Worldwide Differences in Business Values and Practices

Cultural diversity has an impact on enterprises, which is why it is important to comprehend the notion in the worldwide market. The Japanese, for example, place a greater emphasis on communities and groups, which aids any investor in understanding the economic climate. Any sense of pride and fulfillment stems from the groups to which one belongs. People in the United States of America embrace a culture of individualism, and happiness and pride are obtained via self-aspiration and accomplishment (Grove, 2005). Canada shares the same individualistic culture as the United States of America, as opposed to Japan's communistic culture. Japan’s business culture allows one to concentrate in offering services to one company as opposed to Canada and United States that enjoy freedom of choice (Lewis, 2002). Japan has two forms of religion Shintoism and Buddhism which does not restrict business operations while United States and Canada has vast religions and freedom is eminent. During team building, it is critical to provide a common ground for both the communistic and individualism view in order to be successful in business (Northouse, 2007).


Language barrier is one of the communication barriers likely to be experienced by the team, although majority of Canadians speak English, French is also widely spoken. Japan uses Japanese language which is subdivided into smaller dialects as primary language. United States is predominantly English speaking country with other languages such as Spanish being on the rise (Lewis, 2002). The use of jargon while conveying a message may create a barrier to effective communication since the words may not be in the first language. Difference in perception due to multi-lingual set up may create false message. Difficulty in understanding accent for Japanese and for eloquently speaking English or French may create communication breakdown. Cultural difference is yet another impediment to communication that the Japanese, Canadian and US citizens may encounter. Prejudice as formed against a particular country or citizen also offers communication challenge (Grove, 2005).


Establishing ethical consideration within the business operation requires strict adherence to both local and international laws. The creation of code of conduct that does not contravene the cultural and community expectation is critical for the leadership. Keeping everyone responsible for their actions that contravenes the set code of conduct that takes into account the diversity in work place (Kroeber & Kluckhohn, 1952). Training is necessary to enable different members to understand the expected way of behavior while in the business. Providing a clear path of succession in business makes it easier for the potential future leaders to get the needed skills to accomplish their quest. Proper communication from the lower level management all through to the top level management is critical (Northouse, 2007).

Political Influence

Working with different countries with ideological viewpoint often is sensitive to the business. The success of such firm depends on how well the diplomatic relation exists. The three nations United States of America and Canada experience good relationship thus necessary for the international business to operate (Lewis, 2002). Political risks such as instability, border closer and poor diplomatic relations make it difficult for businesses to operate. It leads to closure of business, destruction of property as well as unprecedented losses. Regulatory changes, currency changes, corruption, prejudicial actions, war declations have the ability to hinder business performance thus leading to dissolution. The activities affect foreign direct investment as well as portfolio investment risk (Kroeber & Kluckhohn, 1952).

Bridging Communication Gaps


It is critical to understand through definition what type of cultures exists. Engaging the community in understanding the culture is a key to bridging the communication gaps. Avoiding perception or unnecessary judgment based on stereotype and not facts is critical. Asking of questions where there is need for clarity due to accent is necessary to bridge communication gaps. Where necessary training, needs should be conducted to build a cohesive team. Use of appropriate medium of communication will ensure successful communication. The use non-verbal cue should be direct and understandable by each party through feedback (Grove, 2005).


Mitigating conflict requires management to take step by step measures to ensure the cause of conflict is identified and the best solution given on the basis of alternatives. There are three key stages in conflict mitigation. First is the pre-conflict period where the managers can engage in providing solutions to the root cause of conflicts. Under this stage, it is possible for management to solve a conflict before escalating. The second stage is in-conflict, where the conflict itself takes place (Lewis, 2002). The management role is to focus on the reconciliation through identification of strategies to solve the problem amicably. Characteristics such as active listening, critical thinking is needed to provide solution. The last stage is reconciliation and recovery where every party strives to move from the problem since solution has been identified. During mitigation particularly on in-conflict stage, the first step solve it is to identify the magnitude of the conflict, causes, alternatives and the strategies needed to solve it. Understanding the problems makes it possible to provide choices needed to resolve it. Upon assessment, the best strategies should be adopted. The second stage involves engaging the community as well as the stakeholders. By doing that, one is able to understand the contributions and the choices available to resolve the issue. The third step is to request for alternatives from the parties to a conflict thus coming up with possible choices. The next step is to provide a solution based on the ideas provided by the parties. After the solution is provided, an agreement must be made where either sign or agree to the solutions provided by the management (Northouse, 2007).

Part II:


Cultural Dimension

Social structure

The consumer behaviors affect the quantity of a product to buy. The Canadians, Japanese and the US citizens often purchase products based on quality, preference, taste, and referrals. Even as the businesses set up, it is critical to understand the buying behavior. Culture predominantly dictates what to consume. Certain cultures such as Islamic prohibit consumption of pork products and this is vital while selecting product to buy. Japan places importance on family ties thus such type of market even is dictated by the membership. One would purchase on the basis of family referrals. The United States citizens are based on individualism culture and this influence the decision on what to buy as it may not depend on family or friend

Addressing the social cultural challenges require a business to conduct an environmental scanning to identify the macro factors that influence the firm. Upon identification, necessary actions and plans to implement service delivery is important. Since the environment is dynamic, it vital to continues assess the situation act where necessary. Using the appropriate marketing strategy to develop a product that satisfies the market needs is indispensible.


Language- the product may be packaged in a language that the targeted audience may not understand. The three countries have diverse culture which must be treated in a unique way while sending a message.

Non-verbal cue- the use of sign that is not understandable or is associated with a particular meaning may present a barrier of the intended message. The use of body language may be interpreted different across the cultural divide such as Japan and USA

Technology- the use of inappropriate technology to your intended customers may create a barrier thus products not reaching the intended customers.

Cultural – the use of a particular mode of advertisement may be prohibited by a given culture thus leading to failure in the method of message delivery (Lewis, 2002).

Data Analysis

Data Collection

There are many methods of collecting marketing data depending on whether the needed information is either qualitative or quantitative. The use of focus group where the targeted customer or audiences are grouped based on similarity. Case study analysis is also useful in conducting data. An in-depth interview where one engages a targeted to obtain the needed information serves as a method of data collection. Marketers can also engage the use of projective techniques to collect the needed data. Quantitative research involves the use of surveys as well as observation to collect the data. Some of the useful resources during this stage are the tape recorders to help record, the questionnaires and interview schedules to provide the questions to be answered (Lewis, 2002).

Strategic Data Usage

The data obtained will be critical in making strategic decisions. Based on the outcome, the business will be able to understand the trends in the market. It will be in a position to identify the prevailing factors affecting buying decisions. It serves as a way of understanding the business environment thus one is able to forecast. The business is able to make decision based on facts and not hearsay thus making the right choices. The information obtained can be used to understand the level of competition and draw strategies needed to capture the market. It will further assist to identify the marketing niche (Kroeber & Kluckhohn, 1952).

Human Resource

HR Legal

Every country has employment laws affecting the operation of business. These laws provides for the eligibility of employment and when not to be employed. Failure to adhere to the laws may lead to closure or huge fines. The “International Labor Organization” (ILO) 1926, prohibits forced labor as well as child labor thus should be considered in the international market. Canada for instance has ratified several treaties that prohibit trafficking though yet to ratify Convention 138 that requires minimum age for employment at 17years. Boys of 15 years and 16 for girls are allowed to work under certain conditions in Canada. In Fair Labor Standards Act in USA, children between 14 to 16 years may be employed but under supervision. Just like Canada, no discrimination is entertained. The three countries have strict labor laws that require that employers offer equal employment opportunity free from discrimination (Lewis, 2002)

HR Ethics

The emerging trends in human resources require that employees be paid fairly. The Human resource must provide the employees with opportunities to attend or experience the holiday. If any employees is available for work then there has to be compensation double rate. The cal for gender inequity has challenged the sourcing criterion as everyone has to be offered equal opportunity. The a-third gender rule on the positions available must be observed. The employer is also required to offer a more conducive environment free from any hazard as per OSHA. Ethical consideration within the three countries require strict adherence to law

HR Strategic Data Usage

The management is encouraged to use the prevailing data to ensure that the salary and wages paid are at par above the industry average. The information assists in conducting proper staffing and offering fair remunerations thus increasing retention rate. Leave management becomes efficient where every employee is provided with opportunity to select when to take leave. Based on the human resource data on employee, it is possible to estimate the local labor market and have appropriate strategies of sourcing (Lewis, 2002).

Financial Accounting


It is important to ensure financial transparency to remain ethical in the dealings and to assist in calculation of tax. The transparency is ensured through strong internal control to ensure every transaction is accounted for. Proper books of records must be maintained in accordance with international accounting standards

Business Forecasting

Based on demand of goods forecast, the business will be able to produce without wastage. Sales forecast allows the business to estimate amount to produce and minimize cost. The forecast will be necessary in determining expenditure on advertisement.

Financial Risks

Following strict standards coupled with strong internal control where every transaction must be accounted, it is to eliminate and detect any element of fraud. Auditing after certain period is critical. Based on the projected sales and demand, risks due to demand and sales can easily be determined (Kroeber & Kluckhohn, 1952).

Operation Research

Research and Development

The potential risks arising out of operations such as pollution may create legal tussles that reduce profits. The privacy issues due to technological advances may also expose the business to ethical issues. Where clinical trials end up being hurting the individuals it may expose the business. The business is expected to benefit the society’s welfare and any contrary may hinder operations.


Corporate social responsibility requires a business to use the existing resources without interfering with future generations. Sustainable use of resources through the use of green energy and avoiding waste is critical. Pollution is a challenge which must be addressed in the three countries (Lewis, 2002).

Operations Management

Optimal production can be achieved through demand and supply management. Ensuring fair pricing and minimizing cost of raw materials through supplier management is necessary. Proper advisement to improve on sales is also critical (Lewis, 2002)..

Ultimate Strategy

Risks Management

Careful environmental scanning to identify the possible risks in the market is necessary. Analysis of the cultural difference and provide framework. Observation of laws and regulations regarding the market operations is vital in risk management. Investment in derivates against loans taken can reduce financial risk. Providing codes of conduct and offer needed training to the customers.

Best Management Practice

An analysis of the environment and put in place the needed resources to accomplish tasks. Adhering to the laws, regulations regarding employee, environment, and the society at large is important. Proper communication as well as remuneration is critical for the success of the organization. Lastly is to understand the cultural diversity (Lewis, 2002).


Grove, C. (2005). Worldwide Differences in Business Values and Practices: Overview of GLOBE Research Findings

Kroeber, A.L., & Kluckhohn, C. (1952). Culture: A critical review of concepts and definitions. Harvard University Peabody Museum of American Archeology and Ethnology Papers 47.

Lewis, D. (2002). Organization and Management in the Third Sector: Toward a Cross‐Cultural Research Agenda. Nonprofit Management and Leadership, 13 (1), 67-83.

Northouse, P. G. (2007). Leadership: Theory and Practice. 4th ed. Thousand Oaks, CA: Sage Publications.

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