Rolls Royce: International Business Communication in Germany

This report delves into the complexities of international business communication, focusing on a case study of Rolls-Royce Holdings Plc as it shifts production to Germany. It begins by introducing the context of international business and communication, highlighting the importance of cultural understanding and effective cross-cultural management. The report provides a brief overview of Germany's business environment, emphasizing its strengths and challenges. It then applies theories of international and intercultural communication, particularly Hofstede's model, to analyze German culture and its impact on business operations. A critical evaluation of cultural sensitivity in the German context is presented, supported by relevant examples. The report also discusses and analyzes various communication barriers experienced by foreign businesses in Germany, such as language differences, time zone disparities, and differing legal regulations. Finally, it offers appropriate communication strategies and recommendations, including pre-departure training, empathy enhancement, and regular check-ins, to enable Rolls-Royce to succeed in the German market. The conclusion emphasizes the need for careful planning and effective communication strategies to overcome challenges and achieve business objectives in a foreign country.

International business
Communication

Table of Contents
International business Communication..........................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
An inclusive introduction to the context of international business and communications......3
Brief introduction to Germany...............................................................................................4
Application of theories of international and intercultural communication............................4
Critical evaluation of cultural sensitivity when doing business in the selected country
supported by relevant examples.............................................................................................5
Discuss and analyse different communication barriers experienced by foreign businesses in
Germany.................................................................................................................................6
Provide appropriate communication strategies and other relevant recommendations to enable
................................................................................................................................................7
the company to succeed in the selected developing country..................................................7

INTRODUCTION
International business and communication are two important aspects which are related to each
other and these have to be properly managed within cross cultural management. Internationalism
is a common issue within business environment. that is why companies must focus upon
developing effective cultural measures so that goals and objectives can be attained properly
(Baumgarte, Kaiser and Keller, 2021). Global communication helps to enhance the challenges
associated with interacting with foreign people.
The UK firm considered in this report is Rolls-Royce Holdings Plc. It is a British luxury
automobile maker. This brand has been into existence since 1906 and car subsidiary of BMW is
having no direct relationship with these vehicles. Its production is shifted to Germany (a
developing country). There are several cultural barriers and differences that are created. It is
difficult to manage the operations properly due to this. This report will discuss different issues
that creates problem while working effectively and overcoming all cultural differences.
MAIN BODY
An inclusive introduction to the context of international business and communications.
International business is defined as the situation that is related to production and distribution of
goods and services across borders of country. The concept of globalisation has increased
nowadays and it has helped to grow economies and profits of different countries. International
business is associated with serving personally as well as professionally the industrial production
(Blickwedel and et.al, 2020). Entrepreneurship and strategic management are able to enhance the
knowledge of international business. The aspect of strategic management is helpful for attaining
organisational objectives and goals in less time. Global communication is defined as the area for
research in which cultural aspects of country is analysed before starting business in new
countries. It is evaluated that when a company operates in foreign country, there are different
barriers which it has to face. These can be accomplished by focusing upon management and
process and initiating good management of cultural diversity at workplace. Business is
expanding globally as companies want to increase profits and sales. a global corporation is
involved in gaining acceptance for business community. Multinational companies are the ones
which are operating their business in different countries. The transactions within IB takes place
across boundaries of different countries (Coester, Hofkes and Papyrakis, 2020). Business is

conducted on an international level and it has gained great significance within years. The concept
of this includes geographical limits which a country has.
As given by John D. Daniels and Lee H. Radebaugh, the international business is
defined as governmental and private business transactions which are involved in two or more
countries.
Brief introduction to Germany
Germany is a country which is renowned for innovative business culture and large consumer
spending power. This is located in heart of Europe and it is an ideal for commercial expansion
into neighbouring countries Austria, Italy and France. There is excellent network of transport and
presence of skilled labour (Funcke and Ruppert-Winkel, 2020). There are several opportunities
of business in this country. Rolls Royce is looking for expanding the manufacturing process in
this country and it is an apt country. There are several benefits of expanding business in
Germany which includes strong economy, skilled workforce and assets. There are some
challenges too which includes extensive regulations and responsibilities for employers. Germany
is the country which ranks fourth in the world on US top countries. This country has an
impressive economy, workforce and consumer market (James, 2020). It is helpful for connecting
strategic position of European union and makes it better for companies in looking forward for
influencing business across the world.
Application of theories of international and intercultural communication
Hofstede model
This model provides an overview for German culture and how intercultural equations can be
solved. There are six different factors of cultural factors which provides details about country’s
culture and way in which they can operate business (Jenal, 2020). The six dimensions are
mentioned below –
 Power distance – According to this dimension, there are individuals who are not treated
equal. It provides expression for attitude of culture towards equality at workplace. The
concept of power distance is defined as extent for which less powerful members of
organisations and power is distributed unequally. Germany is having lower power distant
countries. There are co-determination rights which are comparatively extensive and it has
to be taken in to account for management. There is direct and participative
communication and meeting style is very common.

 Individualism – In context of German business environment, it is seen that there is
individualist. There are small families which are having focus on children parent
relationship. Self actualisation is followed in Germany and loyalty plays an important
role in individual’s life.
 Masculinity – When there is high score for masculine then it indicates that society is
competitive, achievement opportunity and success. Feminity high score indicates
dimension which dominates value in society (Kim, Park and Lee, 2020). Germany I
shaving score of 66 and it is masculine society. People of this country try to work hard
and attain goals. Managers are decisive and assertive.
 Uncertainty Avoidance – This is known as the extent to which a culture is feeling
threatened when provided unknown situations. In context of Germany, it is considered
that Germany is among uncertainty avoidant country and score is high. There is
preference for uncertainty avoidance. Details are maintained equally important for low
power distance.
 Long term Orientation – It is a dimension which demonstrate that every society has
some links within past and dealing with present as well as future challenges. Germany is
having score of 83 and it indicates that it is pragmatic country (Osorio and et.al, 2020).
Individuals believe that truth totally depends upon context, time and situation.
 Indulgence - This dimension is associated with extent for which people are trying to
control impulses and desires. Germany has low score of 40 and culture is restrained.
Societies which are having low score within dimension are having tendency for
pessimism and cynicism. When people are having this orientation then they are having
perception of actions restrained by social norms and regulations.
Critical evaluation of cultural sensitivity when doing business in the selected country supported
by relevant examples
Cultural sensitivity is defined as evaluation of different cultures which depends upon
ethnicity, religion, nationality and other factors which differentiates attitude and outlooks. It
consists of accepting the cultural differences and adopting culture in order to make functioning
smooth. The skills associated with cultural sensitivity are known to be cultural competence. It
enhances the ability for managing people and developing ways for cultural attitude and

behaviours efficient (Peine and et.al, 2020). In context of Rolls Royce which is starting the
operations within Germany, then cultural sensitivity has to be adopted for embracing smooth
functioning at workplace. Diversity at Rolls Royce will enhance positivity and help in managing
bottom line. Workforce consists of different cultural backgrounds and reference frames for
reaching out to new communities and making potential clients. The communication at different
environment and culture must be expressed by skills and training. The building and developing
of teams is a good initiative that can be started by Rolls Royce for managing the operations
properly. A good team will help to attain goals and objectives in less time. The flexibility within
dealing with cross cultural matters adds value to the company. That is why Rolls Royce if
succeeds in establishing operations in Germany then brand value can be easily increased. This
will also help to manage the brand image and reputation.
Discuss and analyse different communication barriers experienced by foreign businesses in
Germany
There are several challenges that employees have to face while operating services in
foreign countries. In context of UK organisation, it is seen that when production is shifted to
Germany then employees will be facing following issues –
Languages – There are different languages that are used for communicating ideas with
customers, colleagues and endeavour. There is need to manage effectiveness of operations and
management for overcoming the operational inefficiency (Santos, 2020). In context of Germany,
employees of Rolls Royce have to adopt German language in order to interact with employees
and staff that is local. Being expatriate, it is responsibility to learn German language and handle
the operational activities.
Time Zones and distances – UK people are having different time zone and German have
different. It is seen that UK people will be having trouble in managing their time and working
properly within manufacturing field.
Legislations – Germany rules and regulations for inventory and manufacturing are
different from that of UK. That is why it is concluded that Rolls Royce has to consider all norms
and legal regulations provided by Germany. This will help in avoiding any kind of problem or
issue that can occur while implementing manufacturing and logistics operations.
Following table shows difference between culture of German and British workplace. It will
help to provide more clearance about reasons for conflicts among employee and staff of UK and

German.
German culture British culture
Individuals are more direct and abrupt. British people are polite and they take long
tome for expressing their views.
These are having hard exterior They have welcoming and open nature
They do not have small conversations in
general
British people are more into small talks that
explains how genuine they are
These people are more efficient British people can be devious
Germans are known as perfectionists as they
perform their job efficiently. They get things
done in right manner.
These people are generally quick witted.
These are more hard working people British people are politer and gentle.
Provide appropriate communication strategies and other relevant recommendations to enable
the company to succeed in the selected developing country
Rolls Royce has to manage operations and management properly in order to have
successful business. It is considered that this company has to adopt some communication
strategies for overcoming challenges faced as expats in Germany. Some of the strategies are
mentioned below –
Pre departure training – Rolls Royce can enhance its team management by applying
training methods. There is need to provide training to employee in order make them work in a
more effective manner within foreign country (Germany). The training must be provided before
starting operations in Germany. It includes understanding the working properly so that less
problems occur while actually implementing operations in Germany. The training is developed
for enhancing different skills of expatriates and this includes following -
Communication skills – It is ensured pre training provides expats better understanding of
communication skills (Vamos and et.al , 2020). It helps to manage expectations about

requirements of German managers. There is a formal check in process for enrolling employees
by HR and it needs to have good communication skills.
Empathy enhancement – The training helps to increase empathy towards working
(Weinand and et.al, 2021). There is need of evaluating warmth and analysing messages for
overall statements given by employees.
Schedule regular check ins – This is associated with check in with expats on a semi regular
basis. It includes weekly call initiatives and it reduces to quarterly catching up with all the
employees. These meetings will help Rolls Royce managers of UK to easily understand
experience and what things can be improvised.
CONCLUSION
From the above discussion, it is concluded that conducting business in another country
requires to have proper planning. It will help to manage the functioning smoothly and attain
goals and objectives within time. There is also need for identifying challenges and overcoming
strategies for communication with expats. This will provide efficient way for conducting the
international functioning and developing ways to properly organise process as well as operation
in any foreign country.

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Online
Cultural difference between British and German. 2021.[Online]Available
through:<https://thelanguagefactory.co.uk/2019/03/22/cultural-differences-between-germany-
and-britain-2/>