Answer ALL questions.

Question $1$

Read below case study$1$ on international knowledge transfer:

The Company:

Alpha Beta Company $($ABC$)$ is a medium$-$sized Swedish company with about $200$ employees at its headquarters. The firm is specialized in office appliance manufacturing, and is a market leader in its industry in Europe. ABC owns several subsidiary companies in other countries, one of which is in China. This Chinese branch is located in Shanghai, one of the fastest developing regions in China, and has about $400$ employees. The Shanghai branch previously was a state$-$owned factory, and had a good reputation in the local office appliance industry. Back in $1998,$ when the Swedish company bought $51\%$ share of the Chinese company, it became a Sino$-$Swedish joint venture. Later, in $2002,$ the Chinese subsidiary was totally bought out by the Swedish company and became a wholly owned foreign enterprise.

In Sweden:

It is $9$:$00$ a$.$m$.$ on Monday in Sweden. The technical product manager of ABC sent an email about the new design of a product to its subsidiary company in China. He would like to have a production ready model of the new design by Friday, when he flies to China. An email came on Thursday saying that there was a $1$mm error in the product the Chinese subsidiary made, and asking the manager what they should do$.$ The product manager finds himself confused: $$Do they need to ask such a question? They could simply adjust the error and give me the model on Friday. Why are they waiting for orders instead of taking initiatives?$$

In China:

It is $15$:$01$ Monday in Shanghai. The Chinese R&D manager in Shanghai received an email from the parent company in Sweden. The parent company asked for a production ready model of the latest design in five days. The R&D manager called the production manager immediately, and $3$ days later he got the new model $$ but with a $1$mm error. He knew it would be better to provide a standard model, but nevertheless decided to notify the Swedish manager first and let him to decide what to do$.$ It is$,$ after all, the Chinese way of showing respect to their superior by asking the latter$$s opinion on everything.C$)$ COMMUNICATION SYSTEM

Low context communication demands explicit

and clear expression: namely, say what you

mean.

Communication manifests firm and formal

expression; there is an outspoken preference for

certainties and rigidity in communication,

though it is often expressed indirectly.

High hierarchy is present, with strict top$-$down

communication.

Relationship orientation and cyclical time

approach illustrate a dominant future focus,

while respecting history and traditions.

Individualistic orientation with clear and

outspoken opinions and ideas is the foundation

of low$-$context communication.

Communication derives meaning from

non$-$verbal cues and a shared context;

expression is formal and indirect; due to high

uncertainty avoidance, there is a preference for

clear top$-$down instructions.

Informality, empathy and flexibility permeate

the communication; adaptivity and flexibility

are a way of dealing with surprises.

Flat hierarchal levels stimulate communication

across the organization; subordinates' opinions

are not considered less important or less

valuable than superiors'.

Shared context and meaning provide the

background for high$-$context communication.

Task orientation and linear time approach

reflect a strong focus on the present.A$)$ MANAGEMENT STYLE

Decisions are made through discussion, via

consultative approach, and strong individual

opinions and resistance are expected. Loyalty

in execution, however, is demanded.

Management is confident in past achievements,

with a clear focus on successes in the present.

Fear of negative outcomes and personal blame

lead to conservatism; responsibility is pushed

down.

Managers use intuition and strive for

consensus, with due attention to the caring

aspect and emotional arguments.

Power is decentralized and flat organizational

structures prevail.

Management embraces a long$-$term vision by

making decisions that may seem arbitrary now.

The manager himself makes the decision, as

the sole source of authority; strict downward

pressure is applied, but subordinates

collectively and loyally expect and accept

top$-$down decisions.

Power is centralized in strong hierarchical

structures.

Management demonstrates a willingness to

take risks and learn from mistakes; they show a

strong sense of individual responsibility.

Managers are expected to be decisive and

assertive, demonstrating strong masculine

behaviour.