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Cross Culture Issues

Cross-culture in the business context refers to the measures taken by an organization to

foster productive communication and cooperation between employees from different cultural

backgrounds. Because of the wide range of people who work and shop at Dollarama, cross-

cultural problems are always bound to develop. Problems in this area can manifest in many

forms, including communication, cultural awareness, customer service, and company ethos

(Ferdman, 2018). Dollarama experiences some cross-culture problems due to its diversity of

employees. However, they have tried to solve the problems and encourage collaboration within

the organization.

Employee Diversity

Dollarama is proud to employ people from various cultural backgrounds as a leading

Canadian dollar store company. This includes a large number of immigrants and people of

different races. More than 20,000 people work for Dollarama (ESG report, 2019). Women

comprise 52% of Dollarama's staff, while males comprise 48%. At Dollarama, 47% of the

population is White. Twenty percent of Dollarama's staff are Hispanic or Latino (ESG report,

2019). Asians make up about 14% of the workforce at Dollarama. Differences in communication

techniques, work ethics, or cultural beliefs among personnel from diverse cultural origins

sometimes lead to conflict in the workplace.

Cultures have their distinct ways of conveying meaning to one another. For instance,

whereas certain cultures may place a premium on open and assertive speech, others may value

reserved and courteous discourse more. Misunderstandings might arise in Dollarama if staff need

to understand or adjust to one another's communication styles because it is important for

everyday operations and customer care (ESG report, 2019). Working together on projects or
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activities, people from these different cultures may experience inefficiencies or disputes due to

differences in work ethics.

Customer Diversity

Having a diverse consumer base is a major challenge for businesses like Dollarama.

Consumers come from various backgrounds and have varying cultural norms, tastes, and

methods of expression. It is essential for the survival and expansion of the organization that this

problem be comprehended and fixed. Shopping experiences, product quality, and pricing have

varied meanings to customers from diverse cultural backgrounds (ESG report, 2019). For

instance, although some clients place a premium on bargaining, others may prefer to shop at

stores with established, low prices. Products may be received in a variety of ways depending on

the culture. For cultural or religious reasons, some shoppers may give more weight to particular

products than others (O’Donovan, 2018). Dollarama needs efficient inventory management to

stock various goods catering to customers of different backgrounds and lifestyles. Dollarama

must use language that respects and embraces these distinctions to reach its diverse customer

base effectively. It can be challenging to provide good service to various customers. Clients from

different cultural backgrounds may have varying expectations of service.

Supplier relationship

Like many other retailers, Dollarama must rely on a global supply chain to obtain its

goods. This led to cross-cultural challenges due to culturally distinct approaches to business,

negotiating contracts, and conveying information between Dollarama and its international

suppliers. These problems may seriously affect the effectiveness of Dollarama's operations and

supply chain (ESG report, 2019). Time and timeliness are two concepts that are interpreted

differently among cultures. In some cultures, arriving late to a business meeting or missing a
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delivery deadline might be perceived as rude or unprofessional. While some cultures place a

premium on punctuality, others may be more concerned with fostering strong working

relationships (O’Donovan, 2018). When Dollarama requires tight adherence to delivery

timetables while their suppliers are more accommodating, it might lead to understanding. Supply

chain disruption and inventory management issues can occur when products are sent or

manufactured later than expected.

Ways in which Dollarama manages cross-cultural issues

Despite the cross-cultural issues faced by Dollarama, the company has implemented

various strategies that help it address the problems. Some of the strategies include:

Diversity and inclusion within the organization

A company's diversity and inclusion (D&I) policy aims to foster an inclusive and

welcoming atmosphere for employees of all backgrounds. Dollarama's dedication to diversity

and inclusion is abundantly obvious in the company's D&I policy (ESG report, 2019). One way

to do this is by creating a welcoming environment for all employees. This conveys that

inappropriate conduct is unacceptable in our organization (Dollarama, 2023). Dollarama ensures

that all its employees, regardless of experience, have access to policies that help them improve

their careers.

Diversity training

Diversity training is commonly used to describe courses that aim to teach students about

the importance of diversity in the workplace and how to appreciate and respect one another. All

personnel at Dollarama, from the front line to the executive suite, have been required to complete

extensive diversity training (ESG report, 2019). The firm offers resources and methods for

interpreting and responding to culturally distinct verbal and nonverbal clues. When leading
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culturally and racially diverse teams, they provide specialist training for supervisors and

managers (Dollarama, 2023). They aim to raise cultural sensitivity by instructing workers in the

practices and beliefs of other societies.

Supply chain

Throughout the years, Dollarama has amassed a large group of reliable and recommended

vendors. With no single vendor accounting for more than 4% of overall purchases, their top ten

suppliers account for 25% of expenditures. More than 60% of all purchases come from just 25%

of all suppliers (Dollarama, 2023). Their first concern is ensuring all of their suppliers can

guarantee the quality and safety of their products. The company's policy is to only do business

with vendors who provide safe working conditions and protect the environment. In 2015,

Dollarama formalized its expectations for vendors with the adoption of a Vendor Code of

Conduct and Ethics (the "Vendor Code"), which was approved by the Board (ESG report, 2019).

Regarding quality control, it has high expectations for its vendors to abide by as a precondition

to associating with Dollarama as a business partner.

Organization culture

Employees are valued highly at Dollarama Inc., a huge, multi-location chain store.

Dollarama Inc.'s organizational culture strives to foster a welcoming environment for employees

and constantly evolves to this end (Dollarama, 2023). The company encourages its workers to

treat each other with respect, work together cooperatively, take the initiative, and think

creatively. Open communication channels and the inclusion of staff opinions are valued at

Dollarama Inc. (ESG report, 2019). Dollarama Inc. has decided to go out internationally and is

searching for expansion strategies that consider the company's values and the norms of the

nations where they will operate.

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Recommendations

Effectively addressing cross-cultural difficulties at Dollarama calls for a holistic strategy

to promote a culture of cultural awareness, understanding, and inclusivity in the workplace.

Regular diversity training for all staff members

Diversity training aims to inform workers about the range of cultural practices. It encourages a

more accepting and peaceful workplace by raising people's sensitivity to and understanding of

their diverse coworkers' experiences (Karatuna et al., 2020). Dollarama can host events like

seminars and webinars to educate their staff on the many cultures they represent.

Implementation of conflict resolution procedures

Dollarama may provide an organized procedure for resolving problems, complete with

mediation, defined pathways for escalation, and a strategy for dealing with cultural nuances

(Ferdman, 2018). Learning about and appreciating others' perspectives should be emphasized

throughout this procedure.

Inclusive leadership

All employees, regardless of their ethnicity or background, should feel appreciated and

valued in the workplace, and inclusive leaders do this by setting a good example. The

management team at Dollarama has to get behind diversity and inclusion initiatives (Ferdman,

2018). This involves serving as a role model, showing appreciation for others' cultural

backgrounds, and supporting efforts to increase diversity inside the company.

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References

Dollarama. (2023, June 29). Sustainability.

https://www.dollarama.com/en-CA/corp/sustainability

ESG report. (2019). ESG report - dollarama. https://www.dollarama.com/en-CA/corp/wp-

content/uploads/2019/06/ESG-Report-ENGLISH.pdf

Ferdman, B. M. (2018). Incorporating diversity and inclusion as core values in organization

development practice. Enacting values-based change: Organization development in

action, 157-167. https://link.springer.com/chapter/10.1007/978-3-319-69590-7_11

Karatuna, I., Jönsson, S., & Muhonen, T. (2020). Workplace bullying in the nursing profession:

A cross-cultural scoping review. International journal of nursing studies, 111, 103628.

https://www.sciencedirect.com/science/article/pii/S0020748920301127

O’Donovan, D. (2018). Diversity and Inclusion in the Workplace. Organizational behavior and

human resource management: A guide to a specialized MBA course, 73-108.

https://link.springer.com/chapter/10.1007/978-3-319-66864-2_4