Analysis of International Management Practices Across Borders Report

This report provides an executive summary of international management practices, focusing on the evolving landscape of global business strategies. It examines the interplay of national culture, cross-border practices, and international management, emphasizing the impact of high competition in the international business environment. The report explores various models and frameworks, including Porter's Diamond Model, Hofstede's cultural dimensions, Lewis's model of national advantage, and Trompenaars' cultural dimensions, to understand the complexities of the global market. It discusses the significance of cultural differences, economic models, and legal aspects in cross-border business, highlighting how organizations adapt to succeed in this dynamic environment. The analysis covers topics such as economic models, cultural influences, and the legal frameworks that shape international business operations, providing insights into the challenges and opportunities faced by multinational corporations. The report highlights the importance of understanding cultural nuances, consumer behavior, and strategic management to navigate the global market effectively.

Managing Across Borders

Executive Summary
International management practices depict changes in global business strategies to reveal a
fusion of national culture, cross border practices and international management practices.
Researchers continue to delve into this topic because of the emerging trends sparked by the high
competition in the international business environment. The struggle for market share explains the
strategies adopted by multinational corporations and countries in international operations. The
international system has opportunities and challenges. Organizations adopt similar plans that
ensure their survival in this system. However, there are certain differences in the regions, which
organizations cannot ignore. The classification of the globe into national, regional and
international perspectives unveils these differences. Culture emerges as a crucial factor in this
interaction across different borders. People influence the success and failure of organizations in
these markets. Therefore, consumer lifestyle, values and practices are important factors for
strategic management across border. This report highlights some of the factors used in the cross
border business with culture at the center of the analysis.

Table of Contents
1.0 Introduction...........................................................................................................................................4
2.0 Understanding the Global Market..........................................................................................................4
2.1 Economic Models of Reason.............................................................................................................5
2.2 Porters Diamond model.....................................................................................................................5
2.3 Hofstede’s Model..............................................................................................................................6
2.4 The Lewis Model of National Advantage..........................................................................................7
2.5 Trompenaars......................................................................................................................................7
3.0 Cross national similarities and differences in management practice......................................................8
3.1 Scope of activities on the international management.........................................................................8
3.2 Management and leadership in the global environment.....................................................................9
3.3 Cultures and complexity in international management....................................................................10
3.4 legal aspects of managing across borders........................................................................................10
4.0 Conclusion...........................................................................................................................................11
Bibliography..............................................................................................................................................13

1.0 Introduction
The national culture affects management behavior in global business because of its differences in
ideologies, culture and consumer values. Global thinking seeks to explain individual factors by
breaking down business actions by international players. The best way to understand why
organizations undertake certain steps is to dissect the reasoning behind it. The business strategies
used by multinational corporations explains the pros and cons of the international environment.
The Porters diamond model brings out the competitive nature of global organizations by showing
how corporations manage to succeed. On the other hand, Hofstede and Lewis diversifies the
regions using the cultural dimensions (Itim International , 2017). Managers in the global business
environment try to capture the global markets by connecting with the new stakeholders. Arthur
Lewis uses an approach that describes the difference between an industrial state and a
subsistence one. This gives a wide array of factors emanating from the growth of national
economies from traditional to industrial states. These economic and cultural approaches to cross
border business management analyze highlight strategies used by nations in the markets. It also
shows similarities and differences that compare and contrast management across cultures. The
analysis of legal matters brings out the role of the national government in determining the policy
framework within which organizations operate (Scherer & Palazzo, 2011: Welter & Smallbone,
2011).
2.0 Understanding the Global Market
Cross-cultural strategies acknowledge that the world continues to become one under
globalization yet there are differences in cultural practices, values and identities. One of the
common factors is technology, which is common across nations. E-commerce is one of the
factors influencing the growth of the international market. Nations interact on a business
platform and people can exchange ideas easily via the internet. World languages like English
continue to rule the international communication scene although there are local translations.
Despite these, communication cues such as nonverbal communication exhibit difference.
Multinational organizations use localization as a strategy to gain acceptance in the national and
regional markets (Cullen & Parbotteah, 2013, p. 63). There are economic and cultural oriented
theories, which provide insight into the cross border practices.

2.1 Economic Models of Reason
Theoretical approaches that identify common factors include the international trade theory,
which points towards challenges and opportunities in the system. When nations interact,
economic benefits arise because of the trade in goods and services. Multinational corporations
today have branches across the globe because of this. Consumers recognize popular brands like
Nike, MacDonald’s, Samsung and Mercedes because of the trade activities. The emergence of
multinational corporations (MNCs) in cross border business was not easy because some regions
like the Middle East staged a resistance (Castells, 2011). Some countries have a surplus of
certain goods while others show deficits. Africa and Asia are rich in human and natural resources
hence become great investment points for manufacturers looking for cheap labour. The
westernized countries have financial and technology advantages, which explains their dominance
in the world, trade scenes. One way to understand the cross border operations is to analyze the
capital-intensive economies verses the labour intensive ones. The exploitation of the global
market creates winners and losers (Zott, 2011). This leads to the emergence of some countries
and organizations as superior than others. Consequently, this is a reason for strategic planning as
nations strive to gain a competitive edge. It also shows the emergence of intellectual properties,
which is a great battleground for technology firms (Panitch & Gindin, 2012).
2.2 Porters Diamond model
Michael Porter views the national markets as unique in that factors such as innovation and
natural resources place some local markets at an advantage. In his opinion, there are four factors
influencing this. He points out that the local firms have attributes or strategies, defined by the
type of competition in the market. He also notes that local suppliers and other industries
compliment the firms so that they gain from each other. In addition, the demand within the local
market encourages innovation and growth in a nation for its growth. This explains why China,
India, U.S and Australia take advantage of their market sizes to adopt policies that encourage
local consumption of their products (Ryan, 2017). Porter reiterates that the local market has
resources and capabilities, which shape the production trends. This means some countries stand
out because of their geographical benefits while others have man made resources like technology
and skilled work force. For example, BMW luxury cars sell more in Europe despite their high
fuel consumption. Factors such as innovation, professional skills, technology and infrastructural
development favor the growth of industries in some regions (Sakakibara & Porter, 2001).

Figure 1: Porters diamond approach (Sakakibara & Porter, 2001)
This theory of competitiveness encourages innovativeness in the local, regional and industry
levels. Stakeholders pursue strategies like mergers in order to emerge as better than their
counterparts do.
2.3 Hofstede’s Model
Professor Hofstede identifies six dimensions, which he terms as cultural dimensions. These are
power distance, individualism, masculinity, uncertainty avoidance, long-term orientation and
indulgence. Used as indices measures, these dimensions describe the level of acceptance in a
country. For example, socialist states like China, Singapore and Tanzania in Africa have a high
level of collectivism as compared to individualism in western nations. In these countries,
communal cultural values are very important. Business organizations use these analytics for
business etiquette and strategies during market penetration in these economies (Mitchell, 2016).
Hofstede notion on femininity verses masculinity provides a guide for organizations to
understand their chances of success with mergers (femininity) or competitiveness (masculinity).
This breaks down the quagmire of futile investments, which collapse as soon as they start
(Korutaro & Biekpe, 2013). Regulations and policies in new markets are important factors that
differ across the globe. As a result, Hofstede advises on an analysis of uncertainty avoidance. In

his opinion, indulgence and restraint determine the drive in a nation therefore; organizations
must get an insight of the long term and short-term orientations of a society. For example, Japan
and Brazil have come a long way into exhibiting their economic strengths because of the people,
beliefs, and lifestyle, which translate to consumer trends (Waburton, 2017).
2.4 The Lewis Model of National Advantage
Theorists Arthur Lewis states that the international market is a dual economy featuring capitalist
and subsistence sectors. The theory provides explanations as to why employees may travel across
borders in search of greener pastures. It explains the growth of most economies from traditional
to industrialist’s economies (Lewis, 2013). With specific focus on the agricultural sector, the
approach shows why some regions enjoy a constant supply of workers. The international capital
flight has deprived some regions like Africa of important skills. Citizens move abroad in search
of jobs in industrialized countries. It explains the challenges of industrialization such as poverty,
margination and monopolization. This approach describes an industrialized economy in which
the manufaturing sector is thriving in terms of better wages and surplus production. Researchers
use this theory to understand whether it is better to replace traditional economic factors with
capitalist multinationals. This method of analysis raises questions on the ability of a capitalist
economy to deliver economic benefits in a nation with some single nation allowing companies to
make very high profits (Wood, 2012). The dual sector approach also analyses capitalism to in
terms of the unequal distribution of resources.
2.5 Trompenaars
Similar to Hofstede, Fons Trompenaars also recognizes cultural differences to explain global
management. However, he mentions seven dimensions in comparisons. He discusses
universalism verses particularism to explain why regions have standards of values that
organizations must respect. These govern ethical practices within nations in that Muslim
countries will reject MNCs because they advocate for western thoughts like equality and women
rights. This relates to his opinion of individualism verses communitarianism as more people
adopt the global culture out of choice. Trompenaars reference to neutral verses emotional
cultural dimensions brings to memory consumers perception of brands from Islamic regions (Al
Mutawa, 2013). He also discusses specific verses diffuse culture to explain how people accept
culture from social influences and personal choices. The spread of ideas via social media

confirms this notion. Other dimensions are achievement verses ascribed and sequential verses
synchronous- which shows the progressive adoption of international trends like technology and
innovation. Time reveals changes in the international management because of the factors of
change. That is why he suggests that people go through internal verses external direction, which
determines their outcome. Some analysts point that this is a more comprehensive approach than
Hofstede and others (Stahl & Tung, 2015).
3.0 Cross national similarities and differences in management practice
There are difference in how people and places look as well as how they operate (unice, 2008).
The national culture characterizes the regions with distinct attributes that distinguish locations by
their culture, values, lifestyle, food, language and norms. This creates a pattern within the
regional systems to unveil the Asian, American, Africa, European, and Australian cultures.
National differences explain the framework used in the formation of global interaction. That is
why firms take restraint when investing in cross border locations because culture shapes
consumer trends. Some brands have faced the wrath of the local communities for failure to
recognize these differences (Waldmeir, 2013). It is important for organizations to carry out a
Strength, Weakness, Opportunity and Threats analysis because it highlights its capabilities.
(Castells, 2011)
Similarities in global management incudes common factors like technology adoption. Nations
across the globe have adopted the internet and other innovative measures within the business
levels (Van der Stede, 2003). E-commerce, mobile technology and changes in management
practices are some of the new but shared ideas. The corporate world of business shares
approaches on how to succeed in the global market. Based on the high competition, firms have to
invest in emerging trends for best practice. Multinational corporations focus on Strategic Human
Resource Management in order to be able to manage cultural diversities in the workforce. Most
national groups allow MNCs to operate in their regions because of the competition and economic
benefits that come with it. MNCs stir other companies to growth through best practices and high
standards of operations (Green Garage, 2015).
3.1 Scope of activities on the international management
International organizations operate via mergers, acquisitions, franchising and market penetration.
These are strategies used by companies when entering a new market because of the political,

economic, social, technological and legal reasons. In some cases, the use of local brands exudes
confidence among the locals. Partnership with the locals adds value in terms of capital and ideas.
The spread of the international corporations in the regions also creates quality jobs for improved
standards of living and economic status of the locals. In most cases, large organizations invest
back into the community with its profits. Part of the investment is in research and development,
which encourages innovation. Corporate Social Responsibilities in form of charitable plans have
benefited national communities in health, education and environmental management (Crane, et
al., 2013). However, there have been complaints about some MNCs giving national governments
and local communities a raw deal (Castells, 2011, p. 189). Some also argue that the introduction
of MNC creates monopolies, which kill the local industries. What’s more, MNC in the retail and
technology world make exceptionally high profits in regions.
International management tries to integrate business culture with national attributes (Sukumaran
& Bhaskaran, 2007). The incorporation of values and beliefs connects the foreign brands to the
local population. National values influence management practices in all parts of the global
business. New entrants find common ground when penetrating the local markets. This ensures its
success despite the differences in business plans. Some firms like the manufaturing industry have
to incorporate sustainability factors that assure the community of environmental friendly
practices. Failure to consider the local communities has led to adverse effects on natural
resources.
3.2 Management and leadership in the global environment
Effective leadership in cross border management covers economic practices and the management
of people. The competitive environment calls for multilevel business operations with branches
across borders. Leadership at the international management level is different from other settings
because it involves managing a multicultural team (Waburton, 2017). Leaders in international
corporations have to overcome culture and language barriers. Adapting to different environments
is a prerequisite because leaders ta a global setting travel a lot. Being able to cope with change is
a plus for managers and expatriates willing to work in foreign countries. Organizations have
structures that facilitate for multinational management practices.
Leaders save time by using communication strategies such as cloud computing and video
conferencing to reach out to all branches. These techniques are also effective in training,

recruitment and sharing information (Green Garage, 2015). Although the global environment
provides immense opportunities, leaders are also aware of the need for risk management against
problems like insecurity, cyber-attacks and patenting rights wars. Organizations are also keen on
the political, economic, social, technology and legal. Laws are different across the nations and
they affect business operations. Management and leadership overcomes challenges by using
strategies designed for global organizations. Among these is the use of mergers and joint
ventures for market entry or market penetration. These tactics give brands a competitive edge in
the national, regional and international market (Jurevicious, 2013).
3.3 Cultures and complexity in international management
Culture defines a complex aspect of the international system because it represents numerous
elements such as the social and religious factors. What is acceptable in Europe may not sell in
Africa always. This challenge makes it hard for franchising which tries to duplicate the brand in
the host country. In an effort to become part of the local industry, firms incorporate local
elements like language and regional images in advertising as part of branding strategies.
Although English comes out as a common language, it has differences between UK and
American versions. Global culture influenced by the popular culture is mainly celebrity oriented.
Differences in religious practices means that values and norms are divergent.
Other aspects of culture represents the social factors such as the education levels and
professional skills. However, some theorists distinguish between culture and social factors citing
differences in framework (Chan, et al., 2012). These are different because of different standards
and systems of education. Hiring employees in some regions is a challenge because of the skill
deficit. At the same time, there are stringent measures for importing skilled professionals in such
regions. The high tax rates, unfamiliar working environment and cultural differences impede
organizations from operating effectively across borders. These also hinder settlement of
foreigners in a host country, especially business developers seeking new investment locations.
The use of universal standards of education such as TOEFL allows students and professionals to
travel across the border for serious businesses (Coombe, 2012).
3.4 legal aspects of managing across borders
Government laws and policies also differ. Some regions like China have a communist system,
which has democratic elements. Some nations like Socialist Singapore favor community

development to the free market system (Kowalczyk, 2015). The central government is
responsible for tabling business policies that govern foreign operations. In some regions,
multinational companies are free to own international properties and other related business
operations. Some regions are more restrictive and skeptical about the economic control of MNC.
High tax rates discourage business investments in some areas. The export of goods across
countries at lower cost depends on the foreign market policies. In some regions, there are trade
barriers caused by bilateral and multilateral trade agreements. These influence small, medium
and large companies. Legal policies concerning procedures and international operations apply in
different contexts. International organizations need to understand the rules clearly in order to
avoid noncompliance. Despite the presence of national and international laws, there are
challenges; investors cannot find answers to regional hindrances like insecurity (Sunga, 2015).
Compliance at a global level presents risk management because companies have lost millions in
legal battles. There are laws governing global functions and operations. International
organizations incorporate risk management strategies to manage change in regulation, competitor
battles and other legal matters. Retail stores have faced numerous legal suits, and penalties for
irregularities and violation of labour laws (Vandevelde & Mooney, 2017). Multinational
companies in the technology world have multiple lawsuits in different parts of their operations.
These differ in magnitude and scale. The court battles feature investor’s claims, internal
mismanagement issues, scandals, malicious suits or simple violations.
4.0 Conclusion
Managing across border is complex and multidimensional. Culture is one of the main factors
influencing the management of organizations and people across national settings. In order to
understand how nations and multinational corporations operate in different regions, it is crucial
to break down some of the elements affecting the processes. These dimensions give way to a
myriad of approaches on how to succeed internationally. Management practices make use of
theoretical approaches to solve challenges while taking advantage of the opportunities.
Differences and similarities in these nations determine the trends adopted by the global brands.
The economic dimensions compliment the cultural dynamics because both acknowledge the
unique natural resources that distinguish or characterize nations.

The scope of the international operations covers external factors that influence decisions made.
Organizations choose to adopt strategies such as the Hofstede culture dimension as a way of
handling these diversities. On the other hand, an integrated approach also looks at the political,
economic and legal factors influencing management practices. Technology as a common factor
is evident in all national systems. It serves as a tool for spreading global culture, which is
acceptable in all countries. Despite resistance from some conservative regions, globalization is
an inevitable aspect of managing across borders. Each nation has its strengths, weaknesses,
opportunities and threats to manage.