Cross-Cultural Capability: Crown Northampton's Expansion Report

This report examines the cross-cultural capabilities required for Crown Northampton, a family-owned shoe manufacturer, to successfully expand its operations, specifically considering a potential shift of its manufacturing plant to China. The report analyzes the risks and opportunities associated with this expansion, including cultural factors, governmental regulations, and bureaucratic hurdles. It assesses the impact of global expansion on various departments such as marketing, logistics, legal, purchasing, and human resources. The report highlights the importance of understanding Chinese culture and implementing appropriate HR strategies to address language barriers, recruitment challenges, and workplace culture. It also references cultural models to aid Crown Northampton's understanding and navigation of the new cultural context. Ultimately, the report provides insights into how Crown Northampton can mitigate risks and capitalize on opportunities to achieve success in the Chinese market.

BUS3011- Developing Cross-
Cultural Capability

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Risk and opportunities associated of a potential shift of manufacturing plan within other
country.........................................................................................................................................3
Impact on the companies various department from the global expansion. .................................5
Impact of cross culture and Hr related issues on the organization..............................................6
CONCLUSION................................................................................................................................9
REFERENCESS............................................................................................................................10

INTRODUCTION
Cross culture refers to the concept that recognizes the differences among the business and
the people of the different countries. Very country have their own culture and people who live
locally follow the culture. In the context of business, global expansion of the business need a
cross culture abilities within the company, so they can product and services according to their
culture and satisfy their customers needs.
This report will cover case study of Crown Northampton which fifth generation family
owned business. This company provide quality shoes to their customers, it includes handmade
shoes, Local footwear, casual shoes. All collections feature traditional British methods of
construction across men's and women's unisex styles. Using only the finest locally sourced
materials, all footwear is handmade to order in our Northampton factory.
MAIN BODY
Risk and opportunities associated of a potential shift of manufacturing plan within other country
Crown Northampton is a shoe making company, and they are thinking to shift their shoe
manufacturing plan within the china (Budhwar and et.al., 2019). Shifting of plant in the other
country like china can have some opportunities and threat that has direct impact on their
profitability and company growth.
Here are some risk and opportunities that are directly associated with the company,
understanding of these issues will help Crown Northampton to open their manufacturing plan in
China, and they will able to expand their business in the Chinese territory.
RISK
Cultural Risk- one of the most affect factors that can become risk for the Crown
Northampton is Cross-Cultural factors. China is the country where they mostly believe to follow
their own culture and people are more likely to wear their traditional shoes. It will directly affect
on the Crown Northampton because they make traditional British wear that can be accepted by
the people in their domestic market but countries like China have their own culture, and they are
very proud of their culture so people from this market can Avoid top wear shoes from the
companies who make other traditional shoes. Shifting plant in the country like China are most
likely to be risky for the Crown Northampton.
Governmental Risk- Chinese government been always a controversial for the business
because they demand for the sharing the data and legally associate with the company who are

operating their manufacturing plant. Crown Northampton can face the problems from the
Chinese government, as they can ask for the partnership in the while plant and most of the times
they ask to share their technology, so they can also make their product and services smiler to
those companies, and then they try to promote their own product. Similar risk can be faced by
the Crown Northampton, and they can be ask share all the detail of their shoes manufacturing
and all the other data.
Bureaucracy- Overseas firms often struggle with laws and regulations in China, with
31% of 338 respondents in a recent business survey listing bureaucracy as their number one
concern when expanding into the country (Caligiuri., and et.al., 2020). Most common complaints
revolve around obtaining the required licences and permits, with many respondents bemoaning
the laborious processes.
Opportunities
Cultural acceptance- Cultural acceptance can be a great opportunity for the Crown
Northampton. If company manufacture the shoes that are wear by the locals in the China market
then they can easily attract the customers. Customers will accept the product sell by the Crown
Northampton, so they will able to grow their business and achieve success in Chinese market.
Shop designs and other things also can be followed by the Crown Northampton similar to the
Chinese traditions.
Employment to local people- Language is the biggest barrier for the Crown Northampton
to take entry and open their shoes manufacturing plan in china. company can show their presence
within the market if they employees local people for the work as compare to the people from
other country. Employees will able to communicate with their customers, and they will able to
understand the need and demand of the customers and satisfy their needs. This strategy will helps
them to follow the local culture, and they will bale to remove communication barrier.
Young talent- Young professionals in the china are both competent and talented. Crown
Northampton will easily get the employees who are already having skills, and they can help them
to produce quality product and services that can satisfy the local people (Cooke and et.al., 2019).
Chinese government is mostly focus to provide skill based education and it becomes their
tradition that is helping them to produce best and skilful young generation who are expert tin
their work, and they can use their skill to make their work more effective and get the innovative
idea from the workforce.

Impact on the companies various department from the global expansion.
To open the shoe manufacturing plan in the chine, various problems can be faced by
Crown Northampton and mostly their departments and activities like HR, Marketing, legal,
purchasing, logistic another will also impact from the cross-cultural and create problems for the
Crown Northampton to open their manufacturing plain in the Chinese market.
Marketing- Marketing will have huge impact of the cross culture on the Crown
Northampton (Farndale and Sanders., 2017). Every market have its own cultural differentness
and similar if Crown Northampton is opening their new market then marketing team have to
understand what type of shoes Chinese people wear and how they will react with the British
shoes made by the Crown Northampton. To gain success marketing team will look into the
market and take feedback from the people develop their product related information, so they can
develop their product accordingly and satisfy their needs.
Logistic- Logistic can be the issues for the Crown Northampton because they have to
ensure that their products are available in the local stores of the China market and for treat they
will need to make proper chain from their manufacturing plan to the final distribution shops.
They will need to find the suppliers who can provide them locally the material that can be used t
manufacture their shoes then both task is to find the buyers and local shoes who can purchase
shoes from the Crown Northampton in a bulk order and for threat they will need to create good
relationship with the supplier so company can get the order and local stores can put shoes made
by the Crown Northampton in their stores. The logistic will include supplier, Distributors, mall
and retail shops within the china. Communication will play most important part hear because
communication can help to build a logistic for the Crown Northampton.
Legal- Legal structure and polices should be followed by the Crown Northampton, if
they want to settle their business in the china (Jiang, Gollan and Brooks., 2017). For this they
will need to take proper licence for their plant and implement the polices that they will need to
follow, so they can run their business effectively and show their presence in the new market and
sell their product to the local people. Hr department of the company will need to implement
some laws that will match with the Chinese legal culture and that are made for the Chinese
employees. Laws like labour law and contract law of the china should be implement so the
employees from the local area will get their rights within the Crown Northampton can get their
right by working for the company.

Here are some law
 Trade Union Law of the People's Republic of China
 Law of the People's Republic of China on Labour Dispute Mediation and Arbitration
 Employment Promotion Law of the People's Republic of China
 Law of the People's Republic of China on the Protection of Women’s Rights and Interests
Purchasing- Customers interest and their income create the purchasing power of the
people and most of the people in china follow their culture and do their shopping accordingly.
Young culture people can may be purchase the shoes from the Crown Northampton and but old
age group people will follow the cultural footwear so the company can create demand in the
customers mind, if company follow and make the shoes inspired by the Chinese culture that it
will not only attract the young generation but old generation will also get attracted by the Crown
Northampton.
Human resource department- human resource department will mostly affect from the
cross culture because before they were recruiting the employees from the local people, and they
are aware of culture and languages spoken by those employees. On the other side shifting the
plan to the china will affect their HR strategies, and they will need to make new strategies for the
recruitment and selection (Liu and Meyer., 2020). They will face various challenges related to
the culture of the people like it will take time for the Crown Northampton Hr manager to be
aware of the culture and people from the china. They will need to learn the local language
because Chinese people mostly speak their own cultural language rather than any other language
in their country. There are hundreds of million people in china are studying in the English
language butt less than 1 percent of the people speak English language, so they will need to
learn, so they can run their plant effectually. They have to identify the people who are having
skills that are needed to the Crown Northampton etc.
Impact of cross culture and Hr related issues on the organization
Globalization come up with the cross culture and it can be challenges if company does
not have proper strategies to overcome the challenges. Leaders of the company plays most
important part to control cross cultural problem. Effective leaders who understand the
environment with the different different culture that cost of the work related ethics, business
protocols, etc. Diversified culture not only affect the leadership but it also affect the Human
resource management of the company and create challenges for them to maintain the diverse

culture at their workplace. Hr department of the company will need to implement some laws that
will match with the Chinese legal culture and that are made for the Chinese employees. Laws
like labour law and contract law of the china should be implement so the employees from the
local area will get their rights within the Crown Northampton can get their right by working for
the company.
Crown Northampton is Shifting their plant in the china which will create challenges for
the human resource department of the company (Liu and et.al., 2020). Hr manager of the Crown
Northampton will need to make proper strategies to overcome from the challenges. Challenges
like language issues, retaining and recruiting new employees. Creating and controlling
workplace culture etc. there are some models of the culture that can be helpful for the company
to shifting their manufacturing plan in the China.
Halls cultural model
Context
In the high cultural contexted, there are various cultural factors that can help people to
understand the rules. This can be very difficult for the person who does not understand the
unwritten rules of the culture.
Time
Times cost with the careful plaining and scheduling of the Crown Northampton to
familiar with the new culture. It takes time to understand the Chinese culture and implement at
their workplace. It is necessary for the company. To save time company should employed local
people from china so save their time.
Space
Space I within the organization is also an challenge for the Crown Northampton
company because people in china need more space for the work as compare to the people in the
Northampton (Nadeem and et.al., 2018). Their manufacturing plan should have enough space
where employees can satisfy with the space provided by the company.
Hofstede's Six dimension of culture Model
The power Distance Index
This dimension expresses the degree to which the less powerful members of a society
accept and expect that power is distributed unequally. The fundamental issue here is how a
society handles inequalities among people. It is necessary for the Crown Northampton leaders to

provide powers to the people who are having the skills and abilities to holds higher position
within their manufacturing plant so their will be no equality within the employees who are
working for the company.
Individual versus collectivism
The high side of this dimension is known as the Individualism and it can be defined as
the presence of the loosely knit social framework in which individuals are expected to take care
of their won and their families. In this case company can provide incentives and insurance
sesames of the people so Crown Northampton can create trust among the employees.
Collectivism refers to the framework called Sightly knit within the sociality or the
organization in which individuals can expect their relatives or members of a particular in group
to look after them in exchange for unquestioning loyalty.
Masculinity Versus Femininity
The Muscularity part of the dimension show and give their presence within the business
and it comes with the roles, gender etc. to make the employees stronger human resource
management team of the Crown Northampton can provide training and development to the new
employees at their plant, so they can be strong (Spagnoli and Weng., 2019). On the other side
femininity comes with some characteristics like modest, roles,concerns and the quality of the
life.
Long Term Orientation Vs Short term Orientation
Long-term orientation displays and focus on the future and refer delaying short-term
success or satisfaction in order to achieve long-term success within the business. Long-term
orientation emphasizes continuity, perseverance, and long-term growth. Human resource
department of the Crown Northampton can create long term goals for their business within the
new country. Long term goals will helps them to understand that what they need to achieve after
the 5 year manufacturing work within the china and how they can competitive advantages within
the market where they are operating their business.
Short term Orientation focus on the near future goals that include the deliverables short
team success , place a string emphasis. . Human resource department of the Crown
Northampton can create motivation in the employees within their new manufacturing plans by
implement the short term wins for the employees, so they will be more motivated, and they can
give their best for the company to make them successful in their new shifted plant.

CONCLUSION
As per the report has been coved case study of Crown Northampton who are shifting
their plant in the chin. This report has been provided risks and opportunities that are associated
with the company, if they shift their business and how cross culture effect the activities of the
company. It has been discuss risk associated with the activities like Marketing, f logistics. Legal
and human resource management so identify the potential risk and also provide strategies that
can be used by the human resource management of the Crown Northampton, so they can
overcome from the problem from the Cross-Cultural. In the end of this report has been analysed
the impact of cross-cultural on the company and Human resource of the company and report has
been explained thorough the model of the culture like Halls cultural model and the Hofstede's
Six dimension of culture Model.

REFERENCESS
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