Cross-Cultural Briefing: Case of GeekChic - Essay Example

? Cross-cultural briefing report; Scenario “GeekChic” Section A: Aim of the Report The researcher of this report works in an international business solutions company. In the context of the essay, the researcher attempts to prepare a cross cultural briefing report for its multinational client, GeekChic. In the case study, the client (GeekChic) requires the report as it intends to send one of its female employees from its business branch in China to Paris, France, for the purpose of business expansion. The report is essential due to the fact that the female employee (who would be representing the company) has not ever gone for any other business dealings in the international market previously. The various cross cultural theories in the report would help the company (GeekChic) to understand the social and cultural aspects of the markets of Paris in France. Macro Level Facts of France The economy of France is highly developed across various business segments. The estimated Gross Domestic Product of the country as recorded in 2012 was $2.291 trillion. The nation is a developed country in the global economy with about 1.7% average growth in real GDP. The per capita GDP of the country was about $36100 in 2012. The exchange rate of the currency of the country is $2.609 (CIA, 2013). The individuals of the country have a high standard of living and its aggregate rate of urbanization is about 85%. Since France is a developed nation, its currency value is high in the economy. The city of Paris in France enjoys a moderate climate throughout the year. The average temperature of the country in summer is 30? centigrade and in winter, the temperature goes below 6? centigrade (Locke and Tower, 1995). Hofstede’s Analysis The Hofstede's cultural dimensions theory was established by Geert Hofstede. It shows how the behaviour of the individuals in a nation depends on the cultural values of the society (Mooij and Hofstede, 2010). If the cultural aspect of France is analyzed on the basis of this model, then it can be stated that the country scores 68 on the grounds of Power Distance Index (PDI). This in turn measures the extent to which the weaker members in a society would accept the fact that power would be distributed unequally in the society. The index of individualism in France is also high (71) (IDV). This actually means that the French people desire self care and does not prefer to be a group. In terms of a Feminine nation, the country score is 43 (MAS). The Uncertainty Avoidance Index (UAI) of the nation is about 86. This shows that most of the individuals of the nation are highly sensitive to any uncertain changes in the market. Scoring a rate of 39, France is not a long term oriented society (LTO). This means that the French individuals make prompt decisions with respect to the changes in the external world. Figure 1: Comparing of France and China (Source: The Hofstede Centre, 2013) Comparing the cross cultural views of France and China, it can be stated that in contrary to the French individuals, the Chinese are lesser traditional and lesser sensitive to uncertain circumstances and prefer being in community or groups. The above graph clearly shows the cross cultural variations between China and France. Section B: Cultural Differences While making an international business expansion in Paris (France) from China, the female manager would have to face various difficulties owing to the differences in the cultural views of French and Chinese individuals. In the modern world, the primary business objective for all the corporate firms is ‘consumerism’. Thus, it is important for GeekChic to understand the precise nature of the consumers in France. The following context of the essay would explain the different challenges or opportunities that the company might face when it would be in France for business. “Culture is just the man made part of a business environment” as stated by Herskovits (1948). After globalization, international trades between nations have increased in terms of its scale and scope of operations. The Free Trade Aggregate introduced by the World Trade Organization (WTO) has forced most of the economies in the world to open up their respective marketplaces in the global economy (Hitt, Ireland and Hoskisson, 2009). The aggregate income level and per capita disposable incomes of the individuals in France has improved. Thus, by observing the above factors, it can be stated that globalization aids the company (GeekChic) to expand its business in France. Moreover, unlike China, France is a developed nation and the proportion of rich individuals in the country is also high. The company can easily grasp the rising demand of the affluent individuals in Paris (France). According to the views of Seigel, Schwartz and Licht (2011), the Egalitarianism value of a nation has the power to influence the flow of foreign investments in the nation (Ganesh, 1997). Figure 2: Egalitarianism score of France (Source: Siegel, Licht and Schwartz, 2011) The above table explains a part of the Egalitarianism value scores of 55 nations in the world. The Egalitarianism score of China, the base for the female representative of the company (GeekChic) in context, is 4.32, but the Egalitarianism score value of France is 5.18. Since the value of Egalitarianism in France is more than that of China, it can be claimed that France has a greater value for democracy and equal opportunity than China. Thus, initially, the company (GeekChic) might face a challenge while expanding its business in France as the nation might give lesser importance to the foreign business firms than the domestic ones (Siegel, Licht and Schwartz, 2011). There are no restrictions of foreign investments in France. The legal structure of the country is very good and is appropriate for the business expansion of any new company. It is the eighth largest economy in the world. It is one of the affluent nations in the European Union. Thus, when the female employee would be visiting France for the purpose of business expansion, the decision making factors involved in the business deal should consider that nation’s (France) supreme monetary authority is the European Central Bank (ECB). Thus, the company should realize that all the monetary rules of France are aligned with the rules established by the ECB. The state of technology in the country is highly efficient. Thus, the female executive can decide to outsource the company’s product manufacturing department in France. By doing so, the company can use the efficient modern technology in France and manufacture its products at a lower cost. However, the extensive practice of bureaucracy in France might be a challenge for the company. The company might not be able to carry out its operations in Paris (France) with much independence due to the extensive amounts of legal formalities and restrictions in the nation (Welsh, 1994). The degree of individualism in France is very high. This means that the people in France are highly segregated in groups. The female employee of the company, GeekChic, should adopt the policy of demographic marketing method to promote and create awareness regarding its products for the consumers in the market of Paris. If the company can target a particular group of individuals on the basis of demographic factors like, age, gender or income, then it can park a large group of potential clients for the company. The masculinity index of the individuals in France is lower than that of China. This means that the values and empowerments of the men and women in France are more equitable than that of China. Thus, while making the business decisions, the female representative of the company must consider the views and perspectives of both men and women in France. The society’s sensitivity for any uncertain situations in business or economy is high in France. Therefore, the female representative of the company (GeekChic) must be highly cautious while making the first business move in the country. If any business decision of the company turns out to be unfavourable for the country, then it can substantially affect its goodwill and reputation (Appia, 2013). The female representative must be a good leader in order to carry out all the business operations in France. She should have the capability to resolve the various problems arising in the organization. She should also use proper communication skills to motivate and draw the interest of the stakeholders in France towards its business operations. She should use cultural intelligence to attain her desired business objectives in France and to understand the actual nature of the economic entities in the country (Astapenko, 2008). Thus, while making the international business trip and introducing business expansion in Paris (France), the female employee of the company (GeekChic) would face several types of new challenges and business opportunities as stated above. An efficient approach of expanding the business in Paris (France) can be adopted by her, only if she abides by the principles and theories of cross-cultural view. Hofstede in 1994 and Trompenaars in 1993 were the two famous scholars who had stated that business entrepreneurs should understand that they need to adopt different types of communication and leadership styles for expanding their business operations in different nations with differing cross cultural views. Kemppainen in 2009 had stated that business firms should have the proper macro level knowledge about the way of life and society in a nation before deciding to promote a new business venture there. Figure 3: Organizational Inputs (Source: Johnson and Scholes, 1993) The above diagram explains the learning framework that is required for a business firm in order to expand its business in a new nation. According to Nishida in 1999, there are eight types of different cross cultural communication theories that can help a business firm to expand its scope of operations. These are: Fact and Concept Schemas Role Schemas Context Schemas Procedure Schemas Emotion Schemas Self Schemas Person Schemas Strategy Schemas Section C: After the emergence of globalization and liberalization, economic transactions between nations have become integrated. The business firms have recognized that extensive competition in the domestic marketplaces has made the markets saturated for more corporate firms. Thus, the contemporary business firms have undertaken the decision to expand their business beyond their domestic borders. This is the manner by which they can easily exploit their competences in the industry. However, it is a matter of concern that although the monetary and fiscal segments between nations have become integrated, the cultural and social aspects are still not so. These different cultural and social aspects of different nations are responsible for the differing taste and preference patterns of the consumers (Xu-Priour and Cliquet, 2013). Thus, in the modern epoch, before commencing a business in a new economy, multinational firms should analyze the cultural and social perspectives of that nation. This would help the company to understand the underlying driving factors which influence the demand pattern of the individuals in a nation. This is the reason for which when the female representative would expand the business of GeekChic in Paris (France), she should take the business decisions by considering the cross cultural perspectives of France. The three major factors that she should always consider are: The French individuals are short-term oriented in nature, which means that their consumption is driven by the immediate changes in the market. They do not give much importance to savings. Thus, the company should try to launch attractive products for the consumers in Paris (France). Since the empowerment and power of men and women are equitable in France, the company should not make any discrimination, on grounds of gender, among its stakeholders in their business branch in France. Since France is a highly individualistic nation, the company should encourage a participatory nature of work culture in its business branch there (Janczak, 2005). Reference List Appia, D., 2013. Doing business in France. [pdf] Medias. Available at [Accessed 15 November 2013]. Astapenko, M., 2008. Cultural Models and Cultural Dimensions. [pdf] Safer Brain. Available at [Accessed 15 November 2013]. CIA, 2013. The World Fact Book. [online] Available at [Accessed 15 November 2013]. Ganesh, G., 1997. Spousal influence in consumer decisions: a study of cultural assimilation. Journal of Consumer Marketing, 14(2), pp.132 – 155. Hitt, M. A., Ireland, R. D., and Hoskisson, R. E., 2009. Strategic Management: Competitiveness and Globalization : Cases. 8th ed. Connecticut: Cengage Learning, Janczak, S., 2005. The Strategic Decision-Making Process in Organizations. Problems and Perspectives in Management, 3 (2005), pp. 58-70. Johnson, G., and Scholes, K., 1993. Exploring Corporate Strategy. 3rd ed. New Jersey: Prentice-Hall. Locke, J. and Tower, G., 1995. A CROSS-CULTURAL MODEL OF INTERNATIONAL ACCOUNTING COMPATIBILITY. Asian Review of Accounting, 3(1), pp.59 – 91. Mooij, M. D. and Hofstede, G., 2010. The Hofstede model. [pdf] Educationbd. Available at [Accessed 15 November 2013]. Siegel, J. I., Licht, A. N. and Schwartz, S. H., 2011. Egalitarianism and international investment. Journal of Financial Economics, 102, pp. 621-642. The Hofstede Centre, 2013. What About France. [Online] Available at [Accessed 15 November 2013]. Welsh, D. H. B., 1994. Cross-cultural Management: A Personal View. Cross Cultural Management: An International Journal, 1(2), pp.10 – 10. Xu-Priour, D. L. and Cliquet, G., 2013. In-store shopping experience in China and France: The impact of habituation in an emerging country. International Journal of Retail & Distribution Management, 41(9), pp.706 – 732. Read More