Section 1: Intercultural Awareness
In this essay, I will use intercultural dimensions to analyze the meeting between
Amélie Dupont, Yu Zhang, and Malu Adebayo. I have identified four relevant
dimensions in this business meeting. First, I will apply Hofstede’s theory of power
distance and Ekman and Friesen’s theory of kinesics to interpret the thinking of
the three people. Then, I will demonstrate how they share certain mindsets and
explore how they disagree by employing two intercultural dimensions.
Specifically, I will use Trompenaars’ dimension of universalism vs. particularism
and, finally, Hofstede’s uncertainty avoidance dimension to bring it all together.
At the beginning of the meeting, the CEO demanded that all the company's
subsidiaries implement her decision, which makes it necessary to discuss
Hofstede's power distance dimension. Power distance in business refers to the
extent to which members within a company expect and accept that power is
distributed unequally and hierarchically in the organization (Hofstede et al.,
2010). During the meeting, Mr. Adebayo addressed Amélie, the CEO, as "madam
president," which indicates high power distance mindset. However, he later
openly disagreed with her, making Amélie realize he had a low power distance
mindset. Therefore, she mirrored his actions, accepted and recognized his
concerns, and asked the other representatives for their opinions. This shows that
the organization has a predominantly low power distance culture, and Amélie is
willing to adapt her thinking to better understand and manage her associates.
On the other hand, VP Zhang refused to listen to Mr. Adebayo and his
subordinates' concerns about her report, demonstrating her high power distance
mindset.
At the beginning of the meeting, the CEO had a warm smile and seemed confident
in the Vice President's report, which suggested that she agreed with Ms. Zhang.
However, as the meeting progressed, the CEO's smile became uneasy, indicating
that she was unsure about the report. Mr. Adebayo exercised prolonged silence
before speaking, implying he was unhappy with Ms. Zhang's, the Vice
President, opinions. On the other hand, Ms. Zhang's staring showed that she was
unhappy with the decisions made during the meeting. At the end of the meeting,
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Ms. Zhang stared down Ms. DuPont and angrily left the room. These nonverbal
actions had a significant impact on the meeting.
The first dimension relevant to analyzing their mindset is Trompenaars’
dimension of universalism vs. particularism. Universalist practices believe
decisions should be made based on universal rules, such as human rights and
fairness (Trompenaars & Hampden-Turner, 2020). Ms. Dupont worries the
company is not upholding human rights and says the company should provide
micro-funding for all. Ms. Zhang’s report addresses the need to raise interest rates,
regardless of the negative impact on her customers. The CEO and VP base their
decision on universalistic ideas such as “human rights” and “they know” the rules.
Conversely, particularistic practices dictate that decisions should be based on
specific circumstances and consider certain obligations to stakeholders
(Trompenaars & Hampden-Turner, 2020). Mr. Adebayo explains that in many
West African branches, the money is used to fulfill basic human needs such as
food and shelter, which are fundamental human rights. Regarding Ms. Zhang's
report. Mr. Adebayo wants to alter a decision made by the VP to better suit the
needs of himself, his subordinates, and their customers. He adds that their trust,
relationships, and loyalty are far more valuable than short-term financial gains.
This displays a particularistic mindset, which prioritizes the needs of a specific
group over universal principles. It may also impact the loyalty of their customers
towards the company. It is important to note that the CEO changes to a
particularistic view as she agrees with Mr. Adebayo’s reasoning.
The final dimension relevant to analyzing their mindset is Hofstede’s Uncertainty
avoidance. A high uncertainty avoidance culture is uncomfortable when the future
is uncertain. They will take measures to minimize risk and maximize certainty
(Hofstede et al., 2010). Ms. Zhang has proposed a change in the company's client
pricing model. She suggests they move from a fixed rate to a fluctuating rate as
interest rates rise. Her team has determined that the company will begin losing
money within two to three months if they allow their customers to keep their fixed
rate. By moving the risk and uncertainty to their customers, Ms. Zhang is
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attempting to minimize the risk of losing money in the future. This demonstrates
her high uncertainty-avoiding mindset.
Conversely, low uncertainty avoidance cultures and individuals are willing to take
higher risks if it is beneficial in the short term. An uncertainty-avoiding culture is
more comfortable implementing changes reactively than a high uncertaintyavoiding culture (Hofstede et al., 2010). Despite Ms. Zhang's suggestion, Mr.
Adebayo and his team are willing to risk the corporation's exposure. They argue
that the company has substantial financial reserves to deal with such situations.
The CEO agrees with Mr. Adebayo's reasoning, indicating that both have a low
uncertainty-avoiding mindset, as they are willing to take the risk of not raising
interest rates.
To sum up, the business meeting demonstrated the need for high-level executives
in organizations with differing cultures to adjust their mindsets and ways of
thinking. The CEO showed adaptability by considering her subordinate's culture,
which led to a mutually agreed-upon outcome. Conversely, the VP displayed a
need for more understanding during the meeting with a different culture and
ultimately stormed out after failing to get her way.
References:
Hofstede, G. H., Hofstede, G. J., & Minkov, M. (2010). Cultures and
organizations: Software of the mind: intercultural cooperation and its
importance for survival (3rd ed). McGraw-Hill.
Trompenaars, A., & Hampden-Turner, C. (2020). Riding the waves of culture:
Understanding diversity in global business (4th edition). Nicholas Brealey
Publishing.
940 words
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Section 2: Ethical awareness
GVB: PLAN FOR A CONSEQUENTIALIST ANALYSIS – DRAFT 1
SHORT BUSINESS REPORT
TO:
KATRINE ANDERSSON
FROM:
KRIS OLSEN
SUBJECT: URGENT: IDENTIFYING THE CONSEQUENCES OF
OUR GVB LABEL
DATE:
MONDAY 27 NOVEMBER 2023, 15:14
CC:
//
1.0 Introduction
This report will present a list of ten stakeholders that should be considered.
Among these ten, a prioritized group of four will be selected based on the severity
of the impact of the GVB supply chain on each stakeholder and vice versa. To
sum up, the report will conclude with a recommendation for further action.
2.0 Identifying stakeholders
2.1 The company - GVB
The company GVB affects the entire supply chain, and any decision to halt
production would cause it to collapse.
2.2 Poor Norwegian Families
Each link in the supply chain helps provide affordable clothing to families
in Norway.
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2.3 Vietnamese workers
Vietnamese workers, including children, enable the distribution and sale of
affordable clothing in Norway.
2.4 Cotton farms
Vietnamese cotton farming practices produce low material costs, allowing
for widespread distribution of affordable, high-quality clothing in Norway.
2.5 Cotton farm workers
Cotton farm workers' working conditions can impact cotton quality and
production, affecting the entire supply chain.
2.6 The World on Sunday
Procuring negative press from The World on Sunday could halt the
distribution and use of clothing in Norway, affecting the rest of the supply
chain in Vietnam.
2.7 Norwegian consumers
Norwegian consumers' decisions and opinions are crucial for sales and
distribution in Norway, affecting the supply chain in Vietnam.
2.8 Vietnamese bloggers
Vietnamese bloggers influence Norwegian consumers' ethical perspectives
on clothing production and cotton cultivation in Vietnam.
2.9 Norwegian bloggers
Norwegian bloggers influence consumer moral views on clothing
production, cotton growth in Vietnam, and clothing distribution, sale, and
use in Norway.
2.10 EU importer
The EU importer affects the company's reputation, clothes distribution in
Norway, and Vietnamese producers.
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3.0 Prioritising stakeholders
3.1 The company – GVB
The company GVB is the main focus of the issue. GVB must decide
whether to continue selling or not, as the entire supply chain depends on
their decision. If Norwegian consumers accept the product, GVB can keep
selling it. However, if the opposite is true, we may choose to stop selling.
3.2 Poor Norwegian Families
Poor Norwegian families significantly impact our sales. As a result, we
have a moral obligation to provide affordable, good-quality clothing
during these challenging economic times.
3.3 Norwegian consumers
Norwegian consumers' opinions will significantly impact our clothes'
production, distribution, and sales. If they deem our clothes unethical, it
will halt distribution and sales, resulting in less income for Vietnamese
workers.
3.4 Vietnamese workers
It is important to note that every worker in the Vietnamese supply chain
has been referred to as a "Vietnamese worker." It is our duty to uphold the
fundamental human rights of all workers and we strictly oppose the use of
child labor. However, we are unaware of the impact that halting
distribution and sales would have on the demand for Vietnamese workers.
According to Vietnamese bloggers, it is in the best interest of the workers
to continue production as local standards are maintained.
3.5 Bloggers
Vietnamese and Norwegian bloggers have been grouped as "bloggers."
This group is critical in the public’s ethical evaluation of our consumer
products. If positive blog posts continue, sales will remain steady.
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3.0 Recommendation for action
The recent broadcast of 'The World on Sunday' has sparked a public
uproar on social media and revealed false information provided by our EU
supplier. However, an assessment has shown that the standards of local
Vietnamese workers are being upheld and are not a sufficient basis for
shutting down our distribution and sales in Norway. It has been discovered
that some of the workers are children, which raises concern. However, it is
important to consider the economic situation of poor Norwegian families
that benefit from our sales.
We must remain flexible in our stance towards continued sales and
consider the sentiment on social media. Based on the information, it can be
concluded that the continued production and sales benefit poor Norwegian
households and Vietnamese workers.
Therefore, I recommend the following actions:
1. Monitor the need for affordable clothing among poor Norwegian
households.
2. Monitor Norwegian public opinion on the matter and make
decisions accordingly.
3. Develop a plan to improve worker conditions and end/minimize
child labor in Vietnamese production facilities.
4. Offer bloggers insight into how our clothing production and
sales benefit Norwegian consumers, especially poor families.
I urge the board to take this issue seriously and closely monitor all
stakeholders in the coming days.
Kris Olsen
Executive of Sustainability
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