Cross-cultural management - publié le 05/05/2008

Résumé du document

This document analyzes the implantation of Google in Bulgaria's market. We are living in times of globalization and companies have to take more and more in consideration the internationalization of their activity if they want to stay competitive. That's why it is necessary that they find the markets where they will have the best opportunities to increase their growth with minimum costs for production and distribution. Therefore, each market must be analyzed before taking a decision. Economy, political stability, and standard of life are some factors that must be analyzed. Beyond these, there is a factor which maybe, has more importance than the others. It is the culture of the country. In order to be successful in a certain region or country, a company must build an awareness of cultural differences. Cultural differences can be found in communication (spoken, written or silent language), information and task processing, risk-taking behavior, relationship preference, work motivation, religion and social stratification.

Extraits

[...] It's not an insult if they on phone during a meeting for example. Comparison with United States : According to Trompenaar, United States are enormously universalistic, individualist and the status is really important. On the contrary, they're a few affective and they have a sequential time approach. Conclusion: Advices to the managers To be competitive in Bulgaria, Google can't keep exactly the same way of manage than the one they use in United States. Indeed, as we saw previously, according to Hofstede the United States are largely more individualist, the society is more masculine, the power distance is less important and the uncertainty avoidance is definitely bigger in Bulgaria than in USA. [...]

[...] That could also mean an opening in the rest of Eastern Europe for the future. Indeed, all these countries have a similar culture and way of working. II / Hofstede's cultural dimensions Bulgaria, like the other ex-members of the COMECON, has to substitute the totalitarian system of the past with democracy and free market. That's why it's important to understand the factors that determine effective leadership and influence the culture in the economy. Individualism: Slavic people are stereotyped to be very collectivist. However, a closer look at this issue make things more complicated. [...]

[...] So, in many case collectivism was formal prescribed by social institutions. But, in the 90s, when the struggle for economic survival in the years of economic turmoil, because of the collapsing of the COMECON, made the mutual support important, some more reflections of collectivism were seen, especially among the socially excluded groups. On the other hand, indoctrination of westernized behaviour through media and entrepreneurship is now pushing the country along the road of higher individualism and social fragmentation. Power Distance: Bulgaria had experienced serious changes in behaviours and values related. [...]

[...] This should modify behaviour of people, management styles and social norms. Uncertain Avoidance: Many realities of the past that secured people of uncertainty are no longer valid. People have to quickly and creatively adjust to rapidly changing situations and conditions in the environment. Specific traits are needed for quick reaction, networking and sharing risk. Many new entrepreneurs work successfully in networks, often based not just on formal agreements, but on friendship and social interactions. Masculinity: In olden times, the roles were divided by gender and the culture was clearly masculine. [...]

[...] In order to be successful in a certain region or country a company must build an awareness of cultural differences. Cultural differences can be found in communication (spoken, written or silent langua²ge), information and task processing, risk-taking behaviour, relationship preference, work motivation, religion and social stratification. Therefore, employees must be prepared before to be sending in a foreign country and they must have trainings about the way to manage in the state they will operate in. There are many cases of companies which have failed in a foreign country because they tried to manage like in their nation of origin. [...]