Download - Cross Culture Management
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.