Cross Cultural Management Risk Analysis Report

Question: Discuss about theCross Cultural Management for Risk Analysis Report. Answer: Introduction It can be stated that Iran is gradually becoming one of the tourist hotspots with the tour operators reporting noteworthy increased in the tourist booking trips to the Middle Eastern country. Thomas and Peterson (2014) have stated that perhaps success of this place is because of a slight thaw in its relationships with the West or might simply because of the allure of exploring a small-known tourist destinations with few other tourists. An organization has planned to operate a tourist venture in Iran and thus this particular research work would try to analyze several aspects of this country through a detailed and specific risk analysis. National Culture Profile of Iran Jackson (2012) has mentioned that while Iran most of the times finds itself in the headlines of the news for all the wrong reasons, intrepid globetrotters consistently praise the country, calling it a surprisingly welcoming destinations with loads of untouched treasures to discover. It is necessary enough to mention that the visitors heading to Iran would definitely find out a country that is as complex, colorful and deeply traditional as the Persian carpets for which it is highly renowned throughout the globe. History lovers are spoiled for selection when it comes to incredibly preserved archeological sites, while the photogenic beauty of Classic Persian architecture generally covers with those fabulous blue tiles that attracts the eyes of the designers. Outdoor enthusiasts have a surfeit of mountains for climbing and ski, desert landscapes to explore and scenic valleys to trek (Friedman et al. 2012). All these are properly combined with the ultra-welcoming locals, a well-refined and delicious cuisine as well as an ancient culture stepped in poetry, art and music and this means that Iran is a noteworthy destination as rewarding as it is revelatory. Therefore, it is understood that Iran is one of the places to gain visitors attraction and thus it is expected that the new tourism venture in Iran would not be in vain in spite of political turbulence in Iran (Murphy 2013). Iran is one of the most powerful states in the region with 75 million strong and buttressed by ample oil reserves. Its resurgence in the first decade of the 21st century was one of the several unintended results of US military adventures in Afghanistan and Iraq. The sudden rid of two hostile regimes on its boarders, i.e. the Taliban and Saddam Hussein, Iran immediately expanded its power into the Arab Middle East, cementing alliances in Iraq, Lebanon, Syria and Palestine. It can be said that the political system of Iran is based on 1979 constitution and at the same time it is necessary enough to mention that the tax environment for foreign business is highly risky enough. Therefore, at the time of tourism venture, it is necessary enough to keep this concern in mind (Mowforth and Munt 2015). Hall and Page (2014) have said that Hassan Rouhanis upset victory in the June, 2013 presidential election created great expectations of change. From news, it has been found that the new centrist president had pledged to immediately resolve the nuclear dispute and at the same time enhancing the relationship of Iran with the other parts of the globe as well as revitalize the economic situation and encourage more open society. Almost after two years of negotiations, major powers of the globe and the Islamic Republic reached a landmark nuclear deal in July, 2015 (Kuniholm 2014). Risk Analysis: First Issue (Corruption) Corruption is one of the major issues of Iran and it can be seen that hardly any politicians have expressed serious concern over corruption in different parts of the globe. Hardly any politician has argued the gradual continuation of corruption could lead to social unrest and the collapse of the entire system. Tycoon Babak Zanjani, Irans billionaire has been sentenced to death for corruption, as he was severely accused of fraudulently pocketing $2.8 billion. Apart from that, it is necessary to mention that this billionaire was the middleman who organized oil deals on behalf of the then President Mahmud Ahmadinejads governments (Butler, O'Gorman and Prentice 2012). Therefore, it is understood that the Iranian government is corrupted to some extent and this might be because of the fact that the size of the government is high enough. Starting from oil and gas to a large range of different kinds of industries, presence of government is clearly visible in everywhere and all these parts ar e corrupted to some extent (Ghaderi and Henderson 2012). As per some estimation, 80% of Iranians living requires are fulfilled in some parts by the public sector. This particular incidence has given rise to a fraction of public sector employees that is considerable in size, as the government is large in size. This faction has the chance to sincerely seek rents proportionate to the importance of their position in terms of the profit they are capable enough to create for their clients. The corruption and corrupted behavior of a particular sector of all these employees is attributable to their low pay that puts them in a proper position of necessity to meet their living expenses of the families (Izadi et al. 2012). On the other hand, minor portion of this sector is enough paid and for that case, greed is considered as the motivating factor behind this corrupt attitudes. Therefore, when a new organization has been planning to expand their tourism sector in Iran, this part is required to focus on sincerely, as the expansion of the business migh t get hampered due to corruption (Jabbari et al. 2012). Apart from that, it can be stated that accountability is another major factor that keep corruption in check, however, it is required to mention that a number of factors have made enforcing accountability difficult in Iran (Eshliki and Kaboudi 2012). Risk Analysis: Second Issue (Poverty) In April, the Iranian governments media has published a rare acknowledgement of severity of the poverty crisis that is rampant throughout Iran. It has been found that the rate of unemployment has reached 70% in at least 1200 Iranian towns among the newly passed students. The report has stated that unemployment presently stands between 40% and 60% in near about 420 Iranian countries. This major percentage has contributed to a situation in which 15 million of Irans 78 million people are reportedly deprived of, even in case of the social services. Several reports have found out that when the employees belonging to the middle and the low income group go back to their homes after the full days work, they are deprived from adequate food and this is because of the fact that they are surviving under the poverty line (Delgoshaei, Ravaghi and Abolhassani 2012). The head of State Irans labor organization has stated that many manual workers cannot even afford the basic products they need for their survival and thus all these products are considered as luxurious products to them, which is actually not true. Therefore, it is understood that the economic crisis that Iran has been facing has significantly drowned a majority of the population in poverty; even those with two jobs cannot stay afloat. It is understood that the severe economic crisis that has descended on Iran is an outcome of the faulty governing of the nation, corruption and utilization of the tax money on ulterior and agendas instead of tackling and fulfilling the fundamental requirements of the citizens (Zonis 2015). The elected Iranian president once said in his lecture that Iranian households largely suffer from hunger because of poverty and destitution. It is regardless to mention that expanding tourism is not very easy in such types of countries where large number of populatio n live under the poverty line. As per the published news, it can be found out that twelve million Iranian each day sleep hungry in night and thus it is tough enough to expand tourism in Iran (Shirazi 2012). Risk Mitigation Strategies In this part, focus would be shed on risk mitigation strategies, as the organization is planning to open a tourist venture in Iran. Two major risks have been identified in this part and these are corruption and poverty and both these two factors hinder the gradual expansion of tourism in any country. At first, it is necessary enough to mention that these two identified issues are hard enough to handle and thus plans are required to make likewise. It is not possible to mitigate corruption for any particular organization and thus the organization is required to plan and manage their operations likely. From the discussion, it has been found that corporate tax in Iran is high and complicated enough and thus the organization need to plan accordingly (Tezcr 2012). Making the Plan List of individual risks Detailed rating of each risk depending on its likelihood A detailed assessment of present controls A detailed plan for action (Delgoshaei, Ravaghi and Abolhassani 2012) Deciding how to Handle Each Risk In the world of risk management, there are four strategies and the organization is required to plan on which to rely Avoid the risk Reduce the risk Transfer the risk Accept the risk Monitoring the Situation Butler, O'Gorman and Prentice (2012) have stated that putting measures in place is not enough and the company is required to check whether they are working and monitor the business on a regular basis in order to recognize and deal with the new risks A team is required to be there to look at this pat carefully and make all the necessary amendments to the plans as per the demand of the situation Next Steps The next step would be to analyze the surrounding issues related to the operations of tourism industry Revise the comprehensive risk management plan that outlines all the risks that the company faces They are required to rank the priorities accordingly an make the plans accordingly (Butler, O'Gorman and Prentice 2012) Recommendations In this part, it is required to provide some effective recommendations, so that the company can successfully go for the tourism venture in Iran. Iran is one of those countries that have been suffering from corruption and poverty and thus it is tough enough to expand tourism over there, as the tourists might feel insecure enough to travel to these types of countries. It can be stated that Iranians have successfully welcomed the opportunity to develop the historic buildings of the country and this would undoubtedly gain the attention of those tourists who are fond of history works. Therefore, it is recommended that the company is required to plan their advertisement in such a way that this part gets highlighted enough and they feel interested to visit Iran Delgoshaei, Ravaghi and Abolhassani (2012) has said in his research paper that the tourism industry of Iran is looking forward to grow rapidly following the lifting of economic sanctions with more number of westerners looking to come to Iran and thus plans are required to make for the further development of tourism industry, hotel and other related tourist facilities Apart from that, it can be stated that the lifting of the sanctions in places against the Islamic Republic would likely make arranging as well as carrying out the trips easier for westerners. Therefore, it is advised that the organization is required to focus at this part carefully at the time of expanding the business in Iran (Shirazi 2012) The countrys vice president has stated that a change is in front of Iran, as they are planning for a Tsunami of the foreign tourists. This is one of the positive sites for tourism sector in Iran and it is believed that the declaration from Vice President would boost the condition Apart from that, Irans president has declared about the loosening of the visa rules and this is expected to encourage the present situation of tourism in Iran, as this policy would open the doors of easy returns of the tourists References Butler, R., O'Gorman, K.D. and Prentice, R., 2012. Destination appraisal for European cultural tourism to Iran.International Journal of Tourism Research,14(4), pp.323-338. Delgoshaei, B., Ravaghi, H. and Abolhassani, N., 2012. 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