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Cultural Differences In A Global Marketplace
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Speedy Jet Shipping has recently acquired several overseas business units including stations in Russia, South Korea, and Japan. These acquisitions are part of Speedy Jet’s global expansion plan to increase market share in key markets. In order to facilitate the process of integrating the businesses into one company and to promote the sharing of knowledge between the domestic and foreign counterparts, Jim Buffet, the president of the Speedy Jet has decided to blitz the new sister companies with an infusion of “Good Ole” American know how. Jim will restructure the new businesses so that their methods, organization, and workforce closely resemble the domestic branch. The president’s plan includes instilling the new arrivals with a strong work ethic, love of long hours, and a “git’r’done” attitude. He intends to do this by sending some of his top staff to these key overseas locations. Jim’s instructions were clear before he sent his staff “We ain’t serving no “cheeseburgers in paradise” so I want you to whip these outposts into shape but by all means be polite and respectful of their culture.”Chosen for the task of visiting the Russian headquarters was “Big” John Wayne. Upon arriving he was greeted by the General Manager of the Russian branch Yule Popov, his wife Yvonne, and Fred Smith an interpreter. The four of them promptly toured the facility and John invited them to dinner to show his hospitality. While seated at dinner there was a bowl of fruit placed on the table as an appetizer. Again trying to be polite John addressed the lady of the group first by pointing to the bananas and saying to Yvonne “Hey there little lady would you like a banana”. She nodded yes and John proceeded to peel the banana half way. At that moment Yule threw his glass of water in John’s face, gathered his spouse and stormed out of the restaurant. Fred the interpreter later explained that peeling a banana for a lady in Russia indicates that you have a romantic interest. John was mortified that with this simple act of “American” hospitality he had irreparably damaged the relationship with the Russian branch.
Fearing that the recently acquired Korean shipping company would be hostile to suggestions for improvement, Jim Buffet chose “Likeable” Linda Carter to visit their facility due to her charismatic personality and knowledge of the industry. Linda packed quite heavily and struggled to get her luggage to the arranged site in the airport where she would meet with the General Manager of the Korean facility Jackie Chan and a Korean interpreter Mr. Miyagi. Upon arriving in the Seoul airport Linda dragged her baggage to the arranged pickup site and right away noticed Jackie Chan holding a sign with Linda’s name on it. Linda waved to Jackie holding the sign and gestured with her palm up and finger bent for Jackie to “Come here” so that he might help her with her luggage. As Jackie saw Linda gesturing to him, he angrily flung his sign and immediately exited the airport leaving Linda stranded. Later Linda discovered that this hand gesture, although commonly used in America, is considered very disrespectful in Korea. Linda felt devastated at her lack of cultural preparation.
Sales were in a slump at the new Japanese branch of Speedy Shipping even before the acquisition. Jim decided to send his best sales manager "Truthful" Tom Jones to inspect the site. Tom is known for his quick wit and quick temper when he feels someone is not telling him the truth. After arriving at the Japanese facility, Tom is ushered in to meet the General Manager Jet Li. Jet Li speaks English but is very out of practice. Tom shakes Jet's hand and asks Jet a question that Tom already know the answer to. He asks Jet "Are your sales doing well Mr. Li?" Jet answers "Yes." Before Jet can say another word Tom raises his voice toward Jet and says "Mr. Li you need to stop lying if we are to turn your slumping sales around! Now again I'm asking are your sales doing well?" Jet answers again "Yes." Tom does not give Jet time to say another word and leaves the facility. On the return flight Tom tells this story to the passenger seated next to him. Having been to Japan many times on business, the passenger explains to Tom that Japanese businessmen often immediately answer "Yes" to every question to indicate that a carefully thought out reply is about to follow. Tom's heart sunk at learning of his lack of respect and ignorance.
-How could these incidents been avoided?
-Do you think that Jim Buffet’s approach of “Americanizing” these new overseas shipping offices are the right approach?
-What type of products or services could Business Communicators 2.0 offer to help alleviate situations such as these?

Nice blog, Dean. Very professional and an intriguing topic.
ReplyDeleteHi Dr. L.,
ReplyDeleteMy thoughts behind this blog were to primarily to generate interest and new business for Business Communicators 2.0. I thought that businessmen and businesswomen that are planning to travel overseas would stumble onto this blog. Potential clients would become intrigued and inquire about BC 2.0.
Thanks for stopping by.
Dean
Dean,
ReplyDeleteYour case study was great. I think Business Communicators 2.0 should train the employees of Speedy Jet Shipping on the cultures that Speedy Jet Shipping has businesses in. Speedy Jet Shipping will have a better reputation with other countries and gain more business if their employees know how to interact with people of different cultures.
I do not think that Speedy should "Americanize" offices in other countries. All of the information I have come across in learning about global businesses says to let the people in their countries develop in their own culture.
Business Communicators 2.0 should offer training sessions to Speedy on different cultures, touching on norms, behaviors, acceptance, daily living experiences, language, gestures, attire, etc. This will help alleviate cultural differences.
Thanks! Anita
Hi Anita,
ReplyDeleteYour absolutely right about trying to Americanize overseas operations. I've had some exposure assisting overseas operations and I have found that using local "integrators" is key to gaining a successful start. If a company tries to go it alone by finding local suppliers, permitting, local government regulators, and local labor the company will most likely fail unless they've had previous experience.
Salaries for example in Asian countries generally start lower that their domestic counterparts. However, increases are negotiated up front such as 1% every 3 months. Chinese manufacturing operation will sometimes required catered lunch everyday for hourly staff as part of their wage compensation. There is simply too much to know.
Business Communicators 2.0 could partner with some of these firms that specialize in overseas start-ups to better serve customers.
Thanks for your comment.
Dean
Dean,
ReplyDeleteI think we need to travel to all these places as the Business Communicators 2.0. That would be perfect, not sure about Russia at this time of year though.
Hi Jim,
ReplyDeleteI like your thinking!
Dean
Hi Dean -
ReplyDeleteImpressive blog page, I need to do some work on my setting it appears :).
I enjoyed reading your case study as it is a good example of how we in America sometimes do not take the time to learn other culture and customs and are preconceived with the idea everyone must learn ours. I agree with Anita who stated training. Additionally I think Dr. L needs to take us all on a field trip as a lesson understanding of international communication along the lines of Jim's thinking. (haha)
Dean, I want to go back to your response to my comment where you say "I thought that businessmen and businesswomen that are planning to travel overseas would stumble onto this blog." Is there a way to be more deliberate about this?
ReplyDeleteHi Dr. L.,
ReplyDeleteOh yes! Absolutely! There is an entire online industry that is dedicated to getting the name of your business to the top of the list when using any of the search engines. Now, I don't claim to know a lot about this subject, but for example: Dogpile.com is an alternate search engine that combines the results from most of the other search engines. The reason for this is that you will get different results if you search for exactly the same thing through Yahoo or Google. Why? The answer is money. The top of the list gets the most clicks. Try it. Type in "online stock trading" on Google and in Yahoo and see the results. Again, I am not an expert, this is just an observation.
Thanks
Dean
Your blog reminds me of the importance of two things. First, it is so important to understand the culture that you are working with especially if it is another country. Second, the important of listening. In my business of fund raising they say that you should listen over 60% of the time, let your client do the talking.
ReplyDeleteKnowing the people you are working with is so important to a successful business. You need to take the time to listen.
Great discussion on this blog, everyone!
ReplyDeleteI'll get right on the "international field trip"....I'm sure SAU will flip the bill! LOL!
I don’t think that Speedy made the proper preparations for international business. I think that there could have been better preparation by examining specific cultural differences. In order to be respectful of the differences there would need to have been extensive knowledge of the basics at the least so as not to be offensive or disrespectful to another culture.
ReplyDeleteI don’t think that the approach of “Americanizing” would necessarily work overseas because of the culture differences. I think that it could be a gradual approach but not right from the start.
Hi Tamara,
ReplyDeleteI feel the area of preparation is is where BC2.0 could help. This is a product that BC2.0 could offer to clients that are currently venturing into foreign markets. Some of the other business cultures operate quite differently than the American counterparts. I think there is a balance of culture mixing that will give the business an edge over the competition.
Thanks for your comments.
Dean