Analysis of Cross-Cultural Capability: Tsingtao Beer Case Study Report

This report provides an analysis of Tsingtao Beer's cross-cultural capabilities, addressing various challenges faced by the company in its global operations. It begins with an introduction to cross-cultural business and the selection of Tsingtao Beer as a case study. The report then delves into the challenges associated with culture shock, detailing the feelings of confusion and anxiety experienced by employees working in different cultural environments. It further explores the complexities of cross-cultural communication, highlighting the importance of effective message conveyance across different cultural backgrounds, and examines the impact of cross-cultural conflict on the company. The report also identifies key factors that Tsingtao Beer needs to consider when building teams across different locations, such as the use of screen-sharing tools, workshops, and document storage. Finally, the report concludes by summarizing the importance of understanding and addressing cross-cultural challenges for companies operating globally and provides references to support the analysis.

Developing Cross-
Cultural Capability

Table of Content
Introduction
Challenges associated with Culture Shock
Challenges of cross-cultural communication
Impact of cross-cultural conflict on Tsingtao Beer
Factors company need to consider in terms of building teams across
different locations
Conclusion
References

Introduction
● Cross culture in business considered as efforts of company which they conduct in order to
ensure that its employees interact properly with professionals who are different form their
own culture. Respective concept recognize or consider difference among people who are
different in nations, backgrounds, ethnicities, culture and value.
● Organization selected for this presentation is Tsingtao Brewery or Beer which is founded in
1903 by German Settlers and its head office is located in Shandong, China.

Challenges associated with Culture Shock
● Cultural shock is determined as feeling of confusion, uncertainty, anxiety which employee
experience when they visit, conducting business or living in a society that different from
their own one. It can be generally take place for those who conduct their business at abroad
level.
● There are several challenges which are faced by a company when they conduct their
business operations and functions at the international level.

Cont.…
In respect of Tsingtao Beer they are also operating at the global market and while conducting
business they may faced several challenges, from that some are given below:-
● Developing global consistent corporate culture
● Cultural barriers
● Development of training and development programmes

Challenges of cross-cultural
communication
● Cross-cultural communication is determined as study which help in determining how
people belongs from different culture communicate with each other in order to convey
message in effective manner (Buker, and Korzilius, 2015).
● Cross cultural communication is essential for companies because through that they
able to they able to grow business globally, adopt technology and new ideas and many
more.

Cont.…
In respect of Tsingtao Beer they are conducting their business at the different location
and they also face various challenges related to cross cultural communication (Lee, Li,
and Wu, 2018). From which some main are given below:-
● Different communication style
● Different approach for completing task

Impact of cross-cultural conflict on Tsingtao Beer
● Cultural conflict is considered as conflict which occurs when individuals belong from
different cultural values as well as beliefs clash. It can also be used to explain crime and
violence at the workplace (Lokkesmoe, Kuchinke, and Ardichvili, 2016).
● Moreover cross cultural conflict is considered as conflict which take place when
individuals or group of people belongs from different cultural boundaries at a specific
workplace.

Cont.…
Some of the main impact of cross cultural conflict on Tsingtao Beer are given below:-
● Decrease employees moral
● Impact on productivity
● Lead to employees turnover

Factors company need to consider in terms of
building teams across different locations
● There are several factors which an organisation need to considered while developing a team
across the different locations because through that they able to conduct their work in effective
as well as efficient manner.
● Some of main considered point which are essential to be considered by Tsingtao Beer are given
below:-
● Use screen sharing meeting tools
● Plan and conduct workshop
● Store key documents from where everyone can access

Conclusion
● From above discussed point it can be conclude that there every company want to conduct
their business at the global location and when they go global they faced numbers of
challenges related to cross cultural.
● There are several challenges which are associated with the cultural shock such as
developing global consistent corporate culture, cultural barriers and so on. It is essential
for companies to understand these challenges and develop strategies accordingly.

References
● Buker, J. J. and Korzilius, H., 2015. Developing cultural intelligence: assessing the effect of
the Ecotonos cultural simulation game for international business students. The
International Journal of Human Resource Management. 26(15). pp.1995-2014.
● Lee, P. Y., Li, C. S. J. and Wu, M. L., 2018. The roles of cross-cultural adjustment and
social capital formation in the dynamic capabilities development of multiunit
organizations. Asia Pacific Management Review. 23(1). pp.20-29.
● Lokkesmoe, K. J., Kuchinke, K. P. and Ardichvili, A., 2016. Developing cross-cultural
awareness through foreign immersion programs. European Journal of Training and
Development.