Cross cultural issues in international business Essay

Cross cultural issues in international business - Essay ExampleIntense competition at the global level therefore requires that buckrams should effectively manage their cross cultural team work most efficiently. Failure to do so may have more problems for the firms and may ultimately result into the downfall of the firms. It has been suggested that working in an environment which is diverse in nature pose significant challenges for the firms to overcome those obstacles and act with same level of efficiency and competitiveness they usually perform with in their local markets. AB Volvo is a Swedish Manufacturer of trucks, buses, construction equipment and cars. It also offers naval systems and financial services in different markets thence diversifying itself at product as well as at market level. Being oneness of the well-known(a) global brands for trucks, Volvo Track, its brand for trucks, has been setting a manufacturing plant in chinaware. This paper will discuss and explore the cross cultural management issues for Volvo in Chinese market. VOLVO A Brief Introduction AB Volvo is a Swedish Manufacturer of Trucks, buses and cars and has been operating in European market. It also offers financial services in markets where it operates thus have been diversifying itself into different products and markets. The company was officially formulated in 1927 when it rolled out its first car and since then has really transformed itself as one of the trail manufacturers of trucks in the world. It operates various business including Volvo Trucks, Mack Trucks, Renault, Volvo Construction Equipment, Financial services as well as other business segments. It has been manufacturing and exporting buses and trucks since thirty-something and really became successful outside Sweden after the World War II. It has also been manufacturing marine engines and became one of the leading manufacturers of marine engines in the world. Over the period of time, the firm has either acqu ired new businesses or sold its existing business. Firm sold its car business back in 1999 to Ford Motors. This sell out was considered as necessary to refocus the firms business strategy on the production and marketing of commercial vehicles only. It has now proved itself as one of the leading manufacturers of Trucks and Buses at the global level. It has also decided to set up its manufacturing facilities in chinaware with the aim to capture the Chinese market as well as set up the base to serve Asian market. Volvo in China China represents one of the most important markets for Volvo as it anticipates selling more trucks in the future in Chinese market. Though there are already other foreign and local players in the market however, the firm is expecting an increase in its sales of trucks in the Chinese market. Apart from the truck business, Volvo Cars have also been purchased by a Chinese manufacturer from Ford Motors Co however it has been effortful for the Chinese firm to estab lish the factories and start the production on normal footings in order to get a foothold in the Chinese markets. China being culturally and linguistically different country however, also offers significant cross cultural management issues also. From managing employee relations, customer services to having relationship with the government officials, China pose a