In all companies, the understanding of the intercultural issues is really important. In fact, companies have to deals with the culture that they have into.
Company Culture is the term given to the shared values and practices of the employees. So the companies have to know that to understand their employees and for manage their teams in a right way. Above all, if the companies want to succeed in a joint venture.
In the case of Studds Nolan, the main intercultural issues are to deals with the Indian and the Italian culture. These two countries are really different. The first, India, is in the South Asia; an emergent region while Italy is an advanced region. These two points influenced necessarily the culture of both companies. Moreover, the government are different. There are different laws, different application way, different way to govern.
In example, Studds had made a disbursement in order to follow the Indian laws. But they did an error, they did not inform Nolan. Maybe because for them it was natural to do that, maybe because they think that Nolan knows their laws. But in fact, Nolan does not know this law. So, this first error created some tension between the two companies.
As the companies do not have the same country history, not the same government, they do not have the same management style either.
On the one side, there is a family company owns by two brothers whose manage all the difficulties and conflicts in the company. The reason is, according to the text, that «The managers were reluctant to assume responsibility for decisions».
And on the other side, there is a company with more hierarchy, not family company. So, this two management styles are completely opposite and they cannot run together. So, this take a part of the...