International Management Report: Allianz's Organizational Culture

This report delves into the intricacies of international management, using Allianz SE as a case study. It begins by examining how Allianz's organizational culture is affected by regional cultures in Germany, South Africa, Brazil, and Shanghai, analyzing the impact of cultural differences on business practices and employee relations. The report then explores the challenges of expatriation in a globalized economy, including causes of expatriate failure and implications for human resources planning. It discusses the EPRG framework and its relevance to Allianz's international business operations. The conclusion summarizes key findings and insights regarding the management of a global workforce and organizational culture in a multinational context. The report also includes references to academic books and journals, as well as online resources to support its analysis.

International
Management

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1a.....................................................................................................................................3
Critically explore how corporate organisational culture of Allianz is affected by regional
cultures...................................................................................................................................3
TASK 1b.....................................................................................................................................5
Write conclusions related to effects of regional cultural issues on corporate organisational
culture of multinational organisation as it organise its business globally by giving examples
................................................................................................................................................5
TASK 2.......................................................................................................................................7
Evaluate the evidence about why Expatriation is still so widely used in a globalised
economy and examine the causes of expatriate failure. What are the implications of
findings for the HR Director and their planning for staffing the new project?......................7
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13
Books & Journal:..................................................................................................................13
Online References....................................................................................................................15

INTRODUCTION
International Management is to be defined as a importing and exporting of
Management activities across the national borders. In this contemporary business
environment, it is critically important to understand the importance of International
Management in business so that decision making is done appropriately (AlMazrouei, 2020).
Allianz SE, which is the global financial service company headquartered in Germany. The
organisation mainly focuses on insurance and asset Management. It has many subsidiaries
such as alliance global investors, alliance France and many more. The company is located at
various locations like Brazil, Shanghai, South Africa and many more. This task focuses on
corporate organisational culture and how it is affected by the regional cultures of different
locations.
MAIN BODY
TASK 1a
Critically explore how corporate organisational culture of Allianz is affected by regional
cultures
Regional cultures refers to a complete set of environment which includes culture
activities and are being carried out as illustrated by residents of the region which depicts their
ethnic, linguistic, and culture regional identity. There are different types of regional culture
which are based on resident’s traditions activities values and beliefs. Moreover it is also seen
that it is necessary for individual to be well aware about to which religion culture they
actually belong (Ashta, 2019). With changing period of time, it has been analysed that
corporate sector is mostly affected by regional cultures as because different types of people
have different thinking and values and accordingly they behave and act in corporate
organisation. Allianz is located at global scale and including the head office there are three
locations of which regional culture affects the enterprise corporate organisational culture at
wider scale. The impact of regional culture on different location is further discussed below-
 Germany- Germany is famous for its history and which scale of people which also
reflects about me European thought politics and art for over a thousand years. The
change of history has also impacted upon the culture which includes Christian values
art philosophy, logic reason and many more. Central Germany is an economic and
culture region in Germany. There are also different types of most popular region in
Germany like North rhine-Westphalia in the west with a population of almost 80

million people. This German culture has been also affected the corporate
organisational culture of Allianz as because it generates more employment in Munich
and it also has a positive culture as reviewed by the employees. This location of
selected company is being affected by regional culture as because people of Germany
are thrifty, sensible and also respect each other's privacy. Due to this, region Culture
Company has to follow all the legal structure in systematic manner.
 South Africa- According to the Africa report, it has been examined that alliance is
booming rapidly in East and South Africa as due to the number of services used by
people of the country. Moreover it has been also analysed that they have been
focusing on partnership in in East and South Africa with many insurance companies
on the basis of which they are able to expand their business at larger scale. Also the
culture of South Africa impact on enterprise services and future goals as because the
culture of two groups which are Zullu and Xhosa mostly preferred the insurance
services and also are the largest groups in South Africa (Benbya, 2018).
 Brazil- Brazil is a diversified country and the culture of Brazil consists of indigenous
Indians Africans Portuguese which modernize the Brazilian life standard. The culture
of Brazil is western and it motivates more diverse culture and nature globally. In
context of Allianz, Brazil as many cities in which most of the corporate sectors are
located such as Sau Paulo, Rio De Janerio etc. Brazil is mostly known for its
inequality in regards of income. The business culture of Brazil is being developing at
rapid scale. With the consideration of Allianz, they also had been impacted by culture
of Brazilian as because most of the people in country are poor or comes from the
middle class family. This makes it positive impact on organisational culture of Allianz
because they are able to provide better insurance services to the public. Organisational
culture of company is affected by Brazilian visual culture as because people in the
country focus towards their work and disturb others from what they are doing
(Bonazza, 2018).
 Shanghai- Shanghai is a rich economy country which has different types of business
cultures and accordingly they allowed other foreign countries to do their business
activities. The business culture of Shanghai is impacted by Confhcianism. This
concept States and reflects about the relationship network which is important and is
based on values of solidarity loyalty modesty and courtesy. In viewpoint of Allianz, it
is also located in Shanghai and provides insurance services on the basis of currency of
China. Also, the organisational culture is affected by regional culture of Shanghai

because people of the country in China have different strategies and accordingly they
implement they work with an enterprise. It makes it difficult for selected organisation
to conduct their business processes and other units properly.
Before the above discussed the matter shows that culture is important which is ready to be
focused by organisational sector so that it is easier to achieve mission vision and objectives
without facing any issues. This is also analysed that it is necessary to identify the culture of
organisation and other regional cultures on the basis of which it is easy to make decisions and
which results in positive relationship amongst people.
TASK 1b
Write conclusions related to effects of regional cultural issues on corporate organisational
culture of multinational organisation as it organise its business globally by giving examples
Culture is statement, characteristic as well as knowledge of specific group of individual
person encompassing social religion, language and many more. It provides facility related to
growth of group that is assessed by implementing social pattern that is unique to the group.
Therefore it is determined as a cumulative deposit of skill and knowledge, beliefs, values,
religion and concept of universe that is acquired by individual person during particular phase
of time period. In addition to this, it has been analysed that culture is determined as a word
that is used for method of life of group of individual person through which they perform
different things in an appropriate manner (De Silva, 2020).
Regional culture signifies culture in which whole of environment and cultural activity
executed by resident of region that reflect ethnic, historical, linguistic as well as cultural
regional tradition that generate precondition for improvement of cultural & social
competence in region which satisfy need & requirement of modern society. Organisation
corporate culture signifies the belief as well as behaviour that signify organisation employees
and its administration interact and manager outside transaction of business organisation in an
appropriate manner. In addition to this, the corporate culture improves organically from
cumulative traits of individual person in which the company hire. Therefore it is necessary to
increase understanding regarding corporate culture and also increase knowledge in respect of
how regional culture imposes direct effect on organisation culture during particular phase of
time period (Gao, 2019). On the basis of above given paragraph, it is analyse that there are
different types of regional cultural issues such as difficulties arise in strategy implementation,
difference in language as well as problem arise in getting engaged with other individual

person that enforces direct effect on corporate culture of organisation of Allianz because they
execute its business at global level. Therefore, it has been analysed that regional culture is
useful in conducting cultural activity that is implemented by resident of region which reflect
linguistic, historical ethnic that pre-condition for development of cultural competence that
satisfy need of modern society.
EPRG Framework
It is a type of framework which is used by multinational organisations in order to
carry out International process of businesses and also about how the International
Management orientation is done. It comprises of several elements which are explained as
follows-
Ethnocentric orientation- This is a kind of orientation which is used by enterprises
in order to explain the business at international level but focuses on National country.
Example- Sony, Hitachi are some of the multination firm which comes under this category.
Regional orientation- It is defined as kind of approach in which people and
employees are being hired from other places or outside the location. For example, Coca-Cola
and Pepsi are region centric firms.

Geocentric – It is another kind of orientation in which it focuses on distribution of
product as well as services according to the geographical location. For example, KFC is
viewed as geocentric firm.
Polycentric- It is orientation in which it focuses on hiring of subordinates from
international countries. For example- General Motors, Nissan are polycentric enterprise.
Therefore, it is assessing that there are various kinds of regional issues arises that
enforces direct effect on organisation culture that is going to be mentioned below:
Difficulties arise in strategy implementation Due to increase issues in regional
culture, it enforces direct effect on culture of business organisation during particular phase of
time period. It is assess that if culture is different than there is a difficulty which is arises in
strategy implementation during the period of time. The management team of chosen
organisation confronting different kind of difficulties or complexities in order to implement
strategy for achieving goal and objective in timely manner. It is also analyse that, if
implementation of strategy is not executed in proper manner then it reduces productivity and
performance level of organisation in future period of time. The manager of business
organisation focuses on reduce these types of difficulty that is arise in strategy execution for
performing different types of work in appropriate manner. Furthermore, if these difficulties
decrease, then it is useful in achieving goal and objective in timely manner during particular
phase of time period. It imposes direct effect on productivity and performance level in both
negative and positive manner (Giadedi, 2017).
Difference in language: Due to increase differences in language, it is not possible for
organisation to conduct their operation in an appropriate manner. It is analysed that the
individual person come from different background, Heritage or culture so that it is not
possible for them to execute their work in proper manner. Therefore, the management team
focuses on reducing this type of difficulty that imposes direct effect on performance level of
culture of organisation during particular phase of time period. Thus, it is analysed that
regional culture imposes direct effect on culture of business organisation during particular
phase of time period (Gharibnejad, 2020).
Problem arise in getting engaged with other individual person due to regional
issues the problem is occur in getting and engage with another individual person in an
appropriate manner. If there is a change in culture, it increases the problem related to getting
engaged with another individual person during particular phase of time period. The individual

person comes from different background and heritage so that it is not easy for them to
execute their task in a team for achieving goal and objective in timely manner. Therefore, it
individual person of team do not perform their work in proper way then it impose negative
effect on performance and productivity level of company in future time period.
Teamwork: There is an issues arises in conducting work with other team member in an
appropriate manner. And, the regional issues enforce direct effect on culture of organisation
during particular phase of time period. The person comes from different background,
heritage so that they have different tradition and culture so it is not easy for them to conduct
work with its team during particular phase of time period. Therefore, it individual person of
team do not perform their work in proper way then it impose negative effect on performance
and productivity level of company in future time period (Liu, 2019).
Thus, on the basis of above given discussion, it is assess that the regional culture
impose direct effect on organisation culture during the period of time. And, the management
team focuses on increasing understanding regarding regional culture that effect culture of
organisation because they conduct their business at global level. It is assessing that there are
various kinds of regional issues arises that enforces direct effect on organisation culture.
TASK 2
Evaluate the evidence about why Expatriation is still so widely used in a globalised economy
and examine the causes of expatriate failure. What are the implications of findings for the HR
Director and their planning for staffing the new project?
With this changing period of time, it is category essential for every enterprise to have
expatriates employees which will help them to access business opportunities and expand the
organisational activities at international level. Global economy has been evolved with the
time interval and it has also seen that new technologies and processes are being adopted in
order to develop the economy of a country. It has been also specified that it is necessary to
make effective decisions when selecting and searching for expatriate so that it is easier to
manage and handle the International projects incorrect and systematic procedure (Lo,2019).
Global economy- The global economy is changing at rapid scale which consists of
different regions of people and workforce. In this increased competition market each and
every enterprise is taking active part in global economy and enlarging their business activities
and wider level. It is also reported that 80% of midsize enterprises and large organisations
transfer there professionals across the national borders where was 45% plan to enhance the
number they have on assignment. It is not easy to produce and develop the international

projects for assignment as because they are caused extensive complex and time consuming.
This is analysed that expectorants cost 2-3 times what they would in an equivalent position
back home. The average package of expert right including benefits and cost of living from
anywhere range is to $3 lakh dollar to $1 million. The main reason why the expatriation are
still widely used in globalised economy is that this people have high level of knowledge skills
and expertise in their field which are required and needed at priority level in other countries.
The impact of globalised economy forces organisation to send their professionals
International countries so that goals and objectives are accomplished within time period.
Allianz, which is a multinational organisation and has its offices in USA and Europe,
the company mainly, focuses on development and providing better services as well as
products to the people at global level so that benefits are achieved by every individual. They
also send their home resident employees two other countries in order to execute their business
projects and activities internationally (Okereke, 2017).
The HR department of selected organisation is focusing on starting of right people so
that failure of expatriate is being reduced up to some level. Also it has been concluded that it
is critically important to focus on different market situations and analysing the flexibility of
global economies so that it is easy for Allianz to use the expatriation in most effective manner
and accomplish the common desired goals. HR Director of Allianz company, is aiming
towards expanding the services of enterprise at global scale for which it is necessary for them
to use the expatriate employees so that resources and new project which is about to start in
Delhi, India is being carried out in most appropriate way. The culture of India is different and
also the project which is started by the company need to be examine the organisational
culture of India and market situations so that it become convenient for expatriate to execute
the international project in positive way (Schislyaeva, 2018).
Culture- It is defined as set of group of people who acts and behave on basis of
different types of shared beliefs or value. Culture of India comprises of diversified people
with several religion, values etc.
Kluckhohn and Strodtbeck's Values Orientation Theory

This theory states about how different societies cope with several problems. This
model includes six orientations which are further discussed as follows-
Subjugation- It depicts about that there is no need for change and nations
environment is required to be accepted the way it is. In India, this dimension doesn’t work.
Harmony- This reflects regarding coexist with nature. In this, changes are accepted
with minimal acceptance rate.
Mastery- This shows about cause of change due to new technology or tools that are
essential to be adopted.
Past- It states regarding the old tradition and how past emphasizes tradition when it
comes to adapting change.
Present- This reflects about focusing on short term to engage with change so that
workflow is carried out smoothly.

Future- It emphasizes long term as it pays attention on adapting of change in future
context. In relation of India, they aims at future growth as well as development.
Good- This refers to the basic human nature which reflects about how good people
and way they trust each other.
Mixed Neutral- This is another element in which it states about presence of trust but
with precautions in proper manner.
Evil- This shows that people nature with lack of trust which makes it difficult for
them to execute work.
Doing- It reflects the emphasis on action, achievement, learning etc. It is crucial to
focus on way of doing work properly.
Containing- It shows the rationality and logic of a particular situation.
Being- It is another component in which it specifies about enjoying life and working
for moment in better way.
Individualistic- It states regarding person traits and people define themselves through
personal characteristics or achievement.
Group oriented- It specifies the person who are responsible for members of family,
network or community.
Hierarchical- This is also crucial component which focuses on people value group
relationships but also within society emphasizes relative ranking of groups.
The research and development team of selected enterprise is currently in progress and
analysing as well as gaining the information of the targeted location so that it will be easy for
HR director to identify which expert rate is applicable for the international assignment.
Cause of expatriate failure-
Assigning employees for the international projects is a difficult procedure and process
which requires proper skills as well as knowledge so that International projects are completed
on time and positive output is being received by the organisation. It is not necessary that

every expatriate is able to complete the international projects without any error or problem.
Most of the employee’s fails to deliver a positive output when it comes to International
Management and projects. It is necessary to focus on what is the root cause of the failure and
how these failures can be overcome.
Failure can be due to any reason and it is necessary for each and every enterprise to
analyse and identify why the challenges of problem has been occurred during the project
competition. Both marketing and HR department of a company make ensure that deserving
and knowledgeable employees are being sent to the international countries who can handle
the clients and projects in well efficient way so that business is able to increase its
productivity as well as profitability at appropriate scale. There are various types of causes of
failure which are explained as follows-
 Wrong person selection- It is the main reason for the failure of success of expatriate
in which it show that due to selection of wrong employees International project also
results in poor output. It is necessary for the HR manager of a company to hire and
assign applicable candidates for the international projects (Schlombs, 2017).
 Lack of local support- It is also and other causes of failure in which foreign
employees are being not provided with appropriate support and resources for the work
and project which they have been assigned. This makes it difficult for them to use
your knowledge and skills and deliver positive output to the assignments.
 Disconnection from home country- Employees are unable to focus on organisation
and their work due to the disconnection from the home country as because they
become habitual of the works of home country organisation. For this reason,
companies are wise to assign a contact who is responsible for keeping the assignee
‘in the loop’ about developments at home. They not only have a more balanced view
of their role within the global organization, but are also better prepared for
repatriation once their assignment is over (Shockley, 2017).
 Domestic difficulties- It is also the cause of failure when it comes to International
assignments. It is because and employee who migrate from one country to another
find it difficult to adjust and with other company and also domestic difficulties are
being faced by him or her. It is necessary for them to be well aware about domestic
market so that it becomes easy for enterprise to focus on how to deal with the people
of a local place of another country.
 Poor planning- This is also the cause of a failure in which it focuses on
implementation of poor planning also results in failure to the international projects.