MGT240 - International Management Management Essay Paper

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International Management
Question 1
Economies being transformed from agriculture-based to one based on the manufacture of goods is common but the transition is not always easy. This is because of the global globalization agent to deal with the cultural barriers from different communities. It has always been assumed that creating a borderless economy that controls the US organizations will be easily accepted in other cultures which is not the case. The universalist assumptions have come to affect some of the biggest corporations such as Apple. The iPhone was introduced in 2007 and Apple has seen tremendous success in the mobile industry cementing its status as a tech giant. Although it still faced competition from other traditional companies such as Samsung and Motorola, the company continued its success. As of 2015, the company had sold 800 IPhones and had established itself as one of the recognizable brands in the world.CITATION Lut18 \l 1033 (Luthans and Jonathan) The same year, Xiaomi became the fourth largest phone producer worldwide. The Chinese phone manufacturer was able to rival Apple in the Chinese market in just 5 years since its formation in 2010. The approaches of the two companies are different and the differences stem from the corporate cultures in the two countries. The Unites states value individual excellence which translates in innovation for the companies. A different approach is used by Xiaomi where it prefers collaboration than personal excellence. The difference in cultures affects how business is done in the two countries
Family culture is another cultural insight that influences how different countries practice their business. This type of culture involves a strong emphasis on power dynamic and hierarchy. The leader is the individual considered to be the caring parent who knows what is best for the personnel. Countries like Turkey and China utilize this culture and allow tradition, customs, and associations to influence the business dealings. This creates a working environment where the workers look up to the parental figure and in turn, the leader looks after the workers need as a parent would. In other countries, however, the working culture is different and business is conducted concerning merit and achievements and not age or any relationships. The United States is one country that values ability and efficiency over any sentimental relationships in conducting business. The high executives reserve important information among themselves deeming the other workers incompetent or untrustworthy to handle such information. This creates a situation where the worker has to earn the trust of their bosses to be included in important details regarding the company and the workers themselves. In a family culture, trust stems from relationships that are built and not on qualifications or abilities. This can be a stumbling block for two countries with different cultures when trying to do business. A country like the United States might withhold business details from a Chinese representative because they are not qualified enough resulting in a breakdown in negotiations. CITATION Lut18 \l 1033 (Luthans and Jonathan)
Negotiations across cultures are something that a co...