Cross Cultural Management Report: Hawthorn International Expansion

This report delves into the cross-cultural management challenges faced by Hawthorn International, a UK-based cloth manufacturing firm, as it expands its business operations into Bangladesh. The report highlights the significance of understanding cultural differences in managing a diverse workforce in a globalized business environment. It identifies key issues such as language barriers, religious differences, mismanagement, and inequality, and their impact on business operations. The report includes a SWOT analysis of Bangladesh, assessing its strengths, weaknesses, opportunities, and threats. Furthermore, it provides practical measures that Hawthorn International can implement to address these cultural issues, such as learning key phrases, promoting cultural appreciation, and being accommodating to diverse needs. The report emphasizes the importance of effective communication, cultural awareness, and strategic planning for successful international business expansion.

Cross Cultural
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASKS ............................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Due to globalisation of business operations in a fast speed, workforce of every enterprise
is becoming diverse and multicultural on an increase level (Bhattacharyya, 2010). This give rise
to the pressure on managers of human resource department to recognise the cultural differences
and adapt the same in order to managing global workforces. Ignorance of same give rise to
number of cross cultural misunderstanding. Due to increase importance of developing economies
on international business environment, human resource managers are facing number of
difficulties in managing cross cultural relationships. Hawthorn International a cloth
manufacturing firm which produce garments of high quality is taken under this report for study.
Various cross cultural issues face by the management of Hawthorn International due to
variations is national cultural and how these can be addressed is all mentioned in this report.
TASKS
Expansion of business operation of Hawthorn International
Hawthorn is one of the most popular and leasing manufacturer of clothes which produce
and distribute products of high quality in all sizes. Due to continual innovation, firm is
committed to provide products which help in meet the standards of target customers of company.
Firm is come under the top designers of UK and innovative design of enterprise allow firm to
follow the latest trend in world of fashion (Bian and Forsythe, 2012). Firm is focusing to expand
its business operations in Bangladesh but due to expand in other countries company face number
of issues. One of the main issues faced by enterprise is management of cross cultural activities.
Basically when firm expand its business operations in other countries then the first problem
which firm face is difference in the language of home country of firm ad the language which is
use and spoken in other nation (Chen and et. al., 2010). For example, the local language of
Bangladesh is Bangla which is totally new and different for the management of Hawthorn
International. Differences in language increase misunderstanding between employees and
management as it become difficult for management to to communicate with workers of
Bangladesh which enterprise will recruit for its new setup in that country. Lack of effective
communication creates unnecessary obstacles in execution of business operation and negatively
affect the growth of enterprise (Dong and Liu, 2010). Further, this also affect the process of
formulating business plans and strategics for future activities of company. In order to ensure
effective implementation of all activities related with production of clothes, it is very important
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for management of Hawthorn International to first understand these issues and them take
effective steps to overcomes with the issue (Eisenberg, Härtel and Stahl, 2013). This will results
in completion of all business operation in given period of time and will provide number of
advantages to company. Managers can carry out a analysis about the situations exist in another
country and will help management to take decision related with expansion of operations. Execute
business operations in other country is not possible as in its home country use to number of
differences in culture, language, behaviours, attitude and beliefs of individuals. In order to get all
benefits of expanding business operations in other countries, it is very important for managers to
first analyse all these and then provide training to workers to behave in a particular manner.
Cultural issues
Basically culture is a set of knowledge and characteristics of an individual such as level
of his knowledge, social habits, art, music religion and the language which they use to
communicate with each other (Jyoti and Kour, 2015). All these characteristics affect the ability
of individuals to interact with others. All these affect the business operations of enterprises and it
is very essential that all must be consider by the managers of company for make proper and
effective policies for business operations. Policies of enterprise consists the beliefs, behaviour,
norms and values which an enterprise expect from its staff members. Basically policies and
procedures are formulate by manager to govern the behaviour of employees so enterprise can
achieve its set goals and objectives (Lu and et. al., 2010). As Hawthorn International wants to
expand its business operations in Bangladesh, where individuals have different perceptions and
attitudes, management of firm can produce effective policies in order provide a direction to
actions and decision of employees so firm can achieve its set objectives and targets. Further, this
will ensure effective expansion of business activities of Hawthorn International. It is very
important that there must be effective communication among employees and management.
Cultural issues are the obstacles faced by management due to operate in other country
and these arise due to difference in cultural and behaviour of individuals of other country
(Okpara and Kabongo, 2011). All this differences affect the execution of commercial operations
of enterprise in another country. Main issues which face by firm while operate or expand
business activities in other countries can be better understood by following points: Language: One of the major issue and problem which face by enterprises due to operate
in other countries is the language. Different languages are spoken in different countries.
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For example, language spoken in Bangladesh is Bangla and the language which spoken
in UK is English and managers of Hawthorn International does not have knowledge
about the Bangla language. Research revealed that individuals of Bangladesh do not
have adequate understanding about the English (Pellegrini, Scandura and Jayaraman,
2010). This give rise to a major challenge before the management of Hawthorn
International like how to communicate with individuals of Bangladesh and how to make
them aware about the policies of enterprise and about their roles and responsibilities. Religion: This is one of the essential element which largely affect the emotions and
sentiments of people. It is very important for management of Hawthorn International to
first understand about the religion like most of people like in Bangladesh are Muslims,
and for expand business activities management of Hawthorn International have to care
about the religious values of customers (Rehg, Gundlach and Grigorian, 2012). For
achieve this, management require to conduct a sessions which promote cultural
awareness as this will help employees of firm to better understand about the expectation
of its target market. If Hawthorn International avoid this, then this will create future
hurdles for firm due to expand its activities. Mismanagement: When an enterprise expand its business operation in another country
then it needs to formulate plans and procedures to operate in another country. As it is not
necessary, that plans which work and at one place will also work at another place.
Various elements are there which affect the policies of an enterprise such as political,
legal, environmental, technological, social and economic (Stewart and Bennett, 2011). It
is very important that all factors must be evaluate by managers of Hawthorn
International. This will provide an opportunity to managers to better understand about
strengths, weakness, opportunities and threats. For execute business operation in a
effective way it will be helpful for Hawthorn International to analyse the products and
services offered by its rivals.
 Inequality: This is one of the factor which take place at workplace due to expansion of
business operations in different countries. It is very essential that this factor must be
consider by the managers of Hawthorn International and equal opportunity must be
offer to every individual working in enterprise (Thomas and Peterson, 2017).
Discrimination should be from workplace and manager cannot discriminate employees
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on basis of their gender, culture, religion, age and on any other basis. Research revealed
that in Bangladesh, females do not interact with males openly and feel hesitate and this
affect their performance. In this case, it comes under the responsibility of Hawthorn
International management to provide personal space to all workers.
All these are the main issues which face by an enterprise during execute its business
activities in other countries. In order to execute business operation in another countries manager
of Hawthorn International can go for SWOT analysis as this help enterprise in collect more
information about the country in which it want to operate.
SWOT analysis of Bangladesh
SWOT analysis is a process which help enterprise in known about the main elements
which can effect the activities of business in both positive and negative way. Further, this guide
managers in formulate policies and strategies related with business activities which ensure
maximum utilisation of company's resources and provide various benefits to company (Zhu and
Bargiela-Chiappini, 2013). One of the main advantage of this is that it help firm to collect more
information about tastes and preferences of its customers and help in satisfy their needs. This
provide competitive advantage to enterprise and at the same time help in capture a larger market
share. SWOT analysis of Bangladesh can be understand by the following points: Strengths: This is known as the features and characteristics which provide an additional
benefit to a country as compare to the others. One of the biggest strength of Bangladesh
is that its low labour cost and this attract more number of enterprise to start their business
operations. This increase the profits of company ad at the same time due to low labour
cost it provide an opportunity to company to offer quality products at affordable prices.
This provide a competitive advantage to organisation (Zhu and Bargiela-Chiappini,
2013). Further, rules and regulation of government in Bangladesh are linnet which save
both time and cost of enterprise. Weakness: This is known as the element which affect the expansion of business activities
in negative way. Weakness of Bangladesh is that there is no proper infrastructure
facilities further, there is lack of communication and transportation facility. Along with
this, low education level of citizens is another weakness of Bangladesh. All this affect the
living standard, earning and economic level of whole nation which give rise to lower
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demand of individuals. This decrease the sale of company's products and its rate of
growth. Opportunities: Biggest opportunity before managers of Hawthorn International that there
is low competition in Bangladesh especially in clothing sector (Thomas and Peterson,
2017). This provide an opportunity to enterprise to offer variety of products to its
customers and capture a larger market share.
 Threats: One of the biggest threat in Bangladesh is that large number of citizens are
Muslims whose preferences for clothes is different. They do not like fashionable clothes
and this serve as a threat before Hawthorn International as firm only deals in fashionable
clothes. Further, low income level also serve as a threat as this decrease the demand for
fashionable products.
Measures which can be taken by Hawthorn International to address cultural issues
In order to execute business operations in an effective way and to achieve set objectives
and targets it is very essential for enterprise to overcomes with all cultural issues. Ignorance of
same create unnecessary hurdles in growth and success of firm. Measures which can be taken by
the managers of Hawthorn International are as follows: Learn a few key phrases: This element provide an opportunity to enterprise to improve
its communication with staff members. For operate in another country, it is very essential
for managers and staff members to learn new language which is not easy for everyone.
This consists learn few greetings and phases which will help them for long period of time
(Stewart and Bennett, 2011). All this help enterprise in build a cooperation with
employees and help in better understand bout preferences and needs of customers. This
help in create and maintain a good relations with customers and employees and provide
long term advantages to company. Promote appreciation of cultural differences: This is situation, in which enterprise
provide an opportunity to every staff member to share their culture with other employees.
One of the main benefit of this is that it help workers to better understand about the
cultural differences of employees and respect the same. This enhance trust among all
employees which create a positive and healthy work environment and increase
productivity of organisation.
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 Be accommodating: This aspect ensure fulfilment of various needs of staff members
working in enterprise. For example, if workers time for prayer or for there religious
holidays then enterprise is responsible to accommodate the same. In order to avoid
conflicts, Hawthorn International have to offer religious holidays to its workers. One of
the main benefit of this is that it help enterprise in gain loyalty of customers and retain
them for long period of time.
 Be open to try new things: In order to expand its business operations in an effective way,
it is very important for firm to try new things. This consists provide free space to workers
so they can complete the assign tasks in an effective way and this also increase their
creativity. All this help enterprise in remove its cultural differences.
All these are the main measures which can be taken by the management of Hawthorn
International in order to remove cultural differences. Basically employees who work in
enterprise are one of the key element of whole concept of cultural management (Rehg, Gundlach
and Grigorian, 2012). It is very essential for staff members of enterprise to understand the
cultural differences of other employees and respect the same. In order to encourage the workers
there are various theories which can be used by the managers.
Herzberg theory
This is a theory of motivation which said that basically there are two factors which
motivate an employee to perform well and which must be there at workplace (Herzberg’s Theory
of Motivation: Hygiene factors and Motivator factors, 2017). This can be used by the managers
of Hawthorn International in order to motivate its staff members. As per this theory the main
two factors which influence the performance of staff member can be understood by following
points:
 Hygiene factors: This aspect consists the element which do not provide satisfaction to
employees but must be there at workplace otherwise leads to dissatisfaction.
 Motivator factors: Under this aspect, managers use rewards and recognition in order to
motivate the employees to work better.
Culture shock
This factor is known as the feeling of confusion when an individual start work in
different culture. This rise due to expansion of business activities in other countries (Okpara and
Kabongo, 2011). Same situation is face by Hawthorn International as firm is expanding its
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business operation in different countries. Basically there are four stages include in this known as
honeymoon stage, frustration stage, adjustment stage and acceptance stage.
CONCLUSION
From the above information, it can be summarised that whenever an enterprise do
expansion of its business operation in other countries then it face number of cross cultural issues
which largely affect the activities of business. One of the main issue face by enterprises is
language which affect the communication and increase the chances of rise conflicts at workplace.
Number of elements are there which affect the expansion of business activities of enterprise. In
order to achieve set objectives and goals it is very essential for managers to first identify the
main key elements exist in international business environment and then consider all those
elements during policy formulation for business activities. It is very important for the enterprise,
who operate in various countries to conduct interaction programmes for its workers so that
employees can share their culture with other employees and can respect the same. All this help in
create a positive work environment and at the same time increase productivity of company.
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REFERENCES
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Bhattacharyya, D.K., 2010. Cross-cultural management: text and cases. PHI Learning Pvt. Ltd..
Bian, Q. and Forsythe, S., 2012. Purchase intention for luxury brands: A cross cultural
comparison. Journal of Business Research. 65(10). pp.1443-1451.
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effectiveness? A multilevel investigation of the moderating roles of subsidiary support
and cultural distance.Academy of Management Journal. 53(5). pp.1110-1130.
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An International Journal.17(3). pp.223-243.
Eisenberg, J., Härtel, C.E. and Stahl, G.K., 2013. From the guest editors: Cross-cultural
management learning and education—Exploring multiple aims, approaches, and
impacts. Academy of Management Learning & Education.12(3). pp.323-329.
Jyoti, J. and Kour, S., 2015. Assessing the cultural intelligence and task performance equation:
Mediating role of cultural adjustment. Cross Cultural Management. 22(2). pp.236-258.
Lu, L. and et. al., 2010. Cross‐cultural differences on work‐to‐family conflict and role
satisfaction: A Taiwanese‐British comparison. Human Resource Management. 49(1).
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study of western expatriates in Nigeria. Journal of world business. 46(1). pp.22-30.
Pellegrini, E.K., Scandura, T.A. and Jayaraman, V., 2010. Cross-cultural generalizability of
paternalistic leadership: An expansion of leader-member exchange theory. Group &
Organization Management. 35(4). pp.391-420.
Rehg, M.T., Gundlach, M.J. and Grigorian, R.A., 2012. Examining the influence of cross-
cultural training on cultural intelligence and specific self-efficacy. Cross Cultural
Management: An International Journal. 19(2). pp.215-232.
Stewart, E.C. and Bennett, M.J., 2011. American cultural patterns: A cross-cultural perspective.
Hachette UK.
Thomas, D.C. and Peterson, M.F., 2017. Cross-cultural management: Essential concepts. Sage
Publications.
Zhu, Y. and Bargiela-Chiappini, F., 2013. Balancing emic and etic: Situated learning and
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Online
Herzberg’s Theory of Motivation: Hygiene factors and Motivator factors. 2017. [Online].
Available through: <https://olivergearing.com/herzbergs-theory-of-motivation-hygiene-
factors-and-motivator-factors/>
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