Archives for December 2014

Synergy in business is becoming more and more important.  Due to the ever changing workforce, working together is necessary.  The days of the “good ole’ boys” network are gone.  You now have people from all walks of life and backgrounds working together for a common goal.

“Synergy is a cooperative or combined action, and occurs when diverse or disparate individuals or groups collaborate for a common cause.  The objective is to increase effectiveness by sharing perceptions and experiences, insights, and knowledge.” (2011, Moran, Harris, & Moran, p. 233)  This is now what a typical business model looks like.  It used to be that you would have a group of supervisors or managers who had all started with a company and worked their way up.  Now you are seeing people with all different backgrounds and experiences being brought in because of synergy.  Companies are looking for people with different backgrounds when they hire due to the different ideas they are able to bring to the table.

The office I work in now is a prime example.  There are six supervisors, where all but for one of us came from other companies.  We are represented by the Navy, UPS, third party offshore broker, R &  L Trucking, school teacher, and a driver in our company who wanted a challenge by moving into management.  There were challenges at the start due to the differing backgrounds and ages.  Everyone thought they knew the right way to solve the problems and often it contradicted another perspective of the group.

Through working together and hearing different ideas and philosophies on why to try something a certain way, we have made gains.  When we all were brought together, we had one of the lowest scorecards in the region.  After being together and learning how the dynamic worked between us, we have risen up to the top third of the region.  Considering less than two years ago the entire management team except for two was let go, this is a big accomplishment.

Synergy has worked well within our group.  We have learned to talk about our prior experiences and see how they would work in problems we are encountering now.  Synergy is forcing business to change.  It is no longer about what you are doing in the company or seeing how you can upstage a co-worker.  Now it is about working together and using your combined backgrounds to come up with a plan to lead to even greater success.

 

 

Moran, R. T., Harris, P. R., Moran, S.V. (2011) Managing Cultural Differences Leadership Skills and Strategies for Working in a Global World. Oxford: Routledge

 

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Diamonds are a girl’s best friend and, a multibillion dollar industry but there is a price to be paid for these natural beauties. Corrupt leadership and zero business ethics have led to some terrible things in Africa. In 2013 a civil war broke out in the Central African Republic over diamond resources. Over 3.7 million people have lost their lives since fighting began over diamonds. Rival groups have fought over these treasures in places such as Sierra Leone, Liberia, Angola the Republic of Congo and Conte’ d’Ivoire for over 100 years. Civil War, worker exploitation and environmental degradation are everyday norms in parts of Africa.
Africa is the world leader in diamond production, it accounts for over 65% of the diamond industry. Why is this so important? Because diamonds are one Africa’s most advanced and richest economy contributors. In 2005 alone, over 15,800,000 carats were harvested in Africa. 8.5 billion dollars a year worth of diamonds come from African Countries. In 1867 the first diamond was discovered along the Orange River near Kimberly, South Africa. That’s when the diamond business in Africa all began.
The De Beers Company, the largest Diamond mining company in the world started their mining practices in 1888. They have operations in 28 countries around the globe. Doing business in the diamond industry hasn’t always been easy. The De Beers company was accused of building a monopoly in the industry with tactics such as price fixing, antitrust behavior and manipulating the diamond market. They convinced independent minors to join their business using millions of dollars to persuade them to sell their business to De Beers. They flooded the market with diamonds of equal quality of others but for much cheaper prices. They purchased diamonds they didn’t mine on their own and stock piled them so they wouldn’t be sold to retailers. By the 1990’s, De Beers owned over 90% of the diamond market.
Doing business like this comes at a price. Eventually all monopolies come to an end. In 2000 De  Beers had to change. Pressure from Russia, Canada and Australia began to boycott their product. By 2012, De Beers only owned 40% of the diamond market. In 2001 De Beers was sued because of price fixing. They settled in 2005 for a whopping 295 million dollars! While the price fixing settlement was in process, in 2004, another settlement for collusion cost De Beers 10 Million. The corruption cost industry wide license losses to miners in 2013.  As you can see, De Beers still owns the largest sales share of the Diamond world but the field is narrowing.
This is a grand story of corruption but the business world can learn from their mistakes. Had regulations been posed on De Beers from the beginning and the diamond business in general, bloodshed and millions of dollars would not have been lost. Are these sparking beauties really worth the cost?

 

Reference:
Diamondfacts.org. (n.d.). Retrieved December 10, 2014, from http://www.diamondfacts.org/
Blood Diamonds. (n.d.). Retrieved December 10, 2014, from http://web.stanford.edu/class/e297a/Conflict in Sierra Leone.htm
(n.d.). Retrieved December 10, 2014, from http://www.capetowndiamondmuseum.org/about-diamonds/south-african-diamond-history/&ei=np2HVJ6WBsWZyASyw4D4Aw&usg=AFQjCNE9DOwBaMyXu2wkSsMU8FSViNBtBA&bvm=bv.81449611,d.aWw

Having visited over 11 countries in Central America, I feel I have a good handle on the dimensions of culture that encompass this region. What draws me to these Latin American countries is the rich culture and gorgeous landscape. Each country has it’s own identity and cultural representation but the general themes of Latin American culture tend to reign true over the entire area. As I recall my travels across Central America, I will look deeper into two of Hofstede’s dimensions of culture and detail my own experiences regarding each one.

Power Distance – World Average: 59.31; Standard Deviation: 21.25

Power distance refers to the extent to which society accepts the distribution of power, specifically focusing on inequality and equality. Central America’s power distance score is 63.83 which places them just about on average with the rest of the world (Hofstede, n.d.). On the higher end of the power distance scale, in most Central American societies individuals of power are assumed to be treated better than those of less power (Hofstede, n.d.). I witnessed this first hand when visiting the country of Belize with my wife and then 7 month old daughter. As we attempted to leave the island of Ambergris Caye, heading to our next destination in Mexico on a water taxi, we were put into a very sticky situation. The boat was clearly overloaded with people and luggage. The captain of the boat expressed his concern with setting out to sea with this much weight. As local authorities stepped in and demanded the boat depart as scheduled (regardless of the breach of capacity limit), it was clear that Belize exemplifies a society with high power distance. The captain dismissed his own fears that the boat was too full in order to respect the authorities’ demands to continue out into the sea. Luckily, as Americans, we are more of a low power distance society, we decided it was in our best interest to disregard what those in power had to say and removed ourselves from the boat immediately (after a few arguments of course).

 

Individualism – World Average: 45.17; Standard Deviation: 23.97

“Individualism on the one side versus its opposite, collectivism, is the degree to which individuals are integrated into groups” (Hofstede, n.d.). Central America’s individualism score is only 17.67 which means that the people of this region exemplify that of collectivism (Hofstede, n.d.). The tight social framework is one of the main characteristics of Latin American culture as a whole. In all of my travels throughout Central America, this dimension of culture is highly evident. Many families consist of multigenerational families living together in one house. The feeling of family and collectivism is imminent when you meet people. I found this even more noticeable when I began travelling with my wife and infant daughter. When we were in Costa Rica people took us in as if we were family. They helped us in any way possible and showed extreme generosity and compassion to our family. The sense of collectivism was quiet refreshing, especially when experiencing a new culture. It makes you feel as though you belong.

 

In diving deep into these cultural dimensions and exploring Central America, the region as a whole is fairly different that that of the United States. In some cases like that of high-power distance, we were influenced negatively by our differences but in other cases like that of collectivism we were influenced positively. Travelling has truly been one of life’s greatest experiences for me and my family. In taking in different dimensions of culture and using what I learn to influence my understanding of the world around me, I have enriched not only life personally but professionally as well.

 

References

Central Intelligence Agency (CIA). (n.d.). The world factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/index.html

Hofstede, G. & Hofstede, G. J. (n.d.). Dimensions of national cultures. Retrieved from http://www.geerthofstede.com/dimensions-of-national-cultures

Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Managing cultural differences: Leadership skills and strategies for working in a global world. New York: Elsevier.

Pennsylvania State University. (2014). OLEAD 497B: Leadership in a Global Context: Lesson 2: Introduction to culture. Retrieved at: https://cms.psu.edu

Pennsylvania State University. (2014). OLEAD 497B: Leadership in a Global Context: Lesson 9: Central America and Mexico. Retrieved at: https://cms.psu.edu

 

“Love thy neighbor as thyself.” While Biblical in nature, this proverb should reign true throughout the world. Often times people tend to use their knowledge of a specific event to form an opinion on an entire culture or idea, otherwise know as the availability heuristic (Fadel, 2012). There is no more prominent example of this psychological representation than that of how people around the world call up their knowledge of the actions of Muslim terrorists on September 11^th, 2001 and the Boston Marathon bombing in 2013 to generalize that all Muslims must be terrorists. I feel it is our job as diversified individuals to educate ourselves on cultures and religions all over the world, specifically that of Islamic culture, before making assumptions and stereotyping a large group of peers in this great big world of ours.

It may seem like the idea of the availability heuristic is basically a stereotype, but one should look a bit deeper in comparing the two ideas. There are certainly similarities in the two for example both are outsiders’ beliefs about groups (Moran, Harris, & Moran, 2011). The differing factor that I see is that a stereotype is a set of attitudes that cause individuals to attribute characteristics to a person on the basis to which he or she belongs… it’s this part that is important to differentiate. Being Muslim may be a similar characteristic of the terrorists to people following the Islamic faith but they are do not belong to the same group. Terrorists are extremists who use the ideals of Islam in radical ways when in actuality, the religion of Islam teaches peace and tolerance.

On a trip to Dubai in the United Arab Emirates, I met a man from Pakistan and had a very candid and enlightening conversation with him about our personal and cultural views of each other’s country. I consider myself an open-minded, educated individual but in having this discussion with this Middle Eastern devout Muslim man, I realized that I too was guilty of many generalizations and stereotypes of the Islamic culture. What was also interesting to discover is that he too was guilty of generalizations about Americans. I spoke at length with him about his family members who had been victim to drone attacks and his distrust for Americans because of it. He too was guilty of the availability heuristic. As our conversation grew deeper, we each developed a better understanding for our cultures and beliefs.

If only all people could stop assuming the worst of a group and take the chance to get to know the larger scope of things… our world could be a much better place.  The key to living in harmony is educating ourselves on cultures and not generalizing an entire group by a few actions.

 

References

Fadel, M. (2012, June). Language Matters: Talking about Islam and Muslims. Policy Brief. Retrieved from http://www.ispu.org/pdfs/ISPU_Brief_LangMatters_4_REVISED_edits_3%20(1).pdf

Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Managing cultural differences: Leadership skills and strategies for working in a global world. New York: Elsevier.

Pennsylvania State University. (2014). OLEAD 497B: Leadership in a Global Context: Lesson 7: The Middle East: Focus on Saudi Arabia. Retrieved at: https://cms.psu.edu

Stetzer, E. (2013, April 26). Loving all our neighbors, even our Muslim ones: Column. USA Today. Retrieved from http://www.usatoday.com/story/opinion/2013/04/26/islam-boston-terrorism-column/2107447/

 

When considering that Europe is the world’s second smallest continent yet jam packed with many different countries that abound with differing cultures and languages, it might be difficult to envision being able to find a common ground among them. The creation and continued expansion of the European Union has played an integral role in creating cultural synergy across a diverse group of neighboring countries that make up Western Europe. It is this cultural synergy that has allowed the region be what some may argue is the world’s biggest market, exporter, and foreign investor (Moran, Harris, & Moran, 2011). The successful creation the European Union truly exemplifies why creating cultural synergy is so important to any group or organization.

Synergy is a cooperative action, and occurs when diverse individuals or groups collaborate for a common cause with the objective being to increase effectiveness by sharing perceptions and experiences, insights, and knowledge (Harris, & Moran, 2011). In order to accomplish cultural synergy, all parties must be able to acknowledge differences, be open to communication, want to learn, and have the ability to change (Moran, et. al., 2011). The initial creation of the European Union started with multinational entities of Europe who were seeking ways to unify their economic efforts and eventually resulted in establishing an economic and monetary union (Moran, et. al., 2011). In looking at one of the main ideas of synergy that the whole is greater than the sum of its parts, one is sure to conclude that this is very true for the members of the EU. The combined efforts of 28 Western European countries proves to be stronger than what any individual country could portray. For example, with just 7% of the world’s population, the EU’s trade with the rest of the world accounts for around 20% of global exports and imports (“European Union,” n.d.).

Recognizing both similarities and differences is important in creating cultural synergy. The EU does an excellent job of preserving Europe’s shared cultural heritage and helping to make it accessible to others, as well as supporting and promoting the arts and creative industries in Europe (“European Union,” 2013). The EU also spends more than a billion dollars a year to maintain language equality by translating documents into 20 official documents (Moran, et. al., 2011). In preserving the countries’ cultures and maintaining equality, the EU embodies the ideals of cultural synergy in which using the diverse perspectives of various cultures to create something that is greater than each individual culture.

Of the 28 countries that belong to the European Union, I have visited 7 of them. When I travel I like to see as much as possible so I often pick neighboring countries to visit in one trip. In 2011 my wife and I visited 11 cities throughout Italy and Greece in only 9 days. In 2013, along with our then 1 year old daughter we travelled through all of Ireland and into Scotland (the UK). Just a few months ago, the three of us conquered much of Spain and Portugal. It is the efforts of the EU such as the implantation of common currency (the euro) that make travel between multiple countries so easy. Navigating between countries is often seamless and actually very cheap. One-way flights between countries are often as cheap as 19 euro which is less than 25 US dollars. Another aspect of cultural synergy we experienced is that of the EU’s efforts to preserve culture and promote the arts. Europe has a rich history with a deep foundation in the arts. While there is an overall sense of unity amongst the nations, the individual characteristics are vastly evident.

I feel honored to have experienced the cultural synergy amongst such diverse nations. High-synergy cultures such as that of the EU tend to be highly cooperative, community-oriented, and have the good of all in mind. (Moran, Harris, & Moran, 2011). Creating and maintaining synergy amongst any group or organization is key to success. Creating and maintaining cultural synergy has been key to the European Union’s success as it continues to grow and strengthen.

 

References

Central Intelligence Agency (CIA). (n.d.). The world factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/index.html

European Union. (n.d.). European Union. Retrieved from http://europa.eu/index_en.htm

European Union. (2013, May 8). Culture. Retrieved from http://europa.eu/pol/cult/

Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Managing cultural differences: Leadership skills and strategies for working in a global world. New York: Elsevier.

Pennsylvania State University. (2014). OLEAD 497B: Leadership in a Global Context: Lesson 12: Western Europe. Retrieved at: https://cms.psu.edu

Brazil is located in South America and is the fifth largest country in the world. Brazil is considered to have many state of the art industries, which include mining, manufacturing, agriculture and service which includes banking. “Brazil has a long history of international banking, as the Portuguese royal court once moved there and established stock exchanges and Brazil’s first international bank in the early 1800s. “ (PSU, Lesson 8, 2014) In terms of technology, Brazil is advanced with a very good infrastructure for communications.

It can be very difficult to do business in Brazil because of economic reservations that involve inflation, exchange of currency as well as interest rates. The country does offer vast economic opportunities that make working in Brazil rather pleasant and electrifying. “Brazil’s diverse economy produces everything from automobiles and airplanes to shoes and orange juice.” (Moran, Harris & Moran, p. 303)

Communicating in Brazil can be as difficult as communicating in any other country, if one is not prepared for the culture. “One of the biggest mistakes that can be made is to consider Brazil to be just another country in Latin America, and to assume that what works in Chile or Mexico or Panama will also work in Brazil.” (Moran, Harris & Moran, p. 303) Therefore, it is important to research Brazil and its cultural differences prior to visiting or doing business with them. A simple greeting or saying goodbye should always be done, however it is considered impersonal to simply say hi/bye everyone.

In order to help support their families, most woman need to work outside the home. While it is rare to see a woman in the role of a president in a large corporation, there are many women in upper management positions. “Women also are serving at the national level of government as cabinet and Supreme Court members.” (Moran, Harris & Moran, p. 310) It is not uncommon to also see a woman in the position of city mayor or governor of a state. Who is not to say that with women in these roles that there won’t be a woman serving as president of a large corporation?

Moran, R. T., Harris, P. R., Moran, S.V. (2011) Managing Cultural Differences Leadership  Skills and Strategies for Working in a Global World. Oxford: Routledge.

Pennsylvania State University, (2014) OLEAD 497B: Leadership in a Global Context: Lesson Eight: South America: Focus on Brazil. Retrieved at https://cms/psu.edu

 

 

 

Communication in business has become more and more important as business has become more and more global.  It is no longer the old way of just doing it the way it has always been done because that is the way we do it.  There are many more factors that have now come into play due to the new people, backgrounds, and traditions that have come into the business world.

As business as expanded more globally both internationally and domestically, there are more communication factors that have be taken into account.  Samovar and Porter identified a number of factors that contribute to the type of communication we not only give, but receive.  These factors include attitudes, stereotypes, social organizations, thought patterns, roles, language, space, and time sense.  All of these factor into how communication is given to an individual.  There are some dealing that are expressed totally to one person, but to another are only on a need to know basis,.

The problem a lot of people run into is that they can not take back what they say.  Due to the many different backgrounds people have now, what you say may be taken to mean something totally different.  This is where researching who you are going to be meeting with becomes key.  Knowing how their culture and communication works is extremely necessary.  Where I lived in Germany they had a very open and joking nature.  They used a lot of profanity sometimes when they talked.  This was in direct contrast to when you would go to other parts of Germany where this was frowned upon.

The more we try and increase our businesses world wide, the more important communication is going to be.  Learning the different ways of communicating with people of all cultures and nationalities is going to be crucial.  The last thing you want to do is lose a business deal because you did something that is perfectly normal here in the United States, but was very disrespectful in another country.

 

 

References

Moran, R., & Harris , P. (2011). Managing cultural differences global leadership strategies for cross-cultural business success (8th ed.). Burlington, MA: Butterworth-Heinemann.

 

Like many avid travellers and adventurers, Machu Picchu has been on my bucket list for years. In 2012 I was fortunate enough to cross it off my list. With my sights set on conquering one of the 8 wonders of the world, I barely thought about what else I would encounter before heading to Peru. The cultural experience was unlike anything I had ever experienced. Peru is considered to be a developing country and often described as a third world country, or simply a poor and somewhat unstable nation (Moran, Harris, Moran, 2011). Upon landing in Lima, I didn’t think of the area to be what one would consider third world. It wasn’t until we began our trip to Machu Picchu, visiting the smaller and more rural areas along the way that I encountered such characteristics. As a Latin American country, the overlapping cultural themes of Spanish language and influence of the Catholic Church were prevalent (Moran, et. al., 2011). The people we encountered along our journey certainly looked the part of those in a state of poverty. There were people of all ages and genders selling goods along the roads, in markets, and even along the trail while hiking Machu Picchu. We saw beggers and people playing music in hopes of obtaining spare change. Many children showed an interest in us as we clearly stuck out as being Americans. It was enriching to me to have met these people, even with a language barrier, seeing their way of life and experiencing their culture.

When I returned from my trip I began doing more research on the culture and economic status of Peru. I found it interesting to see that their economy is on the rise. Like many South American economies, Peru is on it’s way up. “In October 2014, Peru’s Institute of Economy and Enterprise Development (IEDEP) – part of the Chamber of Commerce of Lima (CCL) – stated that Peru has the opportunity to become a first world country in the next 13 years” (Dunnell, n.d.).

On a basic level, poverty and low standards of education are two of the most apparent issues that point toward Peru’s still developing status (Dunnell, n.d.). According to the CIA’s World Factbook, many poor children will leave school to help support their families. During my trip, I noticed many children selling goods and panhandling for money. Efforts to increase poverty levels and economic status must be focused on education.

 

The vast resources of the land are aiding Peru’s economic expansion, particularly that it is becoming a major minerals exporter (Kirkby, 2011). The country also plans to become a regional energy player by developing hydro and wind power to export to its South American neighbors, Ecuador and Brazil (Kirkby, 2011). It is with these continuing advancements in exports as well as technology that will help Peru’s economy become stronger and stronger.

I am very thankful for having experienced so many aspects of Peruvian culture. Having explored the city and the rural areas, I can see the differences of economic statuses and look forward to seeing the country’s economy rise. The hopes that they will one day be a considered a “First World” country seem like it will be a long ways off but I will certainly keep myself abreast with their status. Perhaps down the road I will be fortunate enough to visit the country again in hopes to see a more booming economy.

 

References

Central Intelligence Agency (CIA). (n.d.). The world factbook. Retrieved at https://www.cia.gov/library/publications/the-world-factbook/index.html

Dunnell, Tony. (n.d.). Is Peru a Third World Country? Retrieved at http://goperu.about.com/od/cultureandsociety/fl/Is-Peru-a-Third-World-Country.htm

Kirkby, Andrea. (2011 October). Positive growth in Peru. Credit Management, 18. http://search.proquest.com.ezaccess.libraries.psu.edu/docview/897707649?pq-origsite=summon

Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Managing cultural differences: Leadership skills and strategies for working in a global world. New York: Elsevier.

Pennsylvania State University. (2014). OLEAD 497B: Leadership in a Global Context: Lesson 8: South America: Focus on Brazil. Retrieved at: https://cms.psu.edu