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Applying Cultural Considerations to Business Strategy Essay

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Cultural exchange is an inevitable aspect of modern globalized business and management. Deciding on the approach to establish connections between the existing organization and the new staff is vital to ensure effective integration and cooperation. Cultural values play an essential role in providing context and paradigm for local businesses. Adler defines cultural values as “a set of conscious and subconscious beliefs and norms, which are often anchored in the morals, law, customs and practices of a society” (as cited in Kristjánsdóttir et al., 2017). Hofstede’s framework for national culture analysis provides a valuable tool for establishing the cultural considerations in international expansion business strategies (as cited in Beugelsdijk & Welzel, 2018). Hofstede proposes to compare cultures based on the six dimensions. Those include Power Distance vs. Closeness, Uncertainty Avoidance vs. Acceptance, Individualism vs. Collectivism, Masculinity vs. Femininity, Long-Term vs. Short-Term Orientation, and Indulgence vs. Restraint (as cited in Beugelsdijk & Welzel, 2018). These dimensions apply to business environment and can significantly influence Ferrer’s intercultural communication.

Different cultures have various and sometimes conflicting traditional views on the role of a leader or management group in an organization. This fact presents a risk of job discomfort, conflicts, and miscommunication (Janićijević, 2019). For example, introducing a person from a culture fostering participative leadership into a more authoritarian business environment can lead to the worker’s frustration due to limited autonomy, rigid organizational structure, and reduced participation in decision-making. At the same time, someone with a habit of a collectivistic approach to business and management can face difficulties in confronting a working environment fostering individualism and personal goals rather than a common strategy and approach. For Ferrer’s, these and similar work-related cultural considerations should be considered when introducing a local manager into a home office or sending their staff into a new office to prevent conflicts and discomfort.

Nevertheless, addressing these cultural considerations would be beneficial for any of the chosen strategies. The development of cultural sensitivity and international communication is a valuable business asset for a modern manager, providing numerous possibilities for intercultural cooperation and expansion (Lutz, 2017). Furthermore, enriching the existing team member’s skill set with the relevant knowledge and tools can help establish deeper interpersonal and professional relationships in any modern organization, including workers of various cultural backgrounds. However, tensions may arise if local cultural values and business traditions conflict with the company’s values and established approaches. Personal views of the workers can also serve as barriers to complete cultural integration. It is the responsibility of the mangament team to plan the intercultural expansion strategy in a way that excludes or mitigates the risks and negative effects of cultural collisions. Preparing for such problems is necessary to prevent conflicts in the team.

These challenges, however, do not significantly change any of the proposed approaches. Respecting and embracing local cultural values and building mutual trust with the local management is essential for effective international cooperation. Additional preliminary training for the personnel on cultural sensitivity and local cultural context is recommended to mitigate the risks of misunderstandings and miscommunication in the new environment. Utilizing Hofstede’s six-dimensional national culture framework can provide additional help in direct communication with members of local cultures regardless of the geographical context. A synthesis of analytical and practical approaches presents the most effective international expansion strategy with the possibility of further development of intercultural cooperation for Ferrer’s outside and inside the company.

References

Beugelsdijk, S., & Welzel, C. (2018). . Journal of Cross-Cultural Psychology, 49(10), 1469–1505. Web.

Janićijević, N. (2019). . Economic Themes, 57(2): 127–144. Web.

Kristjánsdóttir, H., Guðlaugsson, Þ. Ö., Guðmundsdóttir, S., & Aðalsteinsson, G. D. (2017). . Applied Economics, 49(57), 5792–5801. Web.

Lutz, S. A. (2017). Cultural sensitivity: Importance, competencies, and public relations implications. [Honors Thesis, University of Tennessee]. Chancellor’s Honors Program Projects.

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