Sie sind auf Seite 1von 13

Table of contents Introduction 1. Critically analyze how different international social groups works.

Your discussion should include the working styles of various international social group, affects of culture on business and emerging economies. 2. How the business cultures of Malaysia and Sweden affect one another 3. Using materials collected from your secondary research, evaluate and analyze the influence of cultural difference and its effect on your selected company. 4. Examine and analyze the impact of global culture on emerging economies 5. Assess the different cultural business practices between Far-east & West. Conclusion References

Introduction Nowadays with development of communications, transport and other technologies

,business has become global. From simple creation of a web site or physically opening chain of stores in another's country, the understanding of local culture is often lost sight, and has caused more bankruptcies, than any other aspect of business. But what is such culture and how it is associated with business operations on foreign land? How various cultures can be? How to understand and adapt for other culture? It is being critically discussed in this article. The culture (derived from Latin Cultura, following of Colere that means to "cultivate") as a whole concerns to model of human activity and symbolical structures which give such value of activity and importance. Cultures can be understood as system of symbols and senses, what even them creashmetors competition which have no fixed borders which it is constant in movement and which cooperate and Various definitions of "culture" compete with each other reflecting various theoretical bases for understanding or criteria of an evaluating activity of the person. The

culture is shown in music, the literature, a way of life, a food, painting and a sculpture, theater and cinema and to that similar things. Though some people identify culture from the point of view of consumption and consumer goods (as in high culture, low culture, national culture, or popular culture), anthropologists understand "culture" and they refer not only to consumption of the goods, but also the general processes which produces such goods and give them sense of social relationships and practices in which such objects and processes become built in. For them, culture thus, includes arts, sciences, and also moral systems. In this chapter we will investigate what is mean and what is not meant by the term culture. In addition to definition of this central anthropological concept, we will also consider six important generalizations, concerning concepts of culture and their significance for IKEA, working in the world market. Being equipped by such general concepts it can promote updating to the unfamiliar cultural environment.

1. Critically analyze how different international social groups works. Your discussion should include the working styles of various international social group, affects of culture on business and emerging economies. At first let's find out, structure of the international social groups and how they works at the international level. The core of the international social groups consists of the multinational corporation and the TNC, carrying out their activities on foreign land to make clean profits with their newest technologies which it is inaccessible in host country. These social groups so called multinational companies (MNCs) are also known as transnational corporations (TNC). There is, however a difference between the MNC and the TNC. According to some experts, the multinational corporation produce goods / products for internal consumption of the country in which they work. TNCs, on the other hand concentrate attention to production of the goods for satisfaction of the markets of the third countries. These MNCs operate in various environments and cultures. There is smooth sailing when the culture

of MNC and that of host country is similar. However problems arises, when the cultures not grids with each other. There can be appreciable distinctions in value, belief and work methods. Having a bad economic infrastructure and the small capital, developing countries will very easily agree to welcome MNC. From time to time, their weak standard position are subsequently exploited by MNCs. MNCs either outright buy the local companies of host country or push them out from the markets, by offering more cheaply and better quality of the goods during some time. Where aggressive marketing is necessary, MNC at the initial stage can even give the products/goods free of charge, to persuade the public in working out corresponding consumer habits. They capture the market by means of various strategy and tools, including social and marketing researches, opinion building, development of interests groups, lobbying, sponsorship etc. Mass media play an important role in this campaign. (Dowling, 1999) MNC also conduct researches with purpose to define human wants, and lifestyle and to think up problems of multidimensional answers, including working out of products and services. What forces them to conduct such researches and manufactures of the goods accordingly? Whether it is for good for public or maximizations of their own profit? It puts all process of globalization into a big question as it is proclaimed that the aim is for satisfaction of common people. Before considering when MNC enter in host countries for achievement of the

commercial objectives, it is pertinently to discuss problems and strengths of an accepting society. When the multinational corporations accept the operations in developing countries, host countries as a whole suffers from a weak infrastructure, poor control, widespread poverty, illiteracy, public health services problems, and an inequality in distribution of incomes. Their strengths lie in their traditional and strong social structures where a family system provides strong bonds of the relationship, favorable working conditions, on the basis of a family system of social security, simple life, and has inherited traditional or usual knowledge and wisdom. Host countries basically agrarian economy where food safety wasn't a problem in usual circumstances. Positive influence

When MNC enter in host societies, There are some advantages which are stated more low: Expertise of financial and technological resources: MNC provide huge resources and investments, technologies, innovations and experience for host countries. Cultures of scientific researches is encouraged and also human resources are developed within the limits of the organization. MNC also bring the essential contribution to national exchequers from payment of taxes. Diligent business practice: Rational management, organizational transparency, accurate

structures of a command, system of an performance based assessment and incentive programs for employees encourage the merits system. MNC promotes a professional working climate and culture for the local organizations for imitation, thereby promoting best management practices and a business education. Conveniences of life: In certain cases large-scale economic projects, quality assurance and the healthy competition will lead to reduction of prices and other privileges for the end user. People have wider access to conveniences of life with the big variety of variants. Pluralism: MNC promote growth of trans-boundary interaction between people. Even education, in particular, a business education, took on global prospect. Global prospects and possibilities for cross-country-cultural understanding increase adaptability for students to another's environment. It leads to mixing of cultures and practice, and calls to pluralism, and also a competition. (Armstrong, 1994)

2. How the business cultures of Malaysia and Sweden affect one another The working styles of Malaysian and Sweden management are different and affect each other but both sides try to solve their conflicts with mutual cooperation but difference can be observed from their below detailed business etiquettes and culture. Swedish Management Style

The egalitarian approach which aspires to reach a consensus results, makes very specific approach to management. The paternalism which can be found further on the south in Europe, causes anxiety in the average Swede and direct "instructions" and is possible to consider as awkwardly for all interested parties. Therefore managers saw more as intermediaries or trainers who offer councils and offers. Bosses necessarily, should not know answers to all questions, and it is supposed that the person, carrying out a specific target is the most competent in given a specific target. One of results of such approach is that decisions can be remote, and process tends to be long. It is important, that the manager includes all participants in process, and listen to points of view of all and give due consideration. There is also, as a rule, less social distance between heads and subordinates. Management designates the level, connected with responsibility work, instead of the hierarchical status. Swedish meetings Meetings, as a rule are usually long from the big open discussion. Everyone has opinion and opinion of everyone airing and considerations is worthy. Nevertheless, opinions predictably, will be supported by empirical proofs that means that big preliminary planning and preparation is not expected. Punctuality has crucial importance in Sweden companies. Delay substantially is not accepted and indispensible as it is assumed absence of politeness and respect for another

present members. The agenda, as a rule, are made and without the agenda, meetings never held. During a meeting, participants will aspire to speak on one at time with small interruption the person who has a floor. Interested persons will make a point often specify in that by lifting hands to draw to itself attention of the person in an armchair. As a result of a meeting can have cold, separate sensations for those who has more got used to emotional reaction and where many people try to insert at the same time. (Hofstede,1983) Malaysian Management style

The companies and their people, wishing to operate others effectively in Malaysia should know some important questions which can vary in widest of their country of origin. First, as hierarchically focused country, managers should be people who are considered as worthy respect, and this respect is based more likely on personal qualities, than on more purposeful questions. People are worthy respect if they are more senior also have wisdom that the age brings. People also are worthy respect if they show in relation to "person" of others. Thus, the manager never should make everything that subordinated to lose "person". Reprimands are often done by means of the third party. Those who behave overly direct - vagueness and with diplomacy their frankness can be interpreted as uncivilized and uneducated behavior. (Hofstede,1983) The manager also accept complete interest to well-being of subordinates - as in work, and outside. Relations could be interpreted as more as the father and the son, than western sight of the chief and the subordinate.

Malaysian meetings It isn't unusual in business meetings to start with small talks and lot of chatting which can give frustration to time bound western business executive as time factor and meaningful purpose is crucial to them. Remember, however, that before business can begin, relations should be established and that this process of construction of relations can occupy time. Quantity of time which has been taken away on such small conversations most likely fades out in process of development of relations. The most important thing to remember, in any session that the relation has much bigger value , than the question is discussed. Relations are based on fidelity, harmony, non-aggression, respect for other person and other similar interpersonal problems. Thus, always to remain quiet and diplomatic. Don't become too animated or in speeches or a body gesture.

It is rarely to approach for the decision within the process of a meeting as the decision will be accepted only after all facts have been analyzed in very detailed and after all corresponding members of group and hierarchy consultations have been carried out. The patience can be necessary. (Hofstede,1980)

3. Using materials collected from your secondary research, evaluate and analyze the influence of cultural difference and its effect on your selected company. So, living on foreign land offers other ways of life and a set of experience for IKEA, facing problems and adaptation is to survive, working for living in another's country. The changes which have arisen during intercultural transitions can appear strained. Updating

consume time, efforts and money. Moreover, it demands patience and interests for IKEA to make successful adjustments. There are companies which consider that problems influence their decision to reconsider their stay in host country. The literature on the foreign companies working abroad shows that people from different cultures can meet difficulties in understanding each other, values and behavior in relation to another. Thus, it can lead to cultural collision. Because of "cultural luggage" that has been grown up by everyone on the basis of own cultural orientation of the person and an award or punishment of systems, distinctions of beliefs in the poly cultural environment becomes inevitable. Cultural collisions at a workplace can be carried for example, as the cores cross-country-cultural problem for IKEA, working abroad. According to IKEA management, among shared problems that foreigners has commented during their stay in Malaysia are questions of local public services, cleanliness , ecological consciousness and restricted local mass-media. One more question which should be taken into consideration, is gender. According to Malaysian traditions, besides understanding of cultural distinctions, women should know distinctions between genders, and also in man's a society of the woman from Sweden working with IKEA can face cultural distinctions which can affect their work in the international assignment. That for IKEA to overcome problems which they face, much written

literature has stated that understanding of distinctions in cross-country-cultural and to apply it in a society. (Kohls, 1994) Cross-Cultural Challenges On the basis of the analysis of the data, in the given section the challenges and the problems faced by following: 1. Attitude of Malaysians Difficulties in understanding indirect and not confrontational behavior of Malaysians IKEA has observed that Malaysians, are known for their indirect and non- confrontational behavior from the point of view of expressing the personal opinion in relation to another. Malaysians actually do not want to tell anything that could damage the sentiments of people. Everything that they say that they don't want to look to the critic. If they see someone in the rank of the senior wanted something to tell, then other younger people won't say anything. 2. Malaysians misconception towards Mat Salleh Malaysians define "Mat Salleh" as local foreigners named for Caucasian or in other words, "the white" persons. Westerns had an opinion that Malaysians have prejudiced ideas about "Mat Salleh" term and, thus, it creates a misunderstanding and number of errors in relation to them. It became a problem for some westerns as they should prove themselves in the return. 3. Custom and Religion Difficulties in understanding of a dress-code from local residents As Malaysia is the multinational country enriched with several cultural customs, IKEA finds living in Malaysia, as a worth-while experimenting and full of a variety. However, among many Malaysian customs which are practiced, there are some that have posed challenges to westerns. One of them which posed a challenge was an idea about mutual understanding of dress-code in Malaysia, especially for women foreigners at a workplace. As some western IKEA, while working in Malaysia are presented. They consist in the

women remarked if they don't put on dress according to social norms, negative remarks from local residents can be heard, though it can't be directly pointed on them. 4. To be careful concerning religious issues The majority of Malaysians are Malay Muslims and Islamic religious restrictions

become a part of practice and norms of Malaysians. Realizing this problem, western people are cautious not to hurt their sentiments and take care for their actions made in relation to local Malayans at a workplace or non working place. In fact IKEA management advises its employees to have full knowledge of religious sentiments of Malaysians for smooth working with them. (Jackson, 1997)

4. Examine and analyze the impact of global culture on emerging economies What is the globalization culture? Whether means that all countries of the world become all the same? Whether means that, integration of economic, political and cultural systems have become worldwide? Whether culture globalization conducts means be able find the same shops and restaurants in any part of the world? Whether means it, what the separate countries can't make business and trading decisions independently, but it is necessary to consult to other countries? If it renders these realities of the globalization, what consequences would be on our way of life? Really, the globalization concept causes many questions and questions at issue. Some assert that globalization culture in developing countries is a positive step as it will give rise to new industries and more workplaces in developing countries. Others say that globalization is negative that it will force the poor countries of the world to do that big the developed countries asks them to do. Other point of view consists that the developed countries, including the USA, Great Britain, Canada, are the those who can lose in this game because they participate in outsourcing and producing those goods in other countries which were produced by their own citizens.

Outsourcing concerns to procurement of the goods under the contract from external sources. For this reason you can find a lot of your clothes with labels from developing countries, such as Malaysia, China, India and Philippines where they can be made with smaller expenses. Critics consider that nobody wins outsourcing with this practice. Workers in the developed countries, can lose their jobs while workers in poorer countries are under paid and work in bad conditions. (Jeurissen, 1998) Global trade gives the developed countries access to set of products, such as fruit which can't be produced in their home land. Global trade means products such as bananas, mango, oranges and a kiwi are easy to find in our shops. It means that farmers in developing countries have possibility to make and sell more goods and to make better life. The factors connected with globalization of culture can cause also workers to migrate from homes in poorer countries to more developed countries in job searches. Workers-migrants can leave the families and temporarily live in other country, thereby breaking a family and social structure of the communities. Besides, the most part of their earnings can be sent home, reducing advantages of their work could in the country where they work. 5. Assess the different cultural business practices between Far-east & West. Highly appreciating the geographical contrasts of the East and the West, Western countries are considered to good place to begin with when trying to understand vastness which requires to be connected by west world while conducting business ventures with Asian countries. Both of them are literally situated on other corner in terms of geographically, and culturally. The conflicts built in two opposite philosophical starts of a point are shown sharply in behavior that Westerns and Asians show each other on work, White the basic distinctions in assumptions both have such behavior how the world should work. The western agreements and contracts, should be the documents providing reliable, invariable behavior predicted eventually. In Asia, nevertheless, the contract still is the statement of principles on which it is agreed to work jointly, as reliable partners. It isn't intended for forecasting certain behavior eventually. If

conditions are changed in Asia, demanding new models of behavior, western predictably, will be "flexible", at that time, too often western sees a divergence from the contract as infringement of trust. Thus it become important for the western executives operating in Asia to acknowledge that the contract between two sides is only the beginning of negotiations, instead of the end. The American management style, as a rule, also assumes individual, active participation and problem of task. Theories of the western management abounds with conception of two dimensional organizations, individual possibilities, active decision-making process. These ideas indicate not surprisingly that the western cultural traditions of human rights but the authorities of rational control, equableness of people. Nevertheless, the Asian management style is usually underlined submission of a role of the person in higher requirements of group in which the physical person is a member; force of obligations and relations are also necessity for observance of an order and hierarchy instead of to change it. If in the Western world efficiency and often change is equal to efficiency, in the eastern countries, submissive acceptance is noticed, and ability to work made with others within the limits of these parameters can be of greater virtue. And leading to successful running , so the successful organization. (Kluckhohn, 1961) We see that conflicts which arise between Asians and Westerners on work are frequent reflection of deep hidden and subsequently unrecognized fundamental distinctions in values and belief about how private persons and the organizations should behave with each other. Conclusion From the beginning of 1991, Malaysia is undergoing substantial growth of FDI inflow. The contribution to growing presence of the foreign companies in Malaysia have also created the urgent necessity of the best understanding of Malaysian business culture and management practice. This paper has aspired to execute two main objectives (1) the analysis of experience of adaptation foreign companies in Malaysia, and (2) to allocate features in Malaysian organizational behavior and business culture. The ultimate goal consists in rendering assistance

to IKEA to improve the understanding of world business of Malaysia and to reduce distance between the investing country and host country. The literature review on expatriates on adaptation of experience don't provide much empirical data how difficultly is Malaysia as destination, and what are the most difficult aspects of Malaysian assignment. Research work on this question is though scanty and also differ in focus will possibly increase the next years. For researches orientations, some hypotheses for the best understanding of business culture can be suggested which would bridge the gap between the western and east countries. With IKEA stores located in the big capital city of Malaysia and cooperate basically with urban population, system of values, the organizational behavior, and management practices of this urban middle class is postulated as the representative of Malaysias business world. Understanding of this subset of Malaysia social culture provides good communication in

relation to IKEA better management operations in Malaysia. References Armstrong, R.W. and Sweeney, J. (1994). Industry type, culture, mode of entry and perceptions of international marketing ethics problems: a cross-cultural comparison, Journal of Business Ethics, Vol. 13, pp. 87-95. Dowling, P. (1999). International Human Resource Management: Managing People in Multinational Context, South Western College Publications, Cincinnati. England, G.W. and Lee, R. (1974). The Relationship between Managerial Values and Managerial Success in the United States, Japan, India and Australia, August, pp. 415- 418. Hofstede, G. (1980). Cultures Consequences: International Differences in Work-related Values, Sage Publications, Newbury Park. Hofstede, G. (1983), Dimensions of National Cultures in Fifty Countries and Three Regions, In: Deregowski, Dziurawiec and Annis (eds.), Expiscations in Cross-cultural Psychology, pp. 333356. Honeycutt, E., Siguaw, J. and Hunt, T.(1995), ``Business ethics and job-related constructs: a cross-cultural comparison of automotive salespeople'', Journal of Business Ethics, Vol. 14, pp. 49-56. Jackson, T. and Artola, M., (1997). Ethical beliefs and management behaviour: a crosscultural comparison, Journal of Business Ethics, Vol. 16, pp. 75-96.

Jeurissen, R.J.M. and van Luijk, H.J.L. (1998). The ethical reputations of managers in nine EUcountries: a cross-referential survey, Journal of Business Ethics, Vol. 17, pp. 995-999. Kluckhohn, F.R. and Strodtbeck, F. (1961). Variations in Value Orientations, Row Peterson, Evanston, IL. Kohls, J. and Buller, P. (1994). Resolving cross-cultural ethical conflict: exploring alternative Strategies, Journal of Business Ethics, Vol. 13, pp. 9-12. Muller, J.Z. (1993). Adam Smith in His Time and Ours: Designing the Decent Society, Free Press, New York, NY.