Cross-Cultural Management Report: UK and US Business Cultures

This report provides an in-depth analysis of cross-cultural management, specifically contrasting the business cultures of the United Kingdom and the United States. It begins by exploring cultural values and their impact on business operations, referencing Hofstede's model to illustrate cultural dimensions. The report then delves into the challenges of cross-cultural communication within international management, highlighting potential barriers and issues that multinational groups and teams may face. It examines how cultural differences affect decision-making, communication, and overall business performance. Furthermore, it provides a critical evaluation of cross-cultural communication, emphasizing the importance of understanding cultural nuances to ensure effective business relationships and successful international ventures. The report concludes by summarizing key findings and their implications for managing diverse cultural contexts in a global business environment.

CROSS-CULTURAL
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task A.........................................................................................................................................1
1. Model of cultural values, contrast two cultures .....................................................................1
Task B..............................................................................................................................................7
1. Critical evaluation on cross cultural communication in international management...............7
2. Barriers and challenges facing multi-national groups and/or teams.......................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

ILLUSTRATION INDEX
Illustration 1: Business cultures in UK and US...............................................................................2
Illustration 2: Cultural values of different countries........................................................................5
Illustration 3: Barriers occurred in communication.........................................................................8

INTRODUCTION
Cross cultural management is essential to manage different cultures of other countries
than own during business operations. It is quite challenging for a manager to manage other
culture in terms of international business operations. Present report aims to understand cross
cultural managing system of UK and US regarding business operations. In this regard,
differences between both cultures and occurred issues in business operations as communication
and their impact on management system of the entity are to be discussed. Moreover, critical
evaluation on cross cultural communication in international management will be introduced in
this assignment. However, factors affected in cross cultural management system within UK and
US can be understood.
Task A
1. Model of cultural values, contrast two cultures
Business culture is a main component of a company or organisation. It has a great impact
on the strategic direction of the business as defined by Hofstede. The Business culture influences
decisions, management and all the other functions of the business.
Cultural values are for demonstrating what is right or wrong, acceptable or unacceptable
for business operations of a country. However, different countries have various cultural values
and ethics which is mandatory for any individual entity to follow on. For example;
confidentiality of data, business contracts, methods of operations, legal systems etc. It impacts on
business operations and their management systems also shows its core competencies
(Stambulova, and Ryba, 2013). Including this, business networks and systems for managing
operations impacted on its performance. Likewise, cultural values of UK involve laws, respect
and responsibility and so on. Also, it gives emphasis on doing work with responsibilities and
dedication to meet goals efficiently. Along with this, cultural values of the country are
considered during business operations and decision making regarding further implementations.
It is recognised that different countries have various business cultures to be considered
during its operations and creating business relations. For instance; internet marketing is preferred
for business purposes specifically in UK while USA used it to get return on investment (ROI) at
most. Likewise, USA business culture focuses on promoting goods and services of entity using
e-commerce firstly (Ng, 2013). On the other hand, under UK business culture, promotion of

products is done through different sources such as; social media, video marketing and so on.
However, differences in business culture impacts on management system and communication
between them. Including this, several positive and negative impacts are obtained on business
performance and decision making regarding further operations. In addition to this, people's
lifestyle, attitude and interest towards goods and services provided by entity impacted both
positively and negatively (Moran, Abramson, and Moran, 2014). Apart from this, demand for
products and profitability of entity get impacted related with further operations and market
position.
Model of Business cultural values
Illustration 1: Lewis Model of Business Culture
(Source: Different countries' cultural values, 2016).

Problems that might arise for people from these two cultures doing business with one
another.
However, cross cultural businesses impacted on business operations in both ways positive
and adverse. In addition to this, market position of entity as well its profitability gets increased
on large scale. Along with this, expansion of business is identified in different ranges as product
development, establishing new entity, adopting technological advancements and good relations
among businesses within countries worldwide (Rallapalli and Montgomery, 2015). Other than
this, it also influences on products' quality, business operations and management system
Illustration 2: Business cultures in UK and US
(Source: UK and US business cultures, 2016).

efficiently. Including this, innovations are created in technologies used for business activities for
manufacturing, production and marketing of goods.
On critical evaluation, it is recognised that managing diversity in business culture is
challenging for different entities belonged to different countries. However, lack of
communication and understanding is occurred during creating contracts and business operations
like; expansion, product development, export and import of goods etc. Including this, differences
in people's choice, attitude and interest towards products and services affected productivity and
profitability adversely (Hofstede, 2013). Similarly, changes in laws and regulations of different
countries affect entering into any contract and action against its breaches. In order to this,
cultural differences of nations impact on economy, employment, technologies and other factors
of a country. As industries like retail, IT, manufacturing and operations affected both positively
and negatively. Therefore, it is essential to consider cultural and other differences between UK
and US before entering into any contract and clearing all the norms.
However, cross cultural management is difficult for any two or more countries to make
decisions regarding business operations. It impacts on management system and business
activities of entities of the world (Gholipour and Tajaddini, 2014). Including this, it is essential to
clarify all systems and business planning between UK and US to enter into contract and work for
improving efficiencies. Moreover, different issues are occurred in business operations and their
management to make contracts and decision making regarding them. In addition to this, diversity
in business cultures and legislation impacted on business operations and implementations. Along
with this, changes occurred in factors impacted on business' effectiveness and technological
advancements in operations.
It is challenging to entering into new market for business operations and its expansion as
establishing new entity into other country of the world. Including this, it is also considered that
languages varied from nation to nation therefore ineffective understanding is obtained towards
countries' culture in respect of businesses and different norms (Minkov and Hofstede, 2014).
However, various issues and business-related problems are identified for contracting among
countries and implementing operations. In addition to this, cultural values and business-related
values differences affect productivity and profitability of any company in terms of operations,
relations among them and various factors. In accordance to this, country's culture and business

values, several consequences obtained as economy, employment, technologies and others
(Heras‐Saizarbitoria and Boiral, 2013). However, it is essential for creating understanding and
effective communication among business parties of different countries. Therefore, business'
effectiveness can achieve also impacted on their operations and their management system as
well. For cross cultural management and business operations within countries of the world,
specific knowledge is required to obtain. For instance; get aware with other culture and
management system of different countries regarding business operations (Pike, and Page, 2014).
In order to this, techniques used by entity for businesses and marketing process are needed to get
assured before entering into any contract as well further implementations. Including this, clear
communication will be created between business parties of the country linked with country's
growth and effectiveness as well. It will be good for expansion of entity and appropriate decision

making for the further implementations. Thus, business relations between two or more countries
can be established and maintained efficiently.
It is recognised that several issues can occur for managing business operations between
two or more countries. It is because of differences in cultural values as their beliefs, responds and
attitude towards business operations. In addition to this, barriers emerges in respect of language,
understanding, differences in business ethics and so on (Stambulova and Ryba, 2013). However,
variety of issues are obtained as of attitude, perception, management system of business
industries and performances within countries. It affects monetary position, employment,
technology and other sectors by which growth and implementation of any country identified. As
it is needed to create understanding with other country's culture before business contract and
planning for operations among them. In addition to this, business ethics, norms and
communication for the other country is essential to be aware with. Therefore, appropriate
decisions can make regarding business operations and good relations will be made among parties
involved in business culture.
Moreover, it is recognised that marketing and business criteria of different countries are
varies from each other. It includes factors as political, social, legal, technological and legal which
impacted on any country's effectiveness and business as well (Muenjohn and Armstrong, 2015).
However, managing diversity in business culture and other factors impacted on industrial
democracy and cultural values. Including this, international business in terms of operations and
expansion get impacted in terms of economic, social and technological factors. In addition to
this, good relation among business parties of the countries can build up for improving industrial
efficiencies and growth at higher level (Armstrong and et.al., 2013). Thus, business operations,
culture and other factors get impacted in respect of further operations to achieve growth
effectively.
In addition to this, in case of occurrence of any issue related to business operations within
countries, changes in culture and norms are created (Shao and et.al., 2013). It influences entity's
effectiveness and growth effectively. Likewise, barriers occurred during contracts and business
operations within nations affect efficiencies and their growth as well. In this regard, several
changes are obtained in terms of business and cultural values by which people's life standard and
other factors get impacted. Including this, it is also determined that business operations within

nations influences its economic position. As developed country get increased while under
developed or developing nations remain slowdown in economic positions (Moran, Abramson
and Moran, 2014). For example; in case of export and import of goods, differences in culture etc.
Thus, it is required for any country to implement plans regarding cross cultural management and
improving their efficiencies as well.
Including this, different theories are applied for cross culture management within
countries regarding business operations. According to Hofstede cultural dimension theory,
cultures of different countries are segmented in different dimensions (Muenjohn and Armstrong,
2015). For example; Power distance index (PDI), Individualism vs. collectivism (IDV),
uncertainty avoidance index (UAI), long term orientation vs short term orientation (LTO) and so
on. However, USA comes in middle stage according to PDI scale and listed at high position
under long term orientation scale (Rallapalli and Montgomery, 2015). Likewise, UK has good
position in the list of Masculinity index as well achieved 73 points. Thus, it is also suggested for
UK to enter into business contract in terms of these dimensions therefore less work will be to
done for creating comparability. Thus, for managing diversity in cultures within countries of the
world, its critical evaluation and creating understanding is needed. It influences success of
business and clearer vision towards contract and business operations among them.
Task B
1. Critical evaluation on cross cultural communication in international management
Cross cultural communication is a process of understanding other country's culture
regarding business operations and maintaining relations for longer time period. However,
business performance can be influenced effectively as well availability of resource obtain
worldwide. Including this, international management of business operations can make easy and
convenient impacts on further implementations (Hofstede, 2013). In order to this, various factors
get impacted positively for managing operations and improving bonding among business parties
of the countries. Along with this, business contracts can be effective in terms of international
business management and improving nation's efficiencies. However, country's growth in terms of
economy, employment and technology achieved on large scale.
It is recognised that cross cultural communication is being under-estimated challenge in
current era in respect of business operations and creating contracts. Including this, it impacts on

financial position, employment and other business aspects. Similarly, it is good for implementing
business operations globally and providing availability of resources all around the world. In
accordance to this, several changes are obtained in entity's operations and management system as
well. Similarly, cross culture management is good for expansion of any organisation impacts on
its productivity and profitability effectively (Minkov and Hofstede, 2014). In addition to this, it
influences development in business operations and efficiencies. However, understanding
management of cultural diversity remain effective to create good relations among countries
regarding business operations. Along with this, it is appropriate for effective decision making
and entity's effectiveness. Therefore, cross-cultural management influences business operations
and industrial growth of a nation. Similarly, export and import of goods and services get
influenced efficiently. Including this, it is appropriate to increase profit level and competitiveness
of the entity at maximum level.
On critical evaluation, it is evaluated that cultural and different factors are affected
negatively as under-estimating the cultural differences among them. Including this, created
planning regarding business operations and their implementations affected adversely. Similarly,
lack of understanding bonding is created between business parties for contracts and efficiencies.
Including this, due to changes in languages and systems for business and marketing affect
industrial democracy of a country badly. Similarly, variety of negative consequences occurred
Illustration 3: Barriers occurred in communication
(Source: Communication barriers, 2016).

between them affect economic position, employment, technological factors of nation
(Armstrong and et.al., 2013). Likewise, it is not good for business contracts and reaching to an
appropriate decision for operations and creating environment. However, various factors are
identified in terms of cross culture management as well businesses within nations of the world.
In addition to this, international business and management system get affected negatively. In this
regard, differences in communication styles between UK and USA generate bad impacts on
business operations of the entity. Similarly, unclear communication affects business operations
internationally as well differences in culture, system recognised.
2. Barriers and challenges facing multi-national groups and/or teams
outweigh the opportunities? Different barriers are occurred in communication between two or
more people or business parties. For instance; interpersonal, linguistic, physical, cultural and
organisational. In this regard, lack of understanding, unclear information and responds as well
identified. As resulted to increasing conflicts, disputes and variety of issues among parties
involved in discussion and decision making related to business operations. Including this, several
factors are obtained for unclear factors and sharing of information inefficiently. Besides this, it is
identified that countries are varies in languages such as Chinese, British, French etc. In addition
to this, diversity in culture and social systems effect business communication and
underestimations (Pike and Page, 2014). In addition to this, unclear message, wrong target and
ineffective source affects sharing data between to or more parties involved in discussion. In
addition to this, improper under-estimation towards other culture affects business operations and
other factors adversely. Similarly, misunderstanding increases among parties which impacted on
relations with creditors, debtors etc.
Lack of communication is a factor of failure of business operations and unsuccessful
businesses. It is essential to have clear goals, strategies, information and tactic towards business
operations and decision making for the further operations. Including this, having clear vision and
scope remain effective to achieve success in business operations and implementing them
efficiently. Similarly, it is needed to use effective source for communicating among business
parties and making their relations better (Heras‐Saizarbitoria and Boiral, 2013). It will be good
for creating understanding and working on a clear goal for business parties. It is recognised that