What cultural differences will need to be considered prior to commencing operations abroad?

You are the Human Resource Team of a MNC based in your home country. The MNC has decided that the home country market has developed enough for it to open an operation overseas. Your CEO has asked your team to prepare a presentation about the kinds of cultural challenges that this company’s managers will face when launching the new operation in the chosen country (host country). Ensure that your presentation meets the following suggestions:

  • For the chosen country (host country) of its expansion, include a brief description of the country’s relevant history, geographical location, socio-economic information, business etiquettes and protocols.
  • You are to use one of the cultural models, as discussed in Lecture 2 (Chapter Two) such as Trompenaar, Hofstede, Hall & Hall, or the Globe Studies as the framework for your presentation to examine the following:
  • Analyse at least three cultural challenges of your chosen country, in comparison to those of your home country. Specifically, what cultural differences will need to be considered prior to commencing operations abroad?
  • In what ways do these cultural challenges affect how you would promote your product (Example, different tastes and preferences require different forms of promotion or product changes), work with the local people (Example are there different work habits/practices that might present misunderstanding?)
  • Recommendations: What should the company do to avoid these cultural blunders? Design a HRM best practice framework outlining some solutions or recommendations with emphasize on the role played by national cultures & institutions and trends in global corporate governance.
  • You will require extensive research to do the above suggestions of this report. There must be at least six reliable references used for this report (i.e. taking from peer reviewed journal articles, newspaper reports, government and institutional websites etc.)

Useful Information:
This assessment item requires you to work in teams of 3 students, conduct research and present on the cultural challenges faced by managers in a specific country of expansion. The team can decide on a chosen MNC based on any member’s home country (assuming if 3 of you are from different countries) and to select a country of expansion that is culturally very different from the home country. The information in this analysis must be more than a collection of facts. You should attempt to interpret the meaning of cultural information. That is, how does the information help in understanding the effect of culture on market/consumer behaviour? For example, the fact that almost all the populations of Italy and Mexico are Catholic is an interesting statistic but not nearly as useful as understanding the effect of Catholicism on values and beliefs of your target market and their behaviour. As a consultant, you are being paid to tell the company what it should do to avoid cultural blunders. Be aware that recitation of facts is NOT analysis.

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