Elder and Paul (2002) Point Out an

¶ … Elder and Paul (2002) point out an inference is the conclusion that "something is true in light of something else being true." An assumption is something taken for granted. In the case of ExtraVert, the first inference is that the communication and cooperation problems that exist between the home company and its overseas branch are a resulted of the cultural differences. There are several arguments given in support of this inference.

The branch is overseas and, given the fact that cost factors make it an attractive destination, the facility could be in China or in other parts of Asia. From this starting point, there is a logical reasoning that is based on different studies that reflect cultural differences, particularly when it comes to China. This reasoning points out that Chinese managers have a particular view about their role in the global organization, especially about the decision making process and the way they are subordinating to the leadership in the mother company.

They expect to consult with their superiors on all decisions, which implies a continuous communication both vertically and horizontally in the hierarchy. The logical conclusion would thus be that the problems come from the fact that the managers of the overseas branch lack guidance and don't assume decisions because of a lack in communication. This is a deductive reasoning. As Klement (2013) pointed out, a deductive reasoning starts from assumptions, from statements believed to be true, and aims to discover additional true statements from these assumptions.

In this case, the analysis started with two fundamentally true statements from which one attempts to draw additional true conclusions. The two statements were that there were problems between the home company and the overseas branch and that these problems were identified as communication and cooperation problems. Another assumption made as an explanation to why there are problems with the overseas branch is that there is a dysfunctional organizational culture.

This assumption is based on the fact that a global organization needs to be driven by an organizational culture and by objectives that all its parts recognize. The assumption is that the objectives that the overseas branch may differ from those that the headquarters have. For example, the overseas branch may look for quick profits because these are recognized and rewarded with a certain percentage. As such, they are promoting quick sales.

The headquarters, however, may look towards consolidating and building market share, being more interested in the sustainable development of the Chinese market. These objectives are conflicting, the assumption being that this could be one of the reasons of the conflict between the headquarters and the overseas branch. This is also a deductive reasoning. There are two assumptions that are used here: (1) there are problems between the overseas.