Management Across Cultures
What are some current issues facing Poland? What is the climate for doing business in Poland today? According to the Poland segment coined “In the International Spotlight”, Poland has been seeking economic liberation for an extensive number of years which could be a hindrance because they are considered a country with a transitioning economy. Government and legislation have held Poland back and thus are some of the current issues facing Poland.
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Poland is a positive climate however, for Poland is very attractive to MNCs. With Poland being centralized amongst the other European countries, MNCs have greater access to competitive nearby markets. In addition, productivity will need to increase in order for Poland to truly compete with Western European nations. Question #2: Is the Canadian manufacturing firm using an economic, political or quality imperative approach to strategy? I would say that the Canadian manufacturing firm is utilizing an economic strategy.
They are making an attempt to take advantage of the economic situation in Poland via renovation at a plant near Warsaw so as to build power tools. Question #3: How should the firm carry out the environmental scanning process? Would the process be of any practical value? All businesses are affected by external factors and therefore monitoring must be done in an effort to maintain heightened awareness of these factors; environmental scanning is a process where various relevant data is collected in order to make business decisions – these two go hand in hand.
When entering a new market, like the Canadian firm plans to do in Poland, environmental scanning is essential and can contain practical value. They need to be focused on the external factors in addition to economic growth, income levels and/or employment rates as it relates to their market. Environmental scanning assists in making decisions related to expansion, innovation, and entering or leaving a market. Question #4: What are two key factors for success that will be important if this project is to be successful?
The two key factors include the use of small power tools and the competitive nature of the industry. Poland needs to be able to be competitive and increase productivity. It is to the advantage of the Canadian firm that there is little to no competition since there is very low demand for power tools in the area. Hofstede Dimension: Information I read in our textbook revealed that Poland is a hierarchical society where everyone seems to have a place in the order whereas in the United States hierarchy is established for convenience.
The difference between the two in reference to the power distance revolves around the US being subordinate and recognizing their place in the hierarchy of Poland. Both Poland and the United States are defined as individualistic societies, but the Unites States exhibits a much stronger individualistic culture over Poland but because of the need for a hierarchy, a manager or business partner from the United States may have to utilize a second method of communication via a personal contact with everyone in the structure so as not to offend and stress the equality amongst the organization.
Another factor to consider is the uncertainty of Poland per the Hofstede score. Poland seems to have very specific rules whereas the Unites States are a little more lax; therefore the need to follow the Poland based rules is essential to a successful business relationship.