Cross

Cross The problem discussed in this case is related to such a field as cross-cultural management. The main issue is that John Higgins might have become too attached to the Japanese culture, its values, and workplace practices. Furthermore, this change in his attitudes began to affect his business decisions and some of them were not effective.Advertising We will write a custom essay sample on Cross-cultural Management: Japanese Culture and Its Workplace Practices specifically for you for only $16.05 $11/page Learn More For example, he refused to terminate an employee who failed to improve his performance. Higgins’ justification for this decision is that this worker has been loyal to the company while loyalty is essential for Japanese organizations. Very often European or American managers do not know much about the customs and traditions of non-Western people (Kawar 2012, p. 105). Therefore, they have to adjust the new business environment. However, this sit uation is quite different because John Higgins immersed himself in the customs and traditions of Japan. One of the main risks is that he could understand the Japanese culture too literally. Higgins could simply overlook the possibility that the values and priorities of local people could be changing. These are the main aspect of this problem. There are several possible approaches to this situation. One of the possible strategies is to move Higgins to a different position or even to a different country. One should bear in mind that in many cases, companies choose to rotate expatriates. They let them stay in a certain country only for a limited period (Jonsson Kalling 2006). The main rationale for this policy is to prevent them becoming too accustomed to the values or norms of local culture. Furthermore, this strategy is helpful for sharing information or best practices among various divisions of the corporation (Jonsson Kalling 2006). This is one of the strategies that can be adopt ed. The main limitation of this approach is that the Japanese division of Weaver Pharmaceutical can lose a very valuable employee. Moreover, the corporation will have to spend a significant amount of time to find a person, who can substitute Higgins. This is one of the problems faced by multinational corporations (Bozionelos 2009). Furthermore, the senior management can prompt Higgins and Prescott to discuss the specific cases on which they disagree. Each of them should provide evidence to support his position. In such a way, they can resolve their conflict. However, it is also possible that their disagreement can turn into animosity. This is one of the pitfalls that should be avoided.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It seems that the senior executive should closely examine the actions and decisions of Higgins. Provided that some of his decisions really run against the long-term interests of a company, the senior management should tell Higgins that he should focus on the objectives that a company sets. For instance, one of these objectives is efficiency. Therefore, it is not reasonable for an organization to retain an employee provided that he/she cannot cope with the requirements set by the management. This approach is useful for identifying and eliminating possible limitations in the work of John Higgins. Moreover, senior management can improve the functioning of the Japanese division. On the whole, this discussion indicates that multinational corporations can face a great number of challenges. One of their main tasks is to make sure that an expatriate can understand the values or customs of local people. However, they should remain impartial while taking business decisions. These are the main aspects that can be identified. References Bozionelos, N 2009, Expatriation outside the Boundaries of the Multinational Corporation: A Study with Exp atriates Nurses in Saudi Arabia. Web. Jonsson, A. Kalling, T 2006, Knowledge, Organizational Context, and Institutional Forces: Knowledge Sharing in IKEA and SCA. Web. Kawar, T 2012, ‘Cross-cultural Differences in Management’. International Journal of Business and Social Science, vol. 3, no. 6, pp. 105-111. Web. Cross Introduction Various reasons explain why people from diverse countries have different modes of communication. In fact, the manners in which people communicate have greater influence on their daily activities.Advertising We will write a custom report sample on Cross-culture communication specifically for you for only $16.05 $11/page Learn More Essentially, the mode of communication also determines the conduct, perceptions as well as activities undertaken in everyday life (Gudykunst Ting-Toomey, 2008). The differences in the modes and styles of communication are due to diverse cultures of the people from different countries. The understanding of the differences in cultural aspects is critical in eliminating the prejudices, misconceptions and discrimination that may exist among individuals from different countries. In addition, understanding the concept of cultural differences creates and enhances the mutual respect among individuals in settings with dual cult ures (Hall, 2000). The aim of this report is to evaluate the concept of different communication cultures through the application of Hall’s high and low-context model of culture. Hall’s View of Culture According to Hall (1990), culture is the way people live. In other words, culture is the manner in which people interact with immediate environment. Further, culture comprises on the manner people in the society behave, their principles, verbal communication and mind-set as well as material values. Hall (1990) described culture as intuitive. In this context, culture controls the lives of people unknowingly. In other words, culture acts as imperceptible control system working in the minds of individuals. According to this view, people acknowledge their norms only after being exposed to a different way of life. The differences existing between the two cultures enable individuals to internalise the tenets of their customs and norms (Hall, 1990).Advertising Looking fo r report on cultural studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More For instance, one cannot know that there is another language unless exposed to a dissimilar environment where people communicate differently. Once exposed, the individual appreciates the importance of their language. In addition, members of the society acknowledge incorporate and appreciate the cultural aspects and act within the definitions of the societal expectations. In other words, the actions and behaviours of the members of the society must be within what is culturally acceptable (Hall, 1990). The societal culture also defines rewards for the violations of societal norms. According to Hall (1990), cultural aspects of all societies fall within the low-context to high-context cultures. Context in this case means the information concerning an event. The beliefs, norms and practices of all societies around the world are described by factors that fall within the scale of low-context to high-context cultures (Kim, Pan, Park, 2008). In other words, traditions of various countries can be related to one another through the application of factors that are found within the scale of low-context to high-context cultures. High versus low-context cultures Halls cultural scale is critical in the understanding of the existing national cultures of various countries taking into consideration both their cultural and communication values (1990). In fact, issues concerned with culture both at the national and local level are taken into consideration. Besides, cultural issues also consist of the individualism and collectivism attributes (Hofstede, 2008). On the other hand, communication styles are methods of transferring information that is unique to a given country. Communication styles in HC Vs LC cultures The form of interactions, societal chain of command and strong norms that govern behaviours affects the modes of transferring information in high-cont ext societies. In other words, the communication styles are influenced by the basic cultural characteristics of the society (Mattock, 2003).Advertising We will write a custom report sample on Cross-culture communication specifically for you for only $16.05 $11/page Learn More High context societies are characterised by the closeness of human relationships, highly structured social hierarchy and presence of strong behavioural norms. Under such situations, the information contains the hidden meaning, which does not need outright expression or explanation either in writing or verbally. In other words, high-context cultures are characterised by information having an inward or hidden meaning the members of the society automatically understand (Mattock, 2003). When passing information in high-context cultures, the listener is expected to understand some of the underlying issues without subsequent explanation. However, such skills require background knowledge on t he issue. According to Hall (1990), information in high-context societies is internalised or presented in substantial framework while very little information is conveyed in implicit structure. In other words, information that is openly sent out in implied form is very modest in high-context cultures. Besides, people are linear in their mode of speaking. The speaker is rarely intermittent. Essentially, communication is oblique, unclear, pleasant-sounding, reserved and discreet (Pakiam, 2007). Greater emphasis is placed in the non-verbal aspects of communication. Conversely, in low context cultures, meaning of the information is unambiguously entrenched in speech. Explanations are often needed in case of misunderstandings. Hall (1990) indicates that the information is in the transmitted form to compensate for the missing parts in the context. Besides, in low-context cultures, communication is usually straightforward, consequential, stable and sometimes without stopping the usage of wo rds.Advertising Looking for report on cultural studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More Cultural issues in high vs. lows of Business Communications Business communication in Finland Finland is one of the countries that exhibit high-context cultures. Finland has methods in which formal transfer of information is carried out. Traditionally, Finnish language has been perceived as reserved, longish and slow moving (Lewis, 2005). The characteristic of the language has been demonstrated in the communication culture. Finnish managers often communicate with employees and fellow managers in a modest form and do not encourage interruptions during speeches. In most cases, the information provided contains only the framework within which the task has to be carried out. The expectation is that the receiver understands the meaning or has the basic idea of what is expected. The form of business communication is demonstrated in high-context cultures (Zaidman, 2001). Besides, Finns are good listeners. Most of the time, the information is internalised upon reception. In the current corp orate world where information is digitised, Finns get it easier with coded speeches particularly the information being transferred through the Internet. However, the modes of business communication styles have changed with most people engaging in more proactive conversations (Zaidman, 2001). Employees can now interrupt their managers and ask questions during and after the presentations. Business communication in Japan Japanese corporate communication approach is within the traditions. For instance, in Toyota, the language used to pass information can be said to be agglutinated. In other words, the language has words that contain several elements meaning similar thing (Maynard, 2007). The particles in the words not only express the relations in the grammar but also the individual thoughts of the conveyor. Japanese corporate language is highly characterised by appreciation and respect. In fact, the language is full of regard and humble classification making the form of communication m ost distinct. In addition, the language has several ways through which politeness can be expressed (Tokuhiro Hiki, 2005). Based on the characteristics of the language, the form of communication in Japanese has a tendency of being high-context. Japan is placed at the top of the high-context cultures because of the communication style. In fact, Japanese communication procedures have all the attributes exhibited by high-context cultures. In Japanese language, the business information is oblique and digressive, few words are applied and dependencies on relative signal are exhibited (Pryor, Butler, Boehringer, 2005). In addition, there is low rate of interruptions as well as respect for long silences. Business communication in India The form of business communication in India is quite complex not only due to the several languages used to pass information but also due to the complexity of the recipients (Varma, 2004). Indian workers are more reactive and active. Actually, Indians do not take time to listen and internalise the information. Indian corporate world is characterised by the use of combined languages, which prove to be complicated in carrying out daily business conversation. India has over twenty -two official languages. Each of the languages has a distinct meaning when it is used to communicate business information. The mix and complexity in the application of diverse languages in daily business conversations make India’s communication culture be rated as low-context culture (Kapoor, Hughes, Baldwin, Blue, 2003). The major role of language in India is to maintain harmony and bring about good relations among individuals. Language is actually not used to convey exact knowledge. The form of communication culture is also demonstrated in the business conversations where information is haphazardly provided. Besides, Indian workers are dialogue-oriented (Kapoor et al. 2003). In fact, most businesses prefer providing direct information. The characterist ics make the communication culture in India be ranked as low-context. Business communication in Indonesia Indonesia is also one of the countries that are found within the low-context cultures. The form of business communication is characterised by extroversion, interruptions and assertiveness (Ferraro, 2005). In Indonesia, business letters exhibit extrovert in almost all sentences. Business managers are also assertive in their speech. Besides, interruptions are normal during presentations where employees tend to seek immediate clarity in case there is a misunderstanding. Like India, there is no homogeneity in the business language. Besides, there is no room for the internalisation of the information. Moreover, attentiveness to understand the information is deficient since the information provided is more direct. The characteristics place the Indonesian communication traditions under the low-context cultures. In Indonesia, low-context cultural oriented tendencies are highly observed in business communications involving contracts. Communications involving contracts are normally simple and explicit. Even though there are variations in the communications involving such business transactions depending on the language used, the information is shared and understood across the board. In other words, business conversations involving simple contracts are commonly understood due to the simplicity in which they are conveyed (Chaney, 2005). Essentially, communication in low context cultures is straight, accurate, impressive and open as well as founded on faithful thoughts and purpose. References Chaney, L 2005, Intercultural business communication, Prentice-Hall, Englewood Cliffs, NJ: Chella, G 2007, The changing face of Indian work culture, New Delhi, The Hindu Business Online. Ferraro, GP 2005, The cultural dimension of international business, Prentice-Hall, Englewood Cliffs, NJ. Goodman, R Refsing, K 2002, Ideology and practice in modern Japan. Routledge, London. Gudyk unst, WB Ting-Toomey, S 2008, Culture and interpersonal communication, Sage, Newbury Park, CA. Hall, E 1990, Understanding cultural differences: Germans, French and Americans. Intercultural Press, Yarmouth. Hofstede, G 2008, A summary of my ideas about national culture differences, McGraw-Hill, Berkshire, England. Kapoor, S, Hughes, P, Baldwin, JR Blue, J 2003, â€Å"The relationship of individualism-collectivism in India and the United States,† International Journal of Intercultural Relations, vol.27 no.2, pp.683–700. Kim, D, Pan, Y Park, HS 2008, â€Å"High- versus low-context culture: a comparison of Chinese, Korean, and American cultures,† Psychology and Marketing, vol.15 no.6, pp.507–521. Lewis, RD 2005, Finland, cultural lone wolf, Intercultural Press, Yarmouth, ME. Mattock, J 2003, Cross-cultural business cimmunication: the essential guide to international business, Kogan Page, London. Maynard, SK 2007, Japanese communication language and though t in context, University of Hawaii Press, Honolulu. Pakiam, A 2007, â€Å"Face-saving† in cross-cultural communication, New Delhi, The Hindu Business Line. Pryor, B, Butler, J Boehringer, K 2005, â€Å"Communication apprehension and cultural context: a comparison of communication apprehension in Japanese and American students,† North American Journal of Psychology, vol.7 no.2, pp.247–252. Richardson, RM Smith, SW 2007, â€Å"The influence of high/low-context culture and power distance on choice of communication media: students’ media choice to communicate with professors in Japan and America,† International Journal of Intercultural Relations, vol.31 no.4, pp.479–501. Sen, A 2005, The argumentative Indian: writings on Indian history, culture and identity, Penguin Books, London. Tokuhiro, Y Hiki, S 2005, â€Å"of mora phonemes on Japanese word accent,† Logico-Linguistic Society of Japan, vol.42 no.3 pp. 243–250. Varma, PK 2004 , Being Indian: the truth about why the 21st century will be India’s, Penguin, Delhi. Zaidman, N 2001, â€Å"Cultural codes and language strategies in business communication,† Management Communication Quarterly, vol.14 no.3, pp.408-441. Cross Communication is one of the essential parts of people’s lives. Modern society can be characterized by extensive interaction of people from different countries and different continents. Boundaries diminish, and people start visiting not only neighboring areas, but fly across oceans and learn about different cultures, gain new experiences.Advertising We will write a custom essay sample on Cross-Cultural Communication in Tourism specifically for you for only $16.05 $11/page Learn More However, despite such freedom in terms of overcoming distances, people still have difficulties with cross-cultural communications, since each nation gained particular social peculiarities due to many historic, social, geographic and many others factors. Fortunately, people has started considering this issue, thus, there are a lot of approaches to solving this problem, and many researchers suggest several ways of overcoming difficulties. First, it is necessary to point out t hat there are several definitions and understandings to the very notion of communication. In 1960s researchers suggested that communication is interchanging of meanings via different â€Å"symbols and signs† (Reisinger 2009, p.166). But in 1990s scholars suggested a new understanding of this notion, which is confined to the ability of people to share ideas and reach the same opinion, i.e. people not only communicate some idea but try to convince the interlocutor to accept this idea, thus, the result of communication is shared idea (Reisinger 2009, p.167). Though, this definition cannot be precise, since it is difficult or even impossible, and hardly necessary to make people share the same meaning. The major purpose and result of communication is to transfer one’s idea to other people, so that they could understand it and adequately react. Unfortunately, sometimes people even within the same language and culture fail to implement this purpose of communication and in thi s case misunderstanding occurs, which can lead to different negative consequences. Admittedly, communication among people of different languages and cultures faces much more obstacles. When considering cross-cultural communication, researchers define such difficulties as: differences in verbal and non-verbal communication (Reisinger and Turner 2003, p.18). Differences in verbal communication emerge due to the peculiarities of language, for instance, people may be confused by difference in words sequence or sounds, moreover, some scholars define that difficulties are also caused by â€Å"variations in vocabulary† (when the same word denotes several notion or vice versa) and â€Å"linguistic relativity† (variety of dialects or jargons and accents) (Reisinger and Turner 2003, p.18).Advertising Looking for essay on business communication? Let's see if we can help you! Get your first paper with 15% OFF Learn More Differences in non-verbal communicati on are caused by movements (gestures, facial expressions, eye contact, nodding), space (personal space), touch (â€Å"the meaning of touch†), time (â€Å"time orientations, time systems, time perceptions†), voice (â€Å"fast/slow†, â€Å"loud/soft†, etc.), and even other â€Å"non-verbal codes† (body odour, blushing, tears, body shape, skin colour, clothing, cosmetics, etc.) (Reisinger and Turner 2003, p.18-19). Thus, there are many constituents building up intercultural misunderstanding, verbal and non-verbal, where each of these elements play significant role and cannot be excluded. After defining the main factors causing difficulties in cross-cultural communication, it is possible to consider this issue in terms of tourism. Many researches pay quite a lot attention to this issue. Thus, Theobald (1998) considers the problem in terms of tourism, and assumes that the majority of tourists feel like (and very often are treated as) strangers, and with out knowing a language they feel frustrated, and this is the main reason why a lot of tourist choose countries where people speak the same language, moreover, tourist may be also confused with different traditions and ways of communication of the host country (Theobald 1998, p.133). However, Cohen (2004), considering difficulties in cross-cultural communication, notes that often tourists visit a country without knowing the language of the host people, and in this case, especially when visiting some countries of Africa and Oceania they use non-verbal means of communication, i.e. gestures, which are universal in nature and explicit (Cohen 2004, p.220). Cohen also denotes that such non-verbal communication often becomes an amusing game (e.g. when tourists try to buy some food using gestures) which â€Å"serves to create and express a mutual interest and sympathy† (Cohen 2004, p.220). Thus, there are evidences which prove that non-verbal communication is slightly superior to the verbal communication and in some particular cases can become the only means of reaching understanding. While considering the issue of cross-cultural communication and tourism it is necessary to note that the central factor of this problem is difference in cultures and traditions. Admittedly, different nations had their history and their development which constructed this or that norm.Advertising We will write a custom essay sample on Cross-Cultural Communication in Tourism specifically for you for only $16.05 $11/page Learn More Thus, within the same culture people should follow the main principles, for instance, there are several types of appearance and postures appropriate for different occasions (Hinde 1975, p.248). Of course, different nations have their particular requirements, thus, in Arabic countries women should be dressed in special gowns in the street or in public, whereas western women have less restrictions, though it will be inappropriate to c ome to opera in jeans or shorts. Different nations have their perception of politeness. Thus, European people knock into the door before coming into the room, while Americans don’t consider this to be polite, rather inappropriate, and Esposito et al. (2007) provide historical and cultural background of this peculiarity of American culture (Esposito et al. 2007, p.87). Reisinger (2009) provides analysis of the main cultural peculiarities of different nations, thus, the research points out that different people have different attitude even to the way they look at each other, and western people prefer to look into the eyes of the interlocutor, and regard a person who avoids looking into eyes being indifferent to the conversation or even rude, and, on the contrary, eastern people prefer not looking into the eyes, and regard people looking into eyes rude and aggressive (Reisinger 2009, p.172). Thus, many slight or significant peculiarities in cultures of different people exist, wh ich can lead to misunderstanding. Despite numerous factors causing difficulties in cross-cultural communications, there is quite simple way out. First of all, people should be tolerant and attentive to the culture of different people. It is impossible to consider own culture to be the most appropriate and adequate, while ignoring other people’s traditions. Reisinger 2009 raises quite important question concerning tourism and inter-cultural communication, which is whether tourist should assimilate to the host people following their traditions or host people should take into account tourists’ culture peculiarities (Reisinger 2009, p.196). This disputable question should be regarded in terms of principles of mutual respect and understanding. Before visiting a country tourists should learn some details about cultural peculiarities of people living in that country, and try to follow their traditions or at least try to avoid violating major cultural rules or traditions.Adver tising Looking for essay on business communication? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thus, the question of cross-cultural communication difficulties remains open, since there are many ways of considering this problem. However, to avoid inter-cultural misunderstanding tourists should learn not only the language of the host country but its main rules and traditions. Thus, many scholars provide various evidences proving that non-verbal communication plays significant role in reaching understanding between people of different languages and cultures. Reference List Argyle,M 1975, ‘Non-Verbal Communication in Human Social Interaction’, in Non-Verbal Communication, Cambridge University Press, Cambridge, United Kingdom, pp. 243-268. Cohen, E 2004 Contemporary Tourism: Diversity and Change, Elsevier B.V., Amsterdam, Netherlands. Esposito, A, Bratanic, M, Keller, E, Marinaro, M 2007, Fundamentals of Verbal and Nonverbal Communication and the Biometric Issue, IOS Press, Amsterdam, Netherlands. Reisinger,Y Turner, LW 2003, Cross-Cultural Behaviour in Tourism: Conc epts and Analysis, Butterworth-Heinemann, Oxford, United Kingdom. Reisinger, Y 2009, ‘Cultural Influences on Intercultural Communication’, in International Tourism: Cultures and Behaviour, Butterworth-Heinemann, Jordan Hill, Oxford, United Kingdom, Chapter 7, pp. 165-198. Theobald, WF 1998, Global Tourism, Butterworth-Heinemann, Oxford, United Kingdom. Cross Focus of the Study Globalisation has opened up borders and brought people from different cultures together. Modern technologies have improved transportation and communication and encouraged expansion of corporations to overseas markets. Economic cooperation between governments has also risen in the globalisation age.Advertising We will write a custom proposal sample on Cross-culture Project Cooperation specifically for you for only $16.05 $11/page Learn More People from different cultures now work together in workplace environments that encourage diversity in relation to â€Å"communication styles, values, and cultural norms†1. Moreover, nowadays, firms are increasingly investing in international projects because of the high returns associated with such ventures. However, a number of constraint factors related to overseas business environments affect international projects. These factors fall into four categories: economic, socio-cultural, political, and technological2. The proposed research study will focus on how cultural differences affect international project management. The study will examine the place of culture in the management of overseas projects. It will also explore how cultural differences hamper cross-cultural cooperation within organisations. The teams involved in overseas projects are usually drawn from different cultures. Typically, the team members speak different languages and have dissimilar customs and beliefs. If these differences are not well managed, the employees may fail to work together as a team leading to project failure. Literature Review Studies in international project management reveal that cultures give rise to different management approaches because people often make decisions based on culturally defined values3. This implies that national cultures shape the behaviours of managers working on international projects. Schneider and Meyer (2006) describe the effect of cultural differences on organ isational performance4. They state that team members find it hard to work in a different cultural environment because of their unfamiliarity with foreign management approaches.Advertising Looking for proposal on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In this regard, for a project to be successful, foreign workers must adapt to the host country’s national and organisational cultures5. A failure to recognise and abide by the cultural customs of the host country can impede cooperation and lead to project failure. Inappropriate management (cultural diversity) practices have also been associated with project failures6. For construction projects, cultural differences affect various stages of the project cycle, including tendering, negotiation, and implementation phases7. Moreover, cultural differences affect communication and collaboration among team members. Gray and Larson (2003) posit that cultural differences cause language barrier, which impedes effective communication within organisations8. Additionally, it is difficult to translate a message without it losing its original meaning. Besides language, religious differences can also hamper cooperation. A study Kirby and Richard (2000) found that employees do not prefer to work on sites perceived to have religious significance to the locals9. Thus, cultural differences have a big influence on site selection for international projects. On their part, Ling and Hoi (2006) found that international construction firms face a cultural risk when working on overseas projects (in Singapore and India) because of the differences in culture10. They conclude that in order for a project to be successful, the team members must be able to understand the local culture. However, they note that cooperation may still be a problem even when people speak the same language due to differences in working methods and mindsets among the workers.Advertisin g We will write a custom proposal sample on Cross-culture Project Cooperation specifically for you for only $16.05 $11/page Learn More Ling and Hoi (2006) recommend that team members should familiarize themselves with the various aspects of the local culture (Indian) before the project commences11. Kwak (2002) writes that culture, in the context of international project, is a critical success/failure factor12. If project managers are unfamiliar with the cultural diversity within the team, they may assign responsibilities to the wrong groups. As a result, a project may incur additional costs or overrun its schedule. Moreover, if a project’s objectives do not reflect the culture of the customer(s), it may face stiff opposition leading to its termination. Thus, a project manager should take into account the customs, values, and traditions of the team members from the outset13. Moreover, he or she must ensure that the project’s objectives reflect the culture of the clients to avoid opposition and possible project rejection. A survey by Chen, Partington, and Qiang (2009) that involved UK and Chinese project managers establishes that the use of cross-cultural management does not always translate to project success because of the differences that exist between the Chinese and Western management practices14. In another study, Gunhan and Arditi (2005) explore the factors affecting international project management among US corporations15. The study establishes that cultural differences among the workers increase the risk of project failure. In contrast, Pheng and Leong (2000) examine the various aspects of cross-cultural collaboration in international projects16.Advertising Looking for proposal on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More They establish that factors such as â€Å"organisational and national culture and cross-cultural communication, conflict resolution, and negotiation skills† influence international project management17. Based on a case study involving Chinese (YRTSB) and American (APC) firms, the authors argue that the Chinese culture (corporate) has a big influence on decision-making. Cultural differences hamper communication, which create misunderstandings between business partners. Moreover, the absence of cross-culture conflict resolution mechanisms contributes to the failure of joint-venture projects. In particular, in the case study, the authors find a big difference between the Chinese and American negotiation styles. They conclude that project managers (American) should seek to understand the management style of their partner company (Chinese) in order to work together amicably. On their part, Chen et al., (2010) explore the project managers’ approaches in cross-cultural team m anagement18. They establish that cross-cultural differences exist between UK and Chinese managers with regard to their management approaches. While the UK managers focus on safety, their Chinese counterparts are largely driven by commercial interests. Moreover, Ashkanasy, Hartel, and Daus (2002) in their study, establish that, in practice, transferring managerial practices is not possible because of cultural differences19. In this study, cultural differences were found to hamper cooperation between French and Dutch companies in areas of RD. Thus, differences in organisational and national cultures can affect cooperation in projects involving culturally diverse staff. Initial Research Questions Based on the literature review above, five research questions will direct the proposed study. These include: What is the effect of cultural differences on the success of projects involving culturally diverse teams? How can foreign project managers manage multicultural groups in their teams? W hat cultural dimensions affect international project management? Can the effect of culture on project management be generalised or is it specific to certain situations? How does the employee’s culture and behaviours affect project outcomes? Justification From the literature review, it is evident that few studies have examined the cultural issue as a critical success factor for international projects. Most of the studies have focused on the effect of cultural differences on project performance, communication, and management. Therefore, there is need to identify the general cultural characteristics that affect project success in the international arena. Although cultural conditions are often specific, some situations cut across all cultures. Methodology A study’s methodology encompasses research design, sample selection (participants), materials/equipment, and data collection/analysis approach. Research Design The study will employ a case study approach to examine the e ffect of cultural differences on project performance and management. It will also involve a mixed methods research design (qualitative and quantitative methods). Creswell (2009) defines the ‘mixed methods design’ as a method that integrates qualitative and quantitative approaches in data collection and analysis20. In particular, the proposed study will utilise the interviewing method to collect data from culturally diverse staff members of an international construction project. A cross-cultural analysis using qualitative and quantitative techniques will reveal the impact of the cultural differences on the project’s performance. Sample Selection The participants in the proposed study will include staff members (both past and current) working on an international project. Project managers will also participate in this case study. The convenience sampling technique will be used to select the participants. This will ensure that as many people as possible participate i n the case study. Data Collection The study will involve personal interviews with the participants. Questionnaires containing structured and semi-structured questions will be used to collect data. During the interview, qualitative data will also be collected using researcher observation to complement the quantitative data obtained from the questionnaires. Justification for Research Methodology The aim of the proposed study is to highlight the significance of cultural differences in a project success. Culture determines the management style of the project manager, which, in turn, influences the project’s outcomes. Additionally, cultural diversity among project managers and staff influences their negotiation, communication, cooperation, and conflict resolution skills. Consequently, there is need to identify the specific aspects of cultural diversity that impede project performance. In this regard, a case study approach will help identify the specific cultural factors (success f actors) that affect cooperation among culturally diverse groups in a team. Convenience sampling is appropriate for this case study, as, according to Yin (2003), the subjects are not similar and thus, cannot be sampled randomly21. Time Schedule Bibliography Ashkanasy, Neal, Hartel, Charmine and Daus, Catherine, ‘Diversity and emotion: the new frontiers inorganizational behaviour research’, Journal of Management, vol. 28, Issue 1, 2002, pp. 307-338 Chen, Gilad, Kirkman, Bradely, Kim, Kwanghyun, Farh, Crystal and Tangirala, Subrahmaniam, ‘When does cross-cultural motivation enhance expatriate effectiveness? A multilevel investigation of the moderating roles of subsidiary support and cultural distance’, Academy of Management Journal, vol. 53, Issue 2, 2010, pp. 1110-1130. Chen, Ping and Partington, David, ‘An interpretive comparison of Chinese and Western conceptions of relationships in construction project management work’, International Journal of Project Management, vol. 22, Issue 3, 2004, pp. 397–406 Chen, Ping, Partington, David, and Qiang, Maoshan, ‘Cross-Cultural Understanding of Construction Project Managers’ Conceptions of Their Work’, Journal of Construction and Engineering Management, vol. 135, Issue 6, 2009, pp. 477–487. Chevrier, Sylvie, ‘Cross-cultural management in multinational project groups’, Journal of  World Business, vol. 38, Issue 1, 2003, pp. 141-149 Creswell, John, Research Design: Qualitative, Quantitative, and Mixed Methods  Approaches (Thousand Oaks, CA: Sage Publications, Inc., 2009). Dadfar, Hossein and Gustavsson, Peter, ‘Competition by effective management of cultural diversity’, International Studies of Management and Organization, vol. 22, Issue 4, pp. 81-92. Gilbert, Jacqueline and Ivancevich, John, ‘Valuing diversity: A tale of two organizations’, Academy of  Management Executive, vol. 14, Issue 1, 2000, pp. 93-1 05. Gray, Clifford and Larson, Eric Project Management: The Managerial Process (New York: McGraw Hill Higher Education, 2005). Gunhan, Suat and Arditi, David, ‘Factors Affecting International Construction’, Journal of  construction engineering and management, vol. 131, Issue 4, 2005, pp. 273-277 Kirby, Susan and Richard, Orlando, ‘Impact of marketing work-place diversity on employee job involvement and organizational commitment’, Journal of Social Psychology, vol. 140, Issue 3, 2000, pp. 367-377. 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Footnotes 1 Sylvie, Chevrier, ‘Cross-cultural management in multinational project groups.’ , Journal of World Business, vol. 38, issue1, 2003, p. 141 2 Jacqueline, Gilbert and John Ivancevich, ‘Valuing diversity: A tale of two organizations’, Academy of Management Executive, vol. 14, Issue1, 2000, p. 99 3 Ping, Chen and David, Partington, ‘An interpretive comparison of Chinese and Western conceptions of relationships in construction project management work’, International Journal of Project Managemen t, vol. 22, Issue 3, 2004, p. 398 4 Susan, Schneider and Anoud, Meyer, ‘Interpreting and responding to strategic issues: The impact of national culture’, Strategic Management Journal, vol. 12, Issue 4, 2006, p. 307 5 Schneider and Meyer, p. 309 6 Clifford, Gray and Eric, Larson, Project Management: The Managerial Process, McGraw Hill Higher Education, New York, 2005, p. 92 7 Hossein, Dadfar and Peter, Gustavsson, ‘Competition by effective management of cultural diversity’, International Studies of Management and Organization, vol. 22, Issue 4, 1992, p. 87. 8 Gray and Larson, p. 312 9 Susan, Kirby and Orlando, Richard, ‘Impact of marketing work-place diversity on employee job involvement and organizational commitment’, Journal of Social Psychology, vol. 140, issue 3, 2000, p. 368. 10 Florence, Ling, and Linda, Hoi, ‘Risks faced by Singapore firms when undertaking construction projects in India. International Journal of Project Management, vol. 24, Issue 3, 2006, p. 268. 11 Ling and Hoi, p. 271 12 Young, Kwak and Brian, Smith, ‘Managing Risks in Mega Defense Acquisition Projects: Performance, Policy, and Opportunities’, International Journal of Project Management, vol. 27, Issue 8, 2009, p. 815. 13 Kwak and Smith, p. 817 14 Ping, Chen, David, Partington, and Maoshan, Qiang, ‘Cross-Cultural Understanding of Construction Project Managers’ Conceptions of Their Work’, Journal of Construction and Engineering Management, vol. 135, Issue 6, 2004, p. 479. 15 Suat, Gunhan and David, Arditi, ‘Factors Affecting International Construction’, Journal of construction engineering and management, vol. 131, Issue 4, 2005, p. 273. 16 Low, Pheng and Christopher, Leong, ‘Cross-cultural project management for international construction in China’, International Journal of Project Management, vol. 18, Issue 5, 2000, p. 313. 17 Pheng and Leong, p. 314 18 Gilad, Chen, Bradely, Kirkman, Kwanghyun, Kim, Crystal, Farh and Subrahmaniam, Tangirala, ‘When does cross-cultural motivation enhance expatriate effectiveness? A multilevel investigation of the moderating roles of subsidiary support and cultural distance’, Academy of Management Journal, vol. 53, Issue 2, 2009, p. 1114. 19 Neal, Ashkanasy, Charmine, Hartel and Catherine, Daus, ‘Diversity and emotion: the new frontiers inorganizational behaviour research’, Journal of Management, vol. 28, Issue 1, 2002, p. 308. 20 John, Creswell, Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, Sage Publications, Inc., Thousand Oaks, CA, 2009, p. 145 21 Yin, p. 99 Cross Introduction In every part of the world, the business sector is streamlining its operations through diverse types of amalgamation approaches. Amalgamation is done in order to triumph over the many challenges but also harness opportunities created by globalization. The intensity of such operations has been witnessed in different major sectors of the economy in many countries of the world.Advertising We will write a custom essay sample on Cross-Border Mergers Acquisitions in the Pharmaceutical Industry specifically for you for only $16.05 $11/page Learn More In particular, there have been relatively high rates of mergers and acquisitions among the pharmaceutical industries. This phenomenon is attributed to presence of subsidiaries of big multinational companies in many countries the entire world over. This paper investigates into literature written on acquisition and mergers with a special focus on the pharmaceutical industry. Acquisition and Mergers The term merger and acquisition are often applied synonymously; however, there is a slight difference in the meaning of the two terms. A merger takes place when two firms harmonize to go onward as a unitary corporation rather than remain disjointedly possessed and managed. When merging occurs, and in most occurrence between companies of the same size, their stocks are surrendered and the new company stock is issued in their place. On the other hand acquisition takes place when one firm takes over another and establishes itself as the new owner. In this case the target corporation ceases to exist legally, and the buyer’s stockpile continues to be traded, as noted by Hassan (2007, p.58). In addition, Hassan (2007) notes that almost all mergers tend to be between medium size firms and large sized firms. Cross-border mergers and acquisitions in the Pharmaceutical Industry There are numerous reasons that lead to the majority of mergers in pharmaceutical industries. In reference to most me rgers and acquisition in pharmaceutical industries in the United States of America, Kang Johansson (2000, p.29) observes that possession of recognized product in some pharmaceutical markets, well renowned market system and the market allotment are examples of motivations that has led to the boom in merger and acquisitions. The other Factors that motivate Cross-border mergers and acquisitions in the Pharmaceutical industry can be classified in two distinct categories (Kang Johansson, 2000). Kang Johansson (2000) further observe that while some of these factors are exogenous, others are autogenous.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Exogenous factors are those that surface within the company or those factors that the company can be able to handle or even influence (Kang Johansson, 2000). On the other hand, autogenous factors are those foregoing external issues, which ar e beyond the aptitude of the corporation to control or even to influence considerably (Kang Johansson, 2000). However, while they determine the attainability of a certain merger or acquisition, they do not explain why corporations want to merge. Antitrust is one of exogenous factors associated with government policies that can promote, retard or prohibit Cross-border mergers acquisitions in the pharmaceutical industry. In both the US and European Union, the antitrust regulators have largely been reasonably sympathetic to mergers and acquisition (Kang Johansson, 2000). They have realized that markets are universal and have acknowledged the divestitures, permits and business restriction to heal some of the problems as observed by (Kang Johansson, 2000, p.30). In addition, Kang Johansson (2000) note that the universal direction to private enterprise and privatization of state possessed corporation, has led to a notable rise in the number of cross-border merger and acquisitions. Moreov er, the different governments especially in developed countries such as those in North America and Western Europe have decided to take a back seat and leave the market to decide on the results of hostile bids. These bids appear to have opened the door and led to a significant increase in the number of cross-border mergers and acquisitions of various pharmaceutical firms in their countries (Kang Johansson, 2000). Another factor that has motivated the cross boarder merger and acquisition in the pharmaceutical industry is labor. In his own views, Kang (2001, p.71) notes that as long as the job security of workers is guaranteed and there is a vibrant job market, the resistance of employees of to mergers and acquisitions is minimal. Employee cooperation has made the whole process to be simplified and accessible. Going by autogenous factors, Kang (2001, pp.71-75) perceives that the traditional prime motivation for any merger is to gain and increase the market power. Similarly, the idea be hind the many cross-border merger and acquisition is to attain the ability to control a large share of the market, and if it would not have been for the government regulations, most corporations would be seeking to have total monopoly.Advertising We will write a custom essay sample on Cross-Border Mergers Acquisitions in the Pharmaceutical Industry specifically for you for only $16.05 $11/page Learn More Kang (2001) further observes that distributing the profit of an enhanced operating margin throughout diminution of working cost is another very important reason behind cross-border operations within the pharmaceutical corporations. The acquirer in often cases restructures towards bettering the acquired organization’s operations. Consequently, this leads to improving or increasing value for the shareholders of acquired company. Moreover, intra-industry consolidating acquirement provides opening to reduce costs (Kang Johansson, 2000). The need to mini mize the cost of developing new technologies is another factor that facilitates most cross-border acquisition. Following the state-of-the-art technological advancement required in pharmaceutical industries, the cost of coming up with such obligation may be a huge responsibility for a pharmaceutical firm with less operating margin to match. At this point, the need to merge with another firm of same size may emerge, in order to reduce the huge financial budget (Cantwell Santangelop 2006, p.21). Cantwell Santangelop (2006) observe that technological factors have influenced the growing merger and acquisition strategy in the pharmaceutical industries. Internationalization and integration have taken place in pharmaceutical manufacturing, through the amalgamation and acquisition taken on as a means of attaining cost savings and accelerating innovation in response to the first tempo of scientific changes in this segment (Cantwell Santangelop, 2006). Pharmaceutical industries have consequ ently undertaken mergers and acquisition consecutively to accumulate enough resources to fund researches and development of new drugs (Cantwell Santangelop, 2006).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Cantwell Santangelop (2006) point out that in order to overcome challenges of intimidation to their spirited positions; pharmaceutical corporations have pushed to get better research, promotion and allocation of their pharmaceutical products. Now, cross-border unions usually provide the much needed alternative of expanding the commercial property base and preserve of technical strength. Institutional stakeholders in pharmaceutical industries and other investment campaigners are known to have a considerable achievement in urging or if need be compelling corporations to reorganize their operations or seek a merger (Cassiman Colombo 2006, p.32). This is more often than not propelled by the desire in shareholders’ of such pharmaceutical firms to make the most of their worth. The improved aptitude by stakeholder to converse amongst themselves and put pressure on the board of executive has had a monumental impact (Cassiman Colombo 2006, p.32). In additional cases, shareholder de mands has been the momentum for growth through instances such as cross-border acquisitions intended to increase volume or expand product lines Impact of Cross-Border Mergers and Acquisitions on Performance of Pharmaceutical Industries Having looked at some factors that motivate Cross-border mergers and acquisitions in the pharmaceutical Industry, the question most likely to arise would be to what degree the consolidation approach assisted them (pharmaceutical industries) to advance their situation. Mergers and acquisition are anticipated to change the performance of the amalgamating companies in a variety of ways. One of these ways is through an expansion in the level factors, where the merging firms are expected to increase the capacity of their production. In turn, increased production capacity helps reduce the unit cost of production per pharmaceutical product. In many instances, mergers and acquisitions are meant to give more powers to merging pharmaceutical firms in the market and this eventually present them with powers to increase their accomplishment which lead to high prices and in due course to high profits. In other cases, however, merging pharmaceutical firms may experience minimal performance, if obtained unprofitable firms and are not able acquire the anticipated synergies (Cantwell Santangelop, 2006, pp. 21-25) A close comparison of the merging and non merging firms will bring out a clearer picture of performance between the two diverse categories of consolidation approaches. A merging firm occurs only after making the primary merger or acquisition, and until that it would be a non merging corporation. Going by measures of affluence such as Gross profit margin and return on funds engaged, these ratios give the impression that merging incorporations are by far more profitable in comparison to the non-merging companies. Similarly, the research and development intensity of the merging corporations are significantly better compared to their non-mer ging counterparts. The elevated variability shown by the research and development of the merging industries unlike the non merging ones, indicate that only a few merging firms are capable of investing more on research study and growth (Beena, 2006, p.11). Other core determinants of supporting market expansion are the selling expenses, mostly the marketing cost relatively to promotion expenses (Beena, 2006). This is attributed to the fact that most pharmaceutical industries usually make advances to the prescribing doctors instead of approaching the patients, which compels them to incur expenses on advertising through sales legislative body. The author as well argues that the average commercial advertisements strength for merging corporations remained to some extent above the one of non-merging firms, which implies that merging firms could minimize their expenses on marketing costs, upon getting into a merger. The analysis on merger and acquisition proves that pharmaceutical companies reengaged in them, are able to distribute among themselves the market channel, which to a considerable extent minimizes their cost (Beena 2006, p. 20). These corporations have as well acquired various tactical marketing integrations that assist them to develop marketing synergies (Halibozek Kovacich 2005, p.49). In comparing the intensity associated with export and import, between the merging and non-merging conglomerate, Halibozek Kovacich (2005) observe that the merging companies have a high export and import strength. The high import concentration may be attributed to the pharmaceutical firms’ dependence on the importation in bulk of their pharmaceutical products such as the drugs (Halibozek Kovacich, 2005, p.52). Despite the fact that mergers and acquisitions are projected to augment the capacity exploitation of the merging pharmaceutical industries because of the expansionary explanation, capability utilization is inferior to that of the non-merging corporations thro ughout the post amalgamation period (Mueller, 1980, p. 4). According to Muller (1980, p.5), most of the pharmaceutical industries seeking mergers and acquisition, usually consider the possibility of cutting short peril and uncertainty. In this perspective, Muller (1980) argues that many firms believe that the more diversified a firm is, the higher the likelihood of obtaining a steady returns, hence a losses in one market may as well be offset by gains in another market. Many firms as a result of merger and acquisition are able to expand their production portfolio by coming up with new brands of products, which are added to more therapeutic groupings and thereby not only minimize risks but also spread out their market synergies. The synergies effects of cross-border merger and acquisition makes it possible for pharmaceutical corporations to deepen or scope products arrangement. Conclusion Liberalization of many pharmaceutical firms by majority of governments has enabled cross-border merger and acquisition, which in turn has provided new market opportunities. The fast tempo of scientific changes has acted as a major influence to cross-border amalgamation and acquisition through making it possible for pharmaceutical firm to deal with a growing groundbreaking complication and interrelatedness, which has enabled them to carry out widespread research and development on their products. Similarly, mergers and acquisitions have made it possible for pharmaceutical firms to look for more business and market in order to manage with cost raise. Cross-border merger and acquisitions have in addition influenced though differently on national economies, when considering developing and developed economies. Within national borders, merger and acquisitions of pharmaceutical industries can be used to enhance domestic development and growth, while in case of developed countries they may allow national governments to pursue improvement of guiding principles On whether the mergers an d acquisitions in the industry are good it is not easy to say. However, if these corporations are in a position to transfer a fraction of benefits gained through their enhanced performance due to consolidation to the customers, then the developments are welcome. The benefits can be passed to the customer in the form of reduced costs and a superior quality of drugs. Such benefits accruing to the customer would be a welcome development that would in turn lead to bigger market share command by firms. However, if amalgamation only leads to monopolistic tendencies, then it would be worthy of special attention, to safeguard the interest of the common person who cannot afford the hefty price of drugs. References Beena, S, 2008, Mergers and Acquisitions in the Indian Pharmaceutical Industry: Nature, Structure and Performance, Emerald Group Publishing, New Delhi. Cantwell, JA Santangelop, 2006, Mergers Acquisitions and the global strategies of Transnational Corporation, University of Readi ng Press, Reading. Cassiman, B Colombo, MG 2006, Mergers Acquisitions: The Innovation Impact‎, Edwar Elgar Publishing, Massachusetts. Halibozek, EP Kovacich, GD 2005, Mergers and Acquisitions Security: Corporate Restructuring and Security, Oxford University Press, London. Hassan, M 2007, â€Å"Do Mergers and Acquisitions Create Shareholder Wealth In The Pharmaceutical Industry?†International Journal of Pharmaceutical and Healthcare Marketing, Vol. 1, pp.58 – 78, Fordham University Press, New York. Kang, NH 2001, New patterns of industrial globalization: Cross-border Mergers and Acquisition, OECD, London Kang, NH Johansson, S 2007, Cross-Border Mergers And Acquisitions: Their Role In Industrial Globalization, 8 (1), pp. 23- 59, OECD 2000 publishers, London Mueller, D 1980, â€Å"The Determinants and Effects of Mergers: An International  Comparison†, Cambridge University Press, MA.