Focus on Globalisation

Globalisation has swept companies from all over the world like a storm. Local players already fulfill local markets and the best way to expand our sales is to tap developing international markets. However, globalisation approach is not as simple as transporting our service to another country. Although our company's service model is effective in our local market, it is not a guarantee that it will also be effective in other countries. Culture, social behaviour, religion and customs of the foreign country must be taken into account. Many companies who jumped in the globalisation activity failed to adjust their service approach when setting-up a foreign franchise. In the fast-food industry for instance, Mc Donald's beef burger is not a hit in countries like India because cows are sacred in India. In Indonesia there is no pork in McDonald's burger as most Indonesian are Muslim. Some American fast-food chains like Mc Donald or Pizza Hut that plan to establish branches in the Middle East change the composition of their ingredients of their food products and modify the service orientation of their chefs and waitress in order to adapt to the taste and customs of the locals.

Adapt Our Communication

If we do not adapt our communication to our foreign market, we may lose our business. We have to make sure that our business target hears us. We have to have an open dialog and put ourselves on the same level as our foreign audiences.

Every country has different customs. With Anglo Saxon we have to maintain honest open communication. Take Australian for example. Australian likes informal things and condition. If you want to make a business deal with them, bring them to drink some coffee in a café shop. Or, bring them to enjoy some beer in a bar. They will be more open in relax situation and business transactions will run smoothly.

In Southeastern countries such us Indonesia, Thailand, Philippines, Vietnam and Malaysia, we have to be able to read the citizens' body languages. People of southeastern Asia will not talk with you about everything in their minds, only one or three important things relating with business. They are sensitive toward several issues. If they have 10 things in their heads, they will only talk about 2 or 3 things. The Caucasian doesn't like this attitude because it's confusing. It is difficult to have a clarification whether they want our goods or not.

The most difficult one are Indian and Japanese. The Japanese are introvert. They have a kind of pride and rather sensitive. If we want to deal something with Japanese, it is good for us to approach them through another Japanese. Japanese respect they own people more than people from other nations.

About Indian, they usually take a long time to decide something. The Indian is clever in IT and business. They take a long time to think. If you ask them to shop, say that they want some new shoes, after we spend 2 hours to move around the shoe shop, they still don't decide to buy any of the shoes. If you ask them why they don't buy any, they say that they will check the price in the website.

So learn the customs and habits in our target regions. It will help to expand our business. Wish you all great success!

In culture studies, culture is seen as mental programming, where patterns of thinking, feeling, and acting are seen as mental programmes analogous to computer programming. Upbringing plays a major role here, and culture is generally considered learned and not inherited. The sources of an individual's mental programming lie within the familial and social environment in which he/she grew up as well as the individual's collected life experiences. Significantly "culture" refers to the process of socialization, which encompasses all the rules, regulations, assumptions, mindsets, world-view of the family/environment/society in which the individual lives and grows up. Culture enables individuals to play a normal role in society by teaching and shaping human behaviour in accordance with the values and norms that are accepted in that community.

Cross-Cultural studies build on the conviction gained from different fields like social anthropology, sociology, or organisational psychology that all societies, traditional or modern, face the same basic problems; only their approaches at finding answers differ. The "Onion" diagram or the "Iceberg" model, try to explore cultures at different levels of depth. Different theorists like Hoffstede, Trompenaars, or Geertz try to understand differences among cultures through value differences along quantifiable dimensions.

Though they are very valuable tools for understanding cultural differences, identifying barriers, and finding ways of working around them, they suffer from some shortcomings.

Firstly, the concepts of ethnicity and nation-state are considered to be equivalent, which is not often the case in real life nowadays. Not all German or French citizens are ethnic Germans or French and diversity creates complexity in behaviour patterns.

Secondly, scholars like Nigel Holden criticize the concept of "culture" as a 19th century concept based on culture as difference.

Thirdly, much of cross-cultural literature present these "dimensions" e.g., Hofstede dimensions uncritically as fact rather than theories with significant inherent limitations.

Last but not the least, the role of the particular industry/field and the organisation is not given due importance, though it might sometimes override ethnic cultural "dimensions". In spite of having very different cultural "dimensions", a German software designer might have more in common with a Russian software designer rather than with a German investment banker.

In a business context, two other dimensions complicate the picture. The culture of the profession/field and the organization play a major role in the success of organisational socialization, or how the newcomer successfully integrates and functions in the organisation. The behavioural/mindset expectations that newcomers must acquire in order to become investment bankers are very different from the behavioural/mindset expectations of DJs in the music industry. A 150 year old multinational in the steel industry, which still runs as a family business, is an entirely different world from a website graphics design startup business with 25 year olds.

Another aspect that these "cultural dimensions" measure somewhat sketchily is mindsets or world-view (Weltanshaung as the Germans call it). Scandinavians often believe that the Nordic model of welfare state is the supreme achievement of mankind and all other societal models are somehow inferior. Scandinavian society is often extremely arrogant when the question of recognizing an immigrant's educational and professional qualification comes up, especially if the immigrant has not been trained locally or at an elite Western educational establishment like Oxford University or Harvard. A very qualified surgeon from China or Brazil with 20 years experience might be required to take basic courses to "bring her/his qualifications up to the local level". This might cause very much resentment possibly affecting work commitment.

Typically the cultural barriers that are encountered in the business world originate from inadequate knowledge about:

• How different orientation to time and space affects behaviour
• Do people from different cultures have different expectations about induction and socialization from the firm and colleagues?
• Differences in communication methods (e.g., do they like to physically meet and discuss face to face or think over things alone and then e-mail own comments, do they signify dissent bluntly or keep silent)
• How people process information (do they take notes silently or air their views dramatically during presentations etc)
• What does it mean if the organisation is hierarchical and not flat
• Differences in how managers delegate, supervise and follow-up tasks
• How managers and subordinates see each others roles
• What different areas corporate social responsibility is seen to encompass (the Indians or the Japanese see the role of managers and the company very differently from the Finns or the Danes)
• How are Career and Performance Management implemented?
• Do employees from different cultural backgrounds have different concepts of getting and giving respect?
• How do the special characteristics of the field/industry affect daily behaviour?
• How important it is to learn the particular organisational culture of the firm?
• How does the equation of human capital, cultural capital, social capital as well as spiritual capital work for each person?

An organization's strategy for dealing with cultural barriers should entail the following steps:

• Identifying precise nature, location and origin of barriers
• Deciding the aims of intervention - why and to what degree that particular barrier needs to be removed
• Choosing the method of intervention - is training the preferred method, should it be individual or group training, one time or repeated, self-learning or group learning etc
• Ways of securing commitment to change - people involved should know why changes are desired and what are the benefits for them
• Damage control strategies - what to do when things go wrong with interventions
• Follow-up mechanisms to prevent relapses, support learning, reward achievements and monitor overall success