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Lecture Notes Cost Management

Foster’s Intention In sending the email to his supervisor was to explain and clarify the facts that were of his concern about the approach taken by the JP on the production strategy, the difficulties faced by the sales department and an overall forecast of losing market If no change was made. I 1 12 2. Who cares about the problem? How did each recipient interpret the email? The company – especially the sales & marketing department was concerned about the lack of availability. The Joint Venture also cares about the problem because It needs o address this issue and take corrective actions.

The supervisor Mr.. Howe considered the email as an update of the current situation and wanted to bring the attention of the manufacturing unit in France to expedite the manufacturing of this particular item to meet the forecasted sales demand. The Strategic Business development head Mr.. Labeled only focused on the problem of standards and protocols and not on the shortage of disks. He wanted the Joint Venture to explain as to why these protocols were not being followed. Mr.. Hosannas, President of the Joint Venture considered it an mail pointing out his mistakes, as it was too direct

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and blunt.

He took it offensively. I | 2 | 3. How did the problem come about? Provide some background. What cultural assumptions underlie Foster’s email and the phone call and email from Hosannas? I The problem appeared because of the difference in relationships between the various readers of the email and the context. When Foster sent out the email, it was to his superior with whom he shared a good informal relationship, and he could share the actual facts without having to put them in a non- offensive manner. His Intention was to present the situation and seek advice as to what he had to do next.

But when the same email was forwarded to different people from different cultures, it was interpreted as being too direct and impolite. Foster’s email assumes that Mr.. Howe Is not going to be offended by the directness and will just look at the facts listed. Mr.. Hosannas, not sharing a direct relationship with Foster needed him to put the facts in a subtle and gentle. So he felt confronted after reading the email and made the emotional phone call. | 3 | 4. What are he opportunities for solving the problem? How should Foster respond to Hosannas?

I The following measure can be taken to solve the problem faced by the company: * Improving the quality control at the JP * Increase the production of disks to meet the demand * Consider the requirements for different markets with respect to soft wares, firmware’s, versions etc. * Assess cost reduction strategies for using masked misunderstandings in future communications: * Creating awareness among the employees about work cultures across the world * Adapting to changing working environments, organizational structures and different cultures.

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