Fluger Avionics: Addressing Cross-Cultural Leadership in Brazil

This report analyzes the cross-cultural leadership challenges faced by Fluger Avionics, a German company, as it plans to expand its manufacturing unit in Brazil. The report identifies and evaluates various organizational and national cultural issues, such as strategy, political climates, language differences, and business etiquette, which could impact the expansion. It further analyzes obstacles to change, including resistance from employees, competitive forces, and poor culture shift planning. The report identifies suitable leadership styles, such as transformational and democratic leadership, and analyzes critical success factors like shift planning and effective leadership. The report uses the Hofstede model to understand cultural differences between Germany and Brazil and recommends the application of Kurt Lewin's model to manage change effectively. Overall, the report provides a detailed overview of the challenges and strategies for successful cross-cultural leadership in the context of Fluger Avionics' expansion.

CROSS
CULTURAL
LEADERSHIP

EXECUTIVE SUMMARY
This report was based on the scenario of the Fluger Avionics a German Company. The
company is a mechanical and electrical part manufacturing firm. In the scenario the company
might plan to expand its business area in the Brazil. This report is based on the changes that the
company might face at the time of cross cultural changes.
The report various national and organizational issues will be determined to while the
expansion of the firm. Also will identify and analyze various major obstacles that the company
might face while making changes in the culture environments. Various leadership styles that the
company might require will also be depicted in the report to manage the changes in the firm. At
last various critical success factors would be analyzed in the report.
The report had been conclude various leadership styles that are Transformational,
democratic etc. Also various organizational and national culture issues have been identifies and
evaluated in the report. Obstacles that may occur at the time of change such as resistance to
change as well as competitive forces has bee identified and analyzed in the report. Also had
identified various critical success factors such as shift planning and effective leadership styles.
Recommendations regarding managing the changes in the organization can be given such
as the company should go for effective leadership style. It will help in managing the conflict that
might occur at the time of cross cultural changes.
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TABLE OF CONTENTS
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Task..................................................................................................................................................4
Identify and evaluate the organization and national cultural issues............................................4
Identifying and analysing various obstacles to change................................................................6
Identifying and evaluating suitable leadership styles for leading change....................................7
Creating and justifying the list of critical success factors............................................................9
Conclusion.....................................................................................................................................10
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INTRODUCTION
In Cross Culture Leadership the leader ensures to develop different ways for
understanding the globalization markets. The organizations working on global area need to
acquire leaders who can work in different environments and cultures (Ang and Van Dyne, 2015).
In this the leader should be capable of working in different cultures of different nation and
employees of another countries. Various things are needed to be kept in mind while working in
international area by the leader. Such as the leader is required to take care of Business Etiquette
while they in the lunch meetings, other types of business meetings. They are required to follow
the culture and language of other nation where the company is going to expand its services
(Thomas and Peterson, 2014). This report is based on the cross cultural factors that are required
to be followed by the Fluger Avionics Company. Fluger Avionics is Germany based organization
deals in the manufacturing of electrical as well as mechanical parts for the aviation industry. For
securing the long term success the company is going to expand its manufacturing unit in the
Brazil. According to the scenario, the Fluger Avionics is facing language issues while setting up
new manufacturing unit in the Brazil.
TASK
Identify and evaluate the organization and national cultural issues
The Fluger Avionic a German organization might come out with various issues while
expanding its production and manufacturing unit in Brazil (Issues for organizations, 2016).
Various organizational issues which may occur to the business while expanding internationally
such as:
 Strategy- while expanding business the organization is required to review its strategies.
This helps the company in having clear picture regarding its goals and objectives. It also
helps in determining various requirements that are to be fulfilled by the company such as
human resources demand, financial needs etc. Planning of strategies also helps in
determining global pressures that might occur at the time of expansion (Lakshman,
2013).
Evaluation- Preparation of strategies will help the Fluger Avionics in clearing vision and
missions of the firm. Also strategy planning will help in knowing the lacking points of the
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company such as human resources, financial etc. With the help of this the company will lead to
less wastage of its resources and effectiveness in the functions.
 Political and social climates- Stability, sovereign risk, sovereign debt etc. are some
issues which affect the policies of the company while expanding in new market. Political
stability ensures stability in the demand and supply of the firm. Also the risk effects the
functions of company in new country.
Evaluation- It may have negative as well as positive aspects of the as the analysing political
factors before expansion. This will help in analysing the company regarding the political
structure of Brazil. Such as its political, macroeconomic, currency etc. stabilities in Brazil so that
the Fluger company could plan its strategies accordingly (Caligiuri and Tarique, 2012).
 Innovation and incentives- Innovation helps in managing innovations that might support
business growth in future. Whether the organization is required to adopt centralized,
decentralized etc. innovations in the firm to successfully implement new production and
manufacturing unit in another country.
Evaluation- this factor helps the company in analysing various innovations, needs and demands
that are to be adopted by the company for expanding its unit in the Brazil. This will help the
company in analysing the requirements of the Aviation industry in Brazil. As well as what
innovation can be added in to attract more and more customers to increase the revenue and
growth of the firm.
While expansion off business various cultural issues may occur such as:
 Language – Different countries have different cultures and languages to express their
view and regards. This is common issue faced by the any company who is going to
establish its new branch in any other country (Kuntz and et.al., 2013). International
businesses leads to language issues while opining up their business entities in new
markets.
Evaluation- While moving to new markets of Brazil the company might face language issues. As
there is language difference between Germany and Brazil. Both are different nations and have
different cultures, values which are required to be managed by the firms accordingly. They have
to opt these difference while expansion of its business to earn the customers loyalty and base.
The cultural issue of language can be sorted out by appointing new employees into the Brazil
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branch who are local people. This will not only help Fluger Avionics in understanding the needs
and cultural environment of Brazil but also helps in penetrating its product in the market of
Brazil.
 Business Etiquette – This is another important issue which the company faces while
expansion of business I international arena. As mentioned above different cultures have
different business ethics, cultures, beliefs, vies etc. There way of reacting is different in
various situations (Eisenbeiß and Brodbeck, 2014).
Evaluation- Following differences can be managed by the Fluger Avionics by appointing local
people in the organization. Those who are well aware about the Brazil business cultures.
Business Etiquette may include different ways such as ways of handshake, presentation etc.
things plays a important role in creating brand image. For increase in this the company may
provide training of business etiquette. That will further help the company in managing its
activities in well mannered while expanding its services in the Brazil. The Fluger Avionic
company might also required to focus on the dresses of its employees. As the Brazilian
companies also set standard of living towards its employees which also ensures image of the firm
in front of its clients.
Identifying and analysing various obstacles to change
Major obstacles that the company might face at the time of changes such as:
 Resistance to changes- This can be a major problem which the Fluger Avionics might
face at the time of global expansion of its business. In this the existing employees of the
companies mat resist to the changes that might come in future. Resistance of employee
may occur due to lack of understanding that why the changes are being done, the
experienced employees of the firm might not support the the changes. Also it can lead to
loss of ownership and control of work process. Also resistance might occur due to fear of
loosing jobs in the future (Emmerling and Boyatzis, 2012).
To avoid this situation the given company is required to take pre plans for avoiding this
condition at the time of global expansion. This situation can be avoided by the company through
various ways. Such as by increasing the compensation of employees in way of incentives, bones
etc. Also these obstacles can be avoided by proving appropriate training to the employees so that
they might not come up with the resistance.
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 Competitive Forces- Competitive forces plays a vital role in shifts of demand and supply
of products f the firm. While global expansion the company is required to analyze its
rival in the new markets. So that the company get prepare in advance and keep in mind
the products structure of its competitors in the markets. While entering to the new market
the Fluger Avionics is required to add features that are lacking in the products of the its
rivals. This will help the firm in attaining competitive advantage over its competitors.
After analysis the pros and cos of the competitors the Fluger Avionics is required to
produce products one step ahead of is rials to place its company in new segmented markets. This
will help in increasing revenue of the firm as well as will increase the brand image in front of
Aviation industries in Brazil. For this the firm is required to make changes in the technologies of
the products that might help in increasing the sales of the company in global market (Dickson
and et.al., 2012).
 A Bad Culture Shift Planning- This is another major obstacle that might occur to the
German based firm Fluger Avionics. Sometimes changing environment leads to affect the
human resources of the firm. Change in culture leads to change in the shift timing
because which the employees may lead to resistance of employee. According to the given
scenario also the company is planning to shift its working hours into 3 shifts.
After analyzing-the situation the the company has to make changes in the shift timing
accordingly to the nature and behavior of the people living in the Brazil. Also it is required to
manage the workload in the new expansion unit the company can go with 3 shifts. Shifts can be
single-day-shifts, 24 hour round-the-clock production (Steers, Sanchez-Runde and Nardon,
2012). This will help the firm in managing the work load and increase the production of Fluger
Avionics Firm.
The model of Hofstede can be applied in order to identify the barriers of change. The
model describes various parameters on which the barriers of change can be identified.
Furthermore, the parameters are power distance, Masculinity v Feminity, Individualism v
Groupism, uncertainty avoidance index and long term v short term orientation. If the company
wants to expand themselves in Brazil then the power distance in this country is high and the
individualism is low. Thus, it can be said that people work in a group unlike Germany.
Moreover, the masculinity is more then feminity which means that males have more domination
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then female candidates. Furthermore, uncertainty avoidance index is more as compared to
Germany and there is more short term orientation then long term. However, the country Brazil
has entirely different culture as compared to Germany. Thus, the management has to face several
issues while carrying out their services in entirely different culture. These are some of the
obstacles which a company may face.
However, these changes must be overcome by the management at the time of
establishment of new venture in a country Brazil. For this aspect, the model of Kurt Lewin could
be followed. This model states that there are three steps for overcoming change. First step is
unfreeze where leaders of this firm could unfreeze the employees by providing training and other
means. When the mindset of the employees get diverted then the leaders can introduce change in
the company that is by introducing new management style at Brazil. The last stage is refreeze
where people accepts the change and indulge into them after sometimes. This way barriers of
change could be overcome in the given organization.
Identifying and evaluating suitable leadership styles for leading change
There are various leadership styles that leads the changes at the time of expansion of the
business:
 Democratic Leadership Styles- It is an open approach of leadership that helps in
making decisions. It also encourages creativity, participation of employees working in the
firm. This is done add value to the vision, missions and objectives of organization.
Democratic leadership styles also helps in managing various activities of firm effectively
at the time of expansion of business on international level (Leadership Styles, 2016).
Advantage and disadvantage of the democratic leadership styles are as follows:
This styles leads to motivation of employees as it encourages the participation of employees in
the decision makings of the firm. It enables employees to give their ideas and suggestions
regarding the decision making. It also involves quick decision making as the employees are the
part of the decision makings. The creativity, new ideas etc. leads to the increasing the production
of the firm. In democratic leadership the responsibilities of employees are shared by the
superiors (Youssef and Luthans, 2012). The following leadership style also leads to towards the
stability of organization by the way of increasing the attitudes, morals etc. in the favour
employees working in the firm. However, the leadership style leads to complexes nature which
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creates problems for the employees in understanding their work. This leadership style may lead
to discouraging the people who are less interactive in the firm.
This leadership approach can be applied in case scenario of the Fluger Avionics a aviation
manufacturing unit.
Democratic leadership styles can be implemented for the new production unit of Fluger
Avionics company in Brazil. As this style encourages creativity, and also involves employees in
decision makings. This also leads to quick decision makings as well as encourages employees to
work efficiently in the organization. This approach will lead to overcome various challenges that
the company might face in future while expanding its business in Brazil. Also this approach will
help in overcoming various cultural and obstacles (Nouri and et.al., 2013).
 Transformational Leadership- This is one of the most effective style which can be
suitable used in referent situations in most effective manner. This approach motivates
integrity as well as high emotional intelligence towards the firm. It also help in
motivating employees by encourages them to participate with new ideas and innovations.
It leads to effective communication system in the entire business enterprise which helps
in saving time and efficiency. This styles leads in self awareness, authentications,
empathetic as well as humbleness in the functioning of the organization.
Transformational leader also inspires teamwork, accountability in the working of the
firms. As well as Transformational leaders also tends to set high goals and objectives for
their organizations to increase the productivity ad engagement.
Various Advantage and disadvantage of the Transformational leadership approach such
as:
The following leadership style helps in motivating approach. It also leads in encouraging
view and ideas of employees as wells as effective communication among different level of the
firm. It also ensure accountability and smooth functioning of the teamwork (MEndEnhALL,
2013).
However, leadership styles leads to lack in clarity of visions and missions as it is difficult
to find out the actual parameters of the company in this approach. Also level of motivation,
idealization etc. is difficult to measure.
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This leadership approach can be applied in case scenario of the Fluger Avionics a
aviation manufacturing unit.
As per the scenario the the given organization is going to open its new unit in Brazil.
Transformational leadership can be implemented in the working of the Fluger Avionic. As this
will help in developing emotional intelligence, integrity, self awareness, authenticity etc. in the
organization which will lead to increase in the production of the firm. Also Transformational
leadership style helps in resolving conflicts which the company might have to face in global
expansion. For this the company is require to adopt the strategy which may help in resolving the
various conflicts (Osland and Bird, 2013).
Creating and justifying the list of critical success factors
As mentioned above there can be various critical factors that are required to be adopted
by the organization while change process such as:
 Effective Leadership style- Effective leadership style is must for the company to
manage the conflicts of the changes. Such as Transformational leadership helps the
organization in managing conflicts of the firm. The company may go through various
conflicts while expanding its production and manufacturing unit in Brazil. To overcome
those conflicts the Fluger Avionic firm will have to incur suitable and effective
leadership styles in the organisation The effective leadership style also ensures the quick
decision makings. It also encourages employees to participate in decision making and
suggest new ideas for the firm (Mendenhall and et.al., 2012). Leadership styles also leads
to strong teamwork, integrity, self awareness etc. It also helps in clearing visions,
missions of the firm to employees. With the help of effective teamwork the organisation
will lead to increase in the accountability and increase in the productivity of the firm.
Also the effective leadership style ensure less wastage of the firm.
 Cultural Shift Planning – Effective shifts helps the firm in increasing its productivity
also helps in increasing employment opportunities. Different shifts ensure people to work
at different shift hours which enables the local people to work accordingly in the firm as
per there requirements and suitability. The firm in order to manage the productivity and
social responsibilities towards the society of expanded market. As this will ensure
employees satisfaction and increase join the productivity the firm.
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 Industry critical success factors- Under this strategic factor the company is required to
find out about its various competitors in the change market and also what technologies
they are using. It is very essential to identify and analyse various factors of the industry
that might result in success as well as in failure of the company. So in order to place itself
for long time In Brazil the Fluger Avionic is required to pre analyse the situations of the
market (Ang and Van Dyne, 2015). What factors it is required to opt and what factors are
not to be kept in mind while expanding in the different country.
 Strategy Critical Success factor- I this factor the company is required to predetermine
the strategies by determining the competitive market in the Brazil. This is important
factor to be kept in mind while expanding business in area as this will. Help the firm in
pre analysing the market situation. That what changes it might have to make in
technology as well as strategic to ensure long term success in the Brazil market. Also it is
required to make strategies based on the challenges and opportunities that might help the
company in successfully attaining the competitive advantages over its competitors.
CONCLUSION
This report was based on the cross culture leadership of the Fluger Avionic company.
Various organizational cultural issues such as strategy, political and social climate, innovations,
languages etc. has been determined in the report. Along with this issues national culture issues
had also been identified in the report which were languages and business etiquette. Further
various obstacles were analysed and identified such as resistance to changes, competitive forces
as well as a bad culture shift planning in the report. Different leadership styles have also been
evaluated in the report those were democratic and Transformational leadership styles. At last
various critical factors such as effective leadership styles, shift planning, strategic success factors
as well as industrial success factors were justified to mange change in the firm.
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