Global Sourcing for Intercultural Challenges- myassignmenthelp

Question: Discuss about theGlobal Sourcing for Intercultural Challenges. Answer: Introduction Global purchasing or sourcing of raw materials and/or services from the international market beyond geo-political boundaries is one of the common strategies applied by large-scale organizations, in aim of optimizing the available resources. While global purchasing involves a monetary transaction, it is not the only way of sourcing. Global purchasing strategies are adopted by organizations in order to have control over their suppliers and reduce the Companys dependency on them (Monczka et al. 2015). Sourcing of raw materials or services from all over the world allows the Company to select the optimum supplier from a vast range of available options. This intensifies the competitiveness amongst the supplier companies as well as makes the finished product more competent in the international market. Taking into consideration the mentioned, the Case Study of the internationally established Swedish Company, the misunderstandings between the Company authorities and the Chinese manager of the subsidiary in Vietnam, is a key example of the challenges faced by a multi-cultural workforce (Binder, 2016). Though the Swedish Companys global purchasing guidelines clearly mentioned the necessity to obtain supplies from a wide range of suppliers so that the same supplier supplies not more than 30% of a product, the subsidiary manager in Vietnam violated the guidelines as he was culturally systemized to trust and rely on only the individuals from the same ethnicity. Therefore, this study revolves around the importance of alignment of the business strategies with its multi-cultural workforce, distributed in different managerial and production levels to derive the desired results. Discussion According to (Achtenhagen, Melin Naldi, 2013)the case study in discussion reveals the obstacles in the path of formulating the correct strategizing tool for a Company, especially in relation to the inter-cultural backlashes and the organizations internal and external threats and possibilities. Breach in Communication Sourcing of supplies from a multicultural global market has multiple benefitslike availability of the best quality materials at reasonable price, chosen from an array of available options. However, working with a multi-cultural workforce has its own demerits and needs a proficient management system to overcome the challenges (Gomarasca, 2013). A multicultural workforce comprises of individuals from various geographical locations, ethnic backgrounds, languages, cultures and beliefs; therefore, having in-depth knowledge about how to communicate with individuals who share different culture, views and beliefs is important to develop a basic understanding amongst the participatory forces. The guidelines set up by the Swedish Company required to purchase supplies from a range of suppliers so that the dependence on each supplier can be kept under control. Having multiple sources of supply also enhances the competitiveness amongst the supplier companies and ensures the best quality product at the best price for the buyer Company (Inemek Matthyssens, 2013). However, a Chinese manager, who prefers to buy supplies from Chinese suppliers only, operates the subsidiary of the Swedish Company located in Vietnam. As a result of this, there was a miscommunication between the two participantsSwedish manager of the Company and Chinese manager of the subsidiary. As per the Chinese manager, he failed to evaluate the benefits of having diverse suppliers, whereas the Swedish manager failed to fathom the culture and tradition of loyalty and dependability shared by his Chinese partners. Intercultural miscommunication is one of the most prominent challenges faced by large-scale industries today (Sun, 2013). In order to conduct business with a new country, awareness and knowledge regarding their culture, language, belief system and values is essential to construct an effective communication system, which is a primary necessity in the smooth functioning of an organization. As more and more companies extend their reach beyond geographical boundaries, issues of miscommunication keep rising and pose a major threat for the organizations (Maitlis Christianson, 2014). Lack of flexibility in Company policies leads to exclusion of diverse needs and liabilities; it also limits the prospect of optimum utilization of diverse human resources. Training programmes and awareness programmes held with the motive of improving intercultural communication of an organization would help in sensitizing both the parties regarding the merits and demerits of their processes (Thorpe, 2013). Exchange of culture and ideas amongst the diverse processes is the strongest element of a multi-cultural workforce. Providing professional assistance to the Chinese subsidiary manager of Vietnam might help in clarifying the specific needs of the company as well as enhance their competence in international business market. Intercultural Behaviour Analysis The participants of the specific case, involves a Swedish Company having subsidiary companies all over the globe. Various operational managers are responsible for each of these subsidiaries located outside the country (Kortmann et al. 2014). The Company established a set of guidelines for global sourcing and purchasing which mentioned that supplies must be bought from a list of suppliers so that no one vendor supplies more than 30% of a product. This is a strategic tool taken up by the Company in order to hold strong governance over the supplier variable (Christensen, 2014). Purchasing goods and services from a wide range of suppliers not only controls Companys dependence on suppliers but also ensures the best quality product at a reasonable price. It increases competition amongst the supplier organizations and as a result, the quality of the finished good is more competent in the global market, especially in terms of price. On the other hand, the manager of the subsidiary company was a Chinese man, who had a different outlook and objectives towards his business, essentially based on the cultural beliefs, values and traditions. He was found to violate the Company guidelines repeatedly as he only purchased products from Chinese vendors and refused to involve with any other supplier from a different background. According to him, conducting business amongst the Chinese family not only ensures trust and loyalty amongst each other but also makes it cost-effective with the help of discounts, instalment payment and concessions (De Mooij, 2013). Thus, the basic difference in cultural understanding and perspective plays a big role in defining the actions and reactions of different participatory elements in a Company. Even though the relevance of geographical borders is constantly diminishing, the intercultural boundaries are deeply internalized and systemized into the lives of the individuals (del Pino et al. 2013). Breaching the intercultural blockage and establishing a harmoniously synchronised multicultural framework is a mammoth task and requires vast understanding of the diversity of cultures. A Companys intercultural competency is defined by three essential factors, the behaviour of the participants, the cognition of the participants and the emotions of the participants. Identification of the intercultural differences, diagnosis of the caused breach and taking appropriate steps to resolve the differences are the three essential steps towards cultural adaptation. Intercultural Communication Strategies Communicating with employees from a different culture requires primarily understanding the employees language and perspectives. The cultural upbringing of each participant is different from the other and this diversity, if properly utilized, can result in high productivity (Smith et al. 2013). In order to enhance the productivity of an organization, a motivating work culture needs to be promoted for the employees of the Company. Emphasizing on employee satisfaction and morale is as important as the emphasis on customer needs and preferences. The various ways by which the intercultural communication can be improved in a business organization are as follows: Breaking Stereotypes: Every culture has its own distinguishing features that are unique and definitive. However, assuming ones culture to be the universal culture for all, leads to unnecessary miscommunications and misunderstandings within the organization. Assumptions regarding other perspectives and setting up expectations accordingly could bring about a huge downfall for both the sides (Coghlan Brannick, 2014). Mutual respect for all cultures and their practices is absolutely necessary to maintain a healthy, professional relationship. In this case, awareness about Chinese customs and beliefs could have saved the Swedish manager from taking decisions that would adversely affect the Company in the long run. On the other hand, a little bit more awareness and training could have helped the Chinese manager to break the stereotypes of his culture and take a more competitive, multicultural stand by involving vendors from other cultural backgrounds. Not only would it adhere to the guidel ines provided by the company, but also help him emerge as a competent provider and supplier. Inclusivity: The approach of an organization should be inclusive of employees from all kinds of backgrounds. The employees belonging to different countries and cultures should not feel alienated from the Company, rather feel like a part of it (Barak, 2016). It is the communication managers responsibility to maintain an ethical work culture in business, inclusive of individuals from all sectors of life. Empathy: The ability to empathize with other individuals from different culture is an important step towards multi-cultural adaptation. It is the first step towards understanding the language and the culture (Keith Simmers, 2013). Identifying the key words of a language in a conversation helps in communication between two individuals without the use of oral language. Having a vivid understanding of the new culture and further comparing it with own culture would help to figure out the exact differences between the two cultures. The magnitude of the difference can be reduced with increasing empathy and urgency to know more. Flexibility: Having a flexible mindset helps in enhancing intercultural relationships within an organization. Having basic ideas about the different cultures involved can improve interpersonal communications amongst people from different cultures; this in turn helps in establishing an environment suitable for individuals across cultures, geographical locations and traditional barriers. Recognition of Diversity: Recognizing the existing differences in cultures and appreciating them equally helps in bridging the increasing inter-personal distance amongst different cultures in an organization. It portrays a more tolerant and respectful attitude towards all the employees, irrespective of race, culture, class and the likes. By recognizing various different cultures within an organization, employees from different backgrounds feel incorporated in the system, yet have their own unique identity. This way the organization comes off as a culturally competent organization in international business scenario. Conclusion To conclude, a productive workforce consists of a work environment that promotes diversity and balances the pressure of time and cost. In this case-scenario, lack of adequate cultural communication along with faulty company strategies that do not align with the different organizational processes, created a stringent miscommunication between the active participants. On one hand, it is absolutely essential to have an appropriate business strategy, exclusively dedicated to resolve the threat of supplier dependency; on the other hand, it is also necessary to formulate the strategy or align in accordance with the existing multicultural workforce. Intercultural miscommunication is a prominent challenge in todays business organizations, as more companies extend beyond geographical boundaries. With free flow of trade and employment, there is a concoction of ideas, practices, languages and customs. 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