Globalization In Our Ever Changing Environment Commerce Essay

As globalisation becomes a universe tendency its impact has led to an of all time altering environment decreasing concern boundaries as people move from one state to the following searching for concern chances. Business today require more than merely a good enlargement program but must guarantee they understand the countries they intend to run in. This has seen a rise in the demand to understand cultural factors for better execution of concern schemes. This is in peculiar with the work forces of the states. Therefore mutinational organisations must understand their civilizations form national degree to organisational degree and how it impacts on their communicating. This study tries to look into civilization and its importance in communicating of concern schemes.

The research focused on happening out features of two civilizations to happen out which factors affect the communicating of concern schemes. The two civilization were Egypt and Burundi. The research was based on dimesions of civilization from ( Hofstede 1980 ) and ( Hall 1976 ) . The research will give penetration into the cultural considerations a transnational organisation must look into to hold effectual communicating and apprehension of international concern schemes.

The research was done through four semi structured interviews conducted with employees from the communicating sections of the two companies. The interviews were based on their ain national civilizations and the civilizations of their organisations. The research revealed more similarities than differences in the communicating manners and civilization of Egypt and Burundi. The differences were chiefly in from recent events that have seen the civilizations displacement. These were based on globalisation and local occurrences which saw values alteration. However the bulk of the nucleus values and basic premises have held strong which continue to rule most facets of how communicating is done.

The major consequences indicated that cultural similarities and differences affect communicating and being knowledged about them can be a great advantage to organisational communicating. The research besides identified barriers that occur in communicating from communicating barriers, behavioral barriers, work particular and other barriers. However it was concluded in relation to the theories of Hofstsde there was a displacement in civilization perchance due to the impact of globalisation, even if the impact appears to be low. Recommendations given were on preparation to derive intercultural competency through cognition and consciousness, holding a flexible attitude and recognizing linguistic communication as a barrier. Other recommendations touched on the demand to larn and alter organisational civilization in peculiar recognizing it being and how the environment an organisation operates in has an impact on the civilization. The information civilization was besides given recommendations to alter as it appears to be non existing too.Other information was discovered that does non hold a nexus to how civilization affects communicating but instead may themselves act upon a civilization, which is still has an impact on apprehension of international concern scheme.

Chapter 1

1.1 Background

More companies are recognizing the benefits of traveling planetary. The more addition in globalisation the faster the environment alterations. The demands of

transnational organisations has continuingly increased the demand to understand the civilizations of different states. This research intends to look into the influence civilizations in a transnational administration ‘s communicating. Understanding intercultural factors is important to effectual communicating to effectual communicating. For international administrations this will help in the success of communicating concern schemes ( Hofstede 1997 ) .

Problem statement

Telecel Globe Limited is a transnational telecommunications organisation based in Egypt which has late acquired four runing companies in Africa The telecommunication industry in Africa is in an emerging stage, nevertheless competition is really high ( ITU 2010 ) hence the company intends to hold Telecel Globe Limited being known for successfully runing in 4 states in Africa. As portion of accomplishing this unified name they intend on holding a incorporate criterion of procedures, selling being one of these. The company late rebranded in Burundi where their selling scheme met some challenges.

In this visible radiation of we intend to look into the organizational communicating jobs faced by Telecel Globe from a cultural position to give visible radiation on what may hold caused these jobs.

1.3 Significance of the Problem

Cultural influences in concern have become a major concern, and an apprehension of the influence in international concern is helpful in analyzing many diverse jobs faced when communicating across civilizations. Africa is frequently assumed to hold one civilization. A better apprehension of the differences in states civilizations and concern environment will help in success of future intercultural concern enterprises.

1.4 Research aim

The issue of civilization influence was examined in order to do recommendations for betterment of communicating of concern schemes between Telecel Globe Limited in Egypt and its operating company in Burundi, by supplying an apprehension of its environment by proving the hypothesis that civilization and concern environment impact on international communicating of concern schemes.

The purpose was to reply the inquiry what constitutes the features of the two types of civilizations including the environment of Burundi that affect communicating of concern schemes?

1.5 Definition of cardinal footings


We will specify communicating as the dynamic procedure of encoding and decrypting verbal and non-verbal messages within a defined cultural, physiological, sociorelational and perceptual environment. ( Nueliep 2009 )


Is defined as deeper degree of basic premises and beliefs that are shared by members of an organisation that operate unconsciously an organisation ‘s position of its ego and its environment. ( Schein 1998 )

Intercultural communicating

This occurs when a lower limit of two individuals from different civilizations run into to interchange verbal and gestural symbols ( Neuliep 2009 )


Describes an on-going procedure by which regional economic systems, societies, and civilizations have become integrated through a globe-spanning web of communicating and trade. ( Cheney et al 2009 )

Chapter 2

Research Methodology

2.1 Introduction

In this chapter we will give an overview of research attack, the picks of research methodological analysis, the informations aggregation techniques and how it was collected, the beginning, how information was analysed and the restrictions.

2.2 Research attack

There are two types of research attacks deductive and inductive. Deductive logical thinking is more narrow in nature and is concerned with proving or corroborating hypotheses. Inductive research works the opposite by detecting in order to get at a new decision ( Saunders et al 2009 ) . For this research we used the deductive attack.

2.3 Tools

We used semi structured interviews. These allowed for the research worker to fix inquiries in conformity with the subject and let the interviewee some freedom in replying the inquiries ( Saunders et al 2009 ) . The interviews were conducted over the phone and so inquiries were sent by electronic mail for farther elucidation.

2.4 Data Collection

Primary informations

There were 4 participants in this survey, 3 work forces and 1 adult female. 1 of the participants works for Telecel Earth, 1 for leoa„? in Burundi. There were two experts one who is a adviser for telecel Earth in accounting and the other a adviser who has been working for a piece at the Burundi office.

Secondary informations

Desk research was besides done on both Egyptian and Burundi civilizations. The survey will use the usage of books, diaries, and articles. We besides used theories from Hofstede and Hall.

2.5 Procedure

Each participant was interviewed on their single civilizations and on organizational civilization. Confidentiality was emphasized. The research worker so analysed interviews harmonizing to the replies received from each responded under the cultural dimension under probe.

2.6 Restrictions

When interviewing, there was a bound in that on the electronic mail and telephone one can non see the reactions and behaviour of the respondents which would hold been really of import for research. ( Saunders et al 2009. ) However due to clip, money, and distance face to confront interviews were non possible.

Chapter 3

3.1 Introduction

Data was analysed harmonizing to replies given in the interviews. The information will be applied throughout the study through comparing of the consequences to the current theories. This will be to derive an apprehension of cultural influences on concern procedures. Please see Appendix B for the interview sum-ups.

This chapter presents the findings of the research on national and organizational civilizations of Burundi and Egypt. The purpose is to detect how these influence communicating between the two administrations. This analysis is to get at intercultural challenges and the relevancy of intercultural communicating theories in today ‘s universe. For the intent of this study dimensions of Hofstede and Hall were investigated because after

reexamining all the theoretical accounts the most thorough coverage of appropriate dimensions and

constructs for a work-related intercultural communicating survey is provided through

these dimensions. Please see Appendix A for reappraisal of literature on dimensions of civilization.

The respondents were

B1- Burundi Contact

B2- Burundi Expert

E1- Egyptian contact

E2 Egyptian Expert

3.2 National Culture

3.2.1 Power distance

Hofstede did non research these states separately, nevertheless he placed Egypt under Arabian states with a mark of 80, which is really high and Burundi is in East Africa and Hofstede gave that country 64 in power distance. The respondents portion the credence of the being of unequal power. Authority is to be respected. Respect was identified by all of the interviewees as a manner to demo credence of the other ‘s power. E1 indicates that the regard shown to seniors can be spotted by the usage of linguistic communication, utilizing polite or formal words when interacting with his seniors. B1 in peculiar prefers to turn to people in authorization utilizing their rubrics as recognition of their position. A little discrepancy comes in that both experience even though people in the higher place have greater power but everyone still has the right in demoing their sentiments. This clearly differs from Hofstede ‘s dimension which sees people from power distance entities as unquestioning.

3.2.2 Individuality

Under this dimension, Hofstede scored Egypt at 38 while Burundi is at 27 harmonizing to hofstede tonss these are reasonably low with universe norm at 43. Based on the responds from the interviewees, most of them shared a common position in seeing working with others as a more effectual attack in twenty-four hours to twenty-four hours lives. E1 and E2 agree there is inclination to promote Bolshevism in working as a squad and prioritized squads before oneself that is even if one individual makes a error the whole squad is responsible. In societal lives they see household as holding to be included in all determination devising. B1 agrees with Bolshevism merely to a certain extent. A squad is made up if persons who work together to accomplish a end. Should a squad member hesitation and the error is their ain, they should bear the effects entirely. However there is contradiction in that socially B1 feels Bolshevism is inevitable, the society and your household are truly of import when doing determinations. This means for B1 the dimension varies situationally. Overall the interviewees reflected Hofstede ‘s tonss.

3.2.3 Maleness

Most Egyptians are open-minded toward covering with work forces or adult females. E1 and E2 indicated females are given equal chance in their callings. However, E2 raised that in the past females were treated otherwise in both calling and instruction, their functions were more submissive to the males. Socially it appears people live in modestness and being conservative, this indicates femininty as a societal dimension. This has a little struggle to Hofstede who under the dimesions scored Egypt at 52 maleness which is somewhat above universe norm of 50.

Hofstede scored east Africa at 41. In Burundi gender equality is mandated by jurisprudence, but in society the inclination has been for work forces to be given precedency over adult females. However this is altering as of import functions traditionally reserved for work forces are being transformed. Burundians are now sing instruction as a quality for presenting employment making infinites for advancing gender equality. B1 indicates adult females can now keep all types of occupations without upseting workplace dealingss. This is clearly in line with Hofstede ‘s original mark.

3.2.4 Uncertainty Avoidance

Hofstede scores Egypt at 68, harmonizing to hofstede tonss this is high. Egyptians as people are more concerned with regulations or formalities. When asked about regulations and behavior, the respondents clearly indicated regulations are made to be followed and one should ever be true irregardless. East Africa is scored at 52. After 15 old ages of civil unrest Burundians feel alteration is welcome. B1 when asked about regulations believes one can follow them though if necessary can flex them unless the state of affairs calls for stringency. These dimensions clearly match with hofstede ‘s tonss.

3.2.5 Long term Orientation

Egyptians have were non scored by hofstede nevertheless it appears they are long term and oriented as they have a big regard for tradition and carry throughing societal duties. E1 indicated to Egyptians choice household and societal experience than is more of import than the undertaking of gaining a life. Burundians have become less jutting toward the hereafter and planning in front. The present minute is what counts. B1 and B2 feel they feel and live in the present minute and hence do the most of everything that comes along. This is quiet opposite to the mark of 25 by Hofstede.

3.2.6 High context

Typically Egyptians have been placed as high context under Hall ‘s dimension. The respondents confirmed this. E1 prefers to keep harmoniousness in communicating by avoiding certain issues as sex, faith. E1 besides prefers email as a manner of communicating with repeated messages back and Forth. This allows for one to make many undertakings at one time without holding to concentrate on one thing. As a consequence E1 is besides really polychronic. Egyptians have a stating “ why do today what can be put off til tomoro? E2 confirms clip is unfastened and flexible.

Most African states have been placed under high context, in responds to this nevertheless B1 reflects low context. Prefering shorter communicating through telephone conversations and messages are blazing and clear. B1 prefers to be extremely organized. B1 is monochronic, scheduling and co-ordinating activity through a set program with precedences. Time is of the kernel B1 indicates non to stall. In Burundi Peoples who respect clip or deadlines are good liked and respected. B2 confirms continuity and preciseness is required for anything that relates to clip. In societal domains nevertheless tomorrow may sometimes truly intend the twenty-four hours after tomorrow.

3.3 Organizational Culture

The above dimensions have an consequence on the organizational civilizations as grounds by interviewees. Organizational civilizations presented here are in relation to the preparation

and communicating of international concern.

The company is bulk owned by an Egyptian transnational corporation Orascom which has been runing since the 1998. The subordinate Telecel Globe was formed in 2008. As a subordinate of Orascom, Telecel Globe iS controlled by its proprietor. This means that Orascom has a interest in all the schemes that the subordinate embarks on. TG operates from Egypt, this means that the bulk of the work force is Egyptian, therefore the influence. All the E1 agrees that the administration is hierachial. The concern is situated in Egypt which by and large has a high power distance as indicated by the treatment on national civilization above. With the Chief executive officer at the top followed by different heads under him ( CCO / CTO / CFO / Legal / Business Development / PMO ) , followed by director and so under each the employees that constitute that section this is a long concatenation. It appears to take clip for information to be passed down. Their civilization of information sharing appears to be a priviledge for the few. E1 states information is released as and when needed.

The Burundi administration was originally owned by Television. It has been runing since 1985 and TG had 59 % ownership. In 2000 TG sold the company. However upon reconstituting they acquired it back in the May 2008 from the Indian Company planetary vision limited. Burundi has gone through a series of the different cultural leading. This means the administration ‘s civilization is quiet complex. B1 stated that the administration ‘s civilization is confounding and complex. The administration besides has a hierarchy, bespeaking high power distance. CEO, Directors, Managers and so employees. This clearly indicates the influence of civilization of the environment that the company operates in. In connexion with communicating civilization within the administration at that place seems to one of information stashing B1 indicates that the most information employees receive about concern schemes of selling in peculiar is the figure of endorsers reached.

3.3.1 Business to Business communicating civilization

There appears to be no coherence in how communicating is done between the two concerns. The caput office has no thought about the procedures and the civilization of the office in Burundi. Information refering undertakings is generated from the caput office Telecel Globe and distributed to other administrations. Research is besides done from there and schemes formulated from this research are sent out to the operating states with some input from the directors. The frequence of the communicating between the two Egypt and Burundi is ill-defined as the contact E1 confirmed it to be on a day-to-day footing, where as the contact B2 advised it is from one time to three times a month.

Harmonizing to E1 Telecel Globe has fair cognition of Burundi concern civilization and environment B1 nevertheless says they have small consciousness of the Burundi civilization and environment. When asked about the Burundi office ‘s cognition of their civilization E1 has no clear place on how the Burundi office understands their civilization and procedures. B1 states the Burundi office is mostly incognizant of procedures of TGL while the contrary is besides true.

3.3.2 Strategy Formulation

When it comes to marketing scheme preparation selling schemes for Burundi are formulated by the local Burundi directors. Harmonizing to E1 selling schemes are done at the caput office in Egypt will explicate schemes for the group to all the other states, with small engagement from those states and base on balls it down to be implemented that would use to the whole group nevertheless are formulated by Telecel Globe and discussed with local directors. Business determinations and schemes are discussed by the top and merely filtered to the underside where necessary. In Burundi B1 advises schemes are formulated and confirmed at the top, so implemented.

3.3.3 Burundi concern environment.

Harmonizing to B1 the general concern environment is characterised by growing and stableness. The telecommunication industry in peculiar is in high competition. With 5 telecommunication companies, 8 million people and less than 1,5 million endorsers. The factors in the environment, that are impacting the smooth running of selling and other concern schemes are led by political relations. After 15 old ages of civil war, the state is retrieving with peace and stableness. However the locals are still sensitive about political relations which is really controversial and divides people. Peoples are slightly leery and anything that somewhat connects to political relations is resisted.

Even though investing has increased the socio-economic environment for invention and telecommunications in Burundi is still crippled by utmost poorness. However it appears to be altering due to the rise of a national development scheme for ICTs. The cultural environment includes establishments and other forces that affect the basic values and behaviours which has seen the concern and selling schemes hindered in restriction of the media mix to utilize while pass oning to the stakeholders.