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are viewed as irrational and offences against efficiency; criticisms

and complaints are handled through channels.

CHARACTERISTICS EIFFEL TOWER

1. Relationships between Specific role in mechanical

employees system of required interaction

2. Attitude towards authority Status is ascribed to superior roles

that are distant yet powerful

3. Ways of thinking and learning Logical, analytical, vertical and

Rationally efficient

4. Attitudes toward people Human resources

5. Ways of changing Change rules and procedures

6. Ways of motivating and Promotion to greater position,

Rewarding larger role

7. Criticism and conflict Criticism is accusation ofResolution irrationalism unless there are

Procedures to arbitrate conflicts

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Q3. Discuss business strategy and implications of culture on

business strategy. ( 10 marks)

Ans3. Strategy is a term that can be traced back to the ancientGreeks who used to mean the Military commander- in chief. If we

wish to increase the yield of grain in certain field and on analysis it

appears that soul lacks potash, potash may be said to be the

strategic ( or limiting) factor.

Business Strategy can be defined as the basic long term goals and

objectives of an enterprise and the adoption of courses of action

and the allocation of resources necessary for carrying out these

goals.Business strategy refers to the aggregated strategies ofsingle business firm or a strategic business unit (SBU) in a

diversified corporation.Business strategy refers to the aggregatedstrategies of single business firm or a strategic business unit (SBU)

in a diversified corporation. According to Michael Porter, a firm

must formulate a business strategy that incorporates either cost,

leadership, differentiation, or focus to achieve a sustainable

competitive advantage and long-term success.

IMPLICATIONS OF CULTURE OF BUSINESS STRATEGY

While formulating various business strategies, international

manager is always influenced by cultural factors which may have

long term, and short-term perspective. People in countries such as

China and Japan generally have longer time horizon than those in

Canada and in USA, whereas Americans will emphasize short-term

profits, the Japanese are known to be more patient in sacrificingshort-term results in order to build for the future with investment,

research and development and market share.

Managers who hail from uncertainty avoidance countries are more

willing to take risk than their counterparts ( i.e., high uncertainty

avoidance countries). Managers from Latin American and African

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countries prefer to do business through non-equity entry mode in

order to minimize exposure to risk. There are also power distance

countries such as Arab countries and Japan in which managers

observe interpersonal inequality and hierarchy.

As the sphere of international business expands beyond traditional

Asian, Western and European markets, companies will increasingly

come into contact with cultures that are much different than the

organization's culture of origin. This can create conflict in business

strategy; what seems to be an excellent business decision in one

culture can have disastrous effects on business operations in

another society. Recognizing the local culture in which you will be

operating is an important step when considering implementation of

the process of strategic choice when the decision will affect

culturally diverse stakeholders

As organizations spread across globe and set operations in different

parts of the world, organizational culture is acquiring a whole new

meaning. Growing decentralization and growth in no of various units

and function means each unit is given the scope to define its scope

of operation within the broad organizational framework. Structuralchanges have been made to allow flexibility of approach and

decision making has been decentralized to enable organization

scale the challenge of growth and diverse business requirement.

The local culture will affect the behavior of both consumers and

employees from that area. The values and norms of a society will

dictate demand for specific goods and services. Management styles

should also vary based on the local culture, as employees from a

different culture will respond to management that reflects values ofauthority in that culture. These differences increase the need to

establish interactivity among stakeholders when making a strategic

choice.

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