Intercultural Communication

Intercultural Communications:
Many businesses are doing business globally. In my opinion, the United States is the far most intercultural country. Beginning in our won back yards, businesses here have dealt with intercultural issues for a long time. A key component for a company’s success is communication. Communication between different cultures is a simple definition of intercultural communication. Culture refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe, and material objects and possessions acquired by a group of people in the course of generations through individual and group striving.
Of the many areas in international business where culture differences manifest is in the corporate meeting room, intercultural business meetings are an area where differences in cultural values, etiquette, interpretations of professional conduct and corporate rules are at their most visible and challenging to control. Businesses need cultural awareness, cultural clustering awareness, and knowing global involvement to have success in the corporate world.





Cultural Awareness: It is necessary to identify the cultural differences that may exist between one’s own country and the intended country of business. Where the differences exist, a company must decide whether and to what extent your own country’s practices may be adapted to the foreign environment. Most of the time, the differences are not apparent. On the other hand, some aspects of a culture may be learned such as proper greeting practices and some aspects of a culture may be subconsciously learned such as problem solving skills. Discussions and reading about other cultures definitely helps build cultural awareness, but always measure the source and opinions carefully. You may find stereotyping, biases, information only pertain to a certain group of people or situation, and changes may have occurred in the culture. Constructing cultural awareness may not be an easy undertaking, but with it the job is efficiently done in a foreign environment.





Cultural Clustering Awareness: Some countries may share many attributes, such as language, religion, geographical location, etc. Countries can be grouped by similarities in values and attitudes. An example would be the Middle East area. The Islam religion is very common within this area. The way of life revolves around the values and attitudes of the Muslims. In the United Arab Emirates during Ramadan (Islam practice) there is no business conducted after twelve o’clock for the whole month. Fewer differences may be expected from one cluster to another. Following the Islam example, one can assume that another country in the same area that has the same value and attitudes towards their religion would have the same business hours during the Ramadan.





Knowing Global Involvement: Businesses operating globally need to have different levels of cultural awareness. In Hofstede's Cultures and organizations: Software of the mind , he illustrates the extent to which a company needs to understand cultures at different levels of involvement. The further a company moves out from the sole role of doing domestic business, the more it needs to understand cultural differences. Moving outward on more than one axis simultaneously makes the need for constructing cultural awareness more essential. See the diagram below.

Conclusion:
As our borders fade, values, attitudes and cultures are blending further and further. Intercultural communication is based on knowing your won culture and having awareness of the culture that you are about to start communication with another country. Respect for another human being is always the foundation of any level of communications.

Peer Review

To those who have to review my blog for the peer review....if you would like, you can post your comment under this post so that they are all together. Thanks DB :)

Investor Relations

Investor Relations (IR)

According to the National Investor Relations Institute (NIRI), investor relations is defined as “a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation.” When I think investor, I think of someone devoting capital for self-gain of return. A company strategically creates objectives and a “vision” that include “making money” but includes core purpose and values. Once companies thought corporate secrecy was for its own protection. Investors wanted transparency of their investments. Public companies had to disclose company information to the U.S. Securities and Exchange Commission (SEC) with the passing of federal securities acts in the 1930’s. Through the years, SEC oversaw many changes in the regulating companies with institutional investors. Investors today “demand more communications, more transparency and more access to companies.” Companies must have IR programs to stay completive for investors’ capital.

Framework for Investor Relations Program:

IR program needs to have components of communication, strong financial understandings, and guidance on future earnings. First, developing a framework to understand the IR functions. The IR needs to understand the types of investors. Then, there are three key objectives companies need to focus.

Key Objectives of Investor Relations:

The first objective is Explains Company’s Vision, strategy, potential investors and conduit constituencies such as analysts and media. A good example is the Heinz

Company website is user friendly, and has direct links to information with clear titles. Heinz also uses wordage level acceptable to all ages; uses visuals and audio communication strategies; use updated technology. Their annual report uses graphics and colors for easy reading. Heinz use of appealing colorful graphic designs with use of their products is high tech. Heinz technology usage examples are use of MySpace, FaceBook and Webcasts. Furthermore, Heinz employs PowerPoint presentation links and offer access to archived presentations.

Heinz has a direct link for Investor Relations The vision is clearly stated in several places, including annual report and global websites. Heinz’s strategy is visibly stated as “international business growth and aggressive partnership development.” Their potential to investors has up to date information. Heinz offers direct links to the media, stock history and transparency of information to the conduit constituencies.

The second objective is Ensure that expectations of the company’s stock price are appropriate for its earning prospects, the industry outlook, and economy. An example used to explain this objective is the Bank of New York Mellon. Looking at Bank of New York Mellon’s website they offer current informative information. The use of financial data, charts and graphs are clearly appropriate for its earning prospects. The industry outlook is transparent. The Bank of New York and Mellon International recently merged and their website explains the merger and the affects of such a strategic merge. There are many links to current economy investment conditions in today’s market.

The third objective is Reduce stock price volatility. Any organization would want to reduce stock price volatility by means of the indirect communication channels. Many companies publish their rating information from outside analysts from such companies as Standard & Poor's , Moody's Investors Service, or Fitch Corporate.

Framework: Company’s Investor Relations Strategy:

Types of Investors are “investors” and “intermediaries.” The “investors” consists of individual investors and institutional investors. Once again, using Heinz

and Bank of New York Mellon’s websites as examples, the current stockholders have an IR link for updated information. Also, potential investors and institutional investors have direct IR links, which provides information in various formats and contact information. The “intermediaries” are composed of analysts, media and rating agencies. Institutional analysts usually publish a list of rating agencies that analyses the company. Rating analysts will publish findings through the agencies. Companies normally provide direct links/ information in various formats for media and supply contact information strictly for media.

Conclusion:

In conclusion, investor relations is an important facet for public for-profit businesses. The strategy implementing the objectives is intertwined with a strong communication strategy. I believe communications is what makes any company successful. However, in writing this blog, I began to think about non-profit organizations and how would the investor relations component match into the strategy of such an organization.

Identity, Image and Reputation

Identity, Image, and Reputation:

When you see the Golden Arches of McDonald's, what do you think? The Golden Arches represent the identity of McDonald's. On the other hand, a small child, as one kind of constituent thinks “Happy Meal” or Ronald McDonald himself. Then, a health conscious adult, as another kind of constituent thinks one fast food restaurant to stay away from. Another kind of constituent, an entrepreneur might think a successful franchise opportunity.

Image:

A company’s image is a function of how constituencies perceive the company. As the example above, the three different constituents thought differently of McDonalds. Companies want a positive image.

Identity:

The company’s identity needs to stay consistent. A company can establish consistency with the use of their name, logo, motto, products, services, buildings, brands, symbols, uniforms, or self-presentations. Some local identities are IUP, Blairsville-Saltsburg High School’s mascot, the bobcat, and S&T Bank. Other known company’s identities are the “Golden Arches”, “Can’t Just Eat One”, Wal-Mart employees wear navy blue shirts with khaki pants as a uniform, FedEx and Nissan’s “Zoom Zoom”. Further in this Blog, I will address a successful method used by other organizations to manage their identity process.

Reputation:

When identity and image are aligned, a company has the foundation to build strong reputation. Over time a business’s objective is to build a positive reputation that the constituency will extend to others. If the image is powerfully negative and the identity is confusing, the reputation will be weak. In turn, the constituency would go elsewhere unless the company can turn them around.

Method to Manage the Identity Process:

According to Argenti, an organization should devise a program to analysis and be proactive with the management of the identity process. The following six steps a method to do so.

Step 1: Conduct an identity audit

Step 2: Set identity objectives

Step 3: Develop designs and names

Step 4: Develop prototypes

Step 5; Launch and communicate

Step 6: Implement the program

Muzak:

The case study in Argenti’s chapter four is a good example of this process. When Muzak did an identity audit, the results showed that they did not have cohesiveness within their brand and communications was completely fragmented through out. Plainly, Muzak was not consistent with the company’s identity, branding and logo. Muzak was well known for their development of the “elevator music,” but the various segments of Muzak individually began to change the identity on their own; leaving Muzak with a faded identity. Muzak needed to change their vision, select a new brand and make the representation be an accurate reflection of Muzak’s reality not the company’s history. They accomplished this by the created “elegant simplicity” logo of the circled M. Also, they began portraying the business as an “art” changing the historical science concept of business. Finally, they choose to portray the emotional and creative power of music to their constituency.

Muzak used advertising techniques, webcasts, video news releases and satellite links to reveal the change. Then, the design and roll out of the new “capabilities book” brochure provided consistency among the company and its franchises. The constituency responded to this and other print media such as the specific segment brochures, along with simple teaser postcards in a very positive way. Sales representatives began to use new multi software sales presentations. Muzak began to illustrate and building a new reputation as the business’s services and products as an art instead of the lengthy reputation that the business was of science. Muzak moved their headquarters to the east coast into the new “dynamic energy and innovative” designed building; it was easier to instill the new identity system.

Overall, Muzak changing its identity positively revitalized the slumping business. Several short-term benefits occurred at Muzak with the facilitating the company’s overall strategy in the identity system. One, the subtle, elegant logo will offer consistency of the company to its constituency. Two, the franchisees and salespeople, who were against the new marketing tool, the brochures, quickly found that the uniformity of the brochures had a positive impact. Three, the change provides a visual foundation for Muzak to build the future.

In the long-term, the change will help Muzak continue to be consistent and be aligned in their image, identity and reputation with the reality of the business. A strong reputation will mature with time where employees, consumers and the general public will express pride and commitment to the business. If Muzak is describing themselves as “expertise” in “audio imaging,” and as “audio architects” to skillfully capture the mood and energy of another’s company visual identity through imagery then changing their own identity to be consistent throughout their identity system can only be helpful both short-term and long-term.

Personally, I can only think of one short-term and long-term harmful benefit combined that may occur at Muzak. The decision to not change the name may always associate the company to the “elevator music.” On the other hand, this action may just keep a bit of history alive, which is not a bad thing.

Muzak is describing themselves as “expertise” in “audio imaging,” and as “audio architects” to skillfully capture the mood and energy of another’s company visual identity through imagery then changing their identity must be consistent throughout their company; whereas the stakeholders, employees and franchisees must use the same branding to compete in the global business environment. And like, their consumers need an identity in which they can identify Muzak as the perception that is align with truly what Muzak business is all about. The franchisees are an extension of the parent company. Muzak definitely should educate the franchisees on the new identity system. Muzak may also create and implement a standards manual to assist the management of the identity.

Conclusion:

Image, identity and reputation is irreplaceable when it comes to business, especially in the forceful aggressive global markets and the changing environment of business, corporate philanthropy and social responsibly visibility. The Muzak case study is a good example of what a company can do using a process for building or rebuilding a company’s image, identity and reputation.

I think there was no need to place any links in this self explanatory Blog.

Corporate Advertising

Come back to read my blog about Corporate Advertising on November 30th.

Communication Theories

Communication Theories:
Communication theory traceable evolution began with Aristotle , and rhetoric. He presents a communication model with three main components- speaker, message and listener. Today, any theory appears to have at least all three components. Communication is an interactive process, which is more complex than speaker, message and listener. In today’s ever changing environment, communication must be circular rather than linear, whereas communication is an ongoing process. Theorists started with the linear concept and evolved communication models to become circular.
1900’s Theorists Developments:
Throughout the 1900’s several theorists created communication theories (models). Beginning in 1949’s Five theorist’s models of interest emerged and are as follows: Laswell’s Model, Shannon & Weaver’s Model, Schramm’s Models, Westley-Maclean Model, and Kincaids’ Convergence Model.
Laswell’s Model - 1948: Laswell’s model describes communication as “who says what to whom in what channel and with what effect”. His model focused on the verbal communications. Information is communicated with the purpose to persuade, inform, or to entertain. Also, it introduces the concept of medium of how the message is delivered to the listener (receiver). Communication is straight forward directly to the effect, a linear model. A tyrannical communicator would be an illustration of someone still practicing Laswell’s model.

who → what → channel → whom = EFFECT
(speaker) (message) (medium) ( audience/listener)

Shannon & Weaver’s Model - 1949: One year after Laswell’s model, Shannon & Weaver went more in-depth. They changed the speaker to an “information source” that transmits the message by channel, which could be effected by a “noise source” (interference), that the receiver receives which concludes the message has reach its destination. Basically, Shannon & Weaver introduced a vertical aspect of the “Noise Source” to their linear model.

message signal received signal message
↓ ↓ ↓ ↓
Information → Transmitter → Channel → Receiver → Destination
Source ↑
Noise Source

Further reading of interest would be “Brief Excerpts from Warren Weaver’s Introduction to: Claude Shannon’s The Mathematical Theory of Communication” http://darkwing.uoregon.edu/~felsing/virtual_asia/info.html

Schramm’s Models: Schramm developed three models, beginning in 1954 with Schramm’s First Model. This model discusses a "Source" and from the information "Source" there needs to be an "Encoder" for the information. From the "Encoder," there needs to be a "Signal" in which to send the communication. From there, the message needs to be decoded using a "Decoder." It is only after all of these steps that the message has reached its "Destination."

Schramm's Second Model shows overlapping circles or "Fields of Experience" between the "Source" and the "Destination" of the communication. Schramm's second model details the same elements as the first model. The only difference is that the "Signal" is an overlapping feature between the "Source" and the "Destination." An example of this model would be one-way communicated information whereas the receiver can relate the information to a field of their own experiences and open to the decoder’s own interpretation.

Schramm's Third Model includes the same elements as the first and second models. The difference in this model contains feedback from the recipient. Within this model, both the sender and receiver have opportunity to acknowledge if the correct meaning to the message is being sent and receive with the feedback. Schramm’s third model begins taking out the “assumptions” within communications.

More information about Laswell’s model, Shannon & Weaver’s model and Schramm’s models can be found in Robert Croft’s article: Communication Models

Westley-Maclean Model: This model focuses on “events” and “advocates” to convey the message. Then, the message flows through the “channel,” and finally to its “audience.” This is the most complex communication model to me, but I have seen this in action. Once, the president of an employer used this style of communication within the organization. Nobody knew what was being communicated and to whom. Communication was very confusing for approximately two years. It was interesting to see the changes occurring due to the mass confusion within communication.

Kincaids’ Convergence Model – 1979: Kincaids’ model was much more complex than any other communication theories developed in the past, but the communication is understood with his model. He develops “Psychological Reality(A),” “Physical Reality,” and “Psychological Reality (B) that influence the information being communicated. “Action” and “Collective Action” stem from the information being communicated. This leads to “Believing” and “Understanding,” which eventually would lead to “Mutual Agreement” and “Mutual Understanding.” All stages of this model direct to “Social Reality.” Communication can be simple or complex. This model is complex to visually study the diagram below. But this circular mode of communication is a simple model. Simply put, I have a message I want to convey to you. I begin with my own interpretation of the information. I send my interpreted message to you. You receive and interpreted the message in a way that you perceive the message. You respond with your decoded message to your understanding. I can believe the response or start the cycle again. This model causes communication an on going process.

Kincaid has continued his works internationally. If you are interested in learning more about his communication theory and the global application, I recommend the following book as a reference reading:

Kincaid, D. Lawrence, (1987). Communication theory: eastern and western perspectives.

San Diego, C: Academic Press.

In conclusion:
Many communication theories introduce other concepts which facilitate or hinder the communication process besides the five theorist mentioned here. Kincaid avows his theory the best. In my view, communication is reality! And communication has to be circular.

21st Century Communication Trends

21^st Century Communication Trends

What direction is business communication moving towards? Does the generational workforce have anything to do with trends in communication? I believe the generational differences contribute as a trendsetter.

Borgatti’s Five Trends:

Stephen P. Borgatti identifies five organizational trends; globalization, diversity, flexibility, flat, networked. Business communications need to have a quality communication system that functions globally. The increase global sales market, manufacturing, research and management cause the trend of globalization. Businesses are locating their offices globally. They need effective communication. Sales markets have expanded to the point the borders for sales are invisible.

On the other hand, the workforce is visibly showing diversity. Businesses need their communication systems to cope with different styles of interaction and be aware of innovation and conflict communication issues. Businesses’ communications have to be sensitive to some of these example issues heterogeneous personal partners, racism, and differences between cultures. My current employer has recently developed a “Diversity” office. All employees have opportunities to learn more about diversity. I have seen an increase of diversity taking place at my place of employment. I, also, have noticed more flexibility with my employer I some areas. Flexibility encourages independence, relationship building, lifetime employability and permits enhancement to the rate of changes in technology and markets.

In the midst of rapid changes in technology and global market, the trend flat empowers workers to make decisions with fewer levels of management. Conscientiously time is of essences in the globalize market where competition is powerful. Businesses need to be networked. Due to the time and competition, direct communication and cross-unit teams is important. Businesses need to consider the open computer systems for information sharing publicly and a closed system such as an intranet to stay abreast to customer needs persistently changing.

Generational Workforce:

Currently, our workforce is made up of three generations; Baby Boomer (born 1946-1964), Generation X (born 1965-1980) and Millennial or Generation Y (born 1980-2000). Each individual, no matter where the individual is born on the continuum of time, have generational traits that affect business communications and the organizational trends mentioned above. Each contributes to the trends businesses tend to take. And I clearly see how Borgatti's identified organizational trends are effected by generational workforce.

Communicating Strategically:

Communication was thought of as far back in history to the ancient Greece, where Aristotle defined “every speech is composed of three parts; a speaker, the subject…, and the person…addressed.” Communication has a framework to this day, which is composed of three parts; the messenger, the message and the receiver. Corporate follow the use of the three parts too; and needs to develop a Corporate Communicate Strategically. This is done through determining the objectives for a particular communication, deciding what resources are available for achieving those objectives, and diagnosing the organization’s reputation.

Determining Objectives:

The basis for defining the organization’s objectives is what type of response does the organization want from each receiver (constituencies) as the result from the communication (message). The response is the up most importance for an organization. This is why strategically thinking about your communication and placing your objectives as measurable objectives. Once your objectives are defined clearly, the next step is determining how to communicate.

Resources Availability:

Now the objectives are defined, next question to ask is what resources are available within the organization to communicate the organization’s message. Who are the constituencies, in-house or external? Cost factors, personnel, and time are important factors to consider. The organization needs to look beyond to potential difficulties that may arise when not appropriately analyzing resources. An organization does not want to affect their reputation in a negative manner.

Diagnosing the Organization’s Reputation:

Reputation is based on constituencies’ perception of the organization and the organization must know what each constituency perception is towards the organization. An organization needs to acknowledge and analyze each constituent; deciding if the constituent is primary or secondary, constituent’s interest and perception, constituent’s knowledge about the up-coming topic. Once these three steps are accomplished and developed into an effective organization strategy, then communication can begin. Communication is changing in the changing business environment, book reference: http://mgv.mim.edu.my/books/bookpref/11597.htm

Delivering Message:

Choosing how to deliver the message and what approach in structuring the message are the two-step analysis for organization to take. First, how will the message be delivered – what communication channels will be used. An organization needs to consider the old channels such as speaking or writing or the new channels such as e-mail, voice mail, Web conferencing, video conferencing, External Web sites, intranets, Weblogs, or fax. Knowing your constituency proves to be important on choosing your communication channel.

Messages: What is the best communication channel? How should the organization structure the message?

Constituencies: Who are the organization's constituences? What is their attitude about the organization? What are their attitude about the topic?

Organization: What does the organization want each constituency to do? What resources are available? Money? Human Resources? Time? What is the organization's reputation?

Constituency Responses: Did each constituency respond in the way the organization wished? Should the organization revise the message in light of the constituency response?

Two Approaches:

There are two approaches effectively structuring the messages: directly and indirectly. Direct structuring means of stating your main point first and then explaining why. Indirect structuring means stating the why before stating the main point. Organizations need to carefully choose their structuring method so it is not presented in a confusing way. This is where assessing the constituents’ responses to determine whether the communication had the organization’s desired results. Furthermore it completes the “Corporate Communication Strategy Framework” cycle as illustrated in Argenti’s Corporate Communication (4^th Ed.) on page 35.

Organizations ----> Messages ----> Constituencies ----> Constituency Responses

Back to the orgainzation to begin the cycle again...

Changing Environment of Business

Changing Environment of Business

Chapter One:

What would one believe makes the business environment constantly change? Public scrutiny, globalization and communication are three factors, which influence change.

Public Scrutiny

Public scrutiny of American businesses can be traced back to the time of employer and employee relationship beginnings. The businessperson pursued wealth and self-interests at the expense of the worker majority of the time. According to Argenti, “Dow Chemical’s manufacture of Napalm and Agent Orange, which would be used to defoliate Vietnamese jungles, led to student protests on American university campuses.” (2) In my opinion, American people are still to this day protesting the affects of Dow Chemical’s greed for profit in the production of this chemical warfare. Ponder on the illnesses American soldiers struggle with till this day as the result of contact with Napalm and Agent Orange, let alone how many other people aboard are suffering the same. http://www.globalsecurity.org/military/systems/munitions/napalm.htm

Globalization

Globalization is a direct result of the rapid technology growth and of the rapid worldly economic growth. Corporations grew into multination or foreign owned that gave these large businesses their own culture and political influence. This effected the business environment were change was apparent for survival. In the 1980’s, I was employed with a specialty metal business, which dealt with titanium alloys. Titanium is a metallic chemical produce from the ocean floor. For more information: http://minerals.usgs.gov/minerals/pubs/commodity/titanium/ Interesting, as it may seem, America produced the aluminum and nickel, but collaborated with foreign counties for the purchase of titanium. This was my first experience with globalization first hand. ANother experience I had was in the 1990’s, a local company, Dyna-craft merged their ownership with an investor from Beijing, China. The corporation built new warehouses out west and opened another machine shop in nearby Apollo, PA. More information on the merger see information at this link: http://query.nytimes.com/gst/fullpage.html?res=9E00E3D71439F932A25752C1A963958260 Other manufacturing shops were opened in parts of the United States and China. Today, the business is in China. Another commonly known example of globalization would be the automobile industry. American businesses exports and imports automobiles and automobile parts, and merged with foreign automobile industries to create the huge corporations as mentioned above. I strongly believe that the growth of communication technology opened the pathway to globalization.

COMMUNICATIONS

Communication is the essential instrument among businesses and individuals alike.
The constant division between the public and business has continued through time, and the use of communication technology permits the business communications and the public communications to take place spontaneously. The Arthur Anderson (Case 1-1) involvement of the Enron Corporation situation is an excellent case study of communications in a changing environment, which was used for the business’ advantage. (12). http://whatreallyhappened.com/WRHARTICLES/enron.html

The public has used communication technology to their advantage too. In 1997, Earth First! coordinated campaigns against large corporations. This organization is still a strong environment group that approach corporations. http://www.earthfirst.org/

Conclusion

Conclusion of this posting, Argenti offers four strategies for companies to exercise in survival of the challenges in a changing environment along with survival of public scrutiny. Businesses need to listen and respond positively to the public scrutinizes. First, “managers need to recognize that the business environment is constantly evolving.” Change is a given in the equation of life. Companies need to keep abreast of their constituencies and create a communication strategy that keeps technology innovations evolving in the face.

Second, “companies must adapt to the changing environment without changing what they stand for or compromising their principles.” (10). In other words, under strong public watchdogs, companies need to protect their reputations and image. Third strategy, “assume things will only get worse and you will be better off in today’s complex environment.” (11). Businesses need to think how the public will respond or will react to a business’s communication to the public in a given situation. As an example, corporations dumping toxic waste material in a landfill near a small community. The corporation did not think that the community would protest and have wide spread support. Finally, “corporate communications must be closely linked to a company’s overall vision and strategy.” (12). Corporations need to have a communication strategy that would be in line with their mission statement, policies and procedures.