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 company like Netflix has had to deal with. The video streaming service has found it difficult to negotiate with the Chinese government for its entry into the country. CITATION Lut18 \l 1033 (Luthans and Jonathan)Unlike other nations, the company requires to be granted access by the Chinese government, which is a long process to complete. If they are granted entry in the country, the company still has to deal with the heavy censorship the Chinese government places on the contents. Streaming services in China are funded by the government making them free to the population therefore, it would take a lot of convincing for the consumers to buy into the Netflix subscription. The Chinese market presents an interesting situation for companies in need of new consumers for their products. Being the world’s largest population, it is a viable market for a streaming service such as Netflix however, they need to get past the Chinese government first. The negotiations will likely determine the eventual fate of Netflix and the Chinese market and any failure is likely to reduce the chances of Netflix ever being allowed in the country. Culture will play a big role in the success or failure of Netflix’s attempts and at the moment, the Chinese hold all the cards. The Chinese way of doing business is an insistence on formality, something that rarely happens in the United States. The Chinese businessmen prefer to be addressed by their rank failure to which they might feel insulted. Chinese people prefer building relationships as their approach to business, something that takes time. The United States, on the other hand, tend to be impatient and rush to complete the deal, something that Chinese officials may perceive as rude. The company is experiencing the same troubles in Russia even though they have already struck a deal with the government. The Industry might have underestimated the Russian government’s control on the media before making the deal. Right after striking the deal in 2016, the company was faced with added regulations and demands from the government. The government insisted that 80% of the content should be available in the Russian language and 30% of it produced in Russia. CITATION Lut18 \l 1033 (Luthans and Jonathan) Such inconveniences would have been avoided if Netflix understood the cultural differences between the US and other countries.
Question 2
Firm infrastructure refers to an organization’s structure regarding management, planning, accounting, finance, and quality-control mechanisms. CITATION bus18 \l 1033 (business-to-you) Though these strategies, a firm can establish a competitive advantage over its rivals and increase its value-generating activities. Zara is a perfect example of a company that created a working firm infrastructure. Before Zara, the fashion industry was dominated by high-end brands like Chanel, Gucci, and Armani. The brands catered for the wealthy individuals in the society thus leaving a huge market untouched for. The high-end brands took their time with releasing new products something that is used to justify the expensive price tag. Their fashion shows were glamorous created desire to own such fashionable clothing for the normal population and that is wh...