(Mt) – NMSU Management Case Study Danones Wrangle with Wahaha Discussion

Because learning changes everything.® International Management: Culture, Strategy, and Behavior Part Two: The Role of Culture Chapter 7: Cross-Cultural Communication and Negotiation © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. The Overall Communication Process Communication is the process of transferring meanings from sender to receiver. • There are a great many problems in the international arena that can result in the failure to transfer meanings correctly. • In addition, the means and modes of communication have changed dramatically in recent decades. • On the plus side, we have more opportunities to communicate rapidly, and enrich the content with photos, videos, and links. • On the other hand, there is some concern these devices make our communication less meaningful and personal. © McGraw-Hill Education 2 Verbal Communication Styles Context surrounds and helps convey the message. When verbal style is exacting, there is a moderate amount of talk • High-context societies have coded and implicit messages. When verbal style is succinct, there is a low amount of talk. • Low-context societies have explicit messages. A contextual style focuses on the speaker and role relationships. In indirect verbal styles, messages are implicit and indirect. A personal style focuses on the speaker and personal relationships. In direct verbal styles, messages are explicit and direct. The affective style is processoriented and receiver-focused. When the verbal style is elaborate, talk is of high quality. © McGraw-Hill Education The instrumental style is goaloriented and sender-focused. 3 Interpretation of Communications The effectiveness of communication in the international context often is determined by how closely the sender and receiver have the same meaning for the same message. • If their meanings are different, effective communication will not occur. • A U.S. firm wanted to increase production in their Japanese plant so they began an individual incentive plan effective in the U.S. • The plan flopped in Japan as workers were accustomed to working in groups and being rewarded as a group. © McGraw-Hill Education 4 Communication Flows Downward communication is the transmission of information from manager to subordinate. Upward communication is the transfer of information from subordinate to superior. • The primary purpose is to convey orders and information. • The primary purpose is to provide feedback, ask questions, or obtain assistance. • In the international context, this poses special challenges. • In Asian countries, downward communication is less direct than in the U.S. • In some European countries, downward communication is direct and extends beyond work. © McGraw-Hill Education • The U.S. now seeks to increase upward communication. • In other countries, it has long been a fact of life. • Employees want upward communication. • It does not always occur due to communication barriers. 5 Communication Barriers—Language If managers do not understand the language that is used at headquarters, they likely will make a wide assortment of errors. • Language training continues to lag in the U.S. • Increasingly, European countries have multilingual young people. The ability to speak the language used at headquarters is often not enough to ensure that the personnel are capable of doing the work. • Many MNCs place importance on an applicant’s ability to speak English—not considering if they can interact with others. • Culture is routinely not taken into account during interviews. • Nonnative speakers may know the language, but not be fluent. Poor writing is proving to be a greater barrier than poor talking. • Advancements in technology may eliminate many language barriers. © McGraw-Hill Education 6 Communication Barriers—Culture A significant number of native speakers in the U.S. might deviate from the standard business communication practices of other cultures. Even in English-speaking countries, there are different approaches to writing letters. When compared to Asians, many American writers are far more blunt and direct. © McGraw-Hill Education 7 Communication Barriers—Perceptual Perception is a person’s view of reality. In international incidents, perception and misperceptions are critical. A failure to understand home-country perceptions can result in disastrous advertising programs. • In Taiwan, “Come alive with Pepsi” frightened consumers as it literally meant “Pepsi will bring your ancestors back from the grave.” Managers must be careful when translating messages. • Common phrases in one country will not mean the same in others. Perception influences how individuals “see” others. © McGraw-Hill Education Most Americans see themselves as friendly, outgoing, and kind, and believe others see them in this way. Many are unaware of the negative impressions they give to others. 8 Communication Barriers—Culture Culture affects communication through values and misinterpretation. • In Middle Eastern countries, people do not relate to and communicate with each other in a loose, general way as do people in the U.S. • Relationships are intense and binding and class and status matter. • Another cultural value is the way that people use time. • In the U.S., people believe time is an asset and is not to be wasted. • An idea with limited meaning in some other cultures. Cultural differences can cause misinterpretations both in how others see expatriate managers and in how the latter see themselves. • The informal approach used in the U.S. is not used everywhere. • Many Americans also have difficulty interpreting the effect of national values on work behavior. © McGraw-Hill Education 9 Communication Barriers—Nonverbal Communication Nonverbal communication transfers meaning through body language and physical space. Kinesics is body movement and facial expression. Chronemics refers to the way in which time is used in a culture. • In a monochronic time schedule, things are done in a linear fashion. • Communicating through bodily contact is known as haptics. • In a polychronic time schedule, people multitask and place higher value on involvement than on completion. Proxemics—people use physical space to convey messages. Chromatics is the use of color to communicate messages. • Intimate distance, personal distance, social distance, and public distance. • Such knowledge can help you avoid embarrassing situations. • Communicating through eye contact/gaze is oculesics. © McGraw-Hill Education 10 Figure 7-2: Personal Space Categories for Those in the U.S. Access the text alternative for this image. © McGraw-Hill Education Source: Hodgetts, Richard M., and Donald F. Kuratko. Management. San Diego, CA: Harcourt Brace Jovanovich, 1991, 384. 11 Achieving Communication Effectiveness A number of steps can be taken to improve communication effectiveness in the international arena. • One of the most important ways of improving effectiveness in the international context is to open up feedback systems. • Personal—face-to-face meetings, phone conversations, and e-mail. • Impersonal—reports, budgets, and plans. • Another way to make communication more effective in the international arena is through language training. • Another way is to provide cultural training. • To improve understanding, increase flexibility and cooperation. © McGraw-Hill Education 12 Managing Cross-Cultural Negotiations Negotiation is the process of bargaining with one or more parties for the purpose of arriving at a solution acceptable to all. Distributive negotiations—two parties with opposing goals compete over a set value. • Both sides are trying to get the best deal, but a gain for one side is a loss for the other. Integrative negotiations involves cooperation to integrate interests, create value, and invest in the agreement. • This is the most useful tactic when dealing with business negotiation. © McGraw-Hill Education The two types of negotiation differ on five characteristics. • Objective. • Motivation. • Interests. • Relationships. • Outcome. 13 The Negotiation Process Planning starts with identifying objectives. Next, get to know the people on the other side. The success of the persuasion step depends on many things. © McGraw-Hill Education Then, each group states a position on the critical issues. Finally, grant concessions and hammer out an agreement. 14 Cultural Differences Affecting Negotiations • Avoid identifying the other’s home culture too quickly. • Beware of the Western bias toward “doing.” • Resist formulating simple, consistent, stable images. • Do not assume all aspects of the culture are equally significant. • Norms for interactions involving outsiders may differ from those for between compatriots. • Do not overestimate familiarity with your counterpart’s culture. © McGraw-Hill Education • Culture often plays a role in negotiation effectiveness. • U.S. negotiator’s style often differs from negotiators in other countries. • Arabs use emotional appeal in their negotiation style. • Before beginning, review the negotiating style of the other parties and formulate tactics. • Simply being familiar with the culture is still falling short of being aptly informed. 15 Negotiation Tactics Location. • If the matter is very important, most businesses will choose a neutral site, which has benefits. Time limits. • Time limits can be use tactically even when meeting at a neutral site. Buyer-seller relations. • Americans believe in being objective and trading favors. • This is not the way negotiators in many other countries think. © McGraw-Hill Education 16 Negotiating for Mutual Benefit Separate the people from the problem. Focus on interests rather than positions. Insist the agreement be based on objective criteria. © McGraw-Hill Education Generate a variety of options before settling on an agreement. Stand your ground. 17 Bargaining Behaviors Use of extreme behaviors. • Research shows that extreme positions tend to produce better results. Promises, threats, and other behaviors. • These behaviors are often influenced by culture. Nonverbal behaviors. • Common during negotiations—silent periods, facial gazing, touching, and conversational overlaps. The important thing to remember is that in international negotiations, people use a wide variety of tactics. • The other side must be prepared to counter or find a way of dealing with them. © McGraw-Hill Education 18 Because learning changes everything. www.mheducation.com © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. ® Course Decision-Making Within the Global Marketplace Type Short assignment at 400 words Chapters 6 Organizational Cultures and Diversity & 7 Cross-Cultural and Negotiation Chapter Please read: • Chapters 6 Organizational Cultures and Diversity & 7 Cross-Cultural and Negotiation Decision Theory Decision Theory Case study.pdf within the Glo_Chapter06.pptx within the Glo_Chapter07.pptx Danone’s Wrangle with Wahaha After reading the case, discuss the following: 1. Identify the problem in the joint venture that triggered the conflict between the two companies and discuss the differences of each company’s understanding of their own respective roles and responsibilities in this venture. 2. As a leader, discuss ways you would handle conflict when it arises from organizational culture or national culture? A case study is a puzzle to be solved and here is a strategy for formulating your paper: 1. Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module, which apply to the situation described in the case study. 2. Study the facts and focus on relevant information; the case may have extraneous information not relevant to the current module. 3. Describe actions that would address or correct the situation and who should act upon what. 4. Draw from experience, course readings or real-life experience. . Directions: • • • Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate. (Luthans, F., & Doh, J. P. (2021) International management: Culture, strategy, and behavior (11th ed.) McGraw-Hill Education, New York, NY ISBN 9781260260472) Embed course material concepts, principles, and theories (including supporting citations) along with at least 3 current, scholarly, peer-reviewed journal articles. Current articles are those published in the last five years. Use textbook as additional reference with in-text citation. Use APA style guidelines. Grading:

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