Cross-Cultural Management Analysis for Bright Future Company Report

This report analyzes the cross-cultural management challenges faced by Bright Future Company, a Canadian company expanding its copper mining operations into Indonesia. The report identifies key issues, including villagers' disapproval of land acquisition, differences in communication styles and cultural values, and human resource management concerns. Using the Kluckhohn & Strodtbeck model, the report analyzes the cultural dimensions influencing these issues, such as relationship with nature, people, time, human activities, and human nature. Recommendations are provided to address these challenges, including creating employment opportunities for villagers, fostering effective communication, respecting cultural differences, and developing a strong cross-cultural team. The report emphasizes the importance of adapting to local customs, values, and beliefs to ensure successful business operations and sustainable practices. The report concludes by highlighting the significance of a well-managed human resource strategy and the establishment of a positive and inclusive work environment for overall success in the Indonesian market.

Running head: CROSS CULTURAL MANAGEMENT
Cross cultural management
Name of student
Name of University
Author note
Table of Contents

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1. Introduction.........................................................................................................................3
2. Case study analysis.............................................................................................................3
2.1 Identification of issues.................................................................................................3
3. Recommendations...............................................................................................................6
4. Implementation and implications........................................................................................7
5. Conclusion..........................................................................................................................7
References..................................................................................................................................7

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1. Introduction
The report is prepared to discuss about the cross cultural management in business
considering the business organisation named Bright Future Company in Australia. The cross
cultural management enables people working within a workplace belonging from different
backgrounds and cultures. The cross cultural management allows for developing a
multicultural team and at the same time, manage operations in different countries that are
managed by people who are local as well as the individuals from outside nations too (Thomas
and Peterson 2017). This concept of cross cultural management also includes the individuals
who have immigrated from various countries and have managed to work with others who also
may have travelled from other countries. The topic will present an idea about the various
issues of cross cultural management and also approaches that are required to mitigate the
issues with ease and efficiency (Johnson and Cullen 2017).
2. Case study analysis
Based on the analysis of the case study, Bright Future Company is a major company that
specialises in the production of precious metals, stones and other things in Canada. The
company aims to enter the country, i.e., Indonesia for the management of copper mining
activities and to ensure managing business globally. The company’s headquarter is located in
Canada and it aims to maximise the value for shareholders along with management of
sustainable business activities related to the production of precious stones and metals,
furthermore maintain consistency though without compromising on the safety measures
managed for keeping the workers safe and healthy during the mining activities (French 2015).
I have been assigned as the cross cultural management consultant to ensure that the company
adheres to the policies and principles and ensure formation of a good team and organisational

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structure along with better HR support systems and management of strategic HRM practices
in a culturally suitable manner.
2.1 Identification of issues
To manage the copper mining activities, Bright Future Company must learn to diversity
the business operations as well as the workplace to succeed internationally and at the same
time facilitate good amounts of return to the shareholders, who made investments while
expanding into Indonesia. The rural, under developed locations in the country along with
high rate of uneducated individuals and those who experienced poverty contributed to the
issues related to global business expansion (Chanlat, Davel and Dupuis 2013). Another major
issue that was found from the case study had been that the villagers claimed about the
company forcing them to sell their lands for the purpose of copper mining development, but
soon the share price for the organisation dipped down largely, as found on the Toronto Stock
Exchange.
2.1.1 Issue A Disapproval by the villagers
The first major issue, as seen from the case study, is that the villagers of Indonesia
claimed about putting pressure by the company to sell their lands where the company wants
to set up. The rural area where the company wants to set up, consists of uneducated people
and those who live in poverty and thus they do not have much knowledge about the global
business expansion concepts, which can be a major issue (Kaynak, Fulmer and Keys 2013).
Bright Future Company though rejected such claims and stated it as false and misleading,
which further resulted in falling down of share price while responding to the report, as
recorded in the Toronto Stock Exchange.
2.1.1.1 Issue A analysis

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It could be analysed that the sudden fall in share price is a major problem or issue while
villagers created barriers by not allowing Bright Future Company to set up the mining
operations in their lands. They even criticised the company for putting pressures, which
further declined the company’s ability to prove the claims false, thus leading to fall of share
price, according to the Toronto Stock Exchange (Stahl et al. 2017).
2.1.1.2 Issue A solutions
To deal with this kind of issue, Bright Future Company made sure to maintain operational
consistency without compromising on the safety measures required to keep the workers safe
while managing the mining operations. This could be a viable option for making the villagers
influenced and get their opinions in the company’s favour, furthermore ensure creating
employment scopes and opportunities for them to gain as a source of income and lead to
better lives in the future. During the beginning stages of operations, the management
positions would be filled with the local individuals, i.e., the people from the Canadian
headquarters (Patel 2013). To ensure that the people from Indonesia are also recruited,
employment scopes are to be created for them and for the same, I have been a selected as the
cross cultural management consultant to ensure that the company workers can adhere to the
values and beliefs, furthermore ensure successful global business management (Mendenhall
et al. 2013).
2.1.1.3 Issue A recommendations
 It is recommended to create employment scopes and opportunities for the villagers in
Indonesia to influence them and ensure that they agree to the mining operations to be
managed by the Company in the concerned location.

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 The selection of local people in Indonesia is recommended so that the company
workers can learn about the new culture and respect the values and beliefs of the
place.
The best solution could be the creation of more employment scopes and opportunities for
the people in Indonesia and in the places where the copper mining operations should be
managed.
2.1.2 Issue B Difference in communication style and cultural values
With the teams of Bright Future Company becoming more multicultural and business
globalisation, the managers might face challenges to manage communication effectively
across cultures, which could be different while operating in Indonesia when compared to the
Canadian culture (Osland 2013). The language barriers often cause difficulty to
communication and make the employees unable to understand the different cultural values
and beliefs in Indonesia.
2.1.2.1 Issue B analysis
The analysis of this issue represents issues or challenges associated with the different
styles of communication across different cultures. The way employees communication are
different across different cultures, i.e., for Indonesia and Canada. While the people in Canada
can be open and emotional, the people in the region of Indonesia may be good listeners and
reactive (Ghosh and Srivastava 2014). The languages are different, which could also create
barrier for right Future Company to succeed globally considering the cultural aspects.
2.1.2.2 Issue B solutions
Based on the Kluckhohn & Strodtbeck model, there are multiple cultural dimensions
including the relationship with nature, relationship with people, relationship with time,

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human activities and human nature. The relationship with nature represents management of
values and beliefs of the new place and culture, furthermore maintain harmony and peace
within the workplace where people from different backgrounds and cultures can work
together as an unit. The relationship with people, according to the model, would be facilitated
by communicating with each other and respecting each other’s opinions, values and beliefs.
The human activities include focus on the shared vision and goals, which can help in
development and growth of own self and others too by fulfilling duty towards others as well
(Rees-Caldwell and Pinnington 2013). The relationship with time dimension of the model
should enable the existing employees of the organisation to get transferred to the location
within the right time and make sure to provide the new employees with proper support and
help so that the business activities are not left behind. The nature of human beings is
considered as an important aspect, which can be influenced by various events while at the
same time, maintain positive attitudes and behaviours among themselves through proper
communication process management along with the management of values and beliefs in the
new culture of Indonesia where the business wants to start its operations (Hartmann 2014).
2.1.2.3 Issue B recommendations
 It is important to empower women and ensure respecting their values and beliefs in
Indonesia to make sure that they can get the same scopes and opportunities of
employment, just like the male members of the organisation
 It is also recommended to develop a good and effective communication style so that
the cross cultural management issues can be resolved and the company can become
broadminded while handling ambiguities.
 The appreciation of cultural differences and respecting each other’s values and beliefs
at the workplace while managing the mining operations in Indonesia is recommended
as well

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The most important solution should be the respecting of cultural values and beliefs and at
the same time, promote good communication required to deal with the cross cultural
management issues along with the diversity management within the workplace.
2.1.3 Issue C Human resources’ issues
While making the business global and during management of operations in a different
culture, there could be challenges associated with the meeting of human resources’
requirements while operating in Indonesia for Bright Future Company. There is need to make
additional investments for hiring new team members and even transfer the existing
employees to the new global market, which can also be a problematic aspect for the company
(Liu, Volcic and Gallois 2014). Considering the management of human resources is essential
for the company to manage its copper mining activities in Indonesia, furthermore ensure
smooth business functioning.
2.1.3.1 Issue C analysis
With the lack of human resources, Bright Future Company can face difficulty to
operate in the marketplace where people from different backgrounds and cultures are present.
Thus, proper recruitment and selection procedures are essential for hiring the right
individuals, i.e., those who possess relevant skills, knowledge and expertise about the
marketplace (Samovar et al. 2015). The investments in huge amounts are required, which
may also be challenging, as the shareholders or investors in the global marketplace might be
difficult to influence, which could further affect the business functioning and financial
condition too.
2.1.3.2 Issue C solutions
Bright Future Company aims to prioritise on the continuous improvement procedures
for enhancing the mining efficiency and at the same time, allow for inputs by the employees.

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One of the major solutions to the issue related to human resource management is the hiring of
new people from the local area, i.e., the location where the business wants to operate in
Indonesia, furthermore transfer some of the people from the Canadian workplace to the
global markets. They should be able to guide the new members from the concerned locations
and at the same time, learn to communicate with each other to foster development of a
positive corporate culture and good working conditions too (Temkin 2013). The management
of rewards system and incentives can also act as vital aspects that contributes to the good
corporate culture while managing recognition and reward uniform access across every
geographical locations shall be effective. The development of a good cross cultural team is
recommended through remote employment procedures and also with the help of various
incentive schemes and motivational procedures. This should allow for dealing with the issue
related to cultural differences, furthermore maintain consistency in employee performance
and productivity (Kaynak et al. 2013).
2.1.3.3 Issue C recommendations
 It is recommended to manage communication between the employees and foster
development of a good culture
 The management of rewards system, recognition and incentives scheme could also
benefit the organisation by keeping the employees motivated and make them commit
themselves fully towards the accomplishment of business goals at
 It is also recommended to develop a cross cultural team at Bight Future Company
while managing operations in Indonesia
The most effective solution could be the formation of a cross cultural team, because it
would promote diversity and at the same time, enable every employees to share their
individual views and opinions, furthermore ensure making effective decisions. The decisions

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made by the manager or leader of Bright Future Company could also facilitate better
coordination and collaborative working and thus increase the chances of gaining sustained
competitive advantage too (Martin 2014).
3. Recommendations
Few major recommendations for the purpose of cross cultural management include:
 To resolve the cross cultural issues and barriers contributing to the global business
management, Bright Future Company is recommended to create good employment
scopes and opportunities for the underprivileged people in the location of Indonesia,
where the business wants to set up. This would help in creating positive mind sets
among them and at the same time, their opinions would change and support the
organisation’s activity in managing cross cultural differences effectively.
 It is also recommended to management diversity across cultures within the workplace
of the organisation for overcoming the cross cultural barriers and challenges,
furthermore make the mining operations at the new location suit the global culture
and lifestyles
 The management of cultural values and beliefs is recommended too along with
facilitating the communication style to overcome the language barriers, furthermore
influence the cross cultural management activities with the formation of a cross
cultural team as well
 The formation of a cross cultural tea should promote diversity at workforce and even
facilitate acqusitions of knowledge and improvement of learning through various
ideas and opinions provided by the team members to make decisions efficiently
 The existing employees, few of them, should be transferred to the new global market
and make sure to provide necessary support and training to the new candidates for
making them work as a cross cultural team effectively.

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4. Implementation and implications
To implement smooth business functioning through cross cultural management at
Bright Future Company, firstly, it is important for every team members to know each other
and learn to communicate by respecting each other’s’ views and opinions. The management
department should also create good scopes for the individuals to acquire recognition for the
multicultural skills possessed by the, furthermore feel interested and motivated too. The
company, aiming to manage its mining operations in Indonesia must include a cultural
diverse workforce by including the existing employees as well as the new employees from
Indonesia, which could resolve cultural differences and set clear norms, rules and regulations
required to manage ethical business (Chrobot-Mason and Aramovich 2013). Encouraging
good leadership and potential connections between people from different cultures should
address conflicts and overcome the gaps to reduce the effects of cross cultural issues.
5. Conclusion
The report depicted about the business organisation, i.e., Bright Future Company’s ability
to manage cross cultural activities and set up in Indonesia. There were few cross cultural
issues such as firstly, the villagers of the place where the company wanted to set up, were
against this while there were communication issues and challenges related to human
resources’ requirements. The company should form a cultural diverse workforce and plan for
encouraging development of new employees through support by the existing employees
along with assessment of cultural dimensions. Through assessment of these, the company
would be able to manage cross cultural differences and ensure global business management
with ease and effectiveness.

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