This instance survey shows how imperative it is for foreign corporations recognize and accept the civilizations of the states they are runing in. Culture is defined as the values. beliefs. imposts. patterns. and societal behaviour of a peculiar state or people. Hydro Generation ( HG ) is a United States-based company whose forte is constructing hydroelectric power dikes. HG’s nucleus values are founded on a solid Christian civilization and this was the first clip of all time runing in Uganda. allow entirely the African continent.
HG’s company civilization was footing of the jobs they had faced in Uganda because they were non sensitive the differences between the Ugandans and themselves when it came to carry oning concern. International companies need to be understanding to the diversenesss in order to foretell and pull off the relationship due to the fact that the companies’ accustomed manner of reaching concern on board possibly non be the best manner.
It is so up to the direction in topographic point to make up one’s mind the best concern patterns needed and so do any accommodation necessary to finish its aim. Martin with his experience in college and the Peace Corps knew this ; Green learned this after measuring Martin. Whether and how much a company should let its operations directors to accommodate to the foreign civilizations should be contingent non merely on the civilization of the state but besides the attitudes attacks of the corporate civilization.
These point of views take signifier in one or more of the undermentioned attitudes: Polycentric. Ethnocentric. or Geocentric. Due to the Ugandan authorities functionaries manner of carry oning concern through credence of tips and progresss. which is in struggle with HG’s Christian foundation. directors like Martin should hold and did take on a polycentric attack therefore blending the two civilizations. Even though Martin had completed the undertaking on agenda and under budget. he did ignore company policies every bit good as the possibility of go againsting United States federal jurisprudence.
Martin followed the local concern imposts of engaging relations of authorities functionaries. handed out tips and progresss to local administrative officials. participated in local rites. and made the pick to populate among the Ugandan people. However. had Martin non followed the patterns the undertaking could hold fallen badly behind agenda and over budget. This was done at the hazard of inauspicious imperativeness for HG. which already faced unfavorable judgment from the universe community for constructing the undertaking in the chosen location on the Victorian Nile.
Discussions of Case Study Questions Describe Ugandan cultural properties that affect the operations of a foreign company making concern at that place ( Daniels et al. 2011 ) Uganda is a multiethnic and spiritual state situated in Africa near Lake Victoria. Although English is the official linguistic communication. Bantu and Nilotic are frequently spoken by the autochthonal people that increase the hazard of foreign companies being unable to talk to local folks. which creates a cultural obstruction of linguistic communication.
There are some localised linguistic communications in many parts of the state such as West African Swahili in Central Uganda ( Daniels et al. 2011 ) . The chief faith of Uganda is Christian. preponderantly Roman Catholic and Anglican. which accounts for two-thirds of the population. Islam has many followings in Uganda with many local tribal faiths thrown in the mix. The diverse spiritual base could impact how a company does concern in Uganda. as was grounds with Martin ( Daniels et al. 2011 ) .
Uganda is a state of missing substructure and tonss of bureaucratic basketballs to leap through. Governmental and Political corruptness make it difficult to make concern without passing out tips and fillips. The native linguistic communication of Swahili and few speak English. The many faiths of Uganda besides make foreign company’s respect them in order to avoid favoritism in the workplace ( Daniels et al. 2011 ) . How would you depict the several attitudes of Martin and Green: ethnocentric. polycentric. or geocentric?
What factors to you suspect of holding act upon their several attitudes ( Daniels et al. 2011 ) ? Green’s attitude is ethnocentric while Martin’s attack is geocentric. While in college. Martin majored in African surveies. He besides participated in the Peace Corps in Kenya where he got acquainted with concern processs in Africa. While functioning in the Peace Corps Martin began to develop a negative sentiment sing persons who did non take the clip to larn and esteem other civilizations.
HG hired Martin as the undertaking affair specializer because of his experience and acquaintance with the African economic system and concern atmosphere. Through his educational and hands-on experience working in the Ugandan civilization. Martin developed a degree of regard for the manner things were expected to be done in Uganda. which is why he takes on a geocentric attitude. However. Martin seems to be taking his regard of Ugandan civilization to an extreme. He is speedy to follow Ugandan ways. even if it means it is potentially illegal or unethical in his home-country ( Daniels et al. 2011 ) .
Green had non conducted concern in Uganda prior to this undertaking and was non familiar with African civilization. He was able to take an nonsubjective point of view by seeking to keep home-country policies while carry oning concern in Uganda because he believed that it was of import to uphold company values. While Martin’s attitude and actions were purely based on Ugandan civilization. Green’s focal point was chiefly on following company and home-country processs while taking into history cultural fluctuation but non leting it to order the company policies and processs.
Ethnocentrism can sometimes be an effectual manner of managing cultural fluctuation. particularly since Martin’s geocentrism was rather utmost ( Daniels et al. 2011 ) . Who was right. Green or Martin. about Martin’s more controversial actions in easing the undertaking? How might hold things turned out if Martin had non been a member of the undertaking squad ( Daniels et al. 2011 ) Martin was right about the actions he took. He was hired because of his expertness in African surveies. every bit good as international concern. Martin completed the operation. and likely made the Ugandan people see HG in a good manner.
If Martin did things by the book. HG’s concern operation would hold moved easy. over budget. and without regard of the indigens ( Daniels et al. 2011 ) . Martin was working with the Ugandan authorities and the local folks that were being displaced to derive their support and the needed consents to continue with the dam’s building. He established a local office and hired the necessary forces who would be accountable for obtaining clearance for imported stuffs. in-migration licenses. and logistics of presenting the stuffs to the dike site.
Martin was besides moving as a affair with foreign visitants sent by HG ( Daniels et al. 2011 ) . In the following stage of the project- running the power plant- should HG use person whose chief map is that of affair between its corporate civilization and the civilization of the host state? If so. is Martin the right individual for the occupation ( Daniels et al. 2011 ) ? Martin has the expertness to run the power works ; nevertheless he does non stand for HG’s ethos in a mode that the company would prefer their agents to move while in foreign states.
In add-on. Green did non excuse Martin’s life style while life in Uganda. as he chose to populate in in-between category vicinity alternatively of the country where most foreign directors resided. Unfortunately. Martin would non be the pick of HG to run the works. If. Martin would remain on as a cultural affair. it is certain that he would censured by the company leaders. Martin’s interactions with authorities functionaries could adversely impact HG in the hereafter if the political clime changed. such as a putsch. with the new party in power demanding larger tips and fillips. ( Daniels et al. 2011 ) .