Cultural, Governmental, and Legal Differences
The organization that had been initially chosen to work on for this assignment is the Coca-Cola company. In addition to the United States, which serves as the host country, the paper will also make use of South Korea, which is a host country for the Coca-Cola Company. Often, every country has a unique culture that is different from one another. There are many distinctions between the two countries that will be compared, but the paper focuses on what is considered to be the most key ones. For instance, younger people in the United States often address their elders by their first names. However, filial piety (reverence for one’s parents and other seniors) is a prominent part of Korean culture because of Confucianism, as stated by Coleman (2017). Additionally, while Americans are more likely to be direct in their communication, thus causing confrontations, Koreans will try to avoid potential confrontations by providing hints.
The United States has diversity in valuing people’s uniqueness compared to South Korea. In today’s world, anyone may transform their appearance to resemble anyone else by changing their hair, or makeup, or even having plastic surgery done. Additionally, in the United States, people are guided by the notion that they are free to wear whatever they feel free to and pursue any choice they intend (Coleman, 2017). However, Korea has much less diversity, so being diverse does more harm than good. These cultural differences can be managed by embracing diversity and accommodating the differences, enhancing open communication and leading culturally diverse teams as a global leader.
South Korea is regarded as a centralized democratic republic with separate executive, legislative, and judicial branches. The President of South Korea is the highest-ranking official in the nation, followed by the Prime Minister. The Constitution of the Republic of Korea serves as the governing document for the South Korean government. On the other hand, the United States government is structured based on their constitution. Their government is made up of three branches: legislative, executive, and judicial (Kelly, 2019). The government is headed by the president, who is deputized by a vice president. Although the United States Constitution outlines the framework of government, the actual method in which the offices of Congress and the Presidency are filled are dependent upon the American political system. These governmental differences can be managed by ensuring that both the government and the businesses unite to realize a common vision.
South Korea has a civil legal system as the basic legal framework. A majority of the world’s population, almost 60%, is governed by this form of law system. This kind of legislation is also known as a continental law system or a Romao-Germanic law system (LSU Law, 2020). On the other hand, the American legal system is a common law one which relies heavily in the courts of law. These legal differences can be managed by the home country by ensuring that they understand and conforms to regulatory and legal environment of the host country.
Communication Styles
Business success relies on the ability to effectively communicate with customers and partners. Lack of communication often leads to organizational failure. The ability to communicate effectively with one’s team and the company’s customers is needed by every leader (Cristerna, 2018). Every country has a different and unique communication style that they use in business. Americans tend to be straightforward while speaking to one another. Similarly, they are known for giving their messages in a verbal manner without using gestures and body languages. Most individuals in the United States find it quite irritating when others engage in verbosity (Cristerna, 2018). They enjoy it when one is direct and to the point. As one speaks, it is polite for those who are paying attention to nod or smile ever so slightly. In the United States of America, a smile is a highly significant gesture that demonstrates consideration for others. The American people, in general, are known for their exceptional politeness and respect.
The basic method of communication in South Korea is indirect and wordy. In other words, they try to figure out what is going on based on the speaker’s body language and vocal inflections (Cultural Atlas, 2020). In South Korea, where Korean is the de facto official language and few businessmen are fluent in English, the language barrier is especially severe. Taking a moment to gather one’s thoughts before responding shows that they value the conversation enough to give the question careful consideration. Doing so demonstrates a high level of courtesy and respect on their part (Cristerna, 2018). Therefore, it is evident that both U.S and South Korea make use of assertive communication. A person who is assertive expresses their thoughts and feelings openly, stands up for what they want, and does not infringe on the rights of others. To avoid miscommunication in both nations, there is need to include an interpreter in case of a formal business activity since both counties speak different languages.
Negotiation Styles
The negotiating process may be broken down into five distinct styles. These negotiation styles include competitive, collaborative, compromise, avoiding, and accommodating. Among South Koreans, competitive negotiating is the common type of negotiation being used. According to Spring Time Academy (2020), competitive negotiators are strategic thinkers, thus they have very little time for compliments, and their personalities are results-driven. Although competition is the norm in Korean negotiations, it does not mean they do not also seek win-win scenarios and place a premium on long-term collaborations (Spring Time Academy, 2020). Before entering into negotiations, Korean negotiators take their time gathering all of the relevant facts.
Several distinct negotiating styles are used in the United States. Every business leader in the United States negotiates deals in the way they believe will best benefit their company (Caputo et al., 2019). Although there are five different approaches to negotiation, cooperation is the most common kind of negotiation in the United States. Due to the country’s strong Christian and religious stance, its corporate elite are likely to treat all employees fairly. Negotiators that are able to work together to find a win-win solution are forthright in their assessment of both parties’ needs and concerns (Caputo et al., 2019). When negotiations go well, everyone involved is satisfied with the final product.
Hofstede’s cultural dimensions’ theory provides a framework for understanding cultural differences and communicating effectively with people from other cultures. The theory explains how people’s beliefs and how they are shaped by their society’s cultural norms (Caputo et al., 2019). U.S communicators should take note that South Koreans rank top on both the uncertainty avoidance index and the long-term orientation scales. This insight will be invaluable for crafting an effective communication strategy for reaching this country’s population. They should also to learn as much as they can about South Korean culture and customs so that they can negotiate effectively and avoid offending natives (Caputo et al., 2019). There is a need for them to respect South Koreans and allow them to air their side of the deals when negotiating.
Leadership Styles of the Current CEO of Coca Cola Company and Appropriate Leadership Style
Currently, James Quincey, a British businessman living in the United States, serves as CEO of the Coca-Cola Company. He is a long-time employee who has risen through the ranks to become the company’s current CEO. He is respected as a leader who advocates for his staff. His primary objectives are ensuring that everyone, regardless of their social standing and position, has access to what they need. His approach to leadership is a combination of situational and transformational approaches. Characteristics of a transformative leader that James Quincey possesses include charisma, communication, vision, and self-confidence. With a situational approach, the leader chooses the appropriate action based on the current circumstances (Grossman & Sharf, 2018). The most important aspect of this type of leadership is knowing when to employ it. Based on situational theory, the leader is able to adopt any leadership style and deal with any given circumstance (Lane & Maznevski, 2019). Employees benefit from this since their leader can accommodate a wide variety of working styles.
Brian Smith is the second executive from the Coca-Cola corporation chosen for this assignment. He has been the company’s CEO and has worked there for a long period. Based on the analysis of these two leaders, it can be proposed that situational and transformational leadership style is appropriate for leaders of Coca Cola company while working in the host country. With the use of this two-leadership style, it can be guaranteed that the organization equips its executive with skills (Grossman & Sharf, 2018). These skills can be used to effectively collaborate with their teams and work toward the common goal of making the business successful (Grossman & Sharf, 2018). It can be assumed that Coca Cola company executives are using the proper leadership style to do business abroad since the company has been established for many years and is expanding and developing globally.
Skills a Manager of the Coca-Cola Needs when Transferring to the Host Country
To succeed, managers who would be transferred to the host country need to have a certain set of competencies. Knowing and understanding the culture of the nation to which they will be sent is one of the skills they must possess (Lane & Maznevski, 2019). Another advantage is that they may learn the local language. The secret to every business’s success is communication. When the manager travels to South Korea, he or she should be able to communicate with the business back in the U.S. The leaders of the two nations’ relationship will guarantee that the issues are considered and dealt with effectively. The manager should also boost the spirits of the workers in the host country (Lane & Maznevski, 2019). They need to inspire the workers in ways that would encourage them to stay on board with the business. The sector may also need a motivating leader who can aid in their professional development.
In conclusion, it is evidenced that the Coca-Cola company has to consider the difference in cultural, legal and government in South Korea for them to realize success. Additionally, there is a need for them to consider an appropriate communication model considering that South Korea has Korean as a national language. The company should also establish effective negotiation skills while bargaining in the host country. The essay has also shown how situational and transformational leadership styles are effective for CEO in the company.
References
Caputo, A., Ayoko, O. B., Amoo, N., & Menke, C. (2019). The relationship between cultural values, cultural intelligence and negotiation styles. Journal of Business Research, 99(3), 23-36. Web.
Coleman, G. (2017). Korea and the USA Biggest Cultural Differences. Web.
Cristerna, J. (2018). Types of Communication Styles. Web.
Cultural Atlas. (2020). South Korea Communication Styles. Web.
Grossman, G., & Sharf, R. (2018). Situational Judgment Tests and Transformational Leadership: An Examination of the Decisions, Leadership, and Experience in Undergraduate Leadership Development. Journal of Leadership Education, 17(1), 120-235. Web.
Kelly, M. (2019). United States Government and Politics. Web.
Lane, H. W., & Maznevski, M. L. (2019). International management behavior: Global and sustainable leadership. Cambridge University Press.
LSU Law. (2020). What is the Civil Law? Web.
Spring Time Academy. (2020). Negotiation Styles. Web.