Analyzing Walmart's Cross-Cultural Management in the Global Market

This report examines the cross-cultural differences that have affected Walmart's growth in Japan and the United Kingdom, applying theoretical frameworks such as Hofstede’s dimension model and the Iceberg model to compare these cultures with that of the United States. It identifies the challenges faced by Walmart during its international expansion, focusing on cultural issues encountered in Japan and the UK, and provides recommendations for improving international expansion strategies. The analysis includes a comparison of cultural dimensions using various models, an organizational approach considering cultural intelligence, and implications for future expansions, ultimately aiming to enhance Walmart's understanding and adaptation to diverse cultural contexts in the global market.

Running head: INTERNATIONAL INTERCULTURAL MANAGEMENT
International Intercultural Management
Name of the Student
Name of the University
Author note

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Table of Contents
1. Introduction............................................................................................................................3
2. Organisation and Culture Rationale.......................................................................................4
3.0 Comparison of Cultures through Theoretical Aspects.........................................................6
3.1 General Aspect of Cultural Differences Model 1: Iceberg and Cultural Onion Models. 8
Iceberg Model of Japan..........................................................................................................9
Iceberg Model of United Kingdom......................................................................................10
Iceberg Model of United States of America........................................................................10
3.2 Comparison of cultural dimensions Model 2: Hofstede’s Model Framework...............13
3.3 Comparisons of cultural dimensions Model 3: Lewis Behavioural Model....................17
3.4 Comparison of Frameworks...........................................................................................20
4.0 Organizational Approach...................................................................................................23
4.1 Cultural implications Model 5: Cultural Intelligence CQ Model Framework...............23
4.2 Cultural implications Model 4: GLOBE Model.........................................................26
4.3 Cultural implications – what they could have done using the model............................28
4.4. Key difference...............................................................................................................28
4.5 Culture issues of the countries.......................................................................................29
4.6 Culture Issues Adaptation..............................................................................................30
5. Implications for future expansions (Recommendations).....................................................32
6.0 Conclusion..........................................................................................................................32
References................................................................................................................................34

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1. Introduction
In the era of globalization and the globalized business environment, there are various
organizations operate in the different countries. The different international operations try to
provide the different firms with global type of competitiveness which will be helpful in
reducing the costs of production, there are different market opportunities, knowledge
diversity related to cross-cultural aspects of the other country, innovation along with
experience (Xing et al. 2016). On the contrary, it has been noticed that due to the rise in the
globalization, it tries to present the different managerial positions with the business
environment which is complex, dynamic and uncertain in comparison to the previous
scenario.
There are different kinds of political, economic and legal aspects which affect the
overall international operations in a negative manner, the influence of the culture of the
company can present various issues which are difficult to handle. The term culture is one of
the most complex aspect wherein the different opinions of the different individuals working
in the organization and it can affect the overall international business operations (Wang et al
2017). The respective assignment helps in examining and identifying the cross-cultural
differences have affected the overall growth of Walmart in Japan and United Kingdom.
With the overall application of the different theoretical aspects such as Hofstede’s
dimension model and Iceberg model, both United Kingdom and Japan is required to be
identified with the help of the cultural characteristics in comparison to United States of
America. It will be consisting of the different challenges which have been faced by the
company Walmart along with providing the different recommendations to improve the
scenario related to the international expansion.

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2. Organisation and Culture Rationale
Walmart is one of the American retail company which operates in the hypermarkets
along with grocery stores. The company is headquartered in Bentonville, Arkansas and the
company was founded in the year 1962. The founder of the company is Sam Walton and the
number of locations wherein Walmart is operating is 11348 and the areas served by them is
worldwide (Walmart.com 2019).
The number of employees working in the company is 2.3 million in the entire
worldwide and more than 1.5 million in the United States of America. The services which are
being rendered by Walmart is inclusive of Walmart MoneyCardPickup TodayWalmart.com
and the Walmart Pay. Moreover, the revenue which has been earned by the company has
been increased to US$514.415 billion till the year 2019.
The organizational culture of Walmart has major four components which should be
considered and these components are helpful in guiding the behaviour of the different
employees which will be helpful in determining the capacities of the organizational capacities
which will add value in provision of retail service along with other related services to the
customers in the market. The different cultural components are as follows:
 Service provided to the different customers
 Respect for the different individuals
 Striving for proper excellence
 Action with Integrity
Furthermore, in terms of the different services to the different customers, the
organization tries to prioritizes the different customers in the different operations. Moreover,
Walmart tries to recognize the different contributions of each and every employee for the
overall success of the business. Additionally, the firm Walmart strives for excellence in terms

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of the overall performance of the different individual employees, teams and the entire
organization. In terms of maintaining proper integrity, Walmart tried to promote virtues of
the different honesty, impartiality along with fairness in the process of decision-making
aspects (Venaik and Brewer 2016). From the overall aspects, it can be identified that Walmart
has been able to gain competitive advantage in the market through managing the different
operations, however there were different issues in the international expansion in Japan and
UK as there were various cross-cultural aspects that affected their potential to gain
competitive advantage in the market.
The main strategic goal of the company Walmart is to increase the overall presence
and monetize the franchisees in the international markets. However, in the era of
globalization and competitive business environment, there were different cultural differences
which affected the overall business of the company (Thomas, Alkizimand Mugwima 2016).
From the various reports, it can be identified that there are different issues which affected the
overall competitive advantage in the market inclusive of the following aspects:
In the overall competitive business environment, there are different cultural issues
which are being faced by the companies while expansion of the business. While expanding
their business in Japan market, it has been identified that Walmart can be one of the biggest
retailers in the United States market, however the story is different in Japan as instead of
adopting the different business operations in relation to Japanese culture, the company
assumed that the customers in the respective market will adjust to the operations of Walmart
as it is working in the Japan market.
As the customer behaviour is totally different in Japan, it affected the overall aspect of
Walmart to continue their business operations in the respective market. Therefore, the report
will be based on the overall analysis of the different aspects of the cultural aspects which is

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required to be followed while expanding the business operations in UK and Japan market.
However, with the help of the different theoretical models, the examination of the cultures of
UK and Japan will be analyzed in comparison to the culture of USA which can affect the
growth of the business (Thomasand Peterson2017).
3.0 Comparison of Cultures through Theoretical Aspects
USA Japan UK
Implications The cultural
implications of
USA are that
people in the
USA, prefer the
different kinds
of current
norms that will
be followed in
all the aspects
(Tekeş et al.
2018)
In Japan, the
individuals
prefer to follow
the innovative
approaches
while
commencing a
business in a
successful
manner
(Stankov 2015)
In UK, the traditional
and current norms are
being followed to
improve the overall
aspect of becoming
successful (Stahland
Tung2015)
Culture
Similarities
In USA, the
making
different
business-
related
decisions are
In Japan, the
business
aspects play a
major role
wherein all the
individuals of
In UK, the aspects of
commencing business
is the major aspect in
which the different
individuals are
included (Michael

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being taken
through
meeting the
individuals and
all age groups
are included
(Rohlferand
Zhang 2016)
all age groups
play a vital role
(Ollier-
Malaterre and
Foucreault
2017)
Clark et al. 2017)
Culture
Difference
Americans
prefer to keep
the
conversation
more informal
than formal and
they prefer to
be friendly in
their approach
(Mazanec et al.
2015)
Social
Hierarchy is
essential in
Japan and
culture of Japan
is collectivist in
nature
Furthermore,
Japanese people
prefer to follow
the traditional
cultural norms
(Matzler et al.
2016)
It is the constitutional
monarchy and the
people follow the
different traditional
aspects which will be
beneficial for the
success of the country
(Lokkesmoe,Kuchinke
and Ardichvili 2016)

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Walmart
USA Japan UK
Both USA and UK have distinct differences;however, USA and Japan have major
differences, Japan and UK has major differences as well explain them.
3.1 General Aspect of Cultural Differences Model 1: Iceberg and Cultural Onion
Models
In order to analyse the different kinds of cross-cultural issues which have been faced
by Walmart in the other two countries except USA, the proper understanding of the cultures
of UK and Japan is required to be analyzed with the proper application of the various
theoretical aspects. As commented by Lifintsevand Canavilhas (2017), Iceberg Model of the
Culture helps in highlighting that the culture comprises of the different kinds of elements
which are visible in nature inclusive of learned, conscious and easily changed, on the other
hand the invisible elements which are unconscious, difficult and implicit to change.
Furthermore, the respective model helps in oversimplifying any kind of culture, on the
other hand, Li et al. (2017), have emphasized that in order to appreciate the visible aspects of
the culture, there should be proper understanding of the invisible aspects by researching as
well as experiencing them appropriately. The proper understanding of the invisible elements
assists in analysing the invisible elements which is helpful in minimizing the different
miscommunication and misunderstandings of the cross-cultural aspects as these are
immensely valuable and important for the international businesses and the same models have
been applied for Japan and UK market to understand their culture and improve the overall
scenario (Laitinenand Suvas 2016).

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Iceberg Model of Japan
Manners- Very well
behaved and they
greet individuals and
welcoming
Language-
Japanese
Religious- All Buddhists in
conversion to other
religion
Nature of friendships-
Handshake and
greeting someone
politely
Personal space-
Lacking in nature
Concept of beauty
Importance of
time- Arriving on
time
Communication styles-
Epitomised by subtlety
and nuance,
Literature- earliest recorded
Japanese poetry is in
the Manyoshu
Work of art-
Less
Developed
Clothing-
Traditional
Kimonos
Music- Soft and
polite
Food- Rice, Noodles and
Tofu
People’s motivation-
Bosses motivate the
employees
Working styles-
Formal Approach
Negotiation styles-
Formal approach
Concepts of fairness- All men and women are
treated equally
Religious beliefs-
Strong

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Iceberg Model of United Kingdom
Iceberg Model of United States of America
The country
follows to respect
all individuals
Manners-
Shaking hands
with all the
people
English
language
Religious-
Christianity and
mainly Catholic
Nature of friendships-
Not too friendly s
Personal space- It is a
huge issue as they feel
awkward
Importance of time-
Etiquette followed
when they are late
Communication styles-
encompassing both
understatement and
direct communication
Literature- Famous
writers and poets are
from UK
Arts- Graphics and Performance
related arts
Clothing- Stylish
and good quality
clothes along with
the accessories
Music- progressive rock and British folk-rock
and punk music is being entertained
Food- They prefer the
food which is prepared
with rich ingredients and
locally grown
People’s motivation-
Self-motivation
Role expectations-
All the male and
female employees
prefer to work in all
the fields
Working styles-
Professional
approach
Negotiation styles-
professional and at
times friendly
Concepts of fairness-
All the workers in the
organizations are
treated equally

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From the overall analysis of the Ice-Berg Model, it can be identified that it helped in
analysing both the cultures of Japan and United Kingdom in comparison to United States of
America. Moreover, the Hofstede’s cultural Onion Model can be applied and implemented in
The country
follows to respect
all individuals
Manners- Polite
and sober
English
language
Religious-
Christianity and
mainly Catholic
Nature of friendships-
Friendly approach
Personal space- It is a
huge issue as they feel
awkward
Importance of time-
Etiquette followed
when they are late
Communication styles-
encompassingdirect
communication
Literature- Not so
strong Arts- Performance related arts
Clothing-
Traditional clothing
Music- Classical, Jazz and CountryFood- Boiled food as
people are health
conscious
People’s motivation-
Managers motivate
employees for
improved
performance
Role expectations-
All the male and
female employees
prefer to work in all
the fields
Working styles-
Professional as well
as informal approach
Negotiation styles-
Professional
Concepts of fairness-
Male workers are
provided with more
opportunities

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analysing the deeper levels of the Iceberg model and define each of the culture of the
different countries appropriately which have led Walmart to different kinds of problems in
the United Kingdom and Japan. Through the overall analysis of the Ice-berg Model, it has
been noticed that in Japan, the mindset of the customers during purchasing the different
products and services are different from United States of America.
In Japan, the culture of the individuals is different as customers feel that high price
means the quality will be high as well and the respective mentality causes them to buy more
than 40% of the luxury goods annually (Kozhin et al. 2018). Furthermore, in the United
States Market, it has been noticed that the packaging and appearance of the products did not
matter to the customers, however the case is different in Japan, as the customers provide
100% importance to the appearance of the products which was one of the cross-
culturalclashes and it affected the overall brand image of the company.
Therefore, while looking at the different products which are being sold by Walmart, it
can be noticed that Walmart does not cater to the different luxury brand customers, and these
kinds of cultural misunderstandings led to the failure of Walmart in Japanese culture and it
was a huge mishap for the business of Walmart (Koch et al. 2016).
On the other hand, the failure of Walmart at United Kingdom was the other cultural
issue which was faced by them and it affected the overall profitability of the firm. From the
iceberg model, it has been noticed that the culture of Walmart does not fit in all the other
countries and they need to take the steps after a careful survey about the cultural aspects of
the different countries wherein they prefer to expand their business operations (Kim 2017). It
has been noticed that in Europe, there are strict along with high minimum wages aspect
which affected their store presence. Moreover, Walmart could not hack the pro-labour union
culture of Germany and the other aspect of failure of Walmart in the Germany market is that

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the consumers in Germany prefer the small neighbourhood stores rather than the impersonal
chain and it was the major reason for the failure of Walmart in the competitive business
environment of United Kingdom.
3.2 Comparison of cultural dimensions Model 2: Hofstede’s Model Framework
The Hofstede’s model framework is defined as the framework for the cross-cultural
communication which was developed by Geert Hofstede. Furthermore, the respective model
has helped in describing the overall impact of the culture of the society on the value of the
members and the relation of thesevalues to the behaviour with the proper structure which has
been derived from the factor analysis (Khlif 2016). The cultural dimension framework has
been able to receive much attention from the respective Hofstede model in analysing the
influence of the culture on the workplace values appropriately. However, the Hofstede’s
model has faced various criticisms for analysing and assuming that all the individuals who
are from different cultures behave in the similar manner.
Figure 1: Hofstede’s Cultural Dimension Model
(Source: Kathirvel and Febiula 2017)

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However, on the contrary, it has been analysed that in the era of globalization, it does
not equate to the standardization and the ignorance of the culture of the different countries
wherein the companies want to expand their business operations (Jackson 2018). The
Hofstede’s model is one of the unique aspects through which the proper understanding of the
fundamental differences in the culture can be identified. The respective framework will be
applied in examining how Japan and United Kingdom differ on various dimensions in
comparison to United States of America, therefore the implications of the respective
differences can be identified are as follows:

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Cultures Japan United Kingdom United States
Power Distance
– This refers to
the degree of
inequality that
exists – and is
accepted –
between people
with and
without power.
54-From the respective
score, Japan has scored
high on the power
distance wherein the
customers are
emotionally dependent
and there is less degree of
inequality among the
individuals. However, the
power is not limited to
the government
authorities, however it is
maintained in different
geographic locations
( Gelfand and McCusker
2017)
35- From the score,
it can be identified
that United Kingdom
which is moderate in
nature and it can be
analyzed that people
accept such kinds of
inequalities. The
individuals accept
formal authority and
the leadership
initiative is being
followed
40- The United
States of America
which helps in
reflecting that the
country provides
huge emphasis on
providing equal
rights to the
different individuals
and there is proper
sense of hierarchy.
Individualism -
This refers to
the strength of
the ties that
people have to
others within
their
community.
46- Japan is one of the
collective countries
wherein the interest of
the people is in group and
they do not prefer
individualism. There is
huge influence of the
personal aspects on the
tasks which are being
performed by them and it
affects the overall
scenario
89- It is one of the
most individualistic
countries wherein
the people are
individually
dependent and they
take care of
themselves and they
are motivated in
their lives and they
provide respect for
the tasks which are
being performed by
them (Favaretto et
al. 2016).
91- The people in
the USA are
collective wherein
they prefer to work
with one another
with proper
communication.
Moreover, the
communication
which is prevailing
among the different
individuals are
inclusive of direct
and informal aspects
and they do not take
much support from
the different
authorities.
Masculinity -
This refers to
the distribution
of roles between
men and
women. In
masculine
societies, the
roles of men
and women
overlap less,
and men are
expected to
behave
assertively.
Demonstrating
your success,
and being strong
and fast, are
seen as positive
characteristics.
95- Japan has scored
highest in the masculinity
aspect wherein it has
been noticed that both
men and women play a
major role in improving
the overall scenario. In
the Japanese culture, it
can be noticed that they
prefer rewards and they
want to be praised for the
different activities which
are being performed by
them (Epifanovaand Hild
2015).
66- In case of UK,
the country is
masculine society,
however the female
employees are
provided with equal
opportunities in the
country. The
achievement in the
different fields is one
of the most
appropriate aspects
which is showcased
in UK culture
(Edwards 2016).
62- In the case of
USA, the American
people are driven in
order to perform in
an extremely proper
situation and they
prefer the different
monetary rewards
which motivates
them to perform the
tasks more
efficiently
(Deschachtand
Maes 2017).
Uncertainty
Avoidance -
82- Japan has scored high
from which it can be
35- In UK, the
country has scored
46- The different
people of America

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Table 2: Hofstede’s Model of Cultural Dimension
(Source: Created by author)
From the respective model analysis, it can be identified that major difference between
Japan and the United States of America is mainly on the Uncertainty Avoidance.From the
above aspect, it can be made clear that in Japanese culture, the people do not prefer any kind
of surprises and they prefer to attach towards the cultural norms which will be beneficial for
the overall success of the different activities (Chaudhary 2016). However, on the other hand,
in USA, the individuals prefer to undertake the different adventures and they prefer to deliver
innovative solutions with the proper usage of the different new innovative techniques.
On the other hand, the long-term orientation is the other aspect wherein there are
various differences in the culture of Japan and the United States of America. In Japanese
culture, the people are ready to adopt the various situations appropriately without much
problems and they can deliver the best results within the stipulated time frame and there is no
such hurry. However, in the USA culture, it can be identified that the people strive for quick
results after performing the tasks and it is not effective in Japan as well (de Luque,
Lelchookand Quigley 2015).
Moreover, there are few differences in UK and the USA which is based on few
aspects and it helps in creation of positive results. The approach of people in UK is collective
and they prefer to work in group. However, in the USA, the people prefer to work in different
conditions and they have the idea of innovation which results in gaining successful results.
3.3 Comparisons of cultural dimensions Model 3: Lewis Behavioural Model
As identified by Hofstede model, it has been helpful in contributing towards the
expansion issues faced by Walmart (Chaudhary 2016). On the other hand, the different
business starts fundamentally with proper communication and if there is failure in

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communication, there will be loss of trust and it will no longer matter whether the counterpart
is feminine or masculine. Moreover, the CEOs of the organizations believed that when the
cross-border communication were to improve, it will be helpful in the overall growth of the
companies. However, the overall financial growth of Walmart has been low due to the
ineffective cross-cultural interaction and communication. As per the model of Lewis, the
different cultures have various types along with communication and lifestyle (Chaudhary
2016).
Figure 2: Lewis Model of Cultural Types
(Source: Chaudhary 2016)
Multi-Active (United
Kingdom)
Reactive (Japan) Linear Active (United
States of America)
In UK, the communication
between individuals is
In Japan, the communication
is courteous and the
The communication is clear
and straightforward and the

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impulsive and there is
frequent conversation
between individuals.
individuals show respect.
The usage of subtle
language is utilized.
people are condiment and
honest
The trade in the business is
done through gossip as well
as rumour and there is no
such inclusion of respect
between the individuals.
There is no such inclusion of
authority and they like the
concept of strong bosses as
they feel bosses will protect
them
In Japan, the people prefer
slow and steady aspect in
dealing with work. They are
respectful towards the other
person and the status is
gained with proper
education (de Mooij2017)
In USA, the proper usage of
speech is done wherein it is
helpful for managing the
different aspects in business
(Deschachtand Maes 2017).
The status is achieved
through charismatic
personalities and it helps
them in managing good
relationships with others
In Japan, there is usage of
non-verbal and direct
communication for the
business which is helpful for
them in succeeding in
business
The punctuality in business
is one of the major aspects
in business and business is
conducted rapidly with
proper emphasis on building
strong relationship
Table 2: Analysis of multi-active, reactive and linear-active cultures
(Source: Deschachtand Maes 2017)

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3.4 Comparison of Frameworks
Frameworks Iceberg Hofstede’s Lewis
Similarities It is one of the
cultural theories
which mainly
focuses on the
different cultures
of the countries
On the other hand,
as per the
respective model
the main aspect
which is similar is
relating to analysis
of the culture
through six
dimensional
approach is being
analyzed
Lastly, the Lewis
model mainly
focuses on the
different
behavioural
patterns which
will be helpful in
understanding
different cultures
of the different
countries
Differences As per the Iceberg
model, it can be
identified and
analyzed that it is
the part of the
culture which is
below the surface
of the society
which is inclusive
of the different
beliefs along with
As per the
Hofstede’s Model,
it seeks to provide
answers to the
different questions
which are
essentially
essential of the
human situations.
On the other
hand, the Lewis
model is
considered of the
three typologies
which is not on
the nationality or
the religion but
on the overall
behaviour

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the values as well
as thought
patterns which
underlie the
behaviour
Compare and contrast the framework with the countries
Frameworks USA Japan UK
Iceberg As per the Iceberg
Model, in USA the
people tries to be
formal in the
different aspects of
the life and they do
not prefer the
informal behavioural
attitude of the
individuals.
Moreover, the
people prefer
professionalism in
managing the
different work
related aspects
In Japan, there is
following of both
formal and informal
approach which
helps in managing
the different
activities
appropriately.
However, the people
in Japan are punctual
and they prefer to
motivate the
employees working
in the organization
as they feel they are
the assets of the
In case of UK, the
self motivation is the
main approach
which is being
introduced and the
people are not too
friendly with one
another. They prefer
professionalism and
all the employees are
treated equally in the
organization as well

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organization
Hofstede’s According to the
Hofstede’s Model,
the people in USA
provides equal rights
to all the individuals
and it is helpful in
improving the
overall economy
structure of the
country
In case of Japan,
there is less degree
of inequality which
is being followed
and there is inclusion
of rewards and
recognition provided
to employees
regarding the
different tasks which
are being performed
by them.
Lastly, in case of
UK, there are
different inequalities
present among the
different individuals
which create huge
chaos in the entire
economy. There is
inclusion of the
formal authority and
the leadership
initiative is followed
in a strict manner
Lewis As per the Lewis
Model, it can be
identified that
communication
between the different
individuals working
at the organization is
straightforward and
there is no such
inclusion of the
honesty in the
conversation of the
As per the Lewis
Model, in Japan, the
communication
which is followed is
courteous and the
subtle language is
used which helps in
managing the overall
efficiency of the
different
performance of the
tasks in the
In case of UK, the
different kinds of the
communication is
impulsive and there
is huge formality
which is being
followed while
dealing with the
different aspects in
the workplace

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INTERNATIONAL INTERCULTURAL MANAGEMENT
individuals organization and the
people in Japan
prefer to steadily
deal with the
different tasks which
are performed by
them
4.0 Organizational Approach
4.1 Cultural implications Model 5: Cultural Intelligence CQ Model Framework
The cultural intelligence is the overall capability to relate along with working
effectively in the culturally diverse situations. It goes beyond existing notions of the cultural
sensitivity as well as awareness which will be highlighting set of capabilities which is
required for accomplishing the goals successfully in culturally diverse countries
(Deschachtand Maes 2017). The CQ model can be utilized as Walmart’s ineffective kind of
communication has been the major reason for the overall failure in Japan and United
Kingdom market. As per the CQ model, the Walmart needs to gain proper knowledge and
understanding on the respective cultures and adoption of CQ strategy provides ability to plan
for multicultural interactions.
CQ builds on
 Intelligence Quotient (IQ) – Measures intellectual capabilities
 Emotional Intelligence (EQ) – The ability to lead and interact with effective
emotional sensibilities

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INTERNATIONAL INTERCULTURAL MANAGEMENT
 Cultural Intelligence (CQ) – Focuses specifically on an individual’s capability to
effectively understand and adapt to a myriad of cultural contexts
The CQ will be beneficial for the overall growth of Walmart in Japan and United
Kingdom market as it adds competitive advantage and edge to the business. It will be helpful
in improving communication, cooperation along with teamwork and performance. In order to
improve the cross-cultural aspects by Walmart, it will be beneficial in adapting to the
behavior which is required in United Kingdom and Japan.
Motivational CQ-It will help Walmart in reflecting overall capability to direct
attention along with energy about along with functioning in situations which are categorized
by the cultural differences.
Cognitive CQ- It will help Walmart in analyzing capability to relate and work more
effectively across cultures.
Metacognitive CQ- It helps Walmart in reflecting mental processes which the
different individuals will acquire as well as understand the cultural knowledge effectively.
Behavioral CQ- It will be helpful for Walmart inreflecting the overall capability to
exhibit appropriate verbal as well nonverbal actions when interacts with the people in
different cultures.

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INTERNATIONAL INTERCULTURAL MANAGEMENT
Figure 3: Cultural Intelligence Model
(Source: Deschachtand Maes 2017)

24
INTERNATIONAL INTERCULTURAL MANAGEMENT
Moreover, CQ can be helpful in enhancement by the active engagement n travel,
international assignments along with intercultural experiences. Therefore, Walmart needs to
constantly ensure the efficient external and internal cross-cultural communications which are
integrated in culture of company through enforcement of regular audit related to CQ and
cultural sensitivity training programs.
4.2 Cultural implications Model 4: GLOBE Model
 Power Distance- On the other hand, the countries having low power distance is
supported equality and is highly reinforced
 Uncertainty Avoidance- It is the aspect in which it will be dealing with tolerance
of society for ambiguity and tolerance.
 Humane Orientation- It is the degree to which the different individuals in
companies encourage and reward individuals for being fair and it is followed in
TheUnited States of America which will be beneficial for growth.
 Collectivism I (Institutional)- It is the aspect in which degree to which
organizational along with societal institutional practices encourages and rewards
the individuals and the same is performed by UK.
 Collectivism II (In- Group)- It reflects on the aspect in which individuals express
loyalty and pride which will be bringing cohesiveness in the organizations.
 Assertiveness- It is the degree to which companies are assertive and it is followed
in UK and Japan
 Gender Egalitarianism- It is the extent wherein organizations minimize gender
discrimination which is followed at UK and Japan
 Future Orientation- It is the degree in which individuals in companies engage in
future-oriented behaviors such as planning

25
INTERNATIONAL INTERCULTURAL MANAGEMENT
 Performance Orientation- It is the extent to which the different companies’
rewards employees and it will be helpful for UK and Japan.
Figure 4: GLOBE Model
(Source:Deschachtand Maes 2017)
Globe: culture and leadership
 Performance- The organizational performance is one of the key aspects which is being
followed in the UK and Walmart needs to support such to improve performance.
 Team-oriented- The team orientation is the central aspect in the USA which will be
beneficial for the growth of the company in different cultures
 Participative- The participative approach is the other aspect which should be
maintained by the USA and UK, and to become competitive, it will be beneficial for
Walmart to succeed

26
INTERNATIONAL INTERCULTURAL MANAGEMENT
 Humane- In the UK and Japan, the individuals have the compassion to showcase the
different talents for improving business operations.
 Autonomous- The autonomous is the other aspect which will be beneficial in being
more diplomatic in operations.
 Self-protective (and group-protective)- The individuals in Japan are self-protective,
and Walmart needs to improve the overall team orientation more efficiently
4.3 Cultural implications – what they could have done using the model
Besides the implementation of audits related to CQ along with programs related to
cultural sensitivity, it will help assess how previous operations influence future overseas
projects. After the overall analysis of annual reports of Walmart, there were various negative
financial results faced by them in Japan and the United Kingdom. However, with the
application of the GLOBE Model, Walmart has been able to understand the different cultural
differences through strategic thinking along with expanded its operations in Anglo cluster to
the USA.
4.4. Key difference
Particulars GLOBE CQ
Implications As per the respective Model,
it can be analyzed that the
different clusters in the
United Kingdom are
required to be more assertive
and there should be the
As per CQ, the companies
need to analyze the different
cultures of the various
countries appropriately

27
INTERNATIONAL INTERCULTURAL MANAGEMENT
inclusion of team orientation
Impact on what companies
need to change
The different organizations
need to change as per the
team assertiveness which
will be beneficial for the
growth in respective cultures
As per CQ, it will be helpful
for the companies to
understand the culture and
motivational aspects are
different
Key Differences There are major six
dimensions of GLOBE
model which will be useful
for improving the overall
success
In CQ, the significant
element is based on
understanding the cultural
aspects
4.5 Culture issues of the countries
Culture issues Japan UK USA
GLOBE As per the Globe
Model, there can
be issues related to
non verbal
communication as
it can affect the
growth of the other
companies which
are planning to
move in Japan
In case of UK, the
bossy culture is the
attitude which
affects the overall
efficiency of
performing
business in United
Kingdom
In case of USA,
the major issues is
related to the
different clusters
which requires to
be more assertive
as it can affect the
overall growth of
the country
negatively

28
INTERNATIONAL INTERCULTURAL MANAGEMENT
CQ In case of CQ, the
culture of Japan is
different which
can affect the
overall growth of
the economy and
business
operations
negatively
In case of CQ in
UK, it can be
identified that the
companies require
to analyze the
various cultures of
the different
countries as it will
be beneficial for
the overall success
of the firm
Lastly, in case of
USA, the culture is
the key aspect
which is one of the
most important
factors in
continuing the
business smoothly
4.6 Culture Issues Adaptation
Adaptation of
Culture
Issues
Japan UK USA Outcomes
Iceberg While doing
business in
Japan, the
more formal
attitude is
required
which will be
helpful for the
business
In case of UK,
the formal and
etiquettes are
the major
attributes
which are
required to be
followed
In case of
USA, the
different
informal and
formal aspects
can be
followed
which will be
beneficial for
The outcome
will be
successful and
it will be
helpful in
improving the
overall
sustainability

29
INTERNATIONAL INTERCULTURAL MANAGEMENT
continuing the
business
successfully
Hofstede’s As per the
respective
model, the
masculine
preferences
are more
As per the
respective
model, the
different kinds
of feminine
culture is
being
followed
As per the
respective
model, the
male
population
will be
receiving
more chance
in comparison
to the female
The outcome
can be
negative due
to inequality
Lewis As per the
Lewis Model,
the formal
attitude is the
main concern
which needs to
be followed
As per the
respective
model, the
subtle
language is
necessary
which will
provide
positive
outcomes
As per the
respective
model, the
different
formality is
appropriate for
the overall
success of the
firm
The outcome
will be
positive as it
will be
beneficial in
improving the
overall
scenario
GLOBE As per the Due to the The It will lead to

30
INTERNATIONAL INTERCULTURAL MANAGEMENT
Globe model,
assertiveness
is the major
aspect which
will be helpful
in orientation
of the team
assertiveness,
it will be
beneficial for
the growth of
the companies
assertiveness
will be
beneficial for
the overall
success in
USA
positive
outcome
CQ As per the CQ,
there are
different
formal
attitudes that
can be issues
for continuing
business
successfully
In UK, it will
be possible for
continuing
business
successfully as
there is
equality in the
respective
culture
In USA, it will
be helpful for
the companies
to conduct
business due
to the informal
and subtle
attitude
It will be
leading to
positive
outcome
5. Implications for future expansions (Recommendations)
In order to improve the overall analysis, it can be identified that Walmart needs to
expand its business operations in an effective manner which will be beneficial for the overall
growth of the company. In order to become successful in the different countries, it is essential
for Wal-Mart to adopt the different cultures wherein it will be introducing their business
which will be beneficial for the overall growth of the company in a proper manner.

31
INTERNATIONAL INTERCULTURAL MANAGEMENT
 Proper development of the business plan along with strategy is essential for defining
the short and medium reasonable goals.
 Moreover, the establishment of the readiness of the products is the other aspect that
should be analyzed by Walmart to meet the cross-cultural perspectives of Japan and
the United Kingdom.
 The organizational readiness is the other aspect which will be beneficial in improving
their business operations successfully as the organization needs to adopt to the
different changes that can affect the business operations positively and the growth of
revenues will be positive as well
6.0 Conclusion
Therefore, it can be concluded that cross-cultural issues along with adaptions by Walmart
Company help in confirming that in the era of globalization, the managers are working in the
complex business environment which includes dealing with various stakeholders. The
different culture of UK and Japan helped in highlighting through the Ice-berg model and
Hofstede's cultural dimension model along with proper analysis has been done with the help
of the Lewis model. Moreover, the organizational analysis has helped in analysis of the
complexity of issues wherein the USA and UK created the huge degree of cultural synergy,
however, on the other hand, there is no such synergy between the USA and Japan which
created cultural clash. Therefore, from the above, it can be analyzed that in order to remain
competitive during international expansion, the firms need to analyze the cultural aspects
which will be beneficial for the overall success of the firm.

32
INTERNATIONAL INTERCULTURAL MANAGEMENT
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