Process of Intercultural Business Communication

Intercultural business communication has three parts, as is illustrated in Exhibit 12.1-cultural strategy, business strategy, and communication strategy.7 The list of variables in each circle is not complete. You may think of additional aspects that influence each circle, but the variables listed are the major ones. A company may have influence over some of those aspects, whereas others are beyond its control.

For example, national laws concerning mergers, government regulations concerning the listing of foreign companies and stocks, and reporting regulations affect the business strategy but are beyond the direct influence of a company. The company has to understand the rules and regulations to avoid violating them, but it cannot change them. They are a given. DaimlerChrysler had to comply with German reporting rules. Even if American IWC Replica investors want more information, the company is not bound by their requests. DaimlerChrysler may agree that four quarterly reports are good for investor relations but may decide that two reports provide all the necessary information.

The particular business strategy a company develops also is influenced by the competition the firm faces and the position of its products. For example, Daimler wanted to get a foothold in the broader automobile market in addition to the luxury market. It hoped to do that by joining with a company like Chrysler. Schrempp furthermore hoped that a broader product line would help the company’s expansion into Asia. Eaton saw international expansion as a way to stay competitive. Daimler offered an opportunity to become a player in Europe.

At the time of the merger both companies seemed to be in sound financial positions. Their practices were different, as we discussed earlier, and so were the corporate cultures, but both sides thought that those differences would not present major obstacles. Overall the two companies seemed to be a good fit for a merger.

In the circle identifying intercultural strategy in Exhibit 12.1 we list 10 variables. You have learned about cultural attitudes relating to hierarchy, change, risk, and the individual versus the group, among many others. The DaimlerChrysler case shows that the Germans and the Americans had different cultural priorities. These differences find expression in the role of rules and formalities and views on risk and uncertainty. In addition to national culture there are other cultural variables, such as corporate culture and professional culture. Different professions have different cultures. For example, accountants have a different culture than do human resources (HR) managers. To some extent those cultures overlap, but they are also distinct.

The third circle focuses on communication strategy. The particular communication strategy is influenced by 10 factors that we have discussed throughout this book.

The dynamics of communication in a company are shaped by the people in the firm. Managers develop policies and standards on corporate communication, but within that framework individuals can develop their own styles and preferences as long as they stay within corporate guidelines. In the DaimlerChrysler situation members Replica Watches of the integration teams were not allowed to communicate with anybody outside the team, and communication between teams was heavily regulated as well. Confidentiality was seen as crucial so that team members would not be influenced by outside pressure groups.