Cross-Cultural Management Report: Theories, Frameworks, and Strategies

This report delves into the critical aspects of managing across cultures in the context of global business. It begins by defining the scope of international business and the importance of cross-cultural management, followed by an overview of cultural theories such as Hofstede's and Handy's models, which provide frameworks for understanding cultural differences. The report then discusses the EPRG framework, illustrating its application in global marketing strategies. It also identifies common problems that companies encounter due to cross-cultural differences, including communication barriers, differing work ethics, and difficulties in adapting to local markets. The report uses Tesco as a case study to highlight these challenges. Finally, it proposes various strategies to mitigate these problems, focusing on areas like motivation, decision-making, negotiation, leadership, and effective communication to foster successful cross-cultural interactions within organizations. The report concludes by emphasizing the significance of adapting management practices to cultural nuances for achieving international business success.

Managing Across
Culture

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Cultural Theories.........................................................................................................................3
Problems which companies discover due to cross cultures........................................................7
Reasons Of cross culture problems:............................................................................................9
Strategy to deal with the problems arising from cross culture .................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Globalisation is increasing and so is the activities of the businesses are taking place
internationally. The boundaries of the business are not restricted now within the country.
International business are mainly the transactions that are carried out between different nations
so as to reach the goals of the company (Kniffin, Detert and Leroy, 2020). Many types of
business have their branches and dealing with other businesses which are needed to be managed
by them. Therefore it is important that there exist management of the cross culture for the
effective and smooth working of the company. Every country have its own culture and therefore
it is needed to be managed in accordance so that it do not impact negatively the activities of the
business by way of good practices of Human resource management (HRM). This report explains
the concept of globalisation, Virtual Global teams and national culture of the companies. This
also explains various cultural theories along with EPRG framework. The report also give
emphasis to strategies so that this problem can be resolve by giving importance to motivation,
decision making, negotiations, leadership as well as communication.
MAIN BODY
The culture of an organisation is referred to as different beliefs, practices and ideology of
the organisation which make it different from that of others. As the culture only defines that how
the employees are suppose to behave in an organisation. There are cultural theories which help
an organisation to understand the cross cultures so that the work can be done effectively (Kniffin,
Detert and Leroy, 2020).
Cultural Theories
There are various cultural theories which are applied by the businesses so to understand
different cultures of the country and its concepts. This helps company to understand the culture
which a country follows and then accordingly the management is planned for effective
functioning. The various cultural theories are as follows: Hofstede Theory
This was the theory given by Greet Hofstede that proposed that the factors such as
national and regional are the main contributors to the culture of any organisation which further
influence employees behaviour in an organisation. According to this theory there are five factors
which influence the workplace culture which are explained below:

1. Power Distance Index: This is the difference between the work culture and the powers
which are delegated to the employees. This is the difference that exist and also is
accepted by the people of an organisation. or hierarchy. This will help the company to
know that whether the powers of the other company has been accepted or not by the
people of organisation having different culture (Vesal, Siahtiri and O'Cass, 2020) .
2. Individualism vs. Collectivism: Individualism basically is the rights and also goals which
are to be achieved by an individual. Collectivism on the other hand means the golas
which are achieved in group or teams.. Completion of the goals or targets are awarded
and rewards are given on the performances of either individuals or groups. This helps in
motivating employees.
3. Uncertainty Avoidance Index: This is the aspect which deals with the tolerance level of
the employees and determines the reaction which employees have in situations that are
unpredictable. This helps in enhancing the tolerance level of the employees so that they
can be ready and comfortable with the situations that are unpredictable and unknown to
them.
4. Femininity vs. Masculinity: This aspect is also termed as “hard vs. tender”. This aspect
helps in distinguishing the styles of decision making. Masculine approach of decision
making is based upon the decisions which are aggressively made while the feminine
approach of this aspect related to the process of making decision after great discussion
and consultation (Chu, and et. Al, 2019).
5. Short term vs Long term orientation: This aspect mainly is related to the emphasise of
national culture on the business timing, objectives, planning, etc. some countries have
short term planning to achieve the goals and targets set but other countries or companies
may have long term planning for the achievement of the goals and the targets.
6. Restraint vs. Indulgence: This aspect of the theory emphasise on the needs and
satisfaction of the customers. Restraint on the other hand do not focus on the needs and
preferences of the consumers and instead they are more focused on earning money and
following their restrictive terms and regulations (Muurlink and Macht, 2020).
 Handy's culture Theory
This is another type of culture theory which can be adopted by the company. This model
have4 types of culture which can be followed by the organisations. They are as follows:

1. Power: This is the type in which the employees of the organisations too have power to
take decisions that are related with the operations of the company. These employees are
well trained and have immense knowledge by which the decision making for them gets
easy and effective for the company. This type of culture is very strong as it also provides
with the power to the employees to make decisions.
2. Task Culture: This is the type which is followed by the company when they have to
focus to manage and complete any particular project or task. When any new venture
business is established, there are many chances of the occurrence of the conflicts.
3. Person culture: The focal point of this culture is that individuals believe that their are
superior from the enterprises. In an enterprise if this culture exists then it is just a group
of persons who go on working for the same enterprise (Penning‐Rowsell and Korndewal,
2019).
4. Role Culture: If in an organisation this culture exists then it will be based on rules. In this
power is find out with the position in structure of an entity. It is based on bureaucrat-ism
of hierarchy as well as in this there is very few scope in relation to power of expert.
EPRG framework: This framework target activities relating to global marketing as well
as various attitudes in relation to enterprises involvement in the procedure of global marketing a
long with environment (Di Stefano, Scrima and Parry, 2019) . It deliver strategies in order to
form decisions as well as it form relationship among the enterprises and subordinates. In this
context Tesco, can implement this framework in order to enhance its functioning. This will also
assist company to resolve all the problems which are arising from cross culture. This framework
is consist of four stages which are mention underneath:- Ethnocentric: Many times enterprise think that their country of origin is superior when
they consider the possibilities in the global market. In this regard enterprises try to
discover similarity between both these two country and they forget the develop their
product according to the taste as well as preference of brand-new marketplace. They will
do no alternation in the prices, specifications of the product, promotions as well as other
activities. In this relation Tesco, will prevent the price relating to hiring as it can move its
staff from the home nation to new market. The company can implement centralise
corporate culture along with the natural process of core competency.

 Regio-centric: In this stage companies form their strategies according to the similarities
as well as discovering difference worldwide along with different regions where the
enterprises operates its activities (Masyhuri, 2019).. In reference to Tesco, this stage will
assist the enterprise to find out the variation as well as sameness between them as well as
with the countries where they are establishing or established their stores so that they can
satisfy the needs of both side customers. Geocentric: This stage is based on the fact that companies should consider global in their
actions but they should act according to local. At this stages entities will do concoction of
similarities as well as of divergence of entities home territorial division with global
market. With action enterprise will discover that the local people want from them in order
to ion crease their customer force. This will destroy all the gaps between the company
and its customers. With this enterprises will build bear-down culture as it do not compare
nationality with the elements like superiority which assist them to trade best human
resources. In context to Tesco, This stage will assist the company to determine the needs
of the local consumers which will build their image, customers as well as they will earn
more profits.
 Poly-centric: In this enterprises believe that each and every country is unique as well as
exclusive they are and they also believe that business operates best in markets which are
local (Khare, Romsdahl and Kirilenko, 2019). In context to Tesco, they need not to send
away their skilled employees to different countries where they operate their activities in
order to keep all elements relating to centralisation. This approach will be be less costly
for the company if it is compared with ethnocentric approach.
Problems which companies discover due to cross cultures.
Cross culture implies to efforts of business concerns which guarantee that their
employees interact with each other in a effective manner and they vary in their background as
well (Jacquinetand Bussotti, 2019). In order to explain these problems in an hard-hitting way
Tesco company is considered and what problems it faces because of cross culture are mention
below:-

 Unsuccessful to determine fresh possibilities: Due to roadblock of culture entities some
how missed various opportunities. In context to Tesco, they have unnoticed the possible
growth of some underdeveloped countries like India, due to which the company is
unsuccessful to set up early presence in these market. In this regard company is loosing
its opportunity to do business in these countries. Distraction: Employees find it difficult to work in such environment where they are not
given much importance for there work as managers favour employees who they know
very well (Cerquetti, Nanni and Vitale, 2019). In context to Tesco, Its workers are to
able to focus on their work which has reduce the productivity of the company and due to
this company is loosing its potential customers. Problem of Superiority: People belongs to various nations and from different religions
work under one roof which make them think that they are superior from each other. In
relation to Tesco, it work with employees who belong to various countries which means
they have different background and this make difficult for Tesco to manage conflict
between them and ensure proper as well as systematic working. Reduction in productivity: Cross culture reduces the productivity level of employees
which auto automatically influence the performance of the company. In context to
Tesco, its employees are loosing their focus from their work and they are more towards
in other people which is affecting their productivity level and due to which enterprise is
not able to manage their profits, work as well as customers. Employees relations as well
as communication make the follow of information very easy which leads to productivity. Relations between employees: People from various backgrounds find it difficult to
communicate with each other may be due to language barrier or may be because of
variation in their process of working (Pratono, 2019) . In relation to Tesco, people from
various continues work which makes it difficult for them to communicate in one another
languages along with this they vary in their working process. In this respect employees of
UK find it difficult to communicate with the employees of Thailand and Turkey.
 Difference in culture of countries: Companies discover the problem of cross culture
because different nations have their own way of working irrespective of their laws of the
country, lifestyle of people, their customs as well as religions. In context to Tesco, it can
be said that company has faced this difficulty in their US stores were the life style of

people is very different from the UK people and they are unable to meet their
requirements.
Reasons Of cross culture problems: Communication Gap: Barrier of communication problem cannot be neglected and it is
not necessary that it arise because of assorted languages as it may also occur because of
different thought process of various persons as they belong to assorted backgrounds
(Akolgo and Ayentimi, 2020). In Tesco, this problem is usually seen as in employees
who work are from different countries which automatically leads to gap of
communication. Assorted forms of behaviour: Persons vary in their nature, behaviour as well as on their
attitude as it totally depend on their orientation of culture and it becomes very effortless
if people who connect are from similar cultural backgrounds. In relation to Tesco, it is
very hard for the company to mingle people who have assorted morales as well as values
which make their collimation some how very difficult. The mainly face this situation
with its stores which are in UK. Consequence of regional culture: Each and every enterprise run in a society and because
of this they are influenced by their customs, rituals as well as by their festivals also.
When its comes to communities masses restrict themselves. In context to Tesco, the
company faces this problem when they do their business in US as US citizens likes to
store foods in huge quantity where as UK people believes in fresh ones. It problem
deliver some sort of fiction between the working culture of the company. Partiality: Partiality implies to partial bias in favour of a particular person which
discourages the employees and they fell neglected (Mayer, 2019). In Tesco, managers
because of the halo effect get influenced as well as take decisions which are bias in a
certain way as their UK mangers has shown this behaviour in their US store. This has
somehow made other employees demotivated and they are not making their full efforts. Ethnocentrism: In this individual consider themselves superior from others because of
their culture. They think that their way of working is the only correct way to do anything.
In this context, Tesco is suffering from this problem which is creating a mess which give
birth to fights as well as bitterness. It is becoming very difficult of the employees of
Tesco to do a piece of work in a group.

Strategy to deal with the problems arising from cross culture
In order to deal the problems which occur from cross culture enterprises need to form
effective strategies in order to resolve this problem. In relation to Tesco, they are require to
formulate there working in such way that they can eliminate this problem from their workspace.
The strategies which will resolve this problem are mention as under:-
Render Cross-Culture Training: No individual is hatched with the power which will
assist them to interpret or understand the culture of foreign. This skill is required to be learn so in
this context employees of enterprises should demonstrate mission-critical intercultural skills of
communication (Ronnie and Sears, 2020). This will help them to resolve all the problems and
they will become more familiar to the brand-new market. In context to Tesco, can can provide
training to its employees which make them strong as well as they will become more flexible in
their working. They will now make efforts to understand the problems as well as their fellow
team members also. This will deliver a sense of accomplishment to the employees of Tesco.
Appointment of Leader with good leadership skills: A good leader can easily form the
goals, make decisions, scope and so on. Leaders with their skills can direct their team and
recommend solutions to them for their problems. The supply a road map on which all employees
preform their tasks like to generate sale, make changes in the product according to global needs
and so on. In context to Tesco, their managers or leader should first analyse all the elements
which are needed to perform operations in the global market. In this way they can provide
direction to their employees. Leadership of leaders will help the entity to survive in world wide
market and to modify all the strategies according to the conditions which are prevailing in the
various market conditions.
Working in teams: When people become familiar with each other in terms of their
culture, nature, customs it become very easy for them to work in teams (Strand, Vossen and
Savage, 2019). There understanding will develop coordination among the employees of the
firms. This coordination leads to proper as well as systematic flow of n information which results
in proper working. In context to Tesco, if its employees work in teams they will be able to know
each other and this will develop a good bounding within them. They can now resolve any
difficulty in more easily a and effectively. This will also motivate them to work hard in order to

contribute more into their teams. Local as well as international employees of teams will
understand the working culture of both the domestic as well as entity home country also .
Decision making: If entities know the working culture of different nations it becomes
very easy for them to take effective decisions. With the involvement of employees as well as of
the company the power of decision making will enhance (Barmeyer, Bausch and Moncayo,
2019). In relation to Tesco, it should allow various ideas of its employees which will deliver
various alternative to the entity. It will enhance the level of commitment along with the level of
acceptance. Employees participation will straighten out the company and it will be able to
formulate decisions which have the level of quality.
Negotiations: Negotiations authorise entities in relation trade good agreements with the
consumers, co workers as well as with the respective suppliers. In context to Tesco, it becomes
easy for the company to get great deals in foreign land. This will enhance the working culture of
the company as well.
Boost wide-open environment: With the creation of this environment employees will
leave their egos as well as their ranks at the door of the entity which will give every worker a
voice which is equal in all terms (Tan, 2019). In context to Tesco, a wide open environment will
deliver full freedom to its employees and they will become more comfortable in the working
environment of Tesco irrespective of their country or region. This will render a effective
workforce to company which can work in any type of environment.
Deliver an Internal communication site: In order to enhance communication entities are
require to first understand the mental level of the employees as well as of customers. They
should understand the cultures and how they respond to any situation. Entities need to
understand that there customer want which will assist them to easily communicate as well as
they will know the needs of their customers (Ketprapakorn and Kantabutra, 2019). In context to
Tesco, they should try to build communication of their employees which well render systematic
flow of information. As well as, company should try to communicate to customers by taking
feedbacks which well help them them to determine all those factors in which they are lacking
and what are the elements which are different from their home country and they are require to
implement in the new market.
Motivation:Enterprises should motivate themselves as well as their employees to learn
more about new market (Raimo, Zito and Caragnano, 2019). This will increase the productivity

level of the company as their motivated workers will contribute to work more. This will also
contribute to the reputation of the company in the market which will make easy for them to
perform their operation in that new territorial division. In reference to Tesco, they are require to
highly motivate their workers so that they can work to their full capacity.
CONCLUSION
From the above report it is derived that in order to expand their business companies are
require to go beyond their territorial boundaries. This will deliver opportunities like more
customers, more sale as well as more profit along with good brand image to them. These
opportunities also come with some drawbacks due cross culture which build comparison. To
understand culture theorises like hofstede theory as well as handy's culture theory are very
important. Problems like unsuccessful to determine fresh possibilities, distraction, problem of
superiority, reduction in productivity, relations between employees, along with difference in
culture of countries occur. These problems occur due to reasons like communication gap,
assorted forms of behaviour, consequence of regional culture, partiality as well as ethnocentrism.
Companies to form strategies like render cross-culture training, appointment of leaders with
good leadership skills, working in teams, decisions, negotiations, boost wide-open environment,
deliver an Internal communication site along with motivation in order to resolve this problem.
REFERENCES
Books and Journals

Kniffin, K. M., Detert, J. R. and Leroy, H. L., 2020. On leading and managing: Synonyms or
separate (and unequal)?. Academy of Management Discoveries. 6(4). pp.544-571.\
Neri, S. and Wilkins, S., 2019. Talent management in transnational higher education: Strategies
for managing academic staff at international branch campuses. Journal of Higher
Education Policy and Management. 41(1). pp.52-69.
Vesal, M., Siahtiri, V. and O'Cass, A., 2020. Strengthening B2B brands by signalling
environmental sustainability and managing customer relationships. Industrial Marketing
Management.
Chu, Z., and et.al, 2019. Managing interdependence: Using Guanxi to cope with supply chain
dependency. Journal of Business Research. 103. pp.620-631.
Muurlink, O. and Macht, S. A., 2020. Managing (out) corruption in NGOs: A case study from
the Bangladesh delta. Journal of Management & Organization. 26(6). pp.1014-1029.
Penning‐Rowsell, E. and Korndewal, M., 2019. The realities of managing uncertainties
surrounding pluvial urban flood risk: An ex post analysis in three European
cities. Journal of Flood Risk Management. 12(3). p.e12467.
Di Stefano, G., Scrima, F. and Parry, E., 2019. The effect of organizational culture on deviant
behaviors in the workplace. The International Journal of Human Resource Management.
30(17). pp.2482-2503.
Masyhuri, M., 2019. MANAGING COMMUNICATION PROCESS IN THE
ORGANIZATIONAL CHANGES: The Case of PT XYZ. Journal Communication
Spectrum: Capturing New Perspectives in Communication. 9(1). pp.42-56.
Kharel, G., Romsdahl, R. and Kirilenko, A., 2019. Managing the wicked problem of Devils Lake
flooding along the US–Canada border. International Journal of Water Resources
Development. 35(6). pp.938-958.
Jacquinet, M. and Bussotti, L., 2019. Managing sustainability: the role of multinational
corporations in the global south. Problems of Management in the 21st Century. 14. pp.42-
53.
Cerquetti, M., Nanni, C. and Vitale, C., 2019. Managing the landscape as a common good?
Evidence from the case of “Mutonia”(Italy). Land Use Policy. 87. p.104022.
Pratono, A. H., 2019. Cross-cultural collaboration for inclusive global value chain: a case study
of rattan industry. International Journal of Emerging Markets.
Akolgo, E. A. and Ayentimi, D. T., 2020. Community-level mechanisms and strategies for
managing sustainable water supply systems: lessons from Bongo district of northern
Ghana. Environment, Development and Sustainability. 22(4). pp.3739-3756.
Mayer, J., 2019. Managing Culturally Diverse, Virtual Teams.
Ronnie, L. and Sears, K., 2020. Managing expectations from afar: The formation of the
international volunteer psychological contract. Management Dynamics. 29(3). pp.2-14.
Strand, P. S., Vossen, J. J. and Savage, E., 2019. Culture and child attachment patterns: A
behavioral systems synthesis. Perspectives on behavior science. 42(4). pp.835-850.
Tan, B. S., 2019. In search of the link between organizational culture and
performance. Leadership & Organization Development Journal.
Raimo, N., Zito, M. and Caragnano, A., 2019. Does national culture affect integrated reporting
quality? A focus on GLOBE dimensions. In 9th International Symposium on Natural
Resources Management, May 31st, 2019, Zaječar, Serbia (pp. 383-392). Belgrade:
Megatrend University.

Ketprapakorn, N. and Kantabutra, S., 2019. Culture development for sustainable SMEs: Toward
a behavioral theory. Sustainability. 11(9). p.2629.
Barmeyer, C., Bausch, M. and Moncayo, D., 2019. Cross-cultural management research: Topics,
paradigms, and methods—A journal-based longitudinal analysis between 2001 and
2018. International Journal of Cross Cultural Management. 19(2). pp.218-244.