CROSS-CULTURAL MANAGEMENT

Cross Cultural Management: A Case of Vechtel

Cross Cultural Management: A Case of Vechtel

Introduction

The word culture represent different categories: at the level of ordinary consciousness - as a set of manners and customs, and among cultural studies and sociology, in accordance with the definition of culture as a specific way of organization and development of human life, represented in the product's material and spiritual work in the system social norms and institutions, spiritual values, in the aggregate people's attitudes to nature and each other and to ourselves. The purpose of this paper is to enlighten and explore the cross cultural management adapted in organizational practice by reviewing the case of Vechtel. Vechtel is one of the leading organizations in brewery industry with a 9.5% global market share. The company has a broad geographic spread; in terms of volumes, Middle East and Africa is its largest market, closely followed by North America, Latin America and Eastern Europe. The internationalization of business and economics for all consequential benefits nonetheless become a global problem. From this and, there are cross-cultural issues in international business - the contradictions at work in the new social and cultural conditions, due to differences in thinking patterns between groups of people.

The Three Phases of Internalization after French Company Takeover

The Acceptance Phase

The company will have to undergo the acceptance phase of the takeover. The company had to ensure that the internationalization of business is an option that many small and medium companies are taking to expand the market they are directed. A multi-cultural interaction inside Vechtel often leads to conflict. There may be several reasons behind the conflict arising in Vechtel; however, the most commonly observed among them is cultural diversification. Vechtel is in the phase of continuous growth; because, this is a competitive era, and Vechtel needs to expand in the brewery industry in order to attain a competitive edge over the competition. This is the reason Vechtel has broken the national boundaries in search of a potential target market in foreign nations. Due to which the employment of diversified workforce has enhanced at Vechtel raising the chances of conflict inside the company (Clapp, Lange, Voas, 2003, 78-85).

Overseeing the Domestic Operations

The company's expansion in Europe was well planned and the first phase was to understand the local market. The strategy of strengthening the brands through local brewer with strong local position was still being followed. Pierre had to question the company's market share in France as it was not yet market leader but it was rapidly improving its position. This phase went for understanding the marketing dynamics of this internalization strategy.

Focus towards change in Organizational Culture at Vechtel

After the takeover it was important for the company to keep in view the organizational change that became important with the internalization strategy. The trends that guide the development of the contemporary world determine changes, i.e. changing attitudes in Vechtel, such as globalization of the economy, environmental awareness, accelerating privatization, strategic alliances, and technological advancement, make up an unavoidable set of ...