FINAL ASSIGNMENT

COURSE:
MULTI-CULTURAL AND TRANSNATIONAL MANAGEMENT
(INE 3223 E*)

Instructor: MA. Nguyen Thi Phuong Linh

Name of student: Vu Do Anh Hao
Date of birth: 11/04/2003
Student ID: 21050853

Hanoi, 2024
 Plagiarism statement
“I confirm that this assignment is entirely my own work and has not
been submitted in full or in part for any other course within or outside UEB. I
confirm that all references are duly acknowledged.”
 Contents
PART 1: ESSAY QUESTIONS (3 points)...........................................................

PART 2: CASE STUDY ANALYSIS (5 points)................................................10

1.Introduce the company’s history......................................................................10

2.Based on the content covered in the course, provide examples of how the
MNC has performed managerial activities in a multicultural environment. (dif
style leadership …)..............................................................................................14

2.1. Organizational culture..................................................................................14

2.2. Communication style....................................................................................17

2.3. Decision – making or control process..........................................................19

2.4. Leadership style............................................................................................20

3. Analyze the advantages and problems of managing a diverse and

multicultural workforce in the MNC...................................................................22

4. On reflection, what advice would you give to that MNC to make the best of
its diverse workforce?.........................................................................................27

PART 3. COURSE REFLECTION (2 points)....................................................31

Reference.............................................................................................................31
PART 1: ESSAY QUESTIONS (3 points)
In the current era of globalization, how does cultural diversity impact
management activities in general?
Utilizing the cultural dimensions' methods learned in this course,
analyze and provide examples of their influence on management activities.
Additionally, offer recommendations if deemed necessary.
_________________________________________________________
The influence of cultural differences on international management
stretches far and wide, impacting everything from technology adoption to
leadership styles and political interactions. At its core, it shapes the very way
people in organizations think and act. In overall terms, the cultural impact on
international management is reflected by basic beliefs and behaviors.
(Luthans and Doh 2018) The cultural diversity may result in obstacles for
international management, but can also provide various merits. Hence, during
this time period of unstoppable globalization, it is crucial for management
methods to adapt accordingly.
To provide some example of the cultural diversity’s impact on
management activities, Trompenaars’ Cultural Dimensions (Luthans and Doh
2018) including 7 different dimensions would be utilized in the following
section.
Trompenaars’ Cultural Dimensions
1. Universalism vs. Particularism
Universalism is the belief that ideas/practices can be applied
everywhere without modification. Some of the countries with universalist
culture includes the U.S., the U.K., and Australia. In universalist culture,
people tend to place a high importance on laws, rules, values, and obligations.
They try to deal fairly with people based on these rules, but rules come before

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relationships. In the business setting, with the “a deal is a deal” mentality,
they usually adhere to the contracts, rules and laws very closely.
Particularism is the belief that circumstances dictate how ideas and
practices should be applied. In a particularistic culture such as Indonesia and
China, people believe that each circumstance, and each relationship, dictates
the rules that they live by. Their response to a situation may change, based on
what's happening in the moment, and who's involved. This type of culture
also takes time to do business in, as the people appreciate building
relationships and getting to know one another (Balan and Vreja 2013).
This dimension revolves around the question of what takes precedence:
rules or relationships. Management activities should pay attention to this
question in order to have the appropriate approach to this culture. For
instance, when working in the U.S might be more task – oriented than people
– oriented, working in China often require more focus on improving the
workplace relationships.
 Recommendation:
When doing business in a universalism culture, people should
understand how their work ties into their values and beliefs. During the
working process, clear instructions, processes, and procedures should be
provided beforehand so as to avoid any misunderstanding. Promises or
contracts should be kept consistently.
When doing business in a particularism culture, people should be
flexible and keep others in mind in the decision-making process. They also
should take time to build relationships and get to know people.

2. Individualism vs. Communitarianism

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 Individualism means people regarding themselves as individuals.
Individuals must make their own decisions and take care of themselves.
Success is attributed to individual performance and people are allowed to be
more creative and learn from their mistakes, should they occur.
Communitarianism means people regarding themselves as a part of the
group. In communitarianism, the group is more important than the individual.
The group provides safety and help, in exchange for loyalty. Decisions are
made collectively and personal favoritism is generally avoided.
This dimension centers on the balance between self-care and group
welfare. Trompenaars links individualistic cultures to the western world (e.g.,
Canada, Thailand, U.S., Japan) and communitarian cultures to non-western
countries (e.g., Malaysia, Korea) (Balan and Vreja 2013). Understanding this
dimension is crucial for management to develop culturally appropriate
practices. For example, in the US, an individualistic country, it is more
effective to motivate workers by embracing personal achievement than group
achievement. On the other hand, in China, people act in the best interest of the
group and not just themselves. The culture strives for harmony amongst the
group and open conflicts are not commonly seen.
 Recommendation:
When doing business in individualism culture, people should be
prepared to emphasize a great deal of personal responsibility. Individual
performance should be praised and rewarded. People should be given
autonomy to make their own decisions and to use their initiative; allowed to
be creative and to learn from their mistakes.
When doing business in a communitarianism culture, people should be
patience and aim to build lasting relationship. Group performance should be

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prioritized. In the decision – making process, other people should also be
included. Favoritism or bias should be avoided.

3. Neutral vs. Emotional

In neutral cultures, people make a great deal of effort to control their
emotions to hide what they are feeling or thinking. Managing your emotions
and body language effectively is key. In business, neutral cultures can be put
off by emotional cultures, therefore it is critical to come prepared to avoid an
awkward situation.
In emotional cultures, people tend to be very expressive, even
spontaneously. Often, being emotionally expressive helps people build trust
with each other and can be used to manage conflict effectively. Conveying
emotions through body language is also welcomed in this culture. (Balan and
Vreja 2013).
 Recommendation:
When doing business in a neutral culture, people should manage their
emotions effectively, be careful with their body language so as not to convey
negative emotions. In meetings and interactions, they should stay "stick to the
point" and be straight forward. Moreover, they should watch people's
reactions carefully, as they may be reluctant to show their true emotions.
When doing business in emotional culture, people should try to respond
calmly to the emotional affections. They also should try to open up to people
to build trust and rapport and use emotion to communicate their objectives.

4. Specific vs. Diffuse

Specific means large public space shared with others and small private
space guarded closely. People keep work and personal lives separate. As a

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result, they believe that relationships don't have much of an impact on work
objectives, and, although good relationships are important, they believe that
people can work together without having a good relationship.
Diffuse means public and private spaces similar in size, public space
shared with private space. People see an overlap between their work and
personal life. They believe that good relationships are vital to meeting
business objectives, and that their relationships with others will be the same,
whether they are at work or meeting socially. People spend time outside work
hours with colleagues and clients.
This dimension revolves around how cultures perceive the appropriate
level of integration in their various life aspects. In high specific cultures like
Austria, U.K., U.S.), people are likely to be open, extroverted and have a
strong separation between work and personal life. Whereas, in high diffuse
countries like Venezuela, China, Spain, people are more indirect and
introverted, and have their work – private life closely linked. To avoid
unnecessary misunderstandings or negative impressions that could lead to
unwanted conflicts, managers should understand the cultural view on public
and private balance. For example, in the U.S, during the paid time off, people
would turn their phones off for the time being and would not respond until the
end of their paid vacation. However, in China, business talks usually carries
out even on the dinner table.
 Recommendation:
When doing business in a specific culture, people should be direct and
to the point. Employees should be able to keep their work and home lives
separate. People should not use their titles or acknowledge achievements or
skills that are irrelevant to the issues being discussed.

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 When doing business in a diffuse culture, people should focus on
building a good relationship before you focus on business objectives.
Moreover, they should be prepared to discuss business on social occasions,
and to have personal discussions at work, and try to avoid turning down
invitations to social functions. People should respect a person’s title, age, and
background connections; do not get impatient when people are indirect or
circuitous.

5. Achievement vs. Ascription

Achievement culture is one in which people are accorded status based
on how well they perform their functions (Austria, Switzerland, U.S.).
Achievement cultures give high status to high achievers.
Ascription culture is one in which status is attributed based on who or
what a person is, such as their age, gender, or social connections (e.g.,
Venezuela, China, Indonesia). Titles are commonly used to clarify status
within an organization and people generally show respect and don’t challenge
figures in authority (Balan and Vreja, 2013).
This dimension delves into how cultures assess a person’s value,
whether based on their performance or their inherent attributes. When doing
business with an ascription-oriented culture, it is best to send employees that
are older or more senior who have experience with similar customs. Hong
Kong is an ascriptive culture where titles are clearly outlined, even on
business cards, and status plays a large role in business settings. Kinship,
birth, and age are important factors when dealing with other people. Superiors
are respected regardless of how you feel about them (Li, 2012). On the flip
side, when doing business in an achievement-oriented culture, it is vital to

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send employees that are well-informed and equipped with the right
knowledge and skillset.
An example for this dimension can be given as: Starbucks entered the
Australian market with a saturation strategy, by opening an immense quantity
of locations at once in order to choke out small competition and monopolize
the market quickly. Whereas it generated demand by scarcity in Vietnam, it
adopted a fundamentally opposite strategy in Australia – which led to a
failure to create enthusiasm around the brand. Additionally, this ‘invasion’ on
the Australian community was perceived as boisterous and overly American.
Australia, as per Trompenaars’ dimensions, is an achievement-based society
rather than ascription-based, and therefore does not react well to large
corporations “banging their chest” (Trompenaars, 1997).
 Recommendation:
When doing business in an achievement culture, good performance
should be rewarded and recognized appropriately. Titles are only needed
when relevant, so people do not have to pay too much attention to it. In a
group, sufficient data, technical advisers and knowledgeable people should be
included to prove their proficiency.
When doing business in an ascription culture, titles should be used to
clarify status in an organization. It is vital to show respect to people in
authority, especially when challenging decisions. A group should have older,
senior, and formal position holders who can impress other side; respect
counterpart’s status and influences.

6. Time
Sequential means people tend to do only one activity at a time, keep
appointments strictly, and show a strong preference for following plans as

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they are laid out and not deviating from them. In sequential culture like in the
U.S, people place a high value on punctuality, planning (and sticking to your
plans), and staying on schedule. In this culture, "time is money," and people
don't appreciate it when their schedule is thrown off. Or for example, Hong
Kong is more of a sequential time – oriented culture. Meetings are planned in
advance and it is best to arrive on time and plan around any possible delays.
Often business proposals and schedules are also sent in advance and
translated into Cantonese or Mandarin.
Synchronous means people tend to work on several projects at once,
and view plans and commitments as flexible, as schedules generally are
subordinate to relationships. People in synchronous – time cultures, like in
Japan, Mexico, often will stop what they are doing to meet and greet
individuals coming into their office.
 Recommendation:
When doing business in a sequential culture, people should focus on
one activity or project at a time, be punctual, set clear deadlines and meet
them on time.
When doing business in a synchronous culture, people should be
flexible in how to approach work through allowing people to be flexible on
tasks and projects. And if necessary, highlight the importance of punctuality
and deadlines if these are key to meeting objectives.

7. The Environment
Inner-directed is when people believe in control of outcomes. People
believe that they can control nature or their environment to achieve goals.
This includes how they work with teams and within organizations.

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 Outer-directed is people believe in letting things take own course.
People believe that nature, or their environment, controls them; they must
work with their environment to achieve goals. At work or in relationships,
they focus their actions on others, and they avoid conflict where possible.
People often need reassurance that they're doing a good job.
This dimension asks whether we exert control over our environment or
yield to its control. In an inter – directed direction culture including the U.S.,
the U.K., and Australia., individuals believe they can manipulate their
environment to attain their goals. The focus is self-centric, emphasizing
oneself, one’s team, and one’s organization. Winning holds great importance
in these cultures, often giving rise to assertive personalities. Conversely, in an
outer – directed culture like China, Russia, and Saudi Arabia, individuals see
the necessity of collaborating with their environment to achieve goals. These
cultures prioritize maintaining strong relationships over winning. Achieving
goals hinges on factors like relationships and environmental dynamics.
 Recommendation:
When doing business in an inner-directed culture, people should be
allowed to develop their skills and take control of their learning. Conflict and
disagreement should be discussed and resolved clearly with places for
constructive criticism.
When doing business in an outer-directed culture, direction and regular
feedback would help letting people know how their actions are affecting their
environment; balance between negative and positive feedback would help
boost morale among the workplace. Conflicts are preferred to be managed
quickly and quietly.

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PART 2: CASE STUDY ANALYSIS (5 points)
In this assignment, you are expected to draw on the lectures and
tutorials on managing a diverse and multicultural workforce.
Choose a multinational company (MNC) with a diverse and
multicultural workforce. Students are expected to address the following
issues:
_________________________________________________________
1. Introduce the company’s history.
Starbucks is an American firm that runs one of the world's largest
chains of coffee shops and one of the most well-known brands. With its main
office located in Seattle, Washington, the corporation has over 35,000 outlets
operating in 80 countries as of 2022.
While it wasn't the first large coffee chain in the United States,
Starbucks was the first to develop and widely disseminate a specific type of
café culture. Starbucks started marketing coffee as a comprehensive
experience that integrated atmosphere, community, function, and lifestyle in
the 1990s. Starbucks became one of the most well-known brands in the coffee
shop business and saw enormous growth by changing people's perceptions of
coffee and coffee shops.
At the end of the millennium, it had grown from a single tiny
establishment that had opened in 1971 to a massive coffee chain. In the US
and abroad, Starbucks has spearheaded a revolution in coffee consumption.
Gordon Browker, Zev Siegl, and Jerry Baldwin were the three men who
opened the shop. For the first nine months, Peet's Coffee was the coffee
supplier to Starbucks. Five Starbucks locations were opened in the first ten
years. His first coffee shop debuted in 1986 at the Columbia Seafirst Center.
A second location followed soon after in Seattle, and a third location opened

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in Vancouver. Additionally, he employed Dave Olsen, the owner of one of
Seattle's earliest bohemian espresso bars, as an employee trainer and adviser
on coffee. After a year, Starbucks was feeling frustrated while Schultz was
doing well. Then, Schultz made an alluring offer to his former coworkers,
saying, "How about $4 million for the six-unit Starbucks chain?" Olsen
continued to buy and roast coffee for Starbucks after they sold. After the
merger, the business changed its name to Starbucks Corporation and got
ready to expand nationally. (Francis, 2018)
Starbucks Corporation employed less than 100 people and operated 11
locations as of August 1987. It debuted in Chicago in October of that year,
and by 1989, the city was home to nine Starbucks. The market for Starbucks
was expanding quickly; in the US, revenues increased from $50 million in
1983 to $500 million five years later. When Starbucks launched a mail-order
catalog in 1988, it was running 33 locations and serving mail-order clients in
every state. Through word-of-mouth, the company's reputation had gradually
increased by that point. Starbucks engaged a McDonald's Corporation
information technology specialist to design a PC-based point-of-sale system
for use by store managers, and the company also established a pricey
computer network. Every night, all of the data is sent to the headquarters in
Seattle. A new roasting factory and an expansion of the headquarters were
constructed in 1990. In the food service sector, Starbucks is known for
treating its staff well, which contributes to minimal employee turnover. In
1992, the company became public, and the following year it established its
first retail locations in Denver, San Francisco, San Diego, and Orange
County. There were 165 stores overall by the conclusion of the year.
Starbucks initially launched an East Coast shop in 1993, in a prime location in
Washington, D.C. The chain had 275 locations at the end of 1993, and 425

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the following year. Sales had increased by 65 percent on average during the
preceding three years, while net income increased by 70 to 100 percent yearly
over that same period. In 1994, Starbucks expanded into significant new
markets and acquired Coffee Connection, a rival chain with 23 stores. The
introduction of the Frappuccino frozen coffee drink by Starbucks in its
locations in 1995 caused an unanticipated spike in sales. Starbucks started
supplying coffee for United Airlines flights that same year.
The next year, the company expanded internationally for the first time.
Initially, they collaborated and obtained licenses from nearby retailers. With
the assistance of SZABY Inc., a Japanese retailer and restaurateur, the
company built its first overseas market in Japan. That same year, through
additional collaborations, it launched locations in Singapore and Hawaii, and
in 1997 it expanded to the Philippines. In order to create and market
Starbucks ice cream, they partnered with Dreyer's Grand Ice Cream, Inc. in
1996. The best-selling coffee ice cream in the US within eight months of its
launch. By the end of 1997, they had opened branches in Florida, Michigan,
and Wisconsin, bringing their total to 1,412. $1 billion in sales and $57.4
million in net profitability were achieved. Critics said that the company
occasionally put a Starbucks right across the street from neighborhood coffee
shops in an attempt to steal business. To try to prevent Starbucks from
entering their communities, locals in Portland, Oregon, Toronto, San
Francisco, Brooklyn, and Portland, California, organized sidewalk protests in
1996 and 1997. The protesters in Seattle, the home city of Starbucks,
temporarily closed some of their locations in late 1999 as a result of their
outbursts.
With the inauguration of facilities in China and South Korea in 1999, as
well as Taiwan, Thailand, New Zealand, and Malaysia in 1998, the Pacific

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Rim's growth continued. There were 100 Starbucks in Japan at the beginning
of 2000. By 2003, the corporation wanted to have 500 locations throughout
the Pacific Rim. The United Kingdom was the focus of the company's other
major late 1990s drive, albeit the Middle East was still another objective for
worldwide expansion. Seattle Coffee Company, the top specialty coffee
company in the United Kingdom, was purchased by Starbucks in 1998 for
roughly $86 million in stock. By late 1999, there were over 100 branches
throughout the United Kingdom. Starbucks hoped to use its U.K. base for an
invasion of the Continent, aiming for 500 stores in Europe by 2003.
In 1998, Starbucks and Kraft Foods, Inc. reached a long-term licensing
arrangement for the marketing and distribution of Starbucks whole beans and
ground coffee into mass merchandise, warehouse club, and grocery shops.
Additionally, the business started experimenting with Cafe Starbucks, a full-
service casual restaurant. with the acquisition of Pasqua Coffee Co., a chain
of sandwich and coffee cafes with 56 locations in California and New York,
at the beginning of 1999. Prior to the early 1999 acquisition of Tazo Tea
Company, a Portland, Oregon-based manufacturer of luxury teas and related
goods distributed through 5,000 retail stores, Starbucks had already
established its own in-house tea brand, Infusia.
Starbucks was striving to meet Schultz's lofty targets in the early 21st
century, which included opening 500 locations in Japan and Europe by 2003
in addition to his ultimate target of 20,000 locations globally. He continued to
serve as chairman of the company after resigning as CEO in June 2000 to take
on the role of chief global strategist. Starbucks was striving to meet Schultz's
lofty targets in the early 21st century, which included opening 500 locations
in Japan and Europe by 2003 in addition to his ultimate target of 20,000
locations globally.

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 2. Based on the content covered in the course, provide examples of how
the MNC has performed managerial activities in a multicultural
environment. (dif style leadership …)
2.1. Organizational culture
One of Starbucks Corporation's most distinctive features is its
organizational culture, also known as its company culture. Through beliefs,
conventions, traditions, and behavioral expectations within the setting of the
business organization, the company's organizational or corporate culture
influences employees and business performance. In the case of Starbucks,
franchisee and licensee operations are just one facet of the company's overall
organizational culture. The corporate culture of Starbucks is a culture of
diversity, inclusivity, and belonging. These essential elements come together
to create a work culture that is distinct and tailored to the needs of the chain
of coffee shops. The company's human resource development initiatives and
baristas' interactions with patrons are reflections of the internal culture
environment. The characteristics and principles of Starbucks' corporate
culture are as follows:
Starbucks employs a servant leadership approach, which defines the
behavioral manifestation of the company's organizational culture among
leaders, including corporate leaders and team leaders. By emphasizing
support for subordinates, leaders, managers, and supervisors ensure that every
individual develops inside the company. The employees-first philosophy,
which is in line with human resource development goals connected to
Starbucks' corporate social responsibility and corporate citizenship objectives,
is a manifestation of this corporate culture trait. The business emphasizes the
need of providing for staff members in order to maximize customer

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satisfaction and employee morale. This aspect of Starbucks' workplace culture
was created by former president Howard Behar, who felt that happy
employees are those that care about their customers.
Additionally, Starbucks fosters cordial and pleasant relationships inside
the company. For example, baristas at the company's cafés have a nice and
warm relationship with each other. The company's cordial treatment of
consumers is another aspect of its corporate culture. The essential capabilities
of Starbucks are strengthened by this work culture, which also increases
corporate competitiveness. The business unit creates the worldwide coffee
culture that fuels customer demand for the company's specialty coffee
products by emphasizing relationships in its corporate culture.
Starbucks' corporate culture promotes teamwork by means of efficient
communication. Baristas at the cafés interact with each other intelligibly to
complete orders. Additionally, they work together as a team to optimize the
order fulfillment procedure. As a result, Starbucks' operations management
effectiveness and business process efficiency are supported by the corporate
culture. The business's cost-effectiveness, customer satisfaction, and service
quality are all influenced by its corporate culture.
One of the principles included into Starbucks' organizational culture is
openness. Early on in the company's existence, there was a customary and
outdated work culture that discouraged employees from challenging their
supervisors. Former President Behar established open forums to encourage
employees to speak with supervisors and express questions in order to address
this problem. As a consequence, an open culture within the organization
emerged. Starbucks encourages employee empowerment and fosters creativity
in service delivery and product development through this aspect of its culture.

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 Starbucks places a strong emphasis on diversity and inclusiveness in its
organizational culture. Starbucks has an anti-discrimination policy that
influences the company's workplace culture. Any kind of discrimination on
the basis of gender, race, ethnicity, sexual orientation, religion, age, cultural
origins, or life experiences is forbidden under this policy. This aspect of
Starbucks' corporate culture encourages strong relationships and information
sharing among staff members as well as creativity based on a variety of
viewpoints. By promoting worker motivation, this cultural facilitation lowers
employee turnover. Additionally, this facet of Starbucks' corporate culture
makes patrons feel at home in its cafés. According to Leinwand & Davidson
(2022), “While most organizations somewhat support the notions of diversity
and inclusivity, Starbucks not only understands the importance of having staff
of diverse backgrounds in order to create a welcoming environment for
customers of diverse backgrounds; it has built the capability to deliver on that
aspiration into its HR processes. Together, these capabilities enable Starbucks
to deliver on its strategic goal of being that “third place” that customers
value.”
Given that Starbucks sells both the experience of purchasing and eating
its food and beverage items, its organizational culture plays a critical role in
the company's success. Due to its “relationship-driven, employees-first
approach”, when classifying Starbucks’ organizational culture based on
Trompenaars theory, it is the closest to the incubator type of organizational
culture for such emphasis on people and equity. These days, the company's
work culture is a unique quality that gives it a competitive edge and cultivates
a customer base of devoted Starbucks devotees, both of which contribute to
the company's steady financial performance. Given that franchisees and
licensees operate coffee shops with different organizational cultures and

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approaches to human resource management, the primary corporate strategic
management challenge is how to effectively implement this company culture
in their human resources.

2.2. Communication style

Look at how Starbucks operate differently in China than America due
to the differences in communication style:
While American coffeehouse usually have a take away culture, in
which the customers will quickly buy the drink then leave for their work
(Rein, 2012). However, it is different in China. The need for social interaction
in China is much higher than that in Western countries, with U.S as an
example. In the United States, Starbucks is a take – away coffee chain store
that emphasizes on the importance of the third place for social interactions.
The store design and structure are standardized throughout almost every store
in the U.S. (Starbucks 2015). Nonetheless, Chinese people consider coffee
shops more than a place to only buy drinks, but also a destination for friends
and family gatherings. They want to be served with their traditional foods and
drink, and they have the habit of sitting for hours in the teashop (Rein, 2012).
As a result, Starbucks in China pays much attention to its store design. In his
writing about Chinese market, Schultz (2011) believes that Starbucks stores
with a clean, spacious and comfortable environment are better place for social
interaction in comparison to Chinese’ apartments, which are often small and
tight. Hence, the Starbucks stores in China are larger with more seats for
customers to stay for hours. The store design was even renovated into a
combination of Starbucks’ Italian coffeehouse style and teashop atmosphere
in Chinese history and culture. The unique environment was very inviting to
the local customers who want a new taste without losing the traditional

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values. Moreover, instead of a take-out order system, Starbucks adapted to
local customers’ need for dine-in service (Rein, 2012).
Additionally, the public is shown a different message by this practice:
Starbucks values and embraces Chinese traditions. Since China was emerging
from the hardships of the past century, nationalism was being strengthened
even more and that Chinese people may view Western ideas negatively. The
Chinese public would have a favorable opinion of a foreign corporation when
it realizes that the company is embracing and respecting national cultures.
Bell and Shelman (2011) note in their article that demonstrating your
nationality is essential for conducting business in China. Consequently,
Starbucks did not have a blind faith that is based on a brand ego by neglecting
the demands and wants from the new market, in contrast to Donkin Donuts
and Burger King, which are well-known American businesses who believed
their brands would be effective in China (Peterson, 2014). Starbucks made the
proper choice, according to DeVault (2015), by eschewing the traditional
strategy of advertising and promotions, which could be interpreted by
prospective Chinese customers as a challenge to their culture of tea drinking.
This strategy can be based on the core values that Schultz established when he
founded Starbucks. According to Schultz (2011), Starbucks' success is based
on the relationships of trust it has with its growers, communities, workers, and
consumers rather than on traditional marketing and promotion. We haven't
watched any TV commercials for Starbucks. Starbucks feels that business can
avoid spending money on marketing if its brand is strong, conveys important
messages, and produces high-quality goods. Additionally, this strategy
demonstrates a novel kind of communication channel. The author argues that
Starbucks shows its appreciation for its patrons by allowing them to provide
feedback through a two-way communication method, as opposed to

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traditional one-way contact. Customers find value in the brand and a sense of
belonging as they engage with baristas via the customizable order system.
Consequently, Starbucks should want Chinese consumers to understand
"familiarity" in a different way when they interact with the brand. That is how
it feels to be "home."
Moreover, further analyzing these practices by comparing their
correspondences with Hofstede’s cultural dimensions of China will provide a
deeper understanding of Starbucks’ brilliant executives. Lewis (1997) asserts
that because Chinese society is a reactive culture, people in China are
typically skilled at nonverbal communication and attentive listeners. In this
kind of culture, monologue - pause - meditation - monologue is the favored
form of communication (Lewis 1997). People in reactive cultures require
quiet time to reflect before acting. A web society is created by this kind of
listening environment, where people gather information from numerous
outside sources before making decisions (Lewis 1997). Furthermore, China
receives a score of 20 from Hofstede (2015) for individualism vs.
collectivism, indicating that people in Chinese society prioritize the needs of
the group over their own. An individual's decision-making process is greatly
influenced by friends, family, and society. "We are members of a group, not
individuals," according to Lewis (1997) (p.81). If there is a negative public
opinion, there is a chance that Chinese consumers will not be convinced by
one-way traditional marketing. Consequently, word-of-mouth communication
works better at piqueing public curiosity about China (Lewis 1997). Chinese
consumers will consult multiple sources of information before making a
decision. Few risk-takers are willing to buy a new product right away when it
is launched to the market. Before attempting a product, customers often wait
to hear from family members or read reviews online.

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 2.3. Decision – making or control process
When it comes to the controlling process, Starbucks shows many signs
of an external control process. Before deciding to operate in a new culture and
environment, Starbucks makes it a point to conduct in-depth study on the
history, culture, and taste preferences of the locals. Prior to beginning
construction of their participating stores in the intended site, they do market
research. Starbucks even tailors its menu to the requirements of the
community without sacrificing the essence of their iconic brand. Its
localization strategy combines creative store designs with regional items to
enable them to completely integrate into the local culture. Here are a few
illustrations: In Japan, local buildings typically have low roofs and subliminal
allusions to Shintoism, the national religion. To create the ideal atmosphere at
participating stores, the company brought in local designers. For instance, in
homage to the religion, the Starbucks store in Fukuoka employed 2,000
interlocking wood blocks to create a forest-like atmosphere and respect
nature. The Meguro location has the aesthetics of a traditional Japanese
teahouse combined with a neighborhood artisan store. The stores sell regional
fare and beverages, like matcha (green tea) frappucinos. Compared to the
foods available in American stores, the servings are smaller and less sweet.
(Day, 2023) Or in another case of Starbucks in China. Tea is regarded as the
national beverage in China. As a result, the company has added a number of
green tea-based products to its menu in an attempt to penetrate the market. In
an effort to promote the American culture of coffee consumption, other coffee
flavors were added as consumers grew more familiar with the brand. Given
that Chinese people prefer to gather in big groups, Starbucks has created
tables that can be joined together to seat additional people. (Francis, 2017)

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 2.4. Leadership style
Because of the way he collaborated with other Starbucks employees to
create a vision, and then turned that vision into reality, Howard Schultz, the
former CEO of Starbucks, is a transformational leader with a paternalistic
leadership. Thanks to his innovative ideas, Starbucks was saved on the edge
of collapsing. By fostering a revolutionary work environment at Starbucks
and leveraging his compelling personality and principles, Schultz created an
empire in the coffee industry. He overcomes corporate challenges and
achieves shared success by using referent power, motivation, and persuasion.
A fundamental component of the Starbucks business is Howard
Schultz's transformational leadership qualities. In the most evident instance,
Starbucks calls all of its workers "partners" and provides stock options and
health benefits to all of them, full- and part-time alike. He wanted Starbucks
to be the employer of choice, the company everybody wanted to work for. It
dawned on Schultz that realizing his vision required the individuals on the
front lines to put in the work necessary to make it happen. To realize his goal,
he put the employees first and made use of his powerful influence and
motivational abilities. (Sachs, 2023)
Additionally, Schultz has proven to be an effective motivator when it
comes to guidance and emotional intelligence. Schultz went to address the
other Starbucks partners on the first day the company was open for business.
He had three points written down on a 5-by-7 note card that read, “1. Speak
from my heart. 2. Put myself in their shoes and 3. Share the Big Dream with
them.” (Sachs, 2023) Schultz saw what he had to do when his first address
was met with a mix of cautious optimism and suspicion. He understood that
in addition to his rightful power as the CEO of Starbucks, he also needed to

21
establish referent, expert, and position power. To inspire his new hires, he
employed strategies like consistency, consultation and collaboration, shared
advantages, and emotional calibration. To earn the trust of Starbucks
employees, he would prefer being honest with them, sharing his goals and
excitement with them, and then following through and keeping his word,
providing precisely what he promised - if not more.
In order to increase employee loyalty to Starbucks and reduce
employee turnover, Schultz put a strong emphasis on results, satisfaction, and
trust. This helped to keep people who shared the company's goal and brand.
According to him, a company strategy is nothing more than a piece of paper
and, even when executed well, remains incomplete unless its members have
the same passionate commitment to it as its creator. In Schultz's opinion,
Starbucks lost its path, so he temporarily shuttered all of the company's shops
to conduct required training that included instruction on how to prepare the
ideal espresso shot. (Sachs, 2023)
Through giving others the ability to contribute to something greater
than themselves, transformational leaders work toward a significant vision.
Leaders such as Howard Schultz inspire followership and empower them.
This paternalistic leadership would also transfer to other countries with
different cultures. For instance, in China, traditionally the most common
leadership style is authoritarian leadership style, where the final decision are
in the hand of the superiors only. Starbucks, however, wanted to appreciate
the central role of family in Chinese society, and brew the paternalistic
leadership style. According to a Starbucks store manager, Suvi Zhong,
“Starbucks takes great care of me and my fellow partners, and even our
families. Having worked at the Shanghai Reserve Roastery, before moving
back to my hometown, Starbucks has always been a home to me no matter

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where I am – a family that nourishes me with warmth and love.” (Starbucks,
2019)
3. Analyze the advantages and problems of managing a diverse and
multicultural workforce in the MNC.
Having a workforce of diversity and multiculture may bring about
several advantages.
1. Enhanced innovation and creativity
A diverse workforce brings together a variety of perspectives and
experiences, leading to more creative solutions and innovative ideas. Diverse
perspectives from different cultures lead to a wider range of ideas and
solutions, fostering problem-solving and innovation. This can be particularly
beneficial for Starbucks, which is known for its product development and
seasonal offerings. Employees from various backgrounds can bring different
perspectives and culinary traditions to the table, leading to more innovative
and diverse beverage and food offerings. Also, a diverse workforce allows
Starbucks to adapt their offerings and marketing strategies to different cultural
contexts, facilitating successful expansion into new markets and strengthening
their global brand image.

2. Prevent group thinking

A diverse workforce can be a powerful weapon against groupthink, the
phenomenon where a group strives for consensus at the expense of critical
thinking and innovation. Group members who experience groupthink start to
feel that their opinions and ways of doing things are right and that anyone
who conflicts with them is either ignorant or purposefully attempting to
undermine their efforts. However, with people from different backgrounds
bring unique experiences, viewpoints, and knowledge to the table, they would

23
help broaden the scope of discussion and challenge assumptions, making it
harder for a single dominant perspective to take hold. Additionally, diverse
teams are more likely to ask challenging questions and raise concerns, even if
they go against the majority opinion. This healthy skepticism prevents the
group from blindly accepting flawed ideas. In homogenous groups,
individuals may feel pressure to conform to the group's opinion to avoid
appearing different or dissenting. Diversity reduces this pressure, allowing
people to express their true thoughts and ideas freely. This is extremely
important to Starbucks, since employees from various backgrounds can bring
different perspectives and culinary traditions to the table, leading to more
innovative and diverse beverage and food offerings, and most importantly,
making the decision – making process more efficiently in giving out ideas
that would benefit the customer base the most.

3. Enhance relationship with customers

It is a widely held belief that people who share a nationality or cultural
background will connect and understand one another better, leading to a
quicker development of trust and mutual understanding of preferences.
Therefore, having representatives from matching countries may be
advantageous to the organization if the customer base is diverse. Employees
with varied cultural backgrounds can provide valuable insights into different
markets and consumer preferences, helping MNCs tailor their products and
services to diverse audiences. Starbucks operates in diverse communities
worldwide. Having employees who reflect their customer base fosters better
understanding of their needs and preferences, leading to a more personalized
and welcoming experience.

24
 4. Stronger brand image and reputation
In today's globalized society, customers increasingly value inclusivity
and seeing themselves reflected in the companies they patronize. By having a
workforce that mirrors the diverse communities it serves, Starbucks
demonstrates a commitment to understanding and representing its customers.
This aligns with values like empathy, respect, and belonging, leading to a
more positive brand perception. In addition, a diverse workforce provides
valuable insights into different cultures and consumer preferences. Starbucks
can leverage this knowledge to tailor marketing campaigns and messaging to
resonate with specific communities. This builds emotional connections and
demonstrates cultural sensitivity, further strengthening the brand's image.

Problems: On the other hand, the problems coming with managing a

diverse workforce are numerous.
1. People’s attitudes - Mistrust of others
Mistrust within a diverse and multicultural workforce can indeed pose
significant challenges, hindering collaboration, productivity, and it could
happen due to a handful of reasons. For instance, unfamiliarity with different
cultural norms and behaviors can lead to misinterpretations and stereotypes,
fostering an environment of suspicion. When team members do not trust each
other, they are less likely to collaborate effectively, leading to missed
opportunities and inefficient work processes. Mistrust between colleagues can
spill over into interactions with customers, potentially affecting service
quality and brand reputation.

2. Perceptual problems - When culturally diverse groups come together,

often bring preconceived, erroneous stereotypes with them.

25
 Differences in values, work ethics, decision-making processes, and
conflict resolution methods can lead to friction and tension within teams. This
can manifest in disagreements, microaggressions, and a lack of cohesion,
impacting productivity and workplace morale. Unconscious bias based on
race, ethnicity, gender, or other factors can manifest in recruitment,
promotion, and daily interactions, fostering a negative work environment and
hindering career advancement for diverse employees.

3. Inaccurate biases
These are unconscious associations people hold towards certain groups
based on social conditioning, past experiences, and societal stereotypes.
People often operate on these biases without even realizing it, or in some
cases, tend to seek information that confirms their existing beliefs, even if
those beliefs are biased, which most likely leads to unintentional
discriminatory behavior. Moreover, many stereotypes and bias existed in the
past have been changing as culture and values are not static.

4. Inaccurate communication - Misunderstandings can be caused by a

speaker using words that are not clear to other members.
Language differences, cultural variations in communication styles, and
non-verbal cues can lead to misunderstandings, misinterpretations, and
communication breakdowns. In Starbucks with a diverse workforce,
miscommunication might present one of the biggest challenges to them.
Employees with different native languages can face challenges understanding
each other, leading to misunderstandings, missed information, and frustration.
Non-verbal cues, communication styles, and preferred communication
channels vary across cultures. Misinterpreting these differences can lead to

26
confusion and missed opportunities for collaboration. For example, to the
Dutch and the British, a simple expression’s meaning such as “It’s fine” can
vary a lot. To the Dutch, who are used to being honest and frank, when they
say “It’s fine”, they do mean that the subject is of good quality, or the matter
is really fine. Nevertheless, the British may say one thing but with an opposite
meaning, when they say “It’s fine” meaning the subject or the matter is not
good enough and needs changing.

5. Different perceptions of time

In a diverse workforce such as Starbucks, varying perspectives on time
can pose a serious problem. For example, monochronic cultures focus on
completing one task at a time, valuing strict schedules and deadlines, while
polychronic cultures are more flexible, often juggling multiple tasks
simultaneously and prioritizing relationships over punctuality. Differences in
meeting times, deadlines, and work pace, like polychronic individuals might
struggle to adhere to strict schedules set by monochronic counterparts, can
lead to misunderstandings, frustration, and resentment between colleagues
from different cultures. Failure to understand different time perceptions can
lead to missed opportunities for collaboration, communication breakdowns,
and inefficiencies.

4. On reflection, what advice would you give to that MNC to make the
best of its diverse workforce?
A diverse workforce might present various benefits along with
numerous challenges to a multicultural workplace like Starbucks. Hence, to
take advantage of this aspect during this unstoppable trend of globalization,

27
Starbucks should consider taking these following measures when building
multicultural team effectiveness:
 Understanding the conditions for effectiveness
When multicultural teams are faced with tasks that call for creativity,
they perform best. When tasked with everyday duties, individuals perform
significantly less well. The greatest advantage for teams working on
challenging, discretionary tasks that call for creativity is cultural variety.
When staff members are engaged in normal or repetitive jobs, diversity
becomes less beneficial. As such, variety tends to be more beneficial when
projects are planned and developed (the "work" stage) and less beneficial
when they are put into action (the "action" stage). The likelihood that team
members are working on projects that can benefit from diversity increases
with seniority. Senior executive teams therefore greatly benefit from
diversity, both domestically and internationally.
 Focus of attention must be determined by the stage of team
development
Instead of a one-size-fits-all approach, tailoring the focus of attention to
the team's development stage unlocks their full potential. During the entry
stage, prioritizing team-building activities and open communication builds
trust and lays the foundation for collaboration. In the work stage of
development, navigating conflict constructively and establishing conflict
resolution protocols becomes critical. As the team goes, defining roles,
responsibilities, and ground rules provides necessary structure. Finally, in the
action stage, decision-making and execution come into focus. This phase may
pose challenges as it frequently necessitates reaching a consensus among
partners. To accomplish this goal, skilled supervisors assist the heterogeneous
team in identifying and promoting the development of concepts that all

28
members can agree with. Recognizing these stages and dynamically adjusting
the team's focus is crucial for sustained effectiveness.
 Using proper Guidelines
While guidelines provide direction, dictating them can stifle creativity
and ownership. Instead, involving team members in shaping guidelines
ensures their buy-in and fosters a sense of shared responsibility. Instead of
choosing team members only on the basis of their race, they should be chosen
for their task-related skills. When a task is routine, homogeneous membership
is usually the greatest option; when a task is creative, multicultural
membership is usually the best option. Additionally, employees in a
multicultural workplace need to be aware of their differences and ready to
address them. The objective is to raise performance and rapport while
promoting a greater understanding of cross-cultural differences. Members
must achieve this by becoming conscious of their own and other people's
stereotypes and using this knowledge to better comprehend the true
distinctions between them. This can then be used as a starting point to figure
out how each person can contribute to the team's overall effectiveness.
Moreover, the team leader must assist the group in identifying and defining its
overarching aim because members of diverse teams typically struggle more
than members of homogeneous groups to come to an agreement on their
purpose and work. When members must cooperate and learn to appreciate one
another in order to complete their tasks, this goal is most beneficial. This
participatory approach promotes team cohesion and empowers members to
take ownership of their work.
 Flattening the power pyramid
True collaboration thrives on an equal footing. Hierarchical structures,
cultural dominance, or even personality imbalances can create power
29
dynamics that silence minority voices and hinder participation. Leaders must
actively promote inclusivity and encourage contributions from all members,
regardless of their position or background. This requires creating a safe space
for diverse perspectives, actively soliciting feedback from quieter voices, and
celebrating all member’s unique strengths and contributions.
 Cultivating a culture of respect
Mutual respect is the bedrock of a thriving team. This involves valuing
individual differences, actively listening to diverse viewpoints, and avoiding
personal attacks or negativity. Leaders can nurture this environment by setting
the example, modeling respectful communication, and intervening promptly
when disrespect arises. When team members feel valued and appreciated for
who they are, they are more likely to go the extra mile, collaborate
effectively, and contribute their best work.
 Feedback as a growth catalyst
Positive feedback provides invaluable fuel for continuous
improvement. When teams receive regular feedback not just on the final
product but also on the teamwork process, they gain valuable insights and
learn from their successes and failures. This feedback should be specific,
actionable, and delivered in a constructive manner, focusing on what the team
can do differently next time to achieve even better results. By creating a
culture of open communication and continuous feedback, teams can thrive
and evolve into high-performing entities.

30
PART 3. COURSE REFLECTION (2 points)
_________________________________________________________

This is a reflective piece of writing. The key guideline questions I

would like you to reflect on and, more specifically, reflect critically on are:
- What are your learning outcome expectations in this course? Learning
outcomes
- How successful were you in completing your expected learning
outcomes? Learning outcomes
- How did you interact with your group colleagues? Did you work
cohesively? Efficiency of teamwork
- How about mentoring? Lecturer
- Do you have any suggestions for improvement?
---The End---

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