Every organization looks toward the expansion of its business units which creates a complexity in managing intercultural communication. The mitigation policies and procedures should be planned to resolve the complexities associated with the business units due to the intercultural communication which exists at the site location. The difference in the cultures of the employees creates complexities in managing coordination among the business processes and operational plan. In this paper we are going to summarise the challenges faced by the Adams family in expanding their business units on the new platform of France.
The Adams family started their business unit to sale Yabbie for the domestic consumption of small restaurant in Perth. With the passage of time, the Adams family expanded their business to about 600 farms and started exporting the supply of Yabbie to the Singapore. Now the company is looking forward for expansion of their business to France. The technological advancement helps the organization to supply Yabbie within 36 hours which was previously done in 6 to 7 days. The owner of the company, Peter Adams decided to carry forward their business of supplying Yabbie in the foreign market of France for increasing their profit and turnover of the company.
The purpose of this process is to present negotiation process in dealing with business operation with the France Company. The focus should be given on intercultural differences in communication which exist with foreign investment market.
The project was designed to deliver a report on the challenges faced by the Adams Family in expanding their business to the foreign market of France. The issue in performing business operation effectively is majorly due to the intercultural differences in the working curriculum of the participating organizations. The analysis of the working culture of the France organization and Adams family working curriculum activities helps in finding out the difference in business operation and working tactics.
It is the Golden opportunity for the Adams Family for expansion in doing business with the France foreign market but there are some cultural challenges which company face in doing hand in hand business with the country. The analysis of the France working curriculum structure helps in finding that it works on the centralized system for taking effective decision. The effectiveness and efficiency in the France business operations can be achieved by signing legal document of service level agreement with the participating organization. The participating organization is inefficient in providing product on time than the cancellation of the legal agreement will take place. This directly affects the profitability of the enterprise. The Adams family deals with the supply of Yabbie. The organization should look upon the freshness of the Yabbie and instant supply to the foreign market for making good and healthy relationship with the France investors. The supply of the Yabbie should be done through air freight for maintaining the quality of the fishes.
The intercultural difference in managing business relationship mainly occurs due to
The cultural analysis should be performed to analyse the food requirement of the France customers. The market analysis should be performed on analysing the interest of the customers in having dishes of Yabbie or not (Mathews and Thakkar, 2015). The marketing of the Yabbie to the France market should not be done on assumptions. The preliminary market research should be performed for analysing the behaviour of the customers in the France.
The cultural environment of the France is depends on three factors which are categorised as cultural forces, decision making processes, and cultural formal and informal messages (Kvantaliani, and Klimina, 2011). The culture of the country is affected by the need of the resident people. The cultural difference which exists between France and Australia can be minimized by the following proposed model:
The reconciliation of the service level agreement between the France and Adams Family organization helps in reducing the inter-cultural differences which exists in the two nations (Guang and Trotter, 2012). The reconciliation statement helps in reducing the chaos and conflicts in the business operation alignment, taking preventive measures to face the situation of cultural differences and harnessing the intercultural tension (Helia, 2010). The synthesising of the culture is the dynamic solution for integrating the intercultural process for achieving efficiency in aligning the business operational plan of the participating units. The following table shows the difference in working culture of the two nations i.e. Australia and France.
|
Working of the Adams Family organization |
Austrlian Culture (Home culture) |
French Culture (Foreign culture) |
|
Deals with the domestic consumption of the Yabbie |
High |
Negligible |
|
Interest in foreign Market |
High |
Nil |
|
Deals with the Export function for the supply of Yabbie |
High |
Low |
|
Working on taking license from the multi-national companies for the supply of Yabbie |
High |
Medium |
|
Providing export services to the multi-national companies |
High |
High |
|
Developing Global Relationship |
High |
High |
The major challenge which the organization faces in negotiation process is cultural differences during the trading of foreign goods in the international markets. The misunderstanding in the message delivery process can create a problematic scenario of chaos and conflicts in the global market (Dzenowagis, 2008). The strategic approach should be followed for conducting the negotiation process with the France foreign market which as categorised below:
Some policies and principles should be followed while dealing negotiation process with the foreign market of France which are listed in the table below:
|
Ø The privilege should be given to the emotional feelings associated with the culture and tradition of the participating units |
|
Ø The passionate request should be urged with the France foreign investors by presenting their services in the logical manners |
|
Ø Negotiation process should be done with the top executives |
|
Ø Calculation of the profit earned with signing deal in foreign market |
|
Ø Signing service level agreement with the participating units |
|
Ø Preliminary market research of the foreign investors should be done |
|
Ø Slow down the process of negotiation |
|
Ø Managing trust and confidence with the foreign investors of the France |
|
Ø Give respect to one another’s culture and traditional values |
|
Ø Establishing communication by using a common language |
The process of negotiation should be performed in five different processes which are categorised as pre-negotiation phase, Negotiation phase, post negotiation phase, implication of strategic factors, and implications of cultural factors (Deari, Kimmel, and Lopez, 2012).
The setting of the price for managing the supply of the Yabbie should be done by focusing on the organization level factors, product quality factors, market factors, and environmental factors. The following diagram shows the factors responsible for setting the price of supplying Yabbie in the foreign market of the France (Dike, 2013).
The following diagram shows the summarised model of cultural difference and negotiation process for the connectivity between the two countries for foreign exchange of supplying Yabbies:
Summary and Conclusion
It can be concluded that the Adams Family organization should perform preliminary research on the working culture of the France foreign market for achieving long term sustainable relationship with the France foreign investors which in turn helps in increasing the turnover of the company. The major challenge which the organization faces in negotiation process is cultural differences during the trading of foreign goods in the international markets.
It can be summarised that the reconciliation of the service level agreement between the France and Adams Family organization helps in reducing the inter-cultural differences which exists in the two nations. The reconciliation statement helps in reducing the chaos and conflicts in the business operation alignment, taking preventive measures to face the situation of cultural differences and harnessing the intercultural tension
It is recommended for the Adams family organization in doing business with the France market that the priority should be given to the market analysis of the cultural background of the France foreign investors before signing a deal of business operations. The ethical background and moral values of the foreign enterprise should be studied for developing long term sustainable relationship (Dahl, 2015). The privacy of the organization should not be affected by the foreign exchange policies. The service level agreement should be signed between the participating units so as to manage and maintain coordination, cooperation, and alignment in the business processes. The negotiation on the price of the Yabbie supply in the France market should be done after analysing the organization level factors, product quality factors, market factors, and environmental factors.
References
Dahl, S. (2015). Overview in intercultural research. 1st ed. [ebook] online. https://www.unice.fr/crookall-cours/iup_cult/_docs/_dahal%20-%20overview-of-intercultural-research.pdf [Accessed 10 May. 2018].
Deari, H., Kimmel, P., and Lopez, P. (2012). Effects of cultural differences in international business and price negotiations. 1st ed. [ebook] online. https://www.diva-portal.org/smash/get/diva2:206119/fulltext01 [Accessed 10 May. 2018].
Dike, P. (2013). The impact of workplace diversity in organizations. 1st ed. [ebook] online. https://www.theseus.fi/bitstream/handle/10024/63581/Thesisxx.pdf [Accessed 10 May. 2018].
Dzenowagis, A. (2008). Intercultural communication in global business. 1st ed. [ebook] online. https://www.pmi.org/learning/library/intercultural-communication-global-business-7044 [Accessed 10 May. 2018].
Guang, T and Trotter, D. (2012). Key issues in cross cultural business communication. 1st ed. [ebook] online. https://pdfs.semanticscholar.org/589c/e87f9e9a3accd129138051498349d0789069.pdf [Accessed 10 May. 2018].
Helia, H. (2010). Challenges and success in multicultural corporate communication. 1st ed. [ebook] online. https://www.haaga-helia.fi/sites/default/files/Kuvat-ja-liitteet/Palvelut/Julkaisut/challenges_and_successes.pdf [Accessed 10 May. 2018].
Kvantaliani, M. and Klimina, M. (2011). Implications of cross-culture communication in business. 1st ed. [ebook] online. https://www.diva-portal.org/smash/get/diva2:421545/fulltext02 [Accessed 10 May. 2018].
Mathews, L. and Thakkar, B. (2015). The impact of globalization on cross-cultural communication. 1st ed. [ebook] online. https://www.intechopen.com/books/globalization-education-and-management-agendas/the-impact-of-globalization-on-cross-cultural-communication [Accessed 10 May. 2018].
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