Air Pie's Global Strategy: An International Management Report

This report delves into the international management strategies required for Air Pie, a UK-based fast-food restaurant, to successfully expand its business into Japan and the USA. It begins with an introduction to organizational culture and its influence on international business, emphasizing the need for adaptability. The report then analyzes the role of culture in shaping international business, referencing Hofstede's cultural dimensions to illustrate the differences between the UK, Japan, and the USA. It assesses the implications of these cultural differences on management, organizational strategy, and operations. Furthermore, it provides strategies to overcome cultural barriers, including the importance of innovative approaches, customer-centric strategies, effective communication, and action-oriented planning. Finally, the report highlights the significance of self-awareness and sensitivity to cultural diversity for Air Pie's success in its global expansion, considering the importance of government regulations and employee behavior.

INTERNATIONAL
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1. Role of Culture in shaping international business................................................................1
2.2. Implications to management, organisational strategy and operations ...............................5
2.3. Strategies to overcome the cultural differences...................................................................5
2.4. Importance of self awareness and sensitivity to diversity in culture...................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organisational culture refers to rules, regulations, customs and values that are followed in
the system. Hence, it represents diverse type of culture which is followed throughout business
life. As organisation have to operate in environment which is dynamic in nature and keeps on
changing with time. Thus, they have to modify their operations considering all these concepts.
They have to apply definite strategies into their system to carry out the process effectively and
efficiently. This report highlights the case of Air pie which is a well-established fast food
restaurant in UK, but due to market saturation they wish to expand their business to Japan and
USA. They have to face cultural differences because of entrance into new market segment,
therefore management have to understand the cultural implications. This assignment also
highlights the importance of self-awareness and sensitivity that arises as a result of cultural
diversity.
TASK 2
2.1. Role of Culture in shaping international business
Organisational culture refers to process that is followed in the system and aims to
accomplish final objectives in definite time period. Managers plays very important role in
establishing healthy working condition. As they have to operate in different markets that consist
of diverse cultures that directly impact the vision of the company. As Air Pie have to shift their
operations from UK to USA and Japan due to market saturation. Thus, their management have to
adopt culture of these two countries. They have to frame new strategies according to business
environment that have to be implemented properly and correctly in proper time frame. Business
have to function in continuous changing environment and thus have to be flexible in their policy.
Hofstede's cultural dimension aids in understanding the cultural difference concept that
get arise in organisational structure. He coined six dimensions that is discussed below:
 Power Distance Index(PDI): It refers to differences that is there in company and is
solved in proper time. It can be high or low.
High PDI  It is applied in centralised organisation
system.
 It is also characterized by several
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hierarchy system.
 There is distance between number of
authorities and levels.
Low PDI  Low PDI signifies that there is flatter
business firm.
 In organisation employees and
employer are equal before system.
Thus Air Pie also consider the different methods of Power distance index which help
them to collect information of Japan and USA in better manner which help company tom
identify the market situation, although firm will wok according to this criteria as well.
 Individualism Versus Collectivism: It indicates the relationship that individual shares
with each other in their community.
High IDV  High IDV indicates that person are
ready to take challenges and receive
their outcomes in return of work done
by them.
 More focus is made on freedom of
workers that are working in company
institution.
Low IDV  Low IDV refers to attention made on
developing skills and become expert in
some area.
 It also signifies that there is overlapping
of several issues and aspects that may
arise in team structure.
Air Pie have to make strong bond between people of different nature so that there is no
problems that can arise while performing the work. Through this, approach there is
encouragement of employees thoughts so that proper involvement can be made.
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 Masculinity verses Femininity: It refers to different role played by males and females.
They have separate responsibility associated to them which they have to full fill in proper
time period.
High MAS  High MAS refers to generation of
feeling of pride as particular
community acquire high importance.
 This type of approach is characterised
by increase in financial gains and
achievement of heights that become
essential.
Low MAS  Low MAS is characterised of
relationship oriented and more
assistance is given to increasing life
quality.
 According to this final target can be
attained through negotiation and
cooperating various methods together.
In this Air Pie have to consider this by employing females and males in equitable amount
so that there is no gap remain in the society. They are treated equally before management and
there is no inequality that exist between them.
 Uncertainty Avoidance Index: According to this index, it can be measure that how
individual can able to handle anxiety that occurs to them in various situation. There are
conditions which are controllable and can be met out easily with time. It is also denoted
with high UAI and Low UAI.
High UAI  It is characterised with risks and
failures that may arise in future time.
 Here, people are free to showcase their
emotions or actions that may be
positive or negative.
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Low UAI  This phase involve adapting new and
innovative things that are happening in
society in order to run organisational
system.
Air pie have to consider these points carefully as they have to operate in some country
which are different from each other in many ways. Employees that are working is different from
each other in number of ways like attitude, behaviour etc.
 Pragmatic Versus Normative(PRA): This approach is recently been introduced in the
four phases that are being discussed below. It has long term scope and strong relation is
developed between different religion and nationalism.
Pragmatic  This include education that is consider
as favourable point.
 Modesty is also a main characteristic of
this approach.
Normative  This approach have major
concentration on rights and values that
are present.
 Workers not ready to settle as this is
consider as their weakness.
Air Pie have to calculate PRA so that decision making process can be made simple and
properly while considering all aspects that are discussed above.
 Indulgence Versus Restraint(IVR): It is a sixth dimension of Hofstede having high and
low points.
High Indulgence  This plan of action emphasised in
creation of positive attitude.
 It also concentrate on encouraging
freedom of speech and equality.
High Restraint  It is opposite of above discussed phase
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that has negative approach.
 It is highly controllable and have stable
actions.
Air pie have to examine all these aspects properly in order to perform the task smoothly
without any obstacle.
2.2. Implications to management, organisational strategy and operations
There are various modifications that Air Pie have to make in different sectors that include
operations, organisational strategy and management. These implications can be favourable and
unfavourable depending upon the condition that is prevailing in current market segment.
STRATEGY: - This is that which help company to stand by in market and compete with other
firms who re producing similar product and services in better manner and thus such situation
make them to earn higher profits as well (Ein-Dor, 2012.).
New ideas and innovation: Company should formulate such strategies that remain
flexible and is ready to accept risks that are coming up with time. Innovative strategy that
involve coming up with new ideas and thoughts so that they are able to work in conducive
manner.
Knowing different culture: As it is a food restaurant company, there are number of
competitors that will be already constituted in these two countries. Hence, they have to work
smoothly and properly. Company have to consider the demands of people of Japan and work
accordingly. They have to make changes and modifications in respect to strategies in order to
adopt culture of Japan and USA.
MANAGEMENT: - Cultural difference have impact on management system in various ways
and have number of dimensions. It is consisted of various levels that have specific roles and
responsibilities (Pacheco, Gago, and Méndez, 2014).
Accountability: It is very important to follow policies, aims so that it can be implemented
in proper system. Managers have to take proper attention that policies that are formulated should
be rightly put into action by members of company institution (Knight, 2012). Air Pie have proper
system of management that look after execution of steps that are made by higher level.
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Formulation of Correct policies: Management have to draw several policies that have to
be introduced in the system.
Changes in accordance to respective country: As Air Pie is deciding to shift from UK due
to market saturation. Therefore, they have to restructure their management according to policies
and conditions prevailing in Japan or in USA.
OPERATION: - Cultural differences have huge impact on operation of process that is carried
out in company system. If favourable events are not performed it lead to poor performance and
vice versa. Therefore, operation area should be properly focused (Sen, and Anand, Microsoft
Corp, 2011). Air pie have to restructure their operations in accordance to Japan and USA
wherever they will decide to shift from UK.
2.3. Strategies to overcome the cultural differences
From the above discussion it is found that there are a number of differences in the present
and would be culture of Air pie when it will be established in new areas. For same it is required
that new strategies are formulated which can help in reducing these gaps so that desired goals
and objectives are achieved. Cultural differences have to be met out properly in the
organisational where it is emerging so that the process can be carried out successfully. Air pie
have to restructure their strategies and policies in accordance to USA and Japan culture. The
management have to face totally different working system and hence have to adopt in order to
carry out the operations effectually (André, Tanenbaum, and Zammitto, 2011). Management of
Air Pie have to frame their strategies on such basis that help them to overcome cultural barriers
that are arising. It is discussed below: Cultural difference strategy: Employees of the company have to understand the cultural
differences that are present in the environment where they are working. Management and
employees together have to work towards it. Innovative strategy : Air Pie have to come up new and modern approaches that can be
applied in the system so that they can able to face challenges that are arising. Customer's culture strategy: : Before establishing work process in Japan and USA. Air
Pie have to analyse the customers behaviour properly and than frame policies considering
all these aspects.
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 Effective Communication strategy: : When Air Pie have to draw new policies in other
countries and therefore these rules have to be clearly communicated to employees.
Effective communication system should be decently executed in company system.
Employees and employer have to communicated proper and should be well acquainted
with the regulations that are framed (Xiaofang, 2013). Action Strategy : It is required to develop actions while considering company's mission
and vision. Therefore, it should be framed in accordance to company's final goals so that
these can be aligned together. Air Pie have draft various policies of different nature and
types so that proper conclusion can be made. Diversity policies that are imposed by this
company have to be followed by every one. Controlling and monitoring process is also
carry out after the work is executed (Haijun, and Shixing, 2011).
2.4. Importance of self awareness and sensitivity to diversity in culture
Air Pie is deciding to launch their business in Japan and USA hence, they have to face
lots of diversity in culture system so that they can able to function properly. There will be
government rules and regulations that have to be incorporated in the company. Non- compliance
of these policies will impose them huge problems and will have negative result. Hence, it is
essential to know the behaviour and other aspects that impact the employees in several ways
(Ling, 2013).
Self Awareness refers to finding out oneself so that they can able to know various
opportunities and threats that are available and handle it accordingly. Thus, Air pie have to
determine the importance of self awareness and sensitivity is described below: To understand culture:As Air Pie is planning to establish their management system
internationally for the first time. Hence, they have to know different cultures that are
present in Japan and USA. Being a head of international development consultant it is
essential to have proper knowledge of distinctive cultures so that there is proper carrying
out of work process (Farrell, 2013). To reduce Conflicts: There are number of reasons that leads to generation of conflicts
among different parties that are present in the organisational system. Hence, if there is
proper awareness and sensitivity in present work can be conducted in correct and
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appropriate mode. Air Pie must have correct system constituted in order to remove
barriers that will arise in Japan or in USA.
 To impose new and modern concepts: If there is self awareness and sensitivity of
different cultures that are present in society and therefore, all new things that are coming
up in the market place have to be introduced in company system. This aid them to run in
accordance to current condition and situation (Zhao, NXP USA 2011). Air Pie have to
introduce innovative and modern concepts so that they can able to perform in accordance
to definite process and option. There can be number of situation that require complete
alteration and transformations in complete system.
CONCLUSION
From the above report it has been concluded that Organisational culture plays a very
important role in the company which have to be operated in successful manner. Air Pie have stop
their working in UK due to market saturation and hence decided to shift their operationsto Japan
and UK. Thus, there are difference in working process that need to be consider by company.
There are several strategies that implied to overcome the cultural differences. It will be easy for
Air Pie to adapt in US as they have similar culture dimension.On the other hand, company will
face barriers while entering into Japan. Therefore, they have to make decisions accordingly.
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REFERENCES
Books and Journals
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Century: Proceedings of the Third International Food Legumes Research Conference
(Vol. 34). Springer Science & Business Media.
Si, M., Thue, D., André, E., Lester, J., Tanenbaum, J. and Zammitto, V. eds., 2011. Interactive
Storytelling: 4th International Conference on Interactive Digital Storytelling, ICIDS
2011, Vancouver, Canada, November 28-1 December, 2011, Proceedings (Vol. 7069).
Springer Science & Business Media.
Farrell, K., 2013. Interprofessional Collaboration: A Rural Self-Managment Program.
Haijun, Y.H.Y. and Shixing, C., 2011. Theoretical Study on Interest Rate Policy, Financial
Structure and Capital Multinational Flow——Based on an Extended Model of Interest
Rate Parity Theory [J]. Journal of Guangdong University of Finance. 4. p.002.
Zhao, B., NXP USA Inc, 2011. Method and device for LED channel managment in LED driver.
U.S. Patent 8,035,314.
Ling, N.I.E., 2013. A Study of the International Competitiveness of the Trade in Creative
Products of the BRICs [J]. Journal of International Trade. 2. pp.87-92.
Sen, V. and Anand, K. S., Microsoft Corp, 2011. Storage media tracking and managment. U.S.
Patent 7,882,366.
Xiaofang, D., 2013. Research on International Competitiveness and Development Potential of
BRICS’Financial Service Trade——An Analysis Based on the Statistics of EBOPS.
Journal of the Postgraduate of Zhongnan University of Economics and Law, 3, p.022.
Pacheco, F. C., Gago, B. V. and Méndez, C. D., 2014. Extravasation of contrast media at the
puncture site: Strategies for managment. Radiologia. 56(4). pp.295-302.
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