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Category: Business Management Essays
Our sample business management essays will prove helpful in formulating your own dissertation topic, objectives, literature review, methodology and analyses. Our sample Business essays are an ideal tool for any student struggling to start their own Business essay.
Business Management is an essential part of any organisation and there are many elements of Business Management. By browsing our collection of Business essays, you will get ideas for your Business essay through the following Business subjects:
Global Business, Business Strategy, Corporate Social Responsibility, Change Management, Project Management, Organisational Behaviour, Leadership, Globalisation, Strategic Management, Entrepreneurship, Technology and Innovation Management.
Strategic management is a technique used by managers to give a firm a long-term direction and involves a systematic analysis of decisions, actions that create a competitive advantage. It involves the analysis of strategic goals, vision, and mission and the internal and external environmental factors in a firm. SWOT is an acronym standing for strengths, weaknesses, opportunities and threats. SWOT analysis involves the assessment of a firm’s internal strengths, weaknesses and the external opportunities and threats (Henry, 2008). This analysis helps to identify the strengths and capabilities to minimize weaknesses, along with identifying opportunities to overcome threats. In reference to Toyota Company, leading automobile firm, a SWOT analysis on the Companies Strengths, weaknesses, threats and opportunities are as follows.
The Toyota Corporation has a strong production process that is effective and efficient in saving costs, this creates a competitive advantage. Cost savings helps to set affordable prices of their products to end users, over the competitors. The firm utilizes resources and eliminates unwanted costs in the production process. This strategy creates a competitive edge for Toyota, by reducing costs and increasing the production capabilities and efficiency.
Toyota has strong horizontal integration merge verses the competitors who have vertical integration relationships. Strong relationship with supplier creates a competitive advantage, and it informs of updates or any developing changes (Henry, 2008) Horizontal merge proves to be cost effective, reduce risks and increase benefits. Merging helps to pool together resources of the combining companies, creating a favorable business environment. Synergyis one of the benefits of combining companies, and sharing of resources e.g. distribution channels. Toyota opts for best suppliers in Japan.
Toyota has a strong culture advantage, employees’ devotion in their jobs, performance and desire to improvement. It treats it employees with legitimate sense of respect and loyalty. The Japanese value work differently from competitors for instance the Americans this is reflected in their quality products they offer to the market. Toyota in invests more its employees empowers them to be creative and innovative (Hino, 2012). A strong sense of respect of hierarchal authority enables fast decision-making and implementing Strategic plan.
A weakness is something or a condition that hinders a firm from achieving it objectives. It is a competitive deficiency (Henry, 2008) Toyota offers financial services such as insurance, credit cards. These services report low profits to the firm than other segments. Such financial services can render a competitive edge as well as a deficiency in for firms the financial strength.
Toyota use the just in time system which gives Toyota a competitive advantage, but too much dependency of this system can lead to malfunction if the supplier provision does not meet the requirements of the firm. Failure to meet these requirements affects the products quality in addition, to the manufacturing system.
Strategic Management Toyota
Toyota capitalizes on the strengths to meet its threat and take advantage of the external opportunities. Toyota has a strong cultural advantage that enhances the organization structure, focuses on teamwork rather than individual efforts. It inspires creativity and innovativeness to employees to improve the quality of its products. Top managers make decisions, the employees respect their high figures, and this enables quick decision-making. It internal leadership and management helps Toyota to dominate the automobile industry. Toyota depends too much on its suppliers, this leads to a strong reliable relationship with it suppliers (Hino, (2012). Although this could be a weakness but it gives Toyota a competitive advantage over the competitors such as General Motors
Toyota is a dominating automobile firm, its produces affordable cars and other automobile related products. A SWOT analysis identifies Toyotas strengths, weaknesses, threats and opportunities. Internal analysis involves the assessment of the firm’s internal environment factors such as the organization structure, leadership and management among others. Toyota has a stable structure and principled leadership design (Hino, 2012). The quality of the products and employees loyalty dictates the strengths of the firm. Toyota is loyal to employees and produces quality products.
However, Toyota faces threats such as competition from existing and emerging firm in the automobile industry. It takes advantage of the internal strengths to take advantage of opportunities and minimize threats. Toyota Company has a strong relationship with its suppliers. This helps to fight the upcoming firms and the existing firms in the industry. A complex distribution channel discourages competitor’s efforts. Toyota uses it strengths to take advantage of opportunities, it has high producing capacity at minimum costs. They produce quality and affordable cars in the market (Hino, 2012). They differentiate their products to meet the consumers emerging desires. Toyota has incentives and discount programs that help improve the profitability of its financial services segment.
Conclusion
Strategic management at Toyota needs inspires its employees to continuously think of strategic management changes that enhance improvement in quality of products in the future. It requires strong strategic management plans difficult to duplicate, corrective actions to maintainable a competitive position of a leading automobile in the world.
References
Henry, A. (2008). Understanding strategic management. Oxford: Oxford University Press.
Hino, S. (2012). Inside the mind of Toyota: Strategic Management principles for enduring growth. New York, N.Y: Productivity Press.
Pearce, J. A., & Robinson, R. B. (2004). Strategic management: Formulation, implementation, and control. Boston, Mass: McGraw-Hill.
Real effectiveness in business can only be achieved when there is an efficient form of communication between employers, workers, clients and associates. Communication in business is used for swapping information, increasing efficiency, coordination and communication, decision making, formulating and executing plans and improving relationships with external parties. Hence, organizations where there is a seamless and unobstructed exchange of goals, objectives, and ideas in internal and external communication are the ones which prosper the most.
This exchange of information, however, is a form of art and requires a great amount of deliberation. Deficient communication within the company and with the outside world lead to poor performance. In the corporate world it is best to communicate ideas in a way in which they cannot be held against you. The exchange of information should be clear and fathomable, but should all so be somewhat evasive providing an opportunity of leeway.
When it comes to the professional world, it is better to speak and write tentatively and make statements which give room for error, rather than stating opinions and facts in a way, which give no space for denial or clarifications later on, in case of there being any fallacies in the prior stated words.
It is better to use an impersonal passive sort of approach in communication as it highlights the object of the message, yet does not draw as much attention to the correspondent. It is better to use vague writing in touchy situations where there is a blurred line between actualities and claims.
Such form of communication softens the tone of the language and makes it more persuasive. The addressee is more likely to show consent to the contention if the communicator is subtle and less insistent in delivering his ideas.Writing or speech lacking in tentativeness can be harsh and result in avoidance of the actual purpose of business communication, which is the smooth and persuasive conveyance of information.
Tentative language can be acquired by use of limiting words, modal verbs and hedging. Modal verbs are auxiliary verbs which indicate the mood or tone of the sentence, and provide room foruncertainty. They should be used carefully when dealing with official communications.Limiting words indicate the likelihood of something happening. They show the possibility of something happening, but do not confirm to it with entire certainty.
The purpose of all of which is to cushion the impact of the words which you are trying to convey giving, more room later on for denial or modifications. This use of tentative terms is suitable in making assertions that show as much evidence of accuracy as present in reality, and to avoid making assertions which may necessarily not be entirely true. This also helps in avoiding any form of opposition which may arise in case of a false claim, by the receiver picking on the initialcertainty in regards to the authenticity of the words.
Barack Obama, president of the United States, running one of the greatest nations of the world, a businessman of his own sorts on a late night TV show compared his poor bowling abilities to the Special Olympics(Business Communication: In Person, In Print, Online: Amy Newman, Scot Ober). What we see here is an example of lack of tentative language. The president first off could have drawn a better analogy, and if this was the most accurate comparison he could find, he could have stated it in a more subtle sort of way, covering the stringency of the meaning by using vague and tentative terms, not claiming to have the conclusive word on the topic, nor making any staunch and definite comparisons.
The result of the President’s verbal faux pas it seems to be, was that he had to call the chair of the board of the Special Olympics and apologize for his seemingly insensitive words. All of this due to lack of proper cushioning and adequate discretion on part of the President in delivering his notion. Thus extra care must be taken when referring to or dealing with handicapped. In the world of business where competitors and the press are waiting like scavengers to pick on your words it is best to use as much cushioning as possible in saying your piece.
Effective Business Communication
Head of HR Management in Yahoo sent a memo to all employees in the not so distant past telling them that commuting or working from home would soon no longer be an option from them, and those who continue to wish to work this way would have to quit or clearly risk being fired. The harsh terminology used in this inefficiently conducted memo is evidence of why it resulted in a fervently adverse reaction on parts of the employees. First of the memo failed to give any staunch motives for this abrupt new policy. Furthermore, the lack of attempts, at dampening the impact of the new program, and trying to cushion the outcomes of what may happen if employees failed to meet with the new regime, make it blatant that the proposal would backfire on the company, which it did.
Thus we can see what happens when there is an absence of tentative language in communication within businesses. The employees were rightfully upset and there was a lot of bad water, all of this owing to the communication fallacy of just one manager. Had he used a better and more cautious approach in delivering the news, the employees would have accepted the new policy with open arms.
Tentative language gives room for opinions and change. It provides the addressee with an opportunity to add to what is being said. It makes the communicator appear more cautious and open for improvement. The recipient seems to have some room to add to the initial argument if the speaker or writer uses tentative language. This improves the exchange of ideas and removes any barriers which may exist between the two parties allowing an effortless exchange of thoughts and objectives.
Conclusion
Thus we can see the importance of effectual communication. Those people who cannot communicate effectively will find it difficult to beemployed, to function well and earn promotions in their jobs. If they don’t employ essential communication techniques, and continue making blunders which are bound to arise from lack of important practices such as that of using tentativeness. We can see now that caution in writing and employing the use of vague statements which give room for alteration are necessary and lead to better transfer of thoughts.
References
Judd, A., McElroy, J. and Baker, P. (2014). BC teachers’ strike: Tentative deal reached between BCTF and government. Global News
Enterprises, L. (2014). Metro, drivers and mechanics reach tentative deal on contract : News
The Globe and Mail, (2014). B.C.’s teachers are the losers in tentative deal
W H Smith is a company based in the United Kingdom and is one of the leading retail groups that specialize in selling stationary, magazines, books, entertainment products, and other impulse products. Its target market is travelers in places such as airports and train stations in addition to workplaces and hospitals. The company has grown over the years and has managed to open more branches all over Europe and internationally.
Porter’s Five Forces Analysis
The porter’s five forces analysis is mainly used to analyze the competition levels of an industry as well as the growth of strategic business developments. This analysis can be used to determine the overall profitability of a company, which marks a company’s success in its respective industry. The five forces are threat of new entrants, threat of substitute products or services, bargaining power of customers, bargaining power of suppliers, and the intensity of competitive rivalry (Jones & Hill, 2008, p. 45). Threat of new entrants refers to the introduction of new firms or companies into an industry that yields very high profits. Such markets attract new players into the industry that will in turn lead to lower profitability for the existing companies in that industry. Since new entrants will want to tap into the profits of the industry, they will tend to offer their products and services at a cheaper rate to attract more customers. Consequently, this will affect the whole industry, since the new competition will force all the companies in the industry to change their strategies in order to continue making profits (Jones & Hill, 2008, p.46). Therefore, these industries have to have certain barriers to ensure that few companies that enter are performing and the non-performing ones are unable to survive in the industry.
On the other hand, threat of substitute products or services refers to the different alternatives in the market apart from the commonly known products. Existence of such alternatives in a market is more likely to persuade customers to switch to such products or services with regard to their availability and suitability. Customer shift to a competitor’s products or services will mean that, a certain product will be less used at the expense of a new or better substitute (Jones & Hill, 2008, p. 46). The depreciation in the quality or the substandard nature of some products is the main reason for the switching to alternative products in an industry.
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Apart from that, bargaining power of customers is also one of Porter’s five forces. This refers to the power that the customers have over a company on their products and services. This means that if a large group of buyers come together and demand a reduction in prices on particular products, then the company will be forced to make that decision due to customer pressure (Jones & Hill, 2008, p. 46). Such pressure is very high if there are many alternatives in the market in question, resulting in higher buyer power. Customer pressure increases the bargaining power of customers since they can put a company under immense pressure, when it comes to pricing of products.
Bargaining power of suppliers is another of the porter’s five forces. It involves supplier power, when there are few substitutes for raw materials, labor, or even components in a particular industry. Suppliers may possess power over a company if the resources they supply are unique and hard to get. This means that the company will have to heed to the demands of the supplier if they are to receive such resources to continue their production. Suppliers, hence, may be able to charge high prices for their products as well as choose which firms to work with due to supplier’s monopolistic nature (Jones & Hill, 2008, p. 48).
Lastly, intensity of competitive rivalry is the last of the Porter’s five forces. In any industry, the intensity of competition determines the success of the different companies in that particular industry. Firms, therefore, have to engage in practices that ensure that they have a competitive edge over their rivals (Jones & Hill, 2008, p. 49). This means that the industry will be more competitive, if more companies invest in advertising and other innovative ways, in order to attract the highest number of customers in a market, which has very many substitutes.
W H Smith’s Competitive Position
W H Smith is a competitive company, since it has diversified its retail stores and opened up various stores all over the country. In the travel sector for instance, the company was able to record high profits even though passenger numbers were small. This means that the stores in the travel sector of the company were able to sell more even in difficult economic conditions. The introduction of new businesses by the company ensured that the sales in travel grew significantly. Innovative strategies such as the rolling out of self-service tills in airside units led to increased customer numbers as well as reducing the management costs for the company. This made the company able to save on costs and use the funds to improve other facilities enabling increase in customer satisfaction.
With competition in the high street sales on the increase, the company has experienced a hard time in improving the sales in the market. It has, however, put in place measures to ensure that customers can have newer products in the market. These retailers in supermarkets and online platforms will ensure that the company is able to provide services to their customers with ease and at comfort, while undertaking their normal daily activities such as, browsing a computer at home, or doing shopping at a supermarket.
Difficulties in Utilizing the Porter’s Five Forces Analysis in Practice
The porter’s five forces analysis is a good tool that may be utilized by many companies, but may only be important for new companies planning to enter a new market. This analysis provides very few and weak links between the internal and external environments of a company, even though the two go hand in hand. This is because both environments play a role in the competitive forces of the company. Therefore, a company may be incapacitated in identifying the impacts that the relationship may have on the competition in the market. The strengths of certain forces are described by Porter’s model relatively, and may have different interpretations by different companies in the different industries (Meir, 2009, p. 36). Therefore, a company will require more analysis to identify any underlying conditions that may make either the buyer or supplier have more or less power.
Ansoff’s Growth Strategy Matrix
This strategy involves the marketing strategies that a company may use to determine both product and market growth. The four alternatives in marketing strategies include market penetration, product development, market development, and diversification. These strategies can be used to ensure that the company employs the right tactics to stay relevant in a competitive industry as well as maximize its profits (Maria, Grandinetti, & Bernardo, 2012, p. 72).
Firstly, market penetration involves methods that will enable a company to get its products into a market. It should be noted, that this is the lowest risk strategy. This may involve promotion of the product, creation of an extensive distribution process to reach a wider consumer area, and putting attractive pricing to lure more customers into purchasing the company’s products. Coming up with innovative ways of increasing the usage of the product will also, help a company improve its sales in an established market (Maria, Grandinetti, & Bernardo, 2012, p. 72).
Product development on the other hand involves the introduction of newer products or modifying the products to suit the customers’ customized needs. Modifying a product in the existing market by changing its outlook, improving both its quality and performance, will create a more appealing product in the market (Maria, Grandinetti, & Bernardo, 2012, p. 73). This will attract more customers into buying the product, therefore, increasing the company’s sales.
Apart from that, market development is another marketing strategy in the Ansoff matrix. This involves the company venturing into new markets to increase its client base. Opening up different branches at different locations will enable the company to reach new customers in areas that the product was not available. Such new markets require a proper strategy that will enable the product attract more people. Selling through the internet or mail order will make work easier for the company, since they will reach a vast number of customers who can access their products online (Maria, Grandinetti, & Bernardo, 2012, p.75).
Finally, the last strategy is diversification of both the market and the product. This means that the company will be producing a new product that will be sold to a totally new market. This requires a lot of research to ensure that the move leads to success. Since it involves two unknowns, the risks involved are very high and the company will have to assess these risks and understand the consequence of such a decision (Maria, Grandinetti, & Bernardo, 2012, p. 77). A company may decide to diversify into the same industry that is less risky or join another completely different industry that has higher risks. Therefore, the company should have a balance between the risk and the reward to ensure that the company gets the highest rewards from the diversification.
Analyzing W H Smith’s Business Objectives Using Ansoff’s Matrix
Travel in W H Smith focuses on delivering value to shareholders through growth in the different sectors it is involved in. This means that the company aims at market development by looking for new contracts and trialing new formats that will improve customer’s productivity. Apart from that, the company has incorporated a product development strategy, with the introduction of newer products that improve efficiency such as the self-service tills. Such new products increase both customer numbers and the average profits of the company.
The high street plan for the company plays a huge role in not only cutting its costs, but also maintaining its presence in core categories of the market. The company is able to develop the market by continued brand awareness and efficient advertising on television and other forms of media. Additionally, introduction of new products such as the Gadget shop products, which is part of the new gifting ranges, will increase the client base since it aims at reaching more customers.
Difficulties of Utilizing Ansoff’s Model in Practice
The Ansoff’s matrix can only be used sparingly because different companies interpret the matrix with respect to their circumstances. This means that it is impossible for it to be used as the basic standard tool for all companies analyzing their marketing strategies. It requires each company to analyze their products well before deciding on a strategy, in order for it to reduce risks that may lead to its demise. Apart from that, risk management is highly required for any decision in the company that involves the product or market. Since the matrix does not put into account the nature of a company, it is possible for a company to undertake a certain risk that may be disastrous hence the need for extensive research, which the matrix does not produce (Maria, Grandinetti, & Bernardo, 2012, p.79).
PESTEL Analysis for W H Smith
The PESTEL analysis aims at looking at external factors that a company is involved with when undergoing a market research or undertaking strategic analysis. It enables the company to understand its position in the market, its growth or decline and its overall potential. The PESTEL analysis involves different factors, which include political factors, economic factors, social factors, technological factors, environmental factors and legal factors. W H Smith has various external factors that affect its overall performance.
Firstly, political factors influence many businesses in a country. In the United Kingdom, the government allows proper competition by giving fair allocation of opportunities for companies that may wish to indulge in different businesses. W H Smith has benefited from this since it has been able to set up retail stores in different travel points such as airports and train stations without many barriers. The proper infrastructure such as hospitals and airports set up by the government has provided different opportunities for the company and enabled it to expand over various sectors.
Secondly, economic factors also have had an effect on W H Smith as a company. The low inflation rates and economic growth of the U.K. in general has enabled the company to thrive. Even though the economic times have had several changes over the year, the company was able to increase its operational profits by 8% within a year. This increase in the company’s profits under the given circumstances shows the company’s capabilities at such times which show the planning put in place and the strategies to ensure a balance in the economies of scale. The ability of the U.K. to attract visitors in major transport lines also played a huge role in the success of the company over the same period.
Thirdly, the social factors in the country also impacted the company. Since trends in social factors are able to affect demands for certain products, the company was able to adapt to new demands of the customers. New products and services were introduced to various parts of the area that were aimed at serving customers more efficient. Additionally, a growing number of travelers in the country provided the right platform for the company to develop over the years. W H Smith has been able to reach more people through its initiatives which have eventually benefited the company. Use of the Internet has increased exponentially and the company has taken advantage of this by sensitizing the society on the Internet. This has grown its market base significantly and increased sales.
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Moreover, technology also influenced the strategic decisions that the company had to undertake, with the company having to introduce automation in some parts of the retail stores such as the self-service tills. Apart from that, the introduction of e-commerce and mail order enabled the company to increase its online presence, since a huge number of people are always on the internet (Sekhar, 2009, p. 52).
Environmental factors that may affect the number of travelers visiting train stations and airports also affected the company at one point. Apart from that, the products that W H Smith sells to its customers are recyclable. This means that the products are environment friendly and does not in any way harm the environment. Such green products are approved by standardizing bodies hence are fit to be used by the different customers.
Lastly, legal factors are the final element in the PESTEL analysis that looks at the laws that govern the operation of companies. The laws that are in place enable W H Smith to operate within an acceptable range, since the company adheres to all the possible laws, which means that the company is able to monitor its costs, demand for the products they sell, and their overall operations.
Evaluation of W H Smith’s Current Position Using the SAF Model
W H Smith has developed and grown over the year and has been able to open up new branches in addition to the already existing 561 travel units and 612 high street stores. Through these various stores, it has made it possible to employ over 16000 employees who manage the running of these retail stores. Using the SAF model which consists of suitability, acceptability and feasibility we can evaluate the company’s current position.
Suitability in the company’s case can be seen with the strategies that it has put in place to address the different issues that the company in the industry. Furthermore, it has also begun e-commerce projects that will enable customers to see and order their products online and be able to purchase them from the comfort of their homes (Jones & Hill, 2008, p. 54). In addition, the mail order service it has begun will facilitate customers to place orders and then receive the products through the mail delivery process. All these are aimed at cementing the company’s position as a leader in this sector, and enabling it to gain access to more customers, therefore, increasing their market share in the U.K. and worldwide.
With regard to acceptability, the company has been able to manage their risks and returns in such a way that it can gain profits in the different ventures it has taken part in. W H Smith is in a position where it has an advantage over its competitors, since it has put its attention to growth drivers that will allow the expansion of the company. Diversification has also helped the retail stores to tap into new markets and gain a huge client base in this industry, with the development of more stores in both the travel units and the high street stores. All these factors have aided the company to develop significantly, and build its brand image, therefore, creating a huge force in this industry.
Lastly, feasibility in the company’s case refers to the resources that are required to implement the different objectives of the company. Through their development strategies the company is able to cope with the different challenges that it has faced in recent times. A significant number of problems affect the company such as, economic changes that affect the country, as well as competition in high street stores by other companies. The company has put in place measures to counter these problems by introducing innovative ways that aim at improving service delivery, efficiency, and sustainability in the company.
References
Jones, G., & Hill, C. (2008). Essentials of Strategic Management. Cengage Learning.
Maria, E. D., Grandinetti, R., & Bernardo, B. D. (2012). Exploring Knowledge-Intensive
Business Services: Knowledge Management Strategies. Palgrave Macmillan.
Meir, R. (2009). Knowledge Management Strategies for Business Development. IGI Global.
The intercultural dinner is an interesting concept which helps gain insights into the various aspects of a culture. It is important to understand food and life style as well as personality aspects in order to form a better understanding of the culture of a nation (Hamel, 2007). I met all of the group members for dinner and all of us brought a dish belonging to different cultures. I brought Hummus which is a popular dip made from smashed chickpeas and tahini with other seasonings. China and Saudi Arabia were other two predominant cultures which were presented at the dinner. The learning and outcomes of this dinner was that culture is an extremely important aspect which impact management as well. As we discussed cultures, we were able to understand how history, lifestyle and exposure to globalization impacts them.
Culture of Iraq
Iraq is located in the Middle East Asia. Iraq is predominantly an Islamic country (A Country Study: Iraq, 2010). This makes it important to understand the laws of Islam and the preaching’s of Quran or Prophet Mohammad (Abdul-Jabar, 2002). Prophet Mohammed has been a very popular Prophet not only among the Muslims or the followers of Islam but also among several religion researchers, philosophers, diplomats and other people. Their culture and thought on food is that food is a blessing given by God. They believe in rich food which is enriched with nutrients and contains fruits, nuts and even meat. The teachings of Prophet led to his popularity growing from time to time and there are nations like Arabia, Pakistan and India where Islam is popularly preached and forms one of the main religions (Abdul-Jabar, 2002). Prophet Mohammed is as popular as Jesus Christ in America and United Kingdom. Similarly the food and cuisine of Iraq is also popular all around India, Pakistan, Arabia and other Eastern countries. Though the economy of Iraq is not very stable, it has a very rich culture (A Country Study: Iraq, 2010).
The revelations of God, received by Prophet Mohammad included the will of God and the principle of submission to God’s will (Musharraf, 2012). Prophet Mohammad narrated these principles to the people. The revelations of God include the Apostle of Peace which propagates love and brotherhood (Abdul-Jabar, 2002). So the people of Iraq believe in being good hosts and serving food generously to people that visit them. This is also an important part of celebrations of festivals like Id and Bakrid. Considerations of prestige and family strength are important values of the culture of Iraq (A Country Study: Iraq, 2010).
In Medina there were eight different tribes which had several conflicts among themselves. These led to them inviting Prophet Mohammed as a neutral negotiator and resolve these conflicts (Musharraf, 2012). So the food habits and lifestyle varies significantly among different sub groups in Iraq itself (A Country Study: Iraq, 2010).
Iraq does not have political stability and such elements like instable political situation, poor economic conditions and war has led to deterioration of life and business, but their culture still remains extremely rich (A Country Study: Iraq, 2010). The texts of the “Quran” play an important role in formation of the texts of several other religions including Judaism (Abdul-Jabar, 2002). It has also greatly influenced middle-eastern ethics and common beliefs as it is one of the oldest religions practiced (Abdul-Jabar, 2002).
Comparison of culture of Iraq with China and Saudi Arabia
Culture refers to the values and lifestyle adapted by a society. The post-globalization era has been a time of merging of cultures and this leads to one culture impacting another and understanding these influences is extremely important in the present times as they impact the management of human resources in multi-national corporations (Dauber, 2012). Culture refers to the several lifestyle elements like food, dressing, sports, entertainment and several such factors along with the values like uncertainty tolerance or emotional involvement and independence, openness and several other faiths (Greenfeld, 2013). Culture is shaped through the interaction of people and their ideas as well as ideologies (Schein, 2004).
The comparison of cultures of these countries has been based on two models – one being Hofstede’s cultural framework and another being Hall’s cross cultural framework. These models help understand the similarities and differences between the cultures of Iraq, China and Saudi Arabia.
Hofstede’s cultural framework
The culture of Iraq does have several similarities with that of Saudi Arabia but is very distinct from that of China. Hofstede’s cultural framework helps evaluate cultures based on five cultural and behavioural parameters as explained below.
International Intercultural Management
Fig 1: Comparison of culture of Iraq with the cultures of China and Saudi Arabia, based on Hofstede’s cultural framework
Power Distance
This refers to the extent of importance and influence of hierarchical relations in a culture. It reflects the degree of unequal allocation of power and psychological detachment that is accepted in a country. Power distance in China is high (National culture – Iraq, n.d.). Subordinate-superior relationship tends to be polarized and hierarchical ranks are followed strictly. Power distance is extremely high in Saudi Arabia and Iraq (National culture – Iraq, n.d.). Inherent inequalities, centralization of decision making and bureaucratic hierarchy marks the culture of Saudi Arabia and Iraq.
Uncertainty avoidance
Uncertainty avoidance refers to the risk appetite of the culture of a country. Hofstede refers this as “what is different, is dangerous” (Khastaret, et.al., 2011). China is low on uncertainty avoidance (National culture – Iraq, n.d.). Adherence to laws and rules in China are flexible and adapted on situational basis (Country Profile: China, 2008). Iraq and Saudi Arabia are very high on uncertainty avoidance (National culture – Iraq, n.d.). The rules play an important role in all aspects of life. People of Iraq and Saudi Arabia are bound to abide by the stringent codes of belief based on Islamic preaching. They are intolerant of modernisation and influence of western cultures.
Individualism vs collectivism
This dimension reflects the relative importance that a company places on interests of an individual or a group (Ryh-Song and Lawrence, 1995). China, Iraq and Saudi Arabia are collectivistic society (National culture – Iraq, n.d.). Individualism is found to be very low because the cultures are relationship driven. In China relationship needs to develop before doing business (Hatch, 1993). The traditional root of Chinese culture is Confucianism. Confucianism focuses on long term orientation, thrift and perseverance (Ryh-Song and Lawrence, 1995).
Masculinity vs femininity
This dimension reflects the importance of the level of dominance of masculine values for achievement of the organizational goals. Chinese, Iraq and Saudi Arabia cultures have more of Masculinity aspects than femininity (National culture – Iraq, n.d.). Chinese often prioritise work over family and leisure (Country Profile: China 2008). In Iraq and Saudi Arabia, the leaders in the organisation are decisive and assertive. Conflicts are often resolved by confrontation.
Long term orientation
The Chinese culture has a high long term orientation and Iraq and Saudi has a short term orientation (National culture – Iraq, n.d.). The Chinese are comparatively more employer oriented and the employee retention rate in China is higher in comparison to other countries (Bu and Xu, 2000). Cultures of Iraq and Saudi Arabia immensely respect and follow traditions. Propensity to save is low as Shariah law and Islamic banking does not encourage savings (Aggarwal and Tarik, 2000).
Hall’s Cross Cultural Model
Hall presents a popular cross cultural framework and when we apply that to these 3 cultures, they have been found to be extremely compatible. The Hall’s model is based on cultural awareness, cultural adaptation and effective management of the elements of personal, social and cultural aspects in present times of multiculturalism (Schneider and Barsoux, 2003).
Cultural Awareness
Awareness is high in Iraq and Saudi Arabia when compared to China. But in present times technology enables people everywhere to find information easily.
Cultural Adaptation
The model explains that multiculturalism is an important element of present times and seamless communication and technology promote it and the same can be observed in various cultural texts as well and in present times of globalization (Schneider and Barsoux, 2003). The adaptation of these elements is based on cultural adaptation, which is high in China as compared to Iraq and Saudi Arabia.
Management of Cross Cultures
This can help create effectiveness and better competency (Schneider and Barsoux, 2003). It can help bring teams together and also create an environment that is suitable for work and helps create several competencies. It also helps ensure that there be effective balance between operational and strategic level planning and organizing.
Comparison of leadership styles in these countries
Leadership behaviour in organizations is demonstrated through taking initiatives, considering broader roles and helping the organization achieve better progress through focus on improving the overall organizational performance (Pillai, et.al., 1999). This is evident in China when compared to that of Iraq and Saudi Arabia.
Leadership in Iraq and Saudi Arabia
In case of Iraq and Saudi Arabia, senior levels of management focus on overall performance of the organization and its competitive position. In order to create effective business development, leaders focus on operational efficiency as a whole and deal with managers who actually communicate with the team members. Leaders at the senior management levels set goals and targets which help in ensuring that the organization is able to form the common vision (Hofstede, et.al., 2002).
Authoritative style of leadership is focused on the creation of authority. The leader is mostly expressing the authority and passing the judgment during using such style leadership. The management communication follows a top down approach (Zaharna, 1995). This is evident in the day to day organizational activities in several of the local organizations. This is evident in Iraq and Saudi Arabia where in the rules and regulations are extremely strict and stringent. It is important that the authoritative style of leadership be based on mutual understanding and acceptance in order to avoid conflicts and retaliation (Smith, et.al., 2007).
In case of Iraq and Saudi Arabia, religion and political systems have a great impact on the leadership style used in these countries (Smith, et.al., 2007). It forms an essential impact on the styles in which the government and the public sector is managed. It also impacts the various business ideologies and set of ethics followed in these organizations (Smith, et.al., 2007).
The culture of Saudi Arabia and Iraq is based on the preaching of Prophet Mohammed. In discussing the leadership style of Saudi Arabia, it would be relevant to evaluate the leadership style of Prophet Muhammad. Prophet Muhammad can be considered as a transformational leader (Musharraf, 2012). His teachings and public speeches have inspired thousands of people to do things for greater good of mankind (Musharraf, 2012).
Intellectual Stimulation: Prophet Muhammad not only inspired them for good deed and good thought, he also made is followers aware of following the right path. He increases awareness about what is right and good.
Individualized Consideration: the followers of Prophet Muhammad were trained by Prophet himself (Musharraf, 2012). He guided them to become leaders in their own ways.
Inspirational Motivation: He motivated his followers to spread Islam fearlessly.
Charisma or idealized influence: Prophet Muhammad can be considered an ethical charismatic leader. He had a unique vision for his followers and a long run perspective. His high ethical and moral values, forgiving nature and optimism for future showed direction to the followers (Musharraf, 2012).
Leadership in China
A futuristic measure is ensured in case of leadership in China. It assists the organization to take futuristic decisions and helps in implementation of the firms’ long term plans or strategies (Management in the People’s Republic of China in comparison with the West: Convergence, divergence or crossvergence?, 1997). Mostly, all organizations follow some core values according to their business strategies to serve the customers with better products and services (Hirst & Thompson, 1996). The mission and vision creates an alignment with the strategic planning of the organization. These values impact the leadership as the leaders of the organization or the top management form these and ensure that they are effectively passed on to the subordinates (Management in the People’s Republic of China in comparison with the West: Convergence, divergence or crossvergence?, 1997). But this is not the case in present day multinational organizations as they belong to globalized environments. In this way the leadership styles used in organizations in China are compatible with the trends in leadership in several of the globalized countries and this helps them take benefit or advantage of globalization to propagate economic development. Leadership in China has been considered as effective and has been used to benchmark leadership strategies in several of the multinational firms all around the world (Management in the People’s Republic of China in comparison with the West: Convergence, divergence or convergence? 1997).
Future Trends
Transformational leaders are those who influence others based on the usage of participation with all of the other members of the team. In this way they are able to accept the leader as a part of the team (Wade, 2013). This form of leadership is coming up rapidly in all of the countries including Iraq, Saudi Arabia and China. In case of democratic leadership, it is crucial that there be consideration of opinions of everybody. A leader requires ensuring that things are understood by the people who are to actually implement them. He should be very careful about the client requirements as well as the need of the project (Wade, 2013). This is not consistent with the cultures of all the three countries and may not be adopted in the near future.
Conclusion
To conclude, culture forms an extremely important part of all nations and the global culture as well (Albala, Ken, 2011). Culture is an extremely important factor that affects the business environment of an international business. It is important for present day organizations, especially multinational organizations to reform their policies in order to suit the present day need of these organizations. It is important that the business environment is well researched and cultural change adaptation strategies are formed for the purpose of creating better synchronization with the cultural changes. It is extremely important that there be effective balance among the culture and the dynamic environment around the world in the present times of globalization. It is also important that the focus on the required changes in organizational environments be made slow and steady in order to ensure smooth transitions.
References
A Country Study: Iraq, 2010, Federal research division, Library of congress.
Country Profile: China, 2008, Federal research division, Library of congress.
Aggarwal, R. K. and Tarik, Y., 2000, Islamic Banks and Investment Financing, Journal of Money, Banking and Credit, 32 (1), pp. 93-120
Abdul-Jabar, F., 2002, Ayatollahs, Sufis and Ideologues: State, Religion and Social Movements in Iraq, Saqi Books
Albala, K., 2011, Food Cultures of the World Encyclopedia,ABC-CLIO, pp. 251–252
Bu, N. and Xu, J., 2000, Work-related attitudes among Chinese employees vis-a-vis “American”
and “Japanese” management models. In M. Warner (Ed.), Changing workplace relations in the
Chinese economy: Beyond the iron rice bowl (pp. 185-204). London: Macmillan
Dauber, D., Fink, G. and Yolles, M., 2012, A Configuration Model of Organizational Culture. Sage publications.
Greenfeld, L., 2013, Mind, Modernity, Madness: The Impact of Culture on Human Experience, Harvard University Press
Schein, E., 2004, Organizational culture and leadership, 3rd ed. San Francisco, Jossey-Bass.
Khastar, H., Kalhorian, R., Khalouei, G.A. & Maleki, M., 2011. Levels of Analysis and Hofstede’s Theory of Cultural Differences: The Place of Ethnic Culture in Organizations. [online] Paper presented at International Conference on Financial Management and Economics. IPEDR, 11. IACSIT Press, Singapore.
Hatch, M.J., 1993, The Dynamics of Organizational Culture. Academy of Management Review, 18 (4).
Hofstede, G., Van Deusen, C.A., Mueller, C.B. and Charles, T.A., 2002, What Goals Do Business Leaders Pursue? A Study in Fifteen Countries Journal Of International Business Studies, 33 (4), pp. 785-803
Musharraf. H. M., 2012, The Independent. Muhammad (SM): Transformational Leadership.
Management in the People’s Republic of China in comparison with the West: Convergence,
divergence or crossvergence?, 1997, Speech at the Centre for Asia-Pacific Initiatives Forum: Chinese
Interpretation of Western Institutions. University of Victoria. Victoria, B.C.
National culture – Iraq, n.d., The Hofstede Centre.
Pillai, R., Scandura, T.A. and William, E.A., 1999, Leadership – Similarities and differences accross Cultures, Journal Of International Business Studies, 30 (4), pp. 763-779
Ryh-Song, Y. and Lawrence, J. J., 1995, Individualism and Confucian Dynamism: A Note On Hofstede’s Cultural Root To Economic Growth, Journal of International Business Studies, 26 (3), pp. 655-669
Schneider, S.C. and Barsoux, J.L., 2003, Managing across Cultures, Financial Times Prentice Hall
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Zaharna, R.S., 1995, Understanding cultural preferences of Arab communication pattern, Public Relations Review, 21 (3), pp. 241-255
McDonalds A Sustainability and Corporate Social Responsibility Challenge
Corporate social responsibility provides business with significant benefits. One of these benefits is sustainability (Lindgreen & Swaen, 2010). Every company strives to establish a business model that will provide them with long term success. McDonalds has been faced with a CSR challenge that threatens its ability to establish long term sustainability (Slama, 2014). As McDonalds leaders, it is our responsibility to identify the implications of this challenge, what caused the problem, and initiatives to fix it.
The problem facing us is the quality of the food that we serve at our restaurants (Slama, 2014). There have been incidents where our restaurants have served contaminated food. Furthermore, there is a growing concern that our food does not promote a healthy lifestyle. Obviously, McDonalds strives to provide the highest quality products to our customers. Consequently, it is imperative that we examine our policies in order to find the source of the problem.
Corporate Social Responsibility Dissertation
In the naturalistic decision making process, we have made decisions in the context of framing bias (Evans, 2008). Our emphasis on profit has hindered our efforts to improve our products and McDonalds has been unwilling to take risks to improve the quality of its products. However, without providing a better product to customers, it will be extremely difficult to maintain profits in the future.
While our current decision making methods have been partially responsible for this problem, it would be extremely dangerous to change it suddenly. Consequently, future efforts must be made within the context of our current decision making context (Evans, 2008). McDonalds’ current decision making consists of preserving current profits instead of providing future solutions. This is not a morally responsible attitude (Gigerenzer, 2010). McDonalds must incorporate social considerations into its decision making. This will enable it to give customers a quality profit and achieve long term sustainability.
Corporate Social Responsibility Decision Making
In this new context of decision making, McDonalds can look at feasible solutions for the future. The most important initiative for the future is a quality reporting system (Toby, Sr., 2012). Incidents of food contamination are unacceptable. Consequently, McDonalds must establish systems to carefully monitor the quality of its food. This would include McDonalds’ managers regularly inspecting the food distribution centers it buys from. Another important initiative is establishing a system to expedite the processing of customer feedback (Toby, Sr., 2012). This is especially important as people become more health conscious. McDonalds will be able to easily change its products to suit their demands.
These policy changes and initiatives will enable McDonalds to move confidently into the future. Changes in our policies will not harm McDonalds. Instead, they will strengthen the core of our organization and propel us on a path to long term sustainability (Toby, Sr., 2012). McDonalds has a moral and social obligation to provide the best quality products to its customers. If that means a change in policy is necessary, that change must take place. It will benefit both McDonalds and its customers. Ethical considerations are not a burden. They are a catalyst to future economic growth.
References
Evans, J. (2008). Dual-Processing Accounts of Reasoning, Judgment, and Social Cognition. Annual Review of Psychology, 59, 255-278.
Gigerenzer, G. (2010). Moral Satisficing: Rethinking Moral Behavior as Bounded Rationality. Topics in Cognitive Science, 2(3), 528-554.
Lindgreen, A., & Swaen, V. (2010). Corporate Social Responsibility. International Journal of Management Reviews, 12(1), 1-7.
Slama, J. (2014). The Blog: Business. Retrieved from the Huffington Post
Toby, Sr., D. H. (2012). Corporate social responsibility initiatives. African Journal of Economic and Management Studies, 3(1), 95-115.
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