Managing People in Cross-Cultural Contexts

Business Plan: Eurochina- China


Eurochina is an organization founded in a strategic market and industry position. Its vision, mission/purpose is developed based on the vital market demand gaps. The company is a medium sized plant facility founded in China but owned by a European organization. Its operation entails manufacturing of electrical gadgets and equipments. Approximately, the company employs around 200 staffs in all its key managerial positions and the subordinates. Managers root their background from China, France, Spain, and United Kingdom. Other employees especially the subordinates are drawn from Chinese workforce.

The organization stretches the need to posses a competitive edge in the industry by upholding Just in Time strategy and quality supply system moves. Based on the brand recognition, quality and the customer loyalty attached to its product, the company endeavors in promoting effective supply system and Just in Time management system. Again, technological advancement in the industry prompts the organization to much competition by adapting to new technologies much faster. The company’s workforce is much talented, experienced with multi-skills that provide adequate expertise and out win its key competitors. In addition, Eurochina is a learning organization that facilitates training and development of human resource creating a pool of experts, talented and innovative personnel.

Human resource, customers and other stakeholders uphold the level of satisfaction and the customer loyalty that adequately contribute to the strategic advantage. Culture in European territories and that of China contribute further to globalised culture providing uniqueness and brand in its electrical products and services. Diversity of management personnel will further provide supply of products, in time, efficient and effective with accuracy that is assumed to build and increase customer satisfaction and thus customer loyalty. Globalization is one of the key strategies adopted by Eurochina limited and it’s facilitated by the adopted advanced technology.

Technology promotes company’s ecommerce system and information integration to and from customer is much adhered and upheld by experts. Employees’ performance is highly dependent on customer satisfaction and vice versa. In this regard, employees teamwork and performance appraisal is vital to enhance customer satisfactions and in return customer loyalty. Eurochina experiences problems from team building of it work force that need to be an entrenched culture within organization structure. Conversely, managing People in Cross-Cultural Contexts to promote team work and facilitate intercultural team building mechanism will appropriately boost Eurochina employees’ performances.


  1. To increase economies of scale and in return supply quality and JIT promoting customer loyalty through team work building.
  2. To expand its global markets and increase globalised culture via recruitment, training, and team building.


The company enterprise will focus on production of electrical equipments and electrical accessories. Chinese labor force is much invested in innovations and technology advancement elements that will in line contribute to production of electrical. Company’s market segments are the European markets, the British markets and the Asian markets segments. The main vision of the company as supported by employees and other stakeholders is to diversify its market territories through globalization. Multinational companies in the contemporary business world compete for competitive position through managing People in Cross-Cultural Contexts to provide global standardized products in time and efficiently. Since electrical manufacturing and marketing is labor intensive, Eurochina- China plan to streamline its labor force through team building to achieve its purpose, objectives and goals.

The company parent plant in Europe will acts as a main supply of inputs supplemented by outsources inputs from the China endowments on electrical industry. Further, as the human resource is critical to success, customer satisfactions, team building via Managing human power in Cross-Cultural Contexts is much as important as increasing quality and delivery efficiency. Drawing human resource from outside China add more challenge to team building. Globalization of culture in team and group formation thus acts as a pillar in building team work and employees motivation. Global cultural integration in Eurochina Company will facilitate fashions, tastes and needs of customer from all corners of company’s market segments and thus build customer loyalty and satisfactions. To facilitate goal optimization and vision accomplishment, vertical and horizontal expansion is particularly important. In the arena of globalization to Multinational Corporation, Eurochina will uphold the role of internationalization and globalised cultures in team and group building. As noted above main supplier is the parent plant in Europe and its key talented managers are drawn from all corners of its market segments. Tastes, needs, fashions and preferences are volatile in the globalised world and thus multi-cultural management in employees will act as strategies to manage and enhance quality and market changes.


Globalization and expansion of the company will be supported by the multicultural diversity management through an advanced information technology that will increase communication efficiency and effective information delivery to facilitate team building. In this regards, the company will implement team building policy which in long run will facilitate expansion both vertically and horizontally.


The company should and will introduce cross cultural awareness training and development program. Team building and formation will be assessed and appraised based on the composition and cultural diversity of members targeting the strengths and weaknesses in the team that can affect development and growth of Eurochina Company.


Team work is a vital tool and element in all organizations. Achieving organization objectives and vision excellently, need strong team work coordination. Globalization and integration in Multinational Corporation in the contemporary business arena opt for setting up and managing culture in teams or groups. In essence, integration and globalised culture for Multinational Company such as Eurochina demand on effective teamwork and team-cultural management. Motivation strategies within organization teams need to be upheld with a high degree of delicacy and integrity. In addition, to build up globalised team and entrenching global cultures lies on the team identity, communication, leadership, shared vision, participation and problems negotiation and reconciliation.

Effective communication leads to elaborated and effective problem solving mechanism in organizations. Leadership is vital element in the functioning of a group especially in a globalised organization culture. In this respect, successful teams and organizations are characterized by team spirit based on recognition of diversified cultures and mutual respect of global cultures. Eurochina cultural integration will be viewed as a cornerstone for team building and strategic approach to success. The organization will positively utilize the leadership strengths and massively optimize to increase workforce output/performance. Effective communication and strong leadership is based on team members’ personality, attitude and perception which are much difficult in this era of internationalization.

Strong leadership and effective communication is critical in building team and Managing workforce in Cross-Cultural Contexts. As argued by Liu (2004), globalization does not only mean carrying business in the international arena but also managing organization cultural diversity and building a global team for success. Usually in a globalised successful company harmonies between different cultures prevail and thus strong build teamwork and teams. In essence, culture management in building groups is usually accorded the benefit of competitive advantage. Chinese culture and the rest of the world are much interrelated and in this case leadership from one country differs from the other.

Liu, (2004) connects the need to communicating effectively across cultures, multi cultural teams’ management competency and building productive teams to the cross cultural communication competence and distinctive leadership capabilities.

Leaders and managers should be aware on the employees’ loyalty. A leader focus is on coordination of the group and managing all cultures to promote corporation and achieve objectives and thus success. Through this, an effective global culture strategy needs to be implemented. This will encompass leadership in teams, global message, managing culture change and facilitating global accepted organization structure.

Eurochina-china: strategies and integrations


The marketing philosophy to be adopted by Eurochina Company is the marketing concept that is customer and market oriented philosophy. Technology in the electrical equipment and accessories is much volatile. The company’s technology level will be deemed adequate to facilitate market monitoring and research approaches. The relationship between the customer satisfaction and the employees’ performance will be highly accessed through the advanced information technology systems. Global market customers are rapidly changing in terms of fashions, tastes, demography and preferences (Mentzer, 2001). Market research thus is pivotal to effective customer analysis and market scrutiny. Management meets environmental challenges due to the ineffectiveness in developing strategies and policies that meet internet environments (Black, & Porter, 2000). Information systems will perhaps act as determination factor on the efficiency and understanding of customers by Eurochina Company. Understanding customers’ level of satisfaction and the changes in the market arena and particularly global segments is significant in the product innovation and integration strategies.

According to Chopra, & Meindl (2007), quality supply management and just in time strategies are other important bits of satisfying customers. Supply chain depends mostly on the customers and suppliers. Since 90% of the companies inputs are from the parent company, Eurochina will be customer focused to integrate its supply chain. Through the market information system, customers and the market are much understood and this provides a base to make decisions and strategies that fit the environments. Conversely, the required employees’ level of performances and culture integrations will be anticipated and implemented. Companies which have poor planning, inputs sourcing especially workforce inputs do not react efficiently and effectively to markets changes (Black, & Porter, 2000). In general, organizations team/groups and the integration strategies need be aligned with organizations purposes to respond effectively on business market segments and customers’ dynamics. Innovation and employees motivation on team building and culture change will helps Eurochina to minimize costs, improve on quality on its electrical products and enhance efficient delivery and production. Further, Eurochina strategy of managing people across culture context aims at providing customers with quality, in time and enhances flexibility to consumers’ needs/tastes. Globalised customers are changing tastes, quality preference and brand loyalty (Liu, 2004). In this respect, increasing competition in the electronics equipment will should drive Eurochina –China to implement excellent team and group formation strategies.

Implementation of the quality supply chain and Just in Time strategies also needs to be supplemented by the organization culture change and management (Chopra & Meindl, 2007). Harris, (2005) argue that, Managing cultures across the globe means providing a platform for team and leadership in organizations. Generally, manifesting a cultural ideology to employees is facilitated by organization leadership style and structure. As provided by Dyer, (1995) successful business in the globalised cultural arena are evidenced in establishing leadership competencies in all its markets segments. Leaders are drivers towards organization change and goal achievement. Through leadership, organizations are able to achieve a competitive edge. Again, companies are committed towards employees and stakeholders principles. Armstrong, (1998) argue that, team building through competent leadership provides cost advantage and also enables organizations to seek new markets opportunities.

Leaders and managers are two different components of business organization functioning. Leaders are influencers towards organization success and thus are vital in all businesses. As companies integrate vertically or horizontally, leaders need to expand their professional and personal attributes in managing change and cross cultures issues in organization (Harris, 2005). Effective leaders strengthen employees through building teams and providing incentives to perform more and more (Dyer, 1995). In many cultures, leadership is perceived as decisive function that looks at the team first and make consensus on the personal interest of individual members and the interests of the organizations. Subsequently, members or the employees have differing expectations of their leadership mechanisms and leaders depending on the cultural diversity in an organization. Similarly, leaders in organizations are faced with cross cultural challenge where employees perceive leaders as behavioral traits or based on the powers possessed by an individual within organization.

Communication and motivation

Directing or leading is among the functions of management. Leaders are equally vital in the organization achievement as managers. Leadership acts as a key factor that influences the function of leading or directing employees towards organization purpose and vision. The aspects of leadership can not contribute effectively to excellent leading and thus communication and motivation as strategies act to reinforce the function of leadership (Phillips et al., 1991). Organizations mostly fail to identify motivational and communication factors that triggers success and employees increase in performance. Communication is actually the exchange of ideas and information between two or more individuals or groups of people. Interpersonal and group communication is ranked among the key organization top factor that contribute to success and organization efficiency. Motivational tools and communication strategies adopted by companies affiliate success and culture management (Wlodkowski, 2002). In this respect, implementing effective communication both in group and in organization builds teamwork and entrench global culture in organizations. Faulty communication leads to inefficiency in operations and ineffective decision making processes (Sherwyn et al. 2006). Usually, how team members communicate in the organization have an effect on the learning enviroment within the organization. Thus, for organization to manage culture, improve leadership levels and motivate employees, there is need to understand the communication process, drawbacks of communication existing and how to improve the communication process within a team or a group (Wlodkowski, 2002). Different cultures foster and build different communication processes or styles. Also, as noted by Schein, (2010) team members must understand that different cultures context across the globe communicate differently. Motivation on the other hand is the main incentive towards performance achievement. Leadership provides motivation and enhances effective communication that consequently improves team results and reduces team conflicts.


The market share of Eurochina Company is assumed to increase by over 35% once new strategies on leadership, team building and culture adaption are fully implemented. The company has utilized various theories in managing culture and especially the globalised team cultures but new strategies are to be opted to facilitate integration and expanding moving together with globalization. Introduction of quality management and just in time strategies while maneuvering with the culture management will provide the company a new competitive edge on its products in the global arena.


Cultures theories endeavor to explain how individuals interact and relate with each other and the surrounding environments (Haslett, 2000). Globalization has caused people from different countries to relate and do business or work together. As indicated by Haslett, (2000) social cultural theories developed by scholars are relevant in how cultural diversity affect or influence leadership and team work building. One of the theories that explain in depth the relationship of different cultures and team building was developed by Preence (2000).

Motivation is another team building element that is attached to culture and the social spectrum of individuals. O’Neil & Drillings, (2004) as indicated by Phillip Kotler on motivation strategies argue that, they are important in team building supplemented by leadership characteristics of the team leaders.

Based on the theories, McGregor, 1960 hold that managers who hold theory X assumption are regarded as autocratic while those with theory Y assumptions are more of participative leadership style (Bolden et al. 2003). Both of these have an effect to the performance of team or groups and the culture management within such groups. Other than facilitating leadership to manage change and cross cultures in organizations, communication and motivation within the organization structure is equally important.

List of References

Armstrong, M. (1998) Managing people: A practical guide for line managers. London, Kogan Page Limited.

Black, J. and Porter, L., (2000) Management: meeting new challenges. Upper Saddle River, NJ, Prentice Hall.

Bolden, R., Gosling, J., Marturano, A & Dennison, P. (2003) A review of leadership theory and competency frameworks. Web.

Chopra, S & Meindl, P. (2007) Supply chain management: strategy, planning, and operation. Michigan, Pearson Prentice Hall.

Dyer, W. G. (1995) Team building: current issues and new alternatives. California, Addison-Wesley.

Harris, P. R. (2005) Managing the knowledge culture: A guide for human resource professionals and managers. ISBN0874258596. Human Resource Development

Haslett, M. (2000) Marxist literary and culture theories. New York, St. Martin’s press

Liu, K. (2004) Globalization and cultural trends in China. Hawaii, University of Hawaii Press.

Mentzer, J. T. (2001) Supply chain management. North park, New Castle, SAGE.

O’Neil, H. F., Drillings, M. (2004) Motivation: theory and research. London, Routledge:

Phillips, G. M., Kelly, L. & Rubin. R. B. (1991) Communication incompetence’s: a theory of training oral performance behavior. Illinois, SIU Press.

Schein, E. H. (2010) Organizational Culture and Leadership. Washington, John Wiley and Sons.

Sherwyn P. Morreale, S. P., Spitzberg, b. h, & Barge, J. K. (2006) Human Communication: Motivation, Knowledge, and Skills. New Jersey, Cengage Learning.

Wlodkowski, R. J. (2002) Motivation. Michigan, National Education Association.

Xia, Z., Pookong, K., & Chang, J. (2007) Chinese cultures in the Diaspora: emerging global perspectives on the centre and periphery. ISBN0646346474. National Endowment for Culture and Arts.

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