The document discusses a case study of miscommunication between an American businessman, Henry Williams, and a Brazilian auto parts manufacturer, Alessandro Silva. Williams had planned a business trip to Brazil to meet Silva to discuss a partnership, but had to send his son-in-law Wally Astor instead due to a court case. However, Astor was dressed casually for the important meeting and did not properly communicate Williams' situation, causing suspicion from Silva. The document outlines lessons about understanding cultural differences and properly communicating when conducting international business.
Miscommunication with Brazilian Auto Parts Supplier
1. Miscommunication with a Brazilian Auto Parts
Manufacturer
The focus of this case study is on a businessman from America who is
set to go on a trip outside the country with an aim of establishing a
business with a Brazilian. This businessman is called Henry Williams, the
leader of Lucky Auto Parts Company. Wally Astor is a son-in-law of
Henry and the deputy president in the company. They have planned a
business trip with an aim of meeting Alessandro Silva. Silva is an owner
of a mid-sized company that manufactures auto parts in Sao Paulo.
Their meeting is aimed at planning the mode of buying auto parts from
Brazil directly. Unfortunately, there was a case that Williams had to
contend in court that involved his company. The time of this case was
set at the time when he had set a meeting with Silva. Therefore, Wally
was sent by Williams to attend this meeting. However, Wally was
treated with suspicion by Silva as well as Agosto who is his deputy
because of the way he was dressed. Several lessons that ought to be
considered by foreign investors before entering a business deal are
incorporated in this study.
Commitment is vital when doing business at international markets’
level. It determines a company’s success when entering business deals.
It is apparent that Williams had interest in a foreign market venture. He
made a phone call to make a business deal and he was committed to
travel to Brazil in order to finalize the same deal. However, his company
was involved in a court case that hindered him from making this trip.
Consequently, he sent Wally since he was responsible for purchases. A
company can achieve goals if it is committed in its business deals.
Commitment processes ought to be adjusted as per the objectives and
goals of an organization and the entrepreneurial visions (Homann,
2007, p. 129). Through commitment, a company is able to accomplish
each goal within the scheduled time because chasing goals
simultaneously has detrimental effects on the success of a company.
2. Without proper communication, business deals are ruined. Williams did
not intend to cancel the meeting that he had scheduled with Silva. This
is because he had invested time and a lot of energy in booking this
appointment. Nevertheless, he did not communicate with the potential
business associate following the emergency of the new development.
Instead, he chose to send Wally, the deputy who dressed informally
while going on a business appointment. Physical appearance can be
used by some people to judge others. This can cause misunderstanding
between business partners. On meeting the dealers in auto parts in
Brazil, Wally used casual language to address them. He behaved like he
had met them before. Additionally, he failed to apologize on his boss’
behalf. Astor’s character did not please President Silva. However, he
was strict with the words that he used. This behavior ought to be
discouraged while dealing with a foreign investor.
It is important for businessmen who are interested in foreign countries’
investments to understand that their assumptions about business are
not always acceptable to the people that they interact with. Rentz
(2009) note that foreign business people may have varying views on
punctuality, respect, emotions and efficiency (p. 512). There are people
who treat others on the basis of their physical appearance or first
impression. Mr. Ventura and Mr. Silva were surprised by the dressing
style of Astor. They never imagined that someone could dress casually
while going on a vital business meeting. Some people are
uncomfortable while standing close to strangers while others do not
consider it harmful.
Knowing the culture of other people is also important because it
enhances interactions with foreign markets. Knowing foreign customs
enables people to accept their business partners since they understand
their own culture. Global level business requires understanding of the
background of other people especially by managers in order to have
the desired influence (Javidan, 2013, p. 506). Taking dinner at 9 o’clock
is not late in Brazil. Most Brazilians like starting meetings with coffee
3. drinks known as cafezinho. Their belief is that this drink facilitates lively
discussions. They also do not like starting business discussions directly
without proper knowledge of associates. Time is required for successful
business deal undertakings in Brazil because knowing the partner for
some time is usually the basis of business relationships according to the
Brazilian culture (Asefeso & Asefeso, 2012). Before a business deal is
started, people are allowed to talk about personal interests.
The owner of Lucky Auto Parts Company failed to conduct research in
order to learn how international business is conducted in Brazil. The
cold reception that Astor received may have been avoided by taking
time to inform Silva about Williams’ situation and the cancellation of
the trip. Williams did not call Silva and this indicates non-commitment.
It also shows that American investors are not serious especially when it
comes to deals with Brazilian businessmen. Making a call to Silva would
have made him aware of the person to expect on behalf of the
president. Since the trip was not urgent, Williams ought to have
delayed it. Astor appears to have limited knowledge of the Brazilian
culture. The assertion of Shrivastava (2012) is that understanding the
culture of the other people should be involved in the establishment of
an effective foundation of global communication (p. 58). Having skills
for effective communication enhances the realization of the goals of
any international business.
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4. References
Asefeso, A., & Asefeso, A. (2012). CEO Guide to Doing Business in Brazil.
Swindon: AA Global Sourcing Ltd.
Homann, K. (2007). Globalisation and business ethics. Aldershot [u.a.:
Ashgate.
Javidan, M. (2013). Comments on the Interview: Competencies
Required for Working Across Borders and Managing Multicultural
Teams.Academy Of Management Learning & Education, 12(3), 506-508.
doi:10.5465/amle.2012.0246B.
Rentz, K. (2009). Making a Difference with Business
Communication. Journal Of Business Communication, 46(4), 510-514.
Shrivastava, S. (2012). Identifying the Major Components of Business
Communication and Their Relevance: A Conceptual Framework. IUP
Journal Of Soft Skills, 6(4), 51-66.
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