring, 15(1), pp.186-207.
Tsang, A., 2022. Comparing and contrasting intra-and inter-cultural relations and perceptions
among mainstream and minority students in multicultural classrooms in higher
education. Intercultural Education, 33(1), pp.99-113.
Yulianto and et.al., 2022. Navigating tensions in inter-ethnic marriages in Indonesia: Cultural,
relational, spatial and material considerations. International Journal of Intercultural
Relations, 86, pp.227-239.
Sihombing, L.H. and Piay, Y.M.S., 2022. UNDERSTANDING INTER-CULTURAL
COMMUNICATION: A STUDY CASE IN WORKPLACE. JRK (Jurnal Riset
Komunikasi), 13(1), pp.19-35.
Maimone, F., 2018. Toward an Integrated and Inclusive Approach to Inter-cultural Knowledge
Sharing. In Intercultural Knowledge Sharing in MNCs (pp. 103-156). Palgrave
Macmillan, Cham.