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国际商务学英语论文范文-international business

论文价格: 免费 时间:2012-05-18 14:43:39 来源:www.ukassignment.org 作者:留学作业网

国际商务学英语论文范文-international business由留学生论文指导中心(留学生论文网)提供资源整理,主要讲述A comparison between Negotiating in Japan and Negotiating in Germany相关知识。
Introduction

“International business is the study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations’”(Rugman and Collinson, 2009).

Nowadays, with globalization the global business environment is changing rapidly.  It has been argued that the challenge in today’s geopolitical and economic environment is to learn and practice international management effectively.

“International trade is the exchange of goods and services across international borders and is also known as exports and imports”. (Rugman and Collinson, 2006)

International trade is very important for multinational enterprises in the twenty-first century. A major challenge of doing business internationally is to adapt to different cultures effectively. Cultural difference can be unavoidable in multinational enterprises and global managers play an important and essential role in trying to cultivate a harmonious multi-cultural working environment.

Most of the best-known companies in the world are multinational enterprises, and many of their company names are easily recognizable brands as their goods and services are very popular.

In this essay, the author will explore the issues facing a Japanese car manufacturer who has agreed the purchase of a competitive company based in Cologne, Germany.

There are three sections that will be explored in this essay as follows:

Section1--- summaries the cultural differences between Japan and Germany
Section2--- suggests the issues that might arise for Japanese managers who will be responsible for human rights, finance and marketing functions in the acquired company in Germany. It will then provide recommendations on how to successfully deal with some potential issues that might arise in the company.

指导留学生论文What is culture?

Culture is an extremely important concept, which is difficult to define and generally speaking in every country, society and organization, is based on outlook, principles, actions and philosophy. Hofstede defined culture as “The collective programming of the mind which distinguishes the members of one group of people from another”(Hofstede, 1984).

The cultural differences between Japan and Germany

With multinational corporations spearheading global business and multinational teams being formed, the perception that the traditional boundaries are now deteriorating with lessening of cultural identities is a miss-assumption that can be easily challenged.
However people from different countries have different communication requirements and methods of communication. It can therefore be a challenge for managers to manage and to communicate with people who are from different countries.  
Cross-cultural management issues arise in a range of business contexts. In an individual company, managers from a foreign parent company need to understand that local employees from the host country may require different organization structures and HRM procedures (Rugman and Collinson, 2006, P131). The managers from Japan need to understand that local employees in Germany may require different organization structures and managerial styles.

What are the cultural differences between Japan and Germany in business management? Firstly, at face-to-face level in meetings, the language and behavior of a Japanese and German person may vary and their mutual understanding of each other’s culture will influence the effectiveness and efficiency of communication between them. (Rugman and Collinson, 2006, P131).

A comparison between Negotiating in Japan and Negotiating in Germany

Negotiating in Japan

Japan’s economic position in the world is attracting more and more attention and recognition. With regards to negotiation developing a rapport is an important part of the overall negotiating process. It goes without saying that you need to get to know your counterparts well before starting to discuss business. They focus on building harmonious relationships with strangers in business instead of purely business activities.

In addition, Japanese people have strong entrepreneurial spirit they are careful, polite, patience, have self-confidence and are active on the stage of international business negotiations. They like to politely bargain with their counterparts when in the middle of a negotiation and they always go to the airport or station to meet and greet people dignitaries and business people who are in higher positions than them. They often laugh during the negotiations and bargaining, reflecting a kind and polite approach first before consulting with counterparts gradually. The negotiations are in taken place in a friendly atmosphere before finally to reaching an agreement and a deal can be done.

Furthermore, the quality of goods is very important. Japanese people in business negotiations first emphasize the quality of goods, packaging and production plant and then they talk about the price. In their heart, the product quality, excellent service and an acceptable price are necessary in doing business.

Negotiating in Germany

The German national characteristics are said to be stubborn and at the same time also full of self-confidence. They do business carefully and plan fully. They work efficiently and pursue perfection. The Germans are rigorous and carefully prepare before negotiations.

However, they lack compromise and flexibility. If offered a high price for export products, they may feel that the prices are too high and the products are not deserving of further investigation, which may cause them to lose a trade opportunity.

Both Japanese and German businessmen are seldom into bargaining. What’s more, the Germans tend to be honest and pay attention to the implementation of the contract.

Culture differences in workplace

 “At the company –to –company level, there needs to be an understanding of the organizational differences between them. This covers very element of corporate organizations from decision-making structures and systems and management-labor relationships to individual employees’ attitudes toward their work and their employer”. (Rugman and Collinson, 2006).

If we refer to Hofstede’s mental model of being classed as a ‘Pyramid of People’ Japan has a ‘high uncertainty avoidance’ and ‘large power distance’ whereby formality and visible hierarchy is evident of a collectivist society.  Therefore in Japan decisions take a long time to be made as quick decisions may indicate that the decision has little importance. Quick decision-making in Japan is a sign of immaturity and irresponsibility or even stupidity. The collective approach is seen to maintain group harmony and good relationships (Hill, 2008). While looking at Hofstede’s theory Germany on the other hand is considered a ‘lower power distance’ country. He defined power distance as the acceptance of inequality or distribution of power. Therefore, in high-power countries such as Japan, the autocratic style of management adopted by superiors, results in subordinates tending to be afraid to approach them. Whereas in Germany challenges to superiors are likely to be made. Coupled with Hofstede’s findings on power distance is that of ‘uncertainty avoidance’.  This is defined as the degree to which one is comfortable with ambiguous situations or tolerance of risk.

Furthermore, in Japan, people were born into collectives. Japanese believe that cooperation is significant to do their job better in a team. The company does not encourage their employees to do the job independently and they think cooperation in a team can improve their work effectively. This is contrary to the German approach as they tend to be comparatively individualistic and prefer to do their work independently. It is said that the ties between individuals were loose and individual achievement and freedom were highly valued in Germany. In addition, Japanese have strong masculinity while the German tend to be comparatively feminine in comparison.

International human resource management

“International human resource management is the process of selecting, training, developing, and compensating personnel in overseas positions.” (Rugman and Collinson, 2006).  The human resource division exerts considerable authority in the overall aspects of the corporation’s operation, such as recruitment, career development, evaluation, promotion, and compensation for all employees (Hill, 2009).

During the first year of his foreign assignment, the Japanese expatriate would have to focus on adaption. In the second year, the expatriate would become active in managerial activities. Managers of Japanese international firms normally have access to the information required to assess the candidate's suitability for the foreign assignment.
As a Japanese manager working in Germany, at the beginning, he may lack international management experience and will meet a lot of problems with personnel management. During the process of recruitment, Japanese managers would meet the problem of how to select talent, retain existing outstanding talent and train and develop potential employees in Germany. It is a phenomenon that it is hard for managers to select employees in a host country. For example, a Japanese manager may prefer to recruit men rather than women who are intelligent and smart, because they have strong masculinity.

In addition, most Japanese companies operating a system of lifetime employment, they spend a large sum of money to train and develop their employees, however, this does not mean that it is available in Germany. As a result of the system of lifetime employment this may obstruct the flow of talent, creativity and enthusiasm. #p#分页标题#e#

Furthermore, many young outstanding employees find it hard to get promotion, because in Japan, as age grows the staff’s position will ascend. The Japanese manager must obey the senior system, which means the older an employee becomes he or she will get a larger salary and promotion. Moreover, the union-management relationships are extremely cooperative in Japan. If there is strike, it is more likely at a time when Japanese union is negotiating with management during negotiations. This cultural value helps account for a great deal of the harmony that exists between labor and management (Rugman and Collinson, 2006, P356).

The recommendation for this company is that it is necessary to build a new system of human resource that can enhance and encourage the employees’ creativity to deal with the labor relations problem. It can also encourage not only the managers but also the employees to training and development programs, such as language training, sensitivity training and so on. To advance the national flow of labor force, and the reasonable welfare system helps enterprises to retain and recruit talent. The talent strategy is very important for the firm to focus on the talent and make the maximum benefits to this company.

International Financial management

In today’s financial markets and business activity, managers are increasingly concerned with decision making across borders in complex and dynamic business environment.  As Japanese managers working in Germany subsidiary, they will deal with the potential risk of financial issues in their company.

Today companies know the risks of international operations. As a Japanese car multinational company in Germany, the German subsidiary may encounter foreign exchange exposure. There are three types of foreign currency exposure: Transaction exposure, Economic exposure and Translation exposure.

The risk of Transaction exposure is that the exchange rate might change between the present date and settlement date. The change may be for the better or for the worse (Czinkota etc, 2003,P433). The Germany car subsidiary company may face the risk of financial gain or loss in international trade with foreign currency. In addition, economic exposure is the risk to the company that its long-term cash flows will be affected, positively or negatively, by unexpected future exchange rate changes (Ronkainen etc, 2003, P434).

The German subsidiary may encounter the risk of unexpected changes in future cash flows from foreign operations. Furthermore, translation exposure is the risk of value changes in foreign-currency assets and liabilities on the balance sheet, whether or not the transactions occur during the accounting period (Rugman and Collinson, 2006, P419).

Nevertheless, the auto subsidiary company also may meet the problem of transfer pricing, the German subsidiary must pay royalties and license fees in using machinery, technique or processes that are owned by the Japan parent company. What is more, in comparison with other country’s income tax rate, such as in Brazil and China, Germany’s income tax rate is relatively high. The Japanese MNEs in Germany may make less profit because of the higher tax burden.

The recommendation for this company in financial function is that minimizing foreign exchange risks and trying to reduce the currency conversion cost. The Japanese manager can focus on international capital budgeting techniques and learn how to measure and manage foreign exchange risk. To settle the economic risk, the company may choose to follow a generalized strategy of hedging transactions when they are contracted and trying to balance foreign-currency assets and liabilities as they appear on the balance sheet (Rugman and Collinson, 2006, P420).

International marketing 

International marketing is the process of recognizing the goods and services that customers outside the home country want and then providing them at the right price and location (Rapoport, 1994, P73). The MNE can sell the goods and services in the global marketplace. The four Ps of the marketing mix which includes promotion, product, price and place are very important for international marketers to do business in the global marketing environment. As a Japanese car manager, he also may meet some potential marketing issues in Germany.

Firstly, the Japanese auto multinational company will find it hard to compete with local auto enterprises, because Germany has the most developed automobile industry in the world. Secondly facing famous competitive brands such as BMW, Mercedes Benz, VW with a long history and who attract consumers because of the good quality, services and good appearance. Japanese autos find it difficult to compete with the European car market. It is true that most European customers prefer to purchase German cars rather than the Japanese cars, because German cars are viewed as safer than Japanese autos. Thirdly, in multinational enterprises, the product’s promotion is very important as customers need to understand the essence of the business and the benefits from the firm’s goods and services in a clear way in order to make a purchase decision. Advertising is often the most effective method of promotion. However as Japan auto MNEs, they may face promotion issues as advertising may transfer misleading messages to local customers if they do not understand European marketing, especially the German marketing.  In addition price is affecting the competition between enterprises. The Germany subsidiary may find it hard to survive at the beginning if it sets a higher price for its autos, therefore, the company may get less profit. Furthermore, choosing the right place is also very important for the enterprises to sale the autos. Finding an appropriate channel distributing the products to customers can save time and improve efficiency. The German subsidiary will have to find a suitable channel to sell their autos.

The recommendation of the company in marketing is that the Japanese manager must do marketing research and in order to understand what the German consumers’ needs and wants are. Advertising should transfer accurate and actual messages to the customers. Moreover, the price must modify properly according to some factors including government controls, market diversity, currency fluctuations, and price escalation forces. (Rugman and Collinson, 2006, P324). What’s more, the company needs to find an appropriate channel to sale the autos.

Conclusion

International trade is very important for multinational enterprises from different countries in the twenty-first century. A major challenge of doing business internationally is to adapt to different cultures effectively. Cultural difference is unavoidable in multinational enterprises and global managers play an important and essential role.

There are many cultural differences between Japanese and German people in negotiations and cultural differences in the workplace. Japanese focus on building harmonious relationships with strangers in business while Germans pay attention to the purely business activities. Japan has a ‘high uncertainty avoidance’ and ‘large power distance’ while Germany has a ‘lower uncertainty avoidance’. People were born into collectives in Japan while Germans tend to be comparatively individualistic and prefer to do their work independently. Japanese have strong masculinity while the Germans tend to be comparatively feminine in comparison.

The Japanese managers, who are responsible for human resources, finance and marketing will potentially meet a lot of issues. It is recommended that the German subsidiary adopt the suggestions in this report to counteract and neutralize any potential issues they may face.

 

 

 

 

 

 

 


References:

Alan M. Rugman and Simon Collinson(2009), International Business, Fifth edition,
Chapter 1,“Regional and Global Strategy”. PP.4-36

Alan M. Rugman and Simon Collinson(2006), International Business, Fourth edition,
Chapter 1,5 and 14 “Regional and Global Strategy”, “International Culture” “International Financial Management”. PP.26-35,PP.128-156, PP.404-438.

Hofstede, G. (1984) Culture’s Consequences: International Differences in Work-Related Values Penguin Press: London.
Chapter 3,4 and 5 “Power Distance”, “Uncertainty Avoidance”, “Individualism”.

Charles W.L. Hill (2008), Global Business Today, Fifth Edition, Published by University of Washington.
Chapter 3 “Differences in culture”

Carl Rodrigues(2009), International Management, Third Edition, Printed in the United States of America, Library of Congress Cataloging-in-Publication Data
Chapter 8 “Effective International Human Resource Management” PP.275-283.

Michael R. Czinkota, Llkka A.Ronkainen and Michael H. Moffett(2003), International Business,  Printed in the United States of America.
Chapter7and16 “International Financial Markets”, “Multinational Financial Management”

Carla Rapoport,“The New US Push Into Europe”, Fortune, January 10,1994,
PP.73-74.国际商务学英语论文范文-international business由留学生论文指导中心(留学生论文网)提供资源整理,主要讲述A comparison between Negotiating in Japan and Negotiating in Germany相关知识。
 

 

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