Challenges Of Cross-Cultural Collaboration In International Trade | Cipla Pharmaceutical Essay.

Your organisations recent global expansion has created new challenges of global collaboration. The general manager has asked you prepare areport for the Executive Team on practical steps that could be taken to enhance cross-cultural teamwork, communication and negotiation.

Your report should provide insights into the general challenges associated with cross-cultural collaboration, and should provide support for a set of recommended pathways for improving cross-cultural teamwork, communication and negotiation.

Issues Faced by Cipla Pharmaceutical in Cross-Cultural Collaboration

The change in the global trends has resulted to the growth of the multinationals. The influence of the change and the globalization has led the organizations to get involved in the international trade. International trade has given rise to different challenges that the companies might face due to lack of communicational abilities and the cross-cultural collaboration. They constrain the progress of the organizations in their respective fields. The organizations, striving to make their position in the international markets, must make a note of the challenges that they might face in the end. Therefore, recommendations must be adhered and certain contingency plans and procedures are undertaken by the organizations in order to ensure the safe progression in the market structure.  

The concerned company for the report, Cipla is into the production of medicines and drugs, adhering to the requirements of the people from all around the world. The company’s attempts of expansion beyond the borders of the nation are being constrained by the challenges that are being faced by the organization relating to their cross-cultural collaboration. The diversity in the cultures has helped the organization in bringing in innovations in the systems and the processes undertaken. However, there are challenges that are being faced by the organization based on the limitations of the cross-cultural collaborations (Caligiuri and Tarique 2012). The communication systems that are being undertaken by the organization also affect the smooth functioning of the organization and hinder the growth of the organization in the international markets. Miscommunications between the collaborators can bring in significant issues in the organizational success.

The report enumerates the issues faced by the concerned organization relating to their cross-cultural collaborations and their ineffective communication. It affects the progress of the organization in the international markets. Moreover, they are constrains to the organization’s expansion. Recommendations are being enumerated in this report in order to understand the important steps that the organization can undertake in order to avoid crises in its growth period.

The issues faced by the concerned organization, Cipla, are based on the cross-cultural collaboration and the communicational barriers that the organization faces while expanding its business beyond the borders of the nation. The most important consideration undertaken by the organization is based on the requirements of the organization to grow its business and indulge itself in the international markets (Hogg, Van Knippenberg and Rast 2012). The pharmaceutical company has been striving to expand since the days of its inception in the market. The challenges that the organization faced while undertaking the expansion of the business is being discussed in this part of the report. It gives a clear insight of the issues that Cipla faced while expanding its business (Chua, Morris and Mor 2012).

Collaboration with Different Stakeholders and their Impact

The cross-cultural collaboration that the organization undertook considering the mutual benefits is being the basis of the challenge that is being faced by the organization (Thomas and Peterson 2017). Company undertakes collaborative activities with the firms in the same industry, non-government and government organizations and healthcare practitioners as a part of their strategies to improve their market availability.

The diversity that is being faced by the organization helps in determining the changes that the organization undertakes for the activities of their expansion.  the rate of diversity that is being encountered by the concerned company is 12.78 %  which affects the growth of the organization in the market. on the other hand, the comnapny collaborates with several other companies and thereby gets affected by the cross cultural growth by some 28% of its complete functioning. Diversity helps in bringing in innovations in the structure of the products manufactured by the organization. It helps the organization in taking steps in order to expand and grow in the market relating to the healthcare requirements of the clients (Refer to Appendice 1). On the other hand, the diversity and the cross-cultural collaboration with the other companies have hindered the progress of the organization and minimized its scope of expansion in the global market (Ulmer, Sellnow and Seeger 2013). The changing trends have affected the system undertaken by the organizations.

The cross-cultural collaboration that the organization undertakes with the view of making them prominent in the market has also affected the functioning of the organization. The expansion that the organization aims at undertaking is being affected by the norms and the policies of their collaborators. On the other hand, the objectives of the collaborators might not match with the objectives of the concerned organization. Therefore, the functions undertaken by the organization is being affected through the goals and the different mental setup of the other collaborators.  

The collaborations undertaken by the company with the governmental and the non-governmental organizations has helped the company in making its progress in the market. However, there are discrepancies that the organization faced while undertaking the collaboration based on the policies and the norms enforced by the governmental and the non-governmental organizations. On the other hand, the steps and actions of the organizations differed from the ones undertaken by the concerned company. It resulted to a lack of integration between the collaborators resulting to the challenges that Cipla faces while undertaking the expansion of their business (Schneider, Ehrhart and Macey 2013). On the other hand, the organization faces a major challenge in undertaking recruitments in a cross-cultural environment based on the diversity of the opinions and the mindset of the people. The collaborative functions of the organization are affected by the diversity and therefore it affects the functionality of the work force of the organization.

Communication Barriers and its Effects on Growth

The concerned company also undertakes collaborations with the healthcare practitioners and the executives. It helps the company in determining the varied healthcare needs of the people and thereby expands their product line. However, the collaboration affects the steps that are being undertaken by the organization affecting the production process of the organization. Determining the varied requirements is an important aspect that is being undertaken by the organization. Issues faced by the organization are based on the varied needs of the clients and therefore adhering to the requirements of the varied requirements challenges the capabilities of the organization (Refer to Appendice 2).

The communicational barriers that are being experienced by the company while undertaking the expansion is based on the lack of the proper usage of the communication channels. The changes that are being undertaken by the organization are based on the requirements of promoting their products in the global market (Bovee, Thill and Raina 2016). The communicational strategies that are being undertaken by the organization help in determining the effectiveness of the processes undertaken by the same. Efficient communication helps in determining the information system of the organization.

The technological advancements undertaken by the competitors have helped them in their competitive advantage. Whereas, the communication system undertaken by the concerned organization must be modified in order to meet the requirements of the people (Moriano et al. 2012).   Moreover, the information system helps the organizations in keeping their stakeholders aware of the change in the policies and the events that are being undertaken by the organizations (Ribbink and Grimm 2014). The challenges faced by Cipla relating to the issues in their communication systems have resulted to the lack of transmitting proper information to the respective stakeholders. The stakeholders help in the smooth functioning of the processes by the organization. Therefore, the concerned company lacks in the smooth functioning and the integration of the departments due to their inefficient communication. It hinders their growth in the international market.  

On the other hand, proper communication helps the organizations in promoting their products and services to their consumers. In this context, Cipla cannot undertake efficient promotional practices in order to keep the consumers aware of the products and the services that are being produced by the organization. The most important consideration undertaken by the organization is based on the attempts of the organization to undertake the changes and thereby modify their line of products (Ulmer, Sellnow and Seeger 2013). The proper information system, which is facilitated by efficient communication, helps the organization in understanding the needs of the consumers and thereby brings in modifications in their systems.

Negotiations and Challenges in the International Market

Negotiation is an important phenomenon that is being undertaken by organizations in order to ensure the availability of the products and the services in the market (Covello, McCallum and Pavlova 2012). The negotiations that the organizations undertake determine the market and the prices of the products and the services that are being prepared by the organization. The major challenges that the concerned company faces is based on the diversity of the policies and the norms in the international markets based on the currency (Kersiene and Savaneviciene 2015). The diversity in the choices that are being undertaken by the organization promotes the usage of the unethical norms that constrains the company’s growth and expansion beyond the borders. Negotiations in the price of the products and the availability of the products in the market determine the most important statistics of the company’s output.

The challenges that are being faced by the organization are based on the different norms and regulations of the companies and the governments with which the organization is collaborating. The collaborations undertaken by the organization affects the strategies and policies of their own system. On the other hand, evidence of contradictions can be found between the policies of the organization and the policies and norms enforced by the governments and the non-governmental organizations in the region (Moran, Abramson and Moran 2014). This affects the functionality of the organization largely. It thereby limits the scope of the organizational expansion, which the organization seeks to undertake. Improvements in the negotiations shall help the organization in undertaking the expansion of the organization beyond the borders of the nation (Moriano et al. 2012).

Recommendations to avoid the situations constitute of the measures that the concerned company must undertake in order to make improvements in the culture of the organization. Moreover, it helps the organization in winning over the challenges that are being faced by the organization while undertaking the expansion of the business.

The company must take certain steps in order to subdue the ill effects of the cross-cultural collaborations. The steps are being enumerated in this section of the report.

• The organization must take steps in order to enhance the trust factor. It helps in undertaking ways through which the collaborators can trust the norms of the organization for their progress (Schneider, Ehrhart and Macey 2013). Collaborations are undertaken by the organizations in order to ensure that the companies grow mutually in a given time limit. Therefore, the most important consideration that Cipla must undertake is to ensure the trust of the collaborators through their efficient functioning. It helps in negotiating their chances of growth with the collaborator and thereby makes way for the mutual growth.  
• Promoting integrated teamwork with the collaborator will help the organization in making their respective progress in the international markets (Lavie, Haunschild and Khanna 2012). The collaborations help the organization in making their progress in the market based on the availability of the products.

The communication system forms the integral part of the advancements made by the organization based on the requirements of the consumers. Therefore, in order to make an expansion in their line of business, Cipla must undertake certain steps in improving the communication systems. The steps are being enumerated in this section of the report.

• Choice of the communication channels helps in undertaking efficient communication. Cipla must undertake steps in order to identify the most appropriate communicational channel in order to keep the collaborators and the stakeholders aware of the situation and the requirements of the business (Refer to Appendice 3).  Proper communication also helps in keeping the staff and the internal stakeholders aware of the changes that are being undertaken by the organization (Bedwell et al.2012).
• Promoting the product through proper advertising and the proper usage of the social media platforms helps the organization in making the consumers and the general people aware of the situation of Cipla and their undertaking (Wiewiora et al.2013). It helps the organization in enjoying a competitive advantage over the other firms.
• The organization must also undertake steps to bring in improvements in the communicational processes because that will help the organization in maintaining a continuous transmission of information with its collaborators. It helps the organization in identifying the issues that they face with the functioning of the collaborators (Real, Roldán and Leal 2014). Moreover, communication facilities will help the organization in maintaining a good linkage with the stakeholders of the organization, which will help the organization in expanding its business in the international markets.  
• The company’s indulgence in the communicative systems helps the organization in promoting their products and services in their market (Hsiao, Tsai and Lee 2012). The concerned company undertakes steps like publishing their annual reports in their websites and their indulgence in the social media platforms. It helps in undertaking the most probable steps to expand in the market.

Recommendations to Overcome the Challenges

Negotiations are being undertaken by the organizations in order to undertake their growth and expansion in the market. The most important steps that the concerned company might undertake in order to make their progress in the market are being enumerated in this section of the report.

• The company negotiates on the norms that are being enforced by the governments and the legislations of the region (Matsumoto and Hwang 2013). The diversity in the norms and the variation of the legislations affects the functioning of the organization in the market. In order to avoid the situations the company can take help of some consultancy firms in order to negotiate with he governments for the flexibility of the norms that are being enforced (Emerson, Nabatchi and Balogh 2012). The flexibility helps in minimizing the contradictions between the norms and policies of the company with that of the government. The important consideration undertaken by the concerned organization, in this context, is based on the sustainability of the organization in the market structure.
• The concerned company can also negotiate on the terms of the organizational growth based on the factors of the goodwill that it has in the social structure and the market. the goodwill speaks for the cause of the organization (Cummings and Worley 2014). It helps the organization in negotiating with the governments to make changes in the legislative boards for mutual benefits.

Conclusion 

Therefore, from the above analysis it can be stated that the organization, Cipla must undertake certain steps in order to identify the discrepancies that the organization faces in terms of the cross-cultural collaboration and the lack of proper communication and negotiations. The report aims at understanding the discrepancies and the challenges faced by the organization in expanding its business in the international market. The diversity of the mental setup and outlook of the collaborators has resulted to the hindrances that affect the growth of the organization. Moreover, the lack of efficient communicational practices also stops the company from undertaking ways to expand in the market.

The most important aspects that the company must undertake are based on the negotiations.  Negotiations undertaken by the organization to support their existence in the markets of the region help in making them more prolific to the regional environment. It helps in determining the important aspects of the change that are being undertaken by the organization.

References 

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