Mahendra Heda Dr. Olabisi

02/20/14 Cross Culture Management

Individual Essay – 2

1. According to me, Rex Lewis should not increase the price of the product just for the

sake of increasing the profit margin or making business more profitable. Though

company might make a huge sum of profit before the competitors enter the market,

but it will not be a good thing towards the humanity. The cost of SUPALL is already

taking up the 25% of the earning of a person. Which means it is really not affordable

for the parents to buy, as they also have to feed the remaining large family. Also, the

recent droughts have made the situation worse. The SUPALL product is also

economic with respect to the food so parents must be relying on the SUPALL for the

basic nutrition for their children.

If Rex Lewis increases the prices of SUPALL, the parents might not be able to afford

buying it. There will be two consequences of it:

1. Parents will not be able to feed their child with the proper nutritional food,

as the agriculture sector is not doing well and also the earning of the

parents is also not high. This might increase the malnutrition problem

among the children and hence for the future of the Matinea. So as a

corporate social responsibility, Rex should not increase the price for the

sale of profit.

2. Sales will go down tremendously. Though after increasing the price, ICS

Corp. may not make the profit equal to they are making right now because

of the low sales.

As the SUPALL is inexpensive in production and is very basic need for the children

health, on the ground of corporate social responsibility, Rex Lewis should not

increase the price.

As the ICS Corp is making 50% return on the product, if Rex Lewis` decreases the

price of product, sales might go up, as more and more parents will be able to afford it.

Which will directly affects the profit in positive sense. Another plus point of this will

be the good will towards SUPALL will be created if they portray the reduction in

price as the corporate social responsibility.

The revenues from the SUPALL are already able to support the Research and

development of the ICS, so the company is able to make such huge revenue from the

one country. That’s why the company should not greed for the more profit on the

morale ground.

2. As the managers from the United States and Europe will be working on the global

level, they must be aware of this fact or artifact. Though, if they are not, I would

suggest going with the written communication. There are many positive aspects of the

written communication such as no one can’t deny that he didn’t say that as there are

written proofs available. US managers should also be taught to value the relationship

and make more efforts towards it. So that the European managers won’t feel low and

think that the US managers are very professionals.

3. Mind Stretching questions

A. Does your culture tell you how to communicate and behave? If so, what are the

messages that you feel are consistently reinforced?

Culture definitely affects the communication and behavior of a person. Culture

certainly has its impact on the both. As in few culture, the few words or few

gestures might be considered as the bad word or gesture but t might be fine in

any other culture.

B. How do you prefer to communicate? Directly? Indirectly?

I prefer to communicate directly as it avoid the chance of confusion and

miscommunication.

C. In your personal life, do you have many friends who are different from you? How are

they different? In personality, ethnicity, culture? Or are most of your friends from

your own cultural background? Why?

My friends have different cultural background. Everyone behaves and think

differently than the other. Cultural differences make them think in a different

way. For example, one of my friends gives the priorities to do the work of

other friends first rather than his own. While I have another friend from

different cultural background who will always think of his own work first. The

culture of my first friend taught him to help others first while for other friend

it imposed to do his own work first.

D. How much time do you spend tying to understand another person’s perspective? Or

do you prefer to try to persuade others to change and adopt your own perspective?

I try to learn and understand perspective of other in real time. To maintain a

relationship rather a healthy relationship, one must understand the viewpoint

of others, rather than always imposing own thoughts. Most of the time, I

choose to adopt the changes rather than imposing my own view.

4. As a VP, I should take the stand against the questionable payments in a company,

whenever I come to know about it. This payment is against the international business ethics

and could be considered as bribe. So whenever I came to know about this payment, first of all

I will report this to the company management of the purchasing manager first of all. Will ask

the company to hold the bid again and will either ask the area manager to resign or will

demote him. This will help the company to build a reputation and gain the public’s attention,

in terms the brand marketing and loyalty.