Intercultural Management covers a very large sample of activities related to companies. Its tools can be used in all areas of management, including Communication, Human Resources, Marketing, Negotiation and Top Management. It allows us to easily recognize the different cultures surrounding us inside a company, as well as to integrate some important values. These values will help creating a synergy between the company and the cultural aspects around its activity, which represents a decisive aspect of any strategy.
In an international context, including intercultural management provides creativity but also flexibility and awareness to the company strategy. With globalization and research of performance as main concerns nowadays, intercultural management is a necessity to valorize assets. Cultural diversity then becomes a real strength that company can capitalize on.
Actually, not implementing multicultural management can be dangerous nowadays. A few issues can be avoided through diversification, for instance, turnover, interpersonal conflicts, total absence of communication. As the share of knowledge becomes more
and more important, companies might want to invest and re-orient strategy on a multi-cultural model, as a proof of great reactivity and modernity.
Bodegas Torres, the company that I will study in this case, is a Spanish company started in 1870 as a traditional and familial business. Today, Bodegas Torres is still active, but the world and the market of their activity have extremely changed. Wine production is a very globalized market, where they need to adapt and merchandise their family values in order to grow.
We will explore Bodegas Torres' management and strategy, and try to get more into multicultural management, in order to analyze its success.
[...] Identity The identity of Bodegas Torres implies two aspects. Both are linked to a strong family value, and the respect of a legacy that lasts. The first aspect is the traditional system, if we refer to Bodegas Torres as a family company with a strong personality of the owners. The tradition of the homeland and family production implies a traditional management, with a strong context and a knowledge passed from a generation to the next one. The second aspect will be more innovative, and results from the strong personality of actual CEO and owner Miguel A. [...]
[...] CEO – a Model for Multicultural Management Earlier we saw that Multicultural Management often needs a model, especially in a country like Spain, where uncertainty avoidance is high and people need a model to identify in order to feel comfortable. The CEO is often a strong model, especially in this culture. He represents authority, which means responsibility, but also acquires power. In a country that values traditional policies, a CEO who is the heir of the founder is a very good symbol. Miguel Augustin Torres, actual CEO since 1991, is named after his father, Don Miguel Torres, and is the fourth generation heir of the founders. [...]
[...] Ethics & Sociology A multicultural management implies a few ethic rules to respect and communicate. The most important when you are dealing with multicultural population is to respect equity. Equity can take two forms: either you are over rated, or you are under rated. What is hard to realize when you are over rated is that it implies someone else being under rated. When you are under rated, it is hard to be sure if you are or if you are just less productive. [...]
[...] Managing a multicultural group implies recruiting people that will be coherent with these principles. It also implies being able to communicate with them at the integration of each new employee. Collectivism vs Individualism – how people are able to put their own interest aside for a greater collective goal. This is often the most challenging, because one person can ruin the efforts of a whole group, and people often feel their actions are vain. Uncertainty avoidance – or how to provide enough support to make your employee confident? [...]
[...] The vineyards and infrastructures were destroyed because of the bombing, but Miguel Torres decided to rebuild it. The company has reborn with the new world, with the new will to grow by taking risks. This is something that can be reflected in the future, because it is an orientation. Instead of planning on Short Term, Miguel Torres took some risks and created new products, extending his production and market, but also using commercial networking. His son, Miguel A. who transitioned smoothly from a traditional organization to a modern advanced organization, has kept this state of mind. [...]
Online readingwith our online reader
Content validatedby our reading committee