Cross Cultural Management: Styles for Successful Foreign Venture

This report provides a comparative analysis of business cultures and management approaches, focusing on Africa and the US. It examines the impact of cultural differences on international business, utilizing Hofstede's cultural dimensions to highlight variations in power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The report also explores the development of effective cross-cultural management styles for successful ventures in foreign markets, emphasizing the importance of understanding cultural nuances and adapting management practices accordingly. It concludes by underscoring the significance of cross-cultural cooperation and the need for organizations to navigate cultural challenges effectively.

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Executive Summary
The nature of international business is more complex because of number of elements such as
national, ethnic and culture differences. There are many approaches and culture that impact the
business of different countries and it is vital for the country to look those factors for the purpose
of increasing the awareness. There are different styles of management which need to be followed
by the company of different country in different way in which it has been evaluated that the
“structure” refers to the structure of the organization in the business. the discussion has been
made on two countries that is Africa and US.

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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Comparing business cultures and management approaches in selected two countries...................5
Develop effective cross-cultural management styles for successful venture in the selected foreign
market..............................................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The expansion of international business has been growing in an efficient manner in order to
extend the business operation outside domestic business. Insufficiency of socio-cultural
knowledge can enhance number of issues which can lead to loss of the opportunities related to
the business in international business context. It is because of the interpretations of the facts that
entrenched in cultural uniqueness. It can develop referable barriers within the productive cross
border alliances of business and effective management practices (Thomas & Peterson, 2017). In
brief assignment, two countries have been discussed that is Africa and US.
The main aim of this assignment is to emphasis the cross cultural management.The discussion
will be made on development of effective cross-cultural management styles for successful
venture in the selected foreign market. Both countries will be taken into consideration to define
above mentioned criteria in an efficient manner.Hofstede’s cultural dimension will be discussed
under this assignment as it would be helpful to elaborate the consequences of a culture of society
and the value of its members.

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Comparing business cultures and management approaches in selected two countries.
The issues of cross cultural are among the major and most effective aspects that impact the
activities of international business. The company has to face numerous challenges of cross
cultural in handling its operation internationally such as different way to understand the
communication styles and patters, principles and organizational cultures and values for
management practices and leadership approach (Eisenberg, Lee, Brück, Brenner, Claes,
Mironski & Bell, 2013). Unwanted to say the major cause behind organizational issues are
handling or entertain the cultural differences in an appropriate manner. The business culture of
two different countries is mentioned below:
Africa
In the context of Africa, it has been found that it is the heterogeneous continent in the globe-
culturally, ethnically and linguistically. Identity of Africa is complex in the context of the
business as the managers of Africa need to handle people carefully around personal questions in
the form of conversation starters, especially as they can connect to ethnicity, which relates to a
sensitive matter in Africa. Diversity cannot be referred to the race; since over 90% of the
populations are black Africa. It has been found that 3.8 million people, ethnologist knows around
62 languages in the Republic of Congo.
US
The economy of Unites States is mixed economy and to be considering as purchase power parity,
it is considered as the second largest country. The GDP growth rate of this country is 2.3% in
2016 and per capita income if US is 59,531.66 USD. Along with that it has been found that US is

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huge country that aim to increase the work performance of each people so that the nation can
grow significantly. In the context of the business, it has been found that this country has
noteworthy resources and the companies in US are fully dependent. The accountability of the
companies of US is entirely different which tends to be vertical which can be focused by
everyone easily.
In the context of the business, the comparison between Africa and US are mentioned below by
taking consideration of Hofstede’s dimension.
Power Distance (PDI)
According to the PDI, it has been found that Africa has a higher score in comparison of US as 49
scores goes to Africa on the other hand power distance of US is 40. Formal authority put entirely
impact to the formal authority (Jackson, 2011). There is high level of mobility in the context of
geographic aspect in the US. Along with that it has been found that the contribution of US is
huge in connecting business all over world. On the other hand, people of Africa are mindful and
make strategies in order to develop effectiveness within the country. It has been found that the
art of dialogue and conversation is a pleasured value in African’s mind that helps in making good
bond between employees.
Individualism vs. Collectivism (IDV)
As it is found that the power distance score is fairly low in comparison of the most individualist
which is 91. The principle of US is “liberty and justice for all” which is evidenced by clear
highlight on common rights in all aspects of the society and government of America. Hierarchy
is established within the organization of America is to emphasis convenience in which superiors
and managers are relied on the performance of the employees. In the context of Africa, it has

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been found that it has scored of 65 is an individualist society. It refers a upper level of preference
for a loosely-knit in which it has been expected by an individual to take care of themselves along
with their immediate families (Dong & Liu, 2010).
Masculinity vs Femininity (MAS)
It has been found that the society of Africa was featured by the absence of religion in the culture
of Indigenous Africa. It has been found that there are number of regions in Africa that are
estimated to similar being positioned for the purpose of economic growth as are developing
regions of economies that is BRIC nations. The score of Africa is 63 on this dimension which
represents the majority of masculine in this nation in doing business. On the other hand, this
dimension gives score of 62 which can be considered in the tough America behavioural patterns
(Hofstede Insight, 2018). It can be elaborated through the combination of the upper level of drive
of masculinity. In context of this, it can be stated that the involvement of the US in business of
SSWAN can develop number of confronts in lack of improper socio-cultural and ineffective
knowledge like Ubuntu.
Uncertainty Avoidance (UAI)
In this dimension the US scores below average, with a low score of 46. As a result, the apparent
context in which Americans have tendency to be more effective and tolerant of ideas from
anyone. Along with that it has been found that Americans are punctual and know their
responsibilities that are why they do not need to bind under a lot of responsibilities (Thomas &
Peterson, 2017).
The score of Africa is 49 on this dimension which represents the low preference for avoiding
uncertainty. Low score of UAI society’s handles a more comfortable attitude in which practice

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are generates more than principles from the rule which is easily handled. It has been believed by
people that they do not require a lot of rules to bind because whenever they think they need
change, they will (Jackson, 2012).
Long term Orientation
This dimension has a low score of 34 that refers the normative form in the culture. People have a
firm concern with developing the absolute Truth; they are normative in their thinking. They
demonstrate great respect for traditions, a comparatively small tendency to save for the potential,
and a hub on attaining quick results. The US scores normative on the fifth dimension with a low
score of 26. Americans are flat to analyze new development to check whether it is fact.
Therefore, the culture does not make most Americans pragmatic, but this should not be
perplexed with the fact that people of America are very practical (Thomas, Elron, Stahl, Ekelund,
Ravlin, Cerdin & Maznevski, 2008). Interpersonal relationship and commitment is influenced
noteworthy aspect in conventional African culture with a sublime expectation of dependability in
the business which can be type casted as favouritism in US culture (World Business Culture,
2018).
Indulgence
Indulgence is a score of 68 which is the combination with a normative score, is reproduced by
the subsequent contradictory behaviour and attitudes that are work hard and play hard. The US
differs hugely from Africa when it comes to substances of indulgence. Africa has a high score in
this dimension which is 63. People in societies distinguished by an upper level of score in
indulgence commonly represent a willingness to comprehend their impulses and wants with
respect to enjoying life (Munene, Schwartz & Smith, 2000). They acquire an affirmative attitude

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and have a propensity towards optimism. Furthermore, they place an upper level of degree of
development on enjoyment time.

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Develop effective cross-cultural management styles for successful venture in the selected
foreign market
The significance of cross-cultural management lies in the developing co-operation between
companies in various countries due to raise challenges in the various cultural backgrounds.
Figure 1: Model of culture
Source: (Okpara, J. O., & Kabongo, J. D. (2011).
The above mentioned image shows the model of culture which depicts the mandatory factor need
to be within the organization in order to bring improvement in the system. The time has
significant impact over the performance of the employees which is necessary to be undertaken by
the company (Okpara & Kabongo, 2011). There are number of organizations in US that
encourage employee to complete their target by making their own wish. Individualism is the
factor that refers to the culture that has focused on the individual over the group. Individual is the
aspect which is supposed to be more self-reliant and there is no need to remedy to the group and
there is no need to make difference (Bird & Fang, 2009). Collectivism focuses to the effective

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values of the group where the interests overweigh in comparison of individual. It has been found
from the study of Hofstede that the collectivism in various countries is different (Jack &
Westwood, 2009). The management of cross culture is quite different for United States that
ranked first in the dimension of individualism where the role of the parents is to bring up their
children on self-reliance. In the point of view of personal, it has been found that the ventures that
have the tendency of the individualism will have more independent managers and employees
who have calibre to show responsibility towards any kind of job or tasks they need to perform.
On contrary, in cultures the value of collectivism managers as well as employees in the top
management should have the tendency to allocate the authority to other employees (Migliore,
2011). This can outcome in number of conflicts in the company where by the job is taken in to
consideration by the others.
It is discussed in brief assignment that the management styles are entirely relied on the culture of
the country. It has been found that there is an Ubuntu Philosophy which is quite unfamiliar
outside Africa and it has been taken into consideration that the concept of social and moral that
regulates the business philosophies and management in Africa are interconnectedness among
people and highlight the values of the business (Akande, Adetoun, Adewuyi, Akande, Ntshanga
& Osagie, 2012). African business culture is required to communicate in the culture of Africa in
order to develop business opportunities in the form of features of interpersonal relationship.
There is an element of collectivism which is the concept of Ubuntu that influences many areas of
the culture of Africa and behaviour of people towards obligations for personal life. Impact of
interpersonal bond and obligation is believable noteworthy aspect in conventional African
culture with a same kind of expectations.

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There are some cross-cultural management styles which need to be followed by the successful
ventures of Africa and US. The cross cultural management styles can be democratic for Africa’s
venture and transformational for US’s success ventures. It has been found that it is the biggest
confront of any cross border merger is to develop the strengths of every culture and every
employee of the organization in mutual respect to develop rationality between cultures and
strategies along with the form of the companies, management styles and modes of
communication between partners. With the globalization of economies and activities related to
the consumption, it is vital for the managers of every kind of managers to develop sensitivity of
cross cultural communication (Ochieng & Price, 2010). In the context of US management style,
it is required by the management of US to focus on individualistic approach as the managers of
US is accountable for the decision making approach within their facts of responsibilities.
Important decisions can be described in open form by the management of the ventures of US.
Transformational style is effective because it is the style that is having proactive adjustments to
the visions and mission of the company. It has been found that the managers of America are
more interested in disregarding the opinions of subordinates in comparison of the managers in
other. This kind of activities leads to frustrations. Transformation management styles would be
suitable for the venture of the US because this kind of management style help to make morale
between employees.
With respect to the management style of Africa, it has been found that there should be
democratic management style because as per discussion above in the comparison of cross
culture, it has been analyzed that the management of venture in Africa need to be democratic.
Democratic management style helps the venture to be flexible and involve them in the important
decision of the management. It is the style that helps manager to reach decisions with the input of