Management Archives

The 2 Types of Competition in Business

What are the types of competition in business? Why are conservative companies reluctant to invest in hot new technologies? In Poor Charlie’s Alamanack, Charlie Munger identifies both competition between rivals and creative destruction through technology as the two primary types of competition in business. Competition between rivals can be friendly or fierce, while competition caused by new technology can either level the playing field or give a company a decisive advantage. This is why Berkshire Hathaway is reluctant to invest in hot new technologies. New technologies are not always easy to understand and the company’s operators prefer to invest in

Understanding Leadership in Egalitarian Cultures

How to Embrace Vulnerability in Leadership

What is an egalitarian culture? How does egalitarianism manifest in leadership? In an egalitarian culture, the power distance is low. In other words, everybody is equal—even in the workplace. Members of egalitarian cultures are also more likely to act on their own and ask for forgiveness instead of permission. Keep reading to learn about the key characteristics of egalitarian cultures and how they develop.

The Key Characteristics of Hierarchical Cultures

What is a hierarchical culture? How do hierarchical cultures approach leadership? In a hierarchical culture, the power distance is high. In other words, your rank matters. In some hierarchical cultures (notably, Asian), respect is a two-way street. It is not just the subordinate’s duty to obey. Rather, the boss is responsible for the success and well-being of his employees. He is often viewed as a paternalistic figure. Keep reading to learn about the key characteristics of hierarchical cultures and how they develop.

Managing Cross-Cultural Teams: Strategies and Tips

Do you manage a team made up of people from different cultures? How do you deal with cultural differences between team members? If you are a manager of a team represented by people from different cultures, it’s important to anticipate potential clashes that could happen between team members due to cultural differences. In her book The Culture Map, Erin Meyer presents several strategies managers can use when their teams need to work with different cultures or consist of people from different cultures. In this article, we’ll present the key strategies Meyer recommends when creating and managing cross-cultural teams.

Cultural Decision-Making: Consensus vs. Individual

How do different cultures approach decision-making? Why is it important to understand a culture’s preferred decision-making style? Different cultures make decisions in very different ways. The different styles of decision-making can be a major source of conflict because each culture expects their own decision-making style to be followed, so they don’t know how to react when decisions are made in a different way. In this article, we’ll look at the two broad categories of cultural decision-making, according to cultural communication expert Erin Meyer. We’ll also present some strategies to use when decision-making across cultures.

Cultural Leadership Styles: Egalitarian & Hierarchical

Three people business leaders with political clout standing side by side

How do leadership styles differ across cultures? Why is it important to understand a culture’s approach to leadership when working internationally? According to cultural communication expert Erin Meyer, leadership styles differ drastically across cultures. If you’re a manager, Meyer argues that it’s your responsibility to adapt your leadership style to what your subordinates are used to. But even if you’re not, knowing how leadership works in different cultures can help ensure you give a good impression and don’t offend anyone. In this article, we’ll look at how Meyer divides cultural leadership styles into two extremes (egalitarian and hierarchical) and present

The 3 Keys to Building a Dream Sales Team

What attributes should you look for when screening candidates for your sales team? What do you think is more important in sales success—personality or experience? Building a great team is the cornerstone to an effective sales operation. With the right talent, your business can grow exponentially. With bad hires, you’ll find yourself throwing money away and constantly treading water. Here are three keys for assembling the sales team of your dreams.

The Pros and Cons of Consensus Decision-Making

What is consensus decision-making? What are the main benefits of deciding by consensus? What are its key disadvantages? Consensus decision-making is where the group takes everyone’s opinion into account. All the relevant parties consider all the information, and they make a decision only when everybody agrees. In this article, we’ll explore the key advantages and disadvantages of consensus decision-making. We’ll also present some strategies for working in cultures that decide by consensus.

How to Choose a Distribution Channel Strategy

What exactly is a distribution channel? What are some things you should consider when choosing a distribution channel strategy for your business? A “distribution channel” is what you use to distribute products to your customers. Different distribution channels are better able to reach different types of customers. In this article, we will discuss how to choose the most effective distribution channels for reaching your target customers.

The Pros and Cons of Individual Decision-Making

What is individual decision-making? What are the main benefits of the individual decision-making style? What are its key disadvantages? Individual decision-making is where the chief decision-maker may consider others’ opinions, but ultimately, the individual (usually the boss) makes the final decision. The individual decision-making style is the key feature of hierarchical cultures where there is a clear delineation of ranks amongst members. In this article, we’ll explore the key advantages and disadvantages of individual decision-making, and present some strategies for working in cultures that decide individually.