CROSS-CULTURAL ISSUES

Cross-Cultural Issues Faced By the Airbus Consortium

Table of Contents

Introduction2

Significance of Cross Cultural Management for Airbus3

Key Cross-Cultural Issues Faced By the Airbus Consortium6

Strategies for Effective Cross Cultural Management at Airbus9

Conclusion11

References13

Cross-Cultural Issues Faced By the Airbus Consortium

Introduction

The purpose of this assignment is to identify the key cross-cultural issues faced by the Airbus consortium and relate these to the Globe project's clusters of business cultures. Furthermore, the paper will discuss the impact of proper cross cultural management on the international projects and its implications. Airbus SAS is a subsidiary of EADS, the largest European and world's second largest aircraft manufacturer. It is headquartered in Toulouse. Assembly plants are in France, Germany, Spain and the UK. Airbus achieved in 2010 a turnover of 27.6 billion Euros in 2011 and employs approximately 69,300 employees. The European Airbus consortium since its inception in late 1970 had sold 4,089 aircraft for an estimated 260 billion U.S. dollars.

The organization is based on the division of labour at the international level. Each manufacturer is responsible for the entire process to obtain subsets which he is responsible. On the international origins, they bring their expertise to the achievement of Airbus. The idea of relationship and trust that manages the consortium also prevails in relations with its partners (Airbus, 2012).

The airline industry is of great value to the world economy, it is the backbone of international trade, its contribution to the economy reaches U.S. $ 580 billion (8%) of GDP in Europe, creating 33 million jobs in the world. Therefore, we can say that Airbus face sometimes severe cross cultural management issues to motivate its global employees as each country differs from the other country on various factors such as political, economic, legal, social, cultural, legal, ethical factors. Many companies have suffered from the failure of their international assignments because they have too often neglected the intercultural preparation of their employees.

Significance of Cross Cultural Management for Airbus

Cross-cultural management refers to the interaction of different cultures in a business environment. When businessmen and women meet people from other cultures, different approaches to this cultural management enable better understanding and cooperation. Different cultures bring different sensibilities, values and expectations. In many cases, these different worldviews affect perception as to how business is conducted with ethics and respect. Specific knowledge of courtesies, protocols and business logic add fluidity improve these relationships and potential partnerships. Language is one of the most important tools for communication. Cross-cultural management courses often incorporate language acquisition. Because some business meeting brings culture shock, intercultural management training prepares people to alleviate the difficult transitions experienced by foreign colleagues and business partners (Browaeys, 2011).

In Europe, approximately 40,000 people are directly and 100,000 people plus 1500 suppliers are indirectly involved in Airbus construction. The GIE Airbus in Toulouse employs 3000 staff and field offices. Therefore, the managers at the Airbus face daily various cross cultural issues based on the religion, ethnicity, nationality, personal norms and values etc. 37,000 people work in the four European manufacturers on 13 Airbus aircraft ...