MOD007389 International Intercultural Management Assignment Sample

Introduction OfInternational Intercultural Management

Culture is a comprehensive concept that encompasses the behaviours, beliefs, values, and symbols of a group of individuals. According to Ngai et al. (2015), the transmission of this phenomenon occurs intergenerational via imitation and conversation. The comprehension of culture is of paramount importance as it has a substantial impact on the behavior, interaction, and perception of individuals towards the world. Culture has been a traditionally valued aspect of organizations; however, its significance has been amplified in the current globalized world.

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Contextual alterations

Recent environmental changes have had a significant impact on global intercultural management. For instance, technology has transformed how firms run, allowing them to increase their global reach. This trend has been promoted by the most recent stage of technology-driven globalisation, which has made it easier to integrate markets, communication, and culture (Stahl and Tung, 2015). A change in economic power from the Global North to the Global South has also presented new commercial opportunities and problems. Urbanisation and other demographic changes like generational cohorts have had a greater impact on how people connect, live, and work, leading to 'talent wars' for businesses.

Implications

These adjustments have produced a new paradigm with fresh issues and fixes. Successful organisations in this context must be both flexible and culturally competent. To be successful in new markets, they must comprehend the subtle differences of various cultures and modify their strategy accordingly. Therefore, it is crucial for organisations to have a thorough awareness of the cultures in which they want to work.

Scenario

The reportwill choose a SME that specialises in high-end fashion that has had great success in its home market (United Kingdom) as the basis for our investigation. This scenario provides an ideal opportunity to investigate the many cultural elements that the organisation must take into account to flourish in a new market. The organisation wants to grow into new countries, specifically Country India.

Cultural analysis

Framework 1: Iceberg

Deep Level: India is a varied nation whose citizens have a rich cultural legacy that influences their lives. The concept of karma, or the idea that one's deeds in this life affect their destiny in the next, is one of the fundamental beliefs that underpin Indian civilization. This idea is strongly related to Hinduism, which is the country's main religion and has a significant impact on numerous aspects of daily life (Beugelsdijket.al 2015). The value of community and family over individualism is another fundamental concept. The focus placed on extended family structures and the significance of preserving social ties reflects this.

Value level: The deep-seated cultural presumptions of Indian society give rise to a number of values that are essential to comprehending how Indians think and act. The idea of "dharma," or duty, which emphasises the significance of upholding one's societal commitments and responsibilities, is one of the most significant principles. Deference displayed to superiors, bosses, and other authority figures is a reflection of another value: the significance of respect for hierarchy and authority. Additionally, India favours cooperation, group harmony, and collectivism over individualism and rivalry.

Behavioural Level: Indian culture's values have an impact on a variety of daily behaviours, such as how people communicate, make decisions, and do business. Indians have a propensity for indirect communication and elucidation through nonverbal clues like tone of voice and body language. Instead of relying solely on individual judgement, India frequently bases decisions on interaction with others and developing consensus. Cultural values can also have an impact on business practises in India, with connections and trust being essential components of productive collaborations.

Surface level: Indian culture is evident in a number of ways on the surface, including attire, cuisine, symbolism, and rituals (Fish et.al 2016). Indian clothing is renowned for its vibrant colours, intricate designs, and flowing materials, and it is a reflection of the nation's extensive textile history. Indian food is renowned for its rich, spicy meals that differ by location. In Indian culture, icons like the lotus flower and the peacock are revered, and festivals like Diwali and Holi are widely observed.

The SME must comprehend and respect these deeply rooted cultural presumptions, beliefs, and practises if it is to effectively expand into India. To meet the local environment and prevent cultural misunderstandings or mistakes, they will need to modify their marketing, branding, and business tactics. This may involve establishing connections with local partners, participating in decision-making processes that foster consensus, and infusing Indian aesthetics and cultural components into their designs and promotional materials.

Framework 2: Hofstede framework

The Hofstede framework is a widely-used tool for analyzing cultural differences among nations, based on six dimensions: masculinity, individuality, power distance, long-term orientation, and indulgence. By employing this paradigm, it is feasible to discern several significant cultural differentiations between the United Kingdom and India.

The construct of "power distance" refers to the extent to which a given society or community endorses and legitimizes hierarchical structures and uneven distribution of power. As per the Hofstede framework, it has been observed that Indian culture exhibits a greater acceptance of hierarchy and power inequality, thereby outperforming the UK in this aspect (Sovacool and Hess, 2017). The aforementioned phenomenon can be attributed to India's longstanding caste system, wherein individuals are born into distinct castes that dictate their societal status. In Indian society, there is a high value placed on deference towards leaders, parents, and other individuals in positions of authority. Indian businesses exhibit a clear organizational structure with well-defined levels of authority and communication channels, as evidenced by their hierarchical and chain-of-command systems.

The United Kingdom's lower power distance score is indicative of a societal inclination towards promoting egalitarian interactions and discouraging overt displays of hierarchy within British culture. In British enterprises, individuals commonly address each other by their first names, irrespective of their organizational position or rank. This exemplifies a horizontal organizational structure that prioritizes collaboration and collective effort over vertical relationships.

The concept of individuality pertains to the degree to which a society places importance on personal autonomy and independence, in contrast to collective solidarity and communal decision-making. According to Elsbach and Stigliani (2018), the Hofstede framework's individualism category indicates that Indian society prioritizes social cohesion and cooperation over individualism, resulting in a lower performance compared to the UK. The significance of social connections and relationships in Indian culture, along with the concept of "jugaad" that pertains to the ability to devise creative solutions in the midst of resource constraints, are indicative of the cultural values prevalent in India.

In contrast, the UK prioritizes individual freedom and liberty, thereby encouraging individuals to express their thoughts and pursue their goals without undue influence from external sources. The emphasis on individualism in British culture is reflected, whereby individuals are encouraged to take control of their lives and pursue their personal interests.

The dimension of masculinity gauges the extent to which a given society prioritizes traits such as competitiveness and assertiveness over those of cooperation and consensus-building. As per the Hofstede framework, it has been observed that the United Kingdom outperforms India on this particular dimension. This indicates that the British culture tends to prioritize achievement and competition to a greater extent (Vélez-Agosto et al., 2017). British enterprises exhibit a highly competitive nature, fostering a culture of striving for achievement and recognition among individuals.

In contrast, India prioritizes cooperation and consensus-building over competition and individual achievement. In the Indian culture, there is a strong emphasis on the significance of relationships and social connections, which motivates individuals to collaborate towards achieving common goals.

Uncertainty avoidance refers to the degree to which individuals or societies feel uncomfortable with ambiguity, uncertainty, and unpredictability. It is a cultural dimension that describes the extent to which people prefer structured situations over unstructured ones. The dimension of uncertainty avoidance measures the extent to which a culture is willing to tolerate ambiguity and uncertainty. As per the Hofstede framework, it can be observed that Indian culture places greater emphasis on consistency and tradition as compared to change and risk-taking, thereby resulting in India outperforming the UK on this particular dimension. The Indian enterprises exhibit a highly structured nature, characterized by a comprehensive set of rules and regulations that govern every aspect of their operations.

According to Wang and Chin (2020), there is a greater emphasis on valuing innovation and risk-taking in the United Kingdom, which fosters an environment that encourages individuals to think creatively and pursue novel ideas. The remarkable dynamism exhibited by British enterprises, which fosters a culture of calculated risk-taking and pursuit of novel opportunities, is indicative of this phenomenon.

The long-term orientation component is utilized to measure the extent to which a culture emphasizes future-oriented planning and investment. As per the Hofstede framework, it can be inferred that Indian culture places a greater emphasis on fostering long-lasting connections between families and communities, thereby surpassing the UK in this particular dimension. The significance of strong familial bonds and a sense of communal belonging is exemplified by the emphasis that Indian culture places on these values.

In contrast, the United Kingdom places greater emphasis on short-term goals and immediate satisfaction. The phenomenon of prioritizing immediate gratification over long-term investments or plans is observed in the consumer culture of the United Kingdom, as noted by Tasci (2021). Nevertheless, it should be noted that the United Kingdom does possess a long-term perspective, albeit to a certain extent. Despite being more prevalent among the elderly demographic, the United Kingdom is renowned for its extensive tradition of frugality and participation in pension investment programs.

Framework 3: The Trompenaars' Seven Dimensions of Culture

This concept focuses on how various cultures respond to universal human problems, such striking a balance between individualism and collectivism or our interaction with the natural world. This helps inbetter understand the underlying values and beliefs that influence cultural behaviour by examining these characteristics.

• Universalism vs. Particularism:The UK has a universalistic culture, which means that laws and regulations apply to everyone equally, regardless of their personal relationships or circumstances. India, on the other hand, has a more particularistic culture where interpersonal connections and relationships matter more when making decisions.
• Collectivism vs. Individualism: The UK has a very individualistic society where people cherish their freedom and personal success (Meinlschmidtet.al 2018). India, in comparison, has a more collectivist culture where people put the needs of the society or group before their own personal objectives.
• Emotional vs. neutral: People in the UK prefer to suppress their emotions and place a high priority on reason and objective. India on the other hand, has a more emotional culture where people prioritise peace and empathy and express their emotions more openly.
• Specific vs. Diffus:Keeping personal and professional interactions separate and compartmentalising various elements of their lives are common in the unique culture of the UK. In India, people prioritise forming long-lasting relationships over achieving short-term goals due to the more dispersed culture there (Holicza, 2016). Personal and professional interactions are also more linked.
• Achievement vs. Ascription:The UK has an achievement-based culture, where people are assessed according to their unique accomplishments and credentials. India, on the other hand, has a culture that is more ascription-based, where people are assessed according to their social standing, ancestry, and connections.
• Sequential vs. Synchronous:The UK has a sequential culture where people prioritise one activity at a time and place a high emphasis on timeliness and efficiency. In India, people tend to multitask more and value forming personal connections over strictly adhering to schedules, reflecting a more synchronised way of life.
• Internal vs. External Control: In the UK, people tend to favour internal control because they think they can shape their own futures through personal initiative and skill (Hampden-Turneret.al 2020). In India, there is a stronger external control culture, where people think their success or failure is mostly determined by fate, luck, and other forces.

These factors put together help us identify some significant distinctions between the UK and India. India is more collectivist, diffuse, ascription-based, and externally regulated than the UK, which is more individualistic, specific, achievement-based, and internally managed. For a SME looking to expand into India, these differences have significant ramifications.

For instance, the SME may need to change its business practises to prioritise establishing lasting relationships with local partners and clients and to be more relationship-focused. Given the significance of outside influences and the possibility of unforeseen difficulties or delays, it could also need to be more flexible and adaptable in its approach.

Additionally, the SME may need to consider the various cultural perspectives on hierarchy and decision-making and be open to tailoring its strategy to the specifics of the local environment (Ang and Van Dyne, 2015). For instance, personal ties and relationships may be more important in a more particularistic culture like India, therefore the SME may need to spend time and effort cultivating these connections.

The cultural analysis has revealed several significant distinctions and parallels between the UK and India that the SME must take into account when formulating its growth plan. The SME can improve its chances of success in this new market by tailoring its strategy to meet the local context and developing strong ties with local partners and clients.

Table: Key Implications of Cultural Analysis for SME Expanding into India

From the cultural analysis, it is clear that the SME will need to make some adjustments to its marketing and HR practices to succeed in India. The collectivist culture in India means that the focus should be on building relationships and group identity rather than individualistic branding. Additionally, the high power distance means that the SME should show respect for authority and hierarchy in its management style (Van Dyneet.al 2015). Providing clear guidelines and procedures will also help build trust with the high uncertainty avoidance culture in India.

In terms of the organisational response, the SME should consider hiring local employees who are familiar with the cultural norms and can help navigate the market. Adapting marketing campaigns to emphasize group identity and relationships rather than individualism will also be key. The SME should also provide training for its management team on cultural differences and effective communication strategies. Finally, building partnerships with local businesses and organizations can help establish trust and credibility in the market. By taking these steps, the SME can successfully expand into India while respecting and adapting to the cultural differences.

Organisational approach

The CQ (Cultural Intelligence) framework

The CQ (Cultural Intelligence) framework will serve as the overall framework for this section's organisational strategy as the reportoffer guidance to a hypothetical corporation aiming to extend its high-end fashion industry from the UK to India. The cognitive, physical, emotional, and behavioural components make up the four main parts of the CQ framework.

Cognitive CQ:The ability to comprehend and make sense of cultural differences is referred to as cognitive CQ. Understanding the cultural differences between the UK and India is crucial in the case of the organisation, especially in terms of values, norms, beliefs, and behaviours (Rockstuhl and Ng, 2015). To do this, the firm must conduct in-depth market research and analysis in India, taking into account elements like social mores, language, location, and religion. It is advisable for the organization to consider involving indigenous consultants or specialists who possess knowledge of the local culture to facilitate its expansion into India.

Physical cultural intelligence (CQ) pertains to an individual's capacity to adjust to diverse physical circumstances. The hypothetical organization must take into account the physical disparities between the United Kingdom and India, including variances in climate, transportation systems, and infrastructure.

The firm needs to evaluate how these variations will affect all aspects of its business, including distribution, logistics, and the supply chain. In order to appeal to the Indian market, the organisation may need to modify its goods, packaging, and marketing tactics to reflect regional preferences and traditions.

Emotional CQ:The term "emotional CQ"describes a person's capacity to control their emotions and cope with pressures from different cultures. It is critical to acknowledge that culture shock and intercultural stress may provide a substantial difficulty for the hypothetical organisation while growing into India (Thomaset.al 2015). To assist its staff in adjusting to the new cultural environment, the organisation should train and support them on cross-cultural issues. The company should also promote an open, welcoming environment that celebrates diversity and encourages respect and understanding among staff members from all cultural backgrounds.

Behavioural CQ:The ability of a person to modify their behaviour to fit many cultural situations is referred to as behavioural CQ. In the instance of the fictitious company, it's crucial to modify its business procedures to fit the Indian market while also taking into account regional laws, rules, and business cultures (Presbitero, 2016). The company should also take into account the regional rivalry and modify its pricing and marketing strategy accordingly. In order to more successfully traverse the local market, the organisation should also forge strong bonds with local partners including suppliers, distributors, and retailers.

The organisation should take into account several related ideas and frameworks in addition to the CQ framework, such as glocalization and the CELM (Cross-Cultural, Experiential, and Language Learning) framework. Glocalization is the process of adapting international goods and services to regional markets. For the fictitious company, glocalization might entail tailoring its product line, marketing strategies, and branding to the Indian market while yet maintaining its global character. To improve employees' cultural competency, the CELM framework calls for the creation of cross-cultural, experiential, and language learning programmes. The organisation might think about introducing CELM programmes to improve the cultural knowledge, abilities, and attitudes of its personnel.

Finally, the organization's organisational strategy should take into account megatrends like globalisation, technology, and sustainability. As the fictional company expands into India, globalisation creates both opportunities and challenges, while technology provides new channels for connecting with and interacting with customers. Consumers are becoming more and more concerned with sustainability, thus the company should think about implementing sustainable practises throughout its operations and supply chain.

Advising an organisation through Metacognitive and Behavioural CQ

Giving a SME advice on entering the Indian market: Consideration Attractiveness, cultural differences and strategy

The market's appeal must be taken into account when advising a company to enter a new market. Analysing government goals, stances, and policies towards foreign companies is one way to gauge how desirable a market is. This might shed light on the organization's level of support and any potential obstacles (Livermore and Soon, 2015). It is crucial to take into account the government's goals and policies for foreign companies while giving advice to a SME wishing to expand into India. India has put in place a number of initiatives to entice foreign investment, such as the "Make in India" project, which aims to boost the GDP contribution of the nation's manufacturing sector. Additionally, to make it simpler for foreign companies to access the market, the government has loosened restrictions on foreign direct investment (FDI) in a number of industries, including retail, defence, and construction. The Indian government has also put in place a number of initiatives to improve the business climate, including the creation of commercial courts and a uniform vetting process for potential investors. These regulations show a favourable attitude towards international companies and foster an atmosphere that is conducive to the entry of SMEs into the market. Economic indices offer important information regarding the market's attractiveness aside from governmental policy. With a forecasted GDP growth rate of 7.5% in 2021, India is one of the main economies that is expanding the quickest in the globe. The country has a sizable and expanding middle class, which offers the high-end fashion business a lot of prospects. India also has a favourable demographic make-up, with a youthful populace that is becoming more and more interested in luxury products. Entering the Indian market, though, is not without its difficulties. India, for instance, confronts considerable difficulties in logistics and supply chain management and its infrastructure is still under development. The SME must take these difficulties into account and create a thorough plan to deal with them. The cultural variations between the home market and the target market should be taken into account while providing advice to the organisation (Johnson et.al 2020). As was previously said, India has a distinctive cultural setting that is very dissimilar from the SME's home market in the UK. For the organisation to successfully manage the cultural variations, a high level of cultural intelligence (CQ) will be required. To do this, the organization's commercial practises must take into account the local cultures, beliefs, and values. In this case, the CELM framework may be helpful. Understanding a market's cultural, economic, legal, and managerial features is a key component of the CELM framework. With this strategy, the company may identify and solve the main cultural differences that might affect how they conduct business in India. When making recommendations to the organization, the concept of glocalization may be helpful. Glocalization is the process of making international goods and services suitable for regional markets. The company must create a glocalization strategy to cater to the specific needs and tastes of the Indian market. This can entail creating unique goods and marketing strategies that take into account regional traditions and culture. In conclusion, it is critical to take into account the market's attractiveness, including governmental regulations, economic indicators, and cultural differences, while advising a SME on expanding into a new market like India (Cheung-Judge and Holbeche, 2015). The company will need to create a thorough plan that takes all of these aspects into account, as well as a high level of cultural intelligence, adoption of the CELM framework, and glocalization strategy. The SME can improve its prospects of success in the Indian market by solving these challenges.

When it comes to breaking into a new market like India, the interaction of values, cultural distance, cognitive, metacognitive, and behavioural CQ is crucial.

Step 1: Values and cultural distance section: comprehending a nation's culture, beliefs, and values requires comprehending its values and cultural distance section. The key ramifications for the hypothetical organisation will be made obvious at the end of this section. In the case of India, the business must be aware of how significant family, tradition, and regard for elders are in Indian culture. The organisation might need to modify its business practises because the concept of time differs in India.

Step 2: Motivational CQ: In motivational CQ, the argument for the nation the organisation is considering joining is made by concentrating on extrinsic incentive. In the case of India, the company can profit from the nation's sizable and expanding middle-class, which offers a wealth of growth and expansion potential (World Health Organization, 2015). The Indian government has also put in place a number of regulations that encourage foreign investment, making it a desirable market for businesses looking to expand internationally.

Step 3: Cognitive CQ: Before entering the Indian market, the organisation must do a cognitive CQ analysis of the crucial variables. The organisation needs to be aware of the major megatrends that are influencing the culture they plan to penetrate as well as the industry or sector in which they work. The organisation needs to take into account aspects in India such the expanding middle class, the rising usage of technology, and the development of e-commerce.

Step 4: Leading into providing the organisation with metacognitive and behavioural CQ advice: In this phase, we must identify the most important problems that the analysis has shown, the most important areas on which the organisation needs to concentrate, and the ramifications for its business model.

The analysis's primary findings in the instance of India include the necessity of adjusting to the nation's distinctive cultural practises and commercial norms, such as networking and relationship-building (Shukla, 2021). The organisation must also decide on the best entrance strategy and location while taking elements like market size, competition, and regulatory requirements into account.

Understanding Indian consumers' wants and tastes, fostering partnerships with local businesses, and strengthening the supply chain network are the main areas on which the organisation needs to concentrate. The company must also modify its goods or services to appeal to the Indian market.

In conclusion, for businesses looking to enter a new market like India, understanding the relationship between values, cultural distance, cognitive, metacognitive, and behavioural CQ is essential. The company can create a fruitful market entry plan and modify its business model by learning about the culture, values, and business practises of the nation.

Metacognitive CQ: Giving Organisational Advice

The metacognitive aspect of cultural intelligence should be taken into account while counselling an organisation on entering India. This calls for having the ability to put the strategy into practice, plan effectively, adapt for the local market, and periodically assess and adjust the approach. When creating a strategy, it is essential to consider entry-level initiatives like joint ventures, acquisitions, or greenfield investments (Dosekun, 2015). The business should consider its strategy for competing in the Indian market while considering factors like pricing, branding, and marketing. The company should decide where to locate its operations based on many planning considerations, including market size, consumer preferences, and infrastructure. They should also concentrate on establishing important connections and getting ready for any potential cultural differences.

In order to succeed in India, one must also learn to adapt to the local market. The business strategy, goods, and services may need to be modified to better suit the local market. Glocalization may also be used to achieve this by striking the correct balance between global and local initiatives (Edensor, 2020).

Finally, the secret to guaranteeing long-term success in India is monitoring and modifying the strategy. The company should regularly evaluate the success of its strategy and adjust as needed in light of customer and market input.

Overall, the organisation would be better prepared to participate and thrive in the Indian market by taking into account metacognitive CQ and providing advice on these crucial variables.

Licencing and franchising: In this entry option, a SME grants a local partner a licence to utilise its intellectual property, such as its brand name and product designs, in return for royalties or fees. Contrarily, franchising entails giving a local partner the whole business concept, including the products, procedures, and marketing plans.

Entry mode options for advising an organisation:

Partnerships and strategic alliances: This entry mode entails establishing a joint venture or partnership with a local business in order to take advantage of its local expertise, resources, and market presence. As a result, the SME may be able to enter the Indian market more quickly and gain access to regional distribution networks while sharing the associated risks and expenses with the local partner.

Acquisition: acquisition of an existing Indian firm to acquire quick access to the market and its resources as well as to take advantage of its local expertise and network (Ruiz?Gaitánet.al2018). The aforementioned approach could potentially offer the subject matter expert increased autonomy over their operations within India, albeit at a potentially elevated cost and with associated risks pertaining to the acquisition process. The greenfield venture strategy involves establishing a new subsidiary in India, which grants the small and medium-sized enterprise full autonomy over its corporate framework and strategic orientation. However, this can be a time-consuming and costly process that may call for substantial investments in infrastructure, market research, and resources. A strategic partnership, an alliance, or a wholly-owned subsidiary through a Greenfield venture may be viable solutions depending on the resources and strategic objectives of the SME. A wholly-owned subsidiary through a Greenfield venture can provide total control over operations and strategic direction in India, while partnering and strategic alliances with a local Indian company can give the SME access to local knowledge and distribution networks. Prior to choosing a choice, it is crucial to carry out thorough market research and due diligence to evaluate the advantages and disadvantages of each entry method option.

Conclusion and Suggestions

The report is concluded that the cultural intelligence is essential for businesses looking to expand into new markets and thrive in a more globally interconnected environment. Organisations can manage cultural differences and adapt to local business practises through comprehending values and cultural distance as well as creating cognitive, metacognitive, and behavioural CQ.

We advise concentrating on extrinsic incentive elements like market size, economic growth, and profit potential for our hypothetical organisation intending to join the Indian market. The organisation should be aware of major megatrends that are affecting Indian culture, such as the growth of e-commerce and shifting customer tastes, in terms of cognitive CQ.

The company should concentrate on important issues like entrance mode, geographical choices, target market, and prospective alliances or partnerships in order to enter the market successfully. The business model of the organisation might also need to be modified to conform to regional norms and practises.

In terms of metacognitive CQ, the company should have a well-defined plan for how to compete in the market and should routinely review and modify its strategy as necessary. The company can increase their chances of success in the Indian market by concentrating on these criteria.

The organisation must also understand that culture is a multifaceted and complicated idea, with many different levels to take into account, including national, regional, and organisational culture. In order to fully comprehend the culture and business environment in which they will operate, it is essential for the organisation to perform in-depth research and collect insights into the Indian market.

In order to develop their employees' cultural intelligence and their capacity to function well in a diverse and multicultural workplace, the company should also invest in cross-cultural training. They will be better able to communicate, avoid cultural misunderstandings, and forge lasting connections with local partners and clients.

The corporation must continue to be flexible and adaptable in how they approach the Indian market because both cultural norms and commercial practises are subject to change. The organisation can increase their chances of success in the Indian market by regularly monitoring and adapting to the cultural and business environment.

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