Changing Corporate Behavior to Respond

Changing Corporate Behavior to Respond to Changing National Cultures

Opening an office in another city can be daunting, and it is even more significant when one is opening an office in another country. There are many cultural issues that Newfoundland Capital Corporation will face when it opens offices in Mexico City, Mexico and Dusseldorf, Germany. To conduct business in new markets, the training of the company's sales force will need to change in several ways. First, the company's sales force -- whether they are new hires or people who have been with the company for some time -- will need to understand the culture in which they will be working. Even if the sales force will not all be headquartered in a particular country, that sales force may routinely deal with people from one of the offices that are about to be opened. Newfoundland culture is not the same as German or Mexican culture, and it is very important that cultural sensitivity training becomes part of what employees need to know (Kwintessential, 2010).

In addition to cultural sensitivity, the sales force must understand how business is done in other countries. A salesperson would not want to do something to inadvertently offend a person of another culture. That could not only cost the salesperson that sale, but it could spell trouble for the company. Newfoundland Capital Corporation does not want to be seen as a business that does not value diversity or that does not understand how to handle business transactions with those who are different in some way (Performance, 2011). Avoiding misunderstandings across cultures can be difficult, but there is no reason why the sales force cannot be trained to handle things appropriately. If people from Mexico and Germany are hired to help with the training, there is a greater likelihood that the sales force will be trained properly because they will have the benefit of people who actually understand the culture with which they will be working. There are many new things they could learn from people who belong to a different culture.

Negotiation practices will not be the same for the company in its new markets, either. All countries do things differently, and Newfoundland Capital Corporation most likely does not have experience with the way in which Mexican or German businesspeople negotiate their contracts. In order to understand how these things are done, anyone who will be involved in negotiations must be trained properly. Radio broadcasting is, overall, the same kind of process in every country (Performance, 2011) -- but what are the restrictions? How much can Newfoundland Capital Corporation expect to be paid? How difficult will it be for the company to get a license for the new market? What do people in that market want to hear? There are so many questions to ask, and if Newfoundland Capital Corporation does not understand the way negotiations work in another country, it is possible that the company will lose out financially.

Also of concern is that Newfoundland Capital Corporation might ask for something in the negotiations that would seem innocuous but that is insulting in the new country. By having a good understanding of business negotiations across cultural divides, the chance of something like that taking place can be lessened. Newfoundland Capital Corporation should not be expected to change what it does in Newfoundland in order to be more accepted in Mexico or Germany. That would be unnecessary, and would lead to a long-term style of "watching their backs" that would create too much tension in the workplace. However, when in negotiations for the new markets, it is important for Newfoundland Capital Corporation to realize that how it conducts business in Newfoundland could becoming a bargaining chip -- either for it or for the other side in the negotiations -- where contracts are concerned.

Business communications is another area that would need to change for each of the new markets into which the company will be moving. Coming from Newfoundland and going to Mexico or Germany is going to present a large language barrier for Newfoundland Capital Corporation. They will need translation services and interpreters, but they cannot rely on these things forever. In addition, the people who will work in the new offices and the people who will work with the people in the new offices must clearly and properly speak the language. Learning a new language can take time, but it is advisable for anyone who is going to be dealing with business in a foreign country (Kwintessential, 2010).

Cultural issues and language barriers are the two most significant problems that are faced by companies that are looking to expand into something more global in nature (Centre, 2011; Geert-Hostede, 2011). If those barriers can be worked through, the company will have a much higher chance of succeeding where other companies may have failed. Even though cultural issues may seem confusing, or a person may not understand why another culture does something differently, being open-minded about communication can diffuse misunderstandings that may have otherwise turned into more significant problems. Translation and interpretation services are always a good idea for companies that are moving into new markets in unfamiliar countries (Centre, 2011).

Because there are going to be local staff hired to run the offices in the new markets, decision-making and the use of hierarchy will have to change. Up until this point, Newfoundland Capital Corporation has operated in Canada (Performance, 2011). As such, the company is used to the culture, attitude, and overall work ethic of the Canadian people. In Mexico and Germany, Newfoundland Capital Company will face challenges because those two countries have different attitudes and work ethics. This is not to say that these attitudes and ethics are better or worse, but only that they are different -- and that will be something Newfoundland Capital Company will have to understand and accept.

Having local people operating their offices will cut down on language barrier and cultural barrier issues within the new markets, but it will increase the likelihood of these issues between the new offices and the home office. This is something for which Newfoundland Capital Corporation must be aware. By paying close attention to what is taking place in other countries and how the new markets are doing in terms of sales, the company can get a better understanding of whether it needs to make changes or whether it needs to simply accept the differences that are seen between the cultures and allow the local offices to operate in a way that makes the most sense for the countries in which those offices are located. The new offices must be included in decision making, and they need to understand the hierarchical structure so that everyone is clear on their standing with the company.