Why International Companies Need to Understand Cultural Differences: Hydro Generation Case Study
Lessons Learned
This case study shows how imperative it is for foreign corporations recognize and accept the cultures of the countries they are operating in. Culture is defined as the values, beliefs, customs, practices, and social behavior of a particular nation or people. Hydro Generation (HG) is a United States-based company whose specialty is building hydroelectric power dams. HG’s core values are founded on a solid Christian culture and this was the first time ever operating in Uganda, let alone the African continent. HG’s company culture was basis of the problems they had faced in Uganda because they were not sensitive the differences between the Ugandans and themselves when it came to conducting business. International companies need to be understanding to the diversities in order to predict and manage the relationship due to the fact that the companies’ accustomed way of contacting business aboard maybe not be the best way. It is then up to the management in place to decide the best business practices needed and then make any adjustment necessary to complete its objective. Martin with his experience in college and the Peace Corps knew this; Green learned this after evaluating Martin.
Whether and how much a company should allow its operations managers to adapt to the foreign cultures should be contingent not only on the culture of the country but also the attitudes approaches of the corporate culture. These viewpoints take form in one or more of the following attitudes: Polycentric, Ethnocentric, or Geocentric. Due to the Ugandan government officials way of conducting business through acceptance of tips and advances, which is in conflict with HG’s Christian foundation, managers like Martin should have and did take on a polycentric approach thus mixing the two cultures.
Even though Martin had completed the project on schedule and under budget, he did disregard company policies as well as the possibility of violating United States federal law. Martin
This case study shows how imperative it is for foreign corporations recognize and accept the cultures of the countries they are operating in. Culture is defined as the values, beliefs, customs, practices, and social behavior of a particular nation or people. Hydro Generation (HG) is a United States-based company whose specialty is building hydroelectric power dams. HG’s core values are founded on a solid Christian culture and this was the first time ever operating in Uganda, let alone the African continent. HG’s company culture was basis of the problems they had faced in Uganda because they were not sensitive the differences between the Ugandans and themselves when it came to conducting business. International companies need to be understanding to the diversities in order to predict and manage the relationship due to the fact that the companies’ accustomed way of contacting business aboard maybe not be the best way. It is then up to the management in place to decide the best business practices needed and then make any adjustment necessary to complete its objective. Martin with his experience in college and the Peace Corps knew this; Green learned this after evaluating Martin.
Whether and how much a company should allow its operations managers to adapt to the foreign cultures should be contingent not only on the culture of the country but also the attitudes approaches of the corporate culture. These viewpoints take form in one or more of the following attitudes: Polycentric, Ethnocentric, or Geocentric. Due to the Ugandan government officials way of conducting business through acceptance of tips and advances, which is in conflict with HG’s Christian foundation, managers like Martin should have and did take on a polycentric approach thus mixing the two cultures.
Even though Martin had completed the project on schedule and under budget, he did disregard company policies as well as the possibility of violating United States federal law. Martin