Al Nakheel Mall, Riyadh, is an international shopping center in the city’s heart. It is a popular destination for tourists and locals due to its wide range of stores, restaurants, and entertainment. The mall recently partnered with the Lefties department store, a major Spanish retailer. With this partnership, the mall seeks to expand its product offerings and provide a better shopping experience for its customers. The collaboration between the two organizations requires managing across organizational and cultural boundaries to ensure a successful supply chain network (Balasubramanian & Shukla, 2020).
1.1 Definition of Supply Chain Networks (SCN)
Supply chain networks (SCN) are complex systems that coordinate many organizations and processes to provide a product or service to customers. SCNs involve several activities, such as procurement, production, transportation, inventory management, information technology, and customer service. The ultimate goal of an SCN is to increase efficiency, reduce costs, and improve customer satisfaction (Chen et al., 2022).
2.0 Departmental Store and International Partnership with Lefties
2.1 Departmental Store
The Al Nakheel Mall in Riyadh is a large departmental store with a wide range of products, including clothing, electronics, furniture, home decor, appliances, health and beauty products, and more. The store also has many international brands, such as Lefties, a Spanish clothing brand. In order to effectively manage its supply chain and ensure that customers have access to the products they need, Al Nakheel Mall needs to establish strong partnerships with international partners, such as Lefties.
2.2 Establishing a Supply Chain Partnership with Lefties
In order to establish a successful supply chain partnership with Lefties, Al Nakheel Mall should begin by assessing the current supply chain structure and identifying any weak points that need to be addressed. This assessment should consider factors such as the source of the products, the cost of shipping, the time it takes to deliver the products, and the quality of the products. Once this assessment is completed, Al Nakheel Mall should create a strategy for working with Lefties that addresses any issues identified (Asmael & Turky, 2022).
2.3 The strategy should consider the following:
- Establishing a strong contractual relationship with Lefties that clearly outlines the responsibilities of each party.
- Developing a transparent communication process between Al Nakheel Mall and Lefties allows for timely and accurate information exchange.
- Establishing an efficient delivery system ensures that products are delivered on time and in good condition.
- Establish a system for tracking and managing inventory levels to ensure that products are always in stock.
- Developing quality assurance measures and procedures that guarantee that products meet customer expectations.
- Setting up and maintaining a system for efficient payment processing.
By taking these steps, Al Nakheel Mall can ensure that it has a strong and successful partnership with Lefties that meets the needs of its customers.
3.0 Supply Chain Collaboration
In order to effectively manage across organizational and cultural boundaries, Al Nakheel Mall must engage in effective supply chain collaboration. Supply chain collaboration is an important part of successful supply chain management, as it involves all supply chain members and provides an opportunity to share information and resources (Akhavan, 2020). This section will discuss how Al Nakheel Mall can mobilize, involve, empower, and embrace members of its supply chain in order to ensure successful collaborative efforts.
3.1 Mobilizing Members
The first step in successful supply chain collaboration is to mobilize supply chain members. This involves identifying the key stakeholders in the supply chain and actively engaging them in the planning and management process. Al Nakheel Mall can do this by holding regular meetings with suppliers, customers, and other stakeholders to discuss their needs and potential issues (Akhavan, 2020). This will help to ensure that all members of the supply chain are well-informed and aware of the needs of the other members.
3.2 Involving Members
Once the stakeholders have been identified, Al Nakheel Mall must then work to involve them in the supply chain management process. This can be done by providing opportunities for stakeholders to participate in the decision-making process and to provide input on supply chain management. Al Nakheel Mall should also strive to create a culture of collaboration and trust among the stakeholders by providing a dialogue platform and actively encouraging stakeholders to share their ideas and suggestions (Akhavan, 2020).
3.3 Empowering Members
In addition to involving stakeholders in the decision-making process, Al Nakheel Mall must also empower supply chain members by providing them with the resources and support they need to succeed. This includes providing access to relevant data and information and providing training and technical assistance to ensure that all stakeholders can understand and effectively use the supply chain management tools available (Asmael & Turky, 2022).
3.4 Embracing Members
Finally, Al Nakheel Mall must embrace members of its supply chain by recognizing their unique needs and values. This involves creating an environment that is open and supportive of diversity and that encourages members to bring their perspectives to the table. Al Nakheel Mall should strive to create a culture of respect and collaboration among all supply chain members. It should actively seek stakeholder feedback to ensure that its supply chain management strategies are meeting the needs of all involved (Akhavan, 2020).
4.0 Cultural Challenges in the Collaboration between Al Nakheel Mall, Riyadh and the Lefties store.
The collaboration between Al Nakheel Mall, Riyadh, and the Lefties store presents a unique set of cultural challenges that must be addressed for the supply chain management to succeed.
The first challenge is the language barrier. Although both parties speak English, the cultural differences and nuances of the language may present a barrier to successful communication. For example, the Lefties store may need help understanding certain terms used by Al Nakheel Mall, Riyadh, which could lead to confusion or misinterpretation of messages. To overcome this challenge, both parties should ensure that all communications are clear and concise and that technical language is avoided (Gabrow, 2021).
The second challenge is the different cultural norms and expectations of each organization. The Lefties store may have different expectations in terms of customer service, delivery times, and other areas of the supply chain (Alsaffar et al., 2019). To address this challenge, both parties should have an open dialogue to discuss their needs, expectations, and preferences. This ongoing dialogue should include regular meetings and reviews to ensure that both parties agree with the supply chain management plan.
The third challenge is the different legal and regulatory requirements of each country. The Lefties store may have different regulations or laws to follow to manage the supply chain successfully. To address this challenge, both parties should know both countries’ appropriate regulations and laws. A lawyer should be consulted to ensure that agreements comply with national and international laws (Alsaffar et al., 2019).
Finally, both parties must be aware of the different time zones in which they operate. This could present a challenge when scheduling meetings or communicating effectively (Alsaffar et al., 2019). To address this challenge, both parties should agree on a convenient time for everyone and ensure that all communications are timely and efficient.
Overall, the collaboration between Al Nakheel Mall, Riyadh, and the Lefties store presents a unique set of cultural challenges. To ensure successful supply chain management, both parties should have an open dialogue to discuss their needs, expectations, and preferences. They should also be aware of each country’s different legal and regulatory requirements and ensure that all communications are timely and efficient.
5.0 Actions to be Taken in Tackling the Cultural Challenges of Al Nakheel Mall, Riyadh
Cultures differ between countries and regions, which can present a challenge when managing an organization across multiple boundaries. Al Nakheel Mall, Riyadh, is no exception. As the mall expands its operations, it is necessary to understand and address cultural differences to ensure successful management and operations. Below are the outline of the cultural challenges of Al Nakheel Mall, Riyadh, and provides five (5) actions that can be taken to tackle these challenges.
5.1. Managerial Intervention
The managerial intervention is a strong source of support that involves top-level management decision-making, strategic planning, and implementation of the strategies. It can be used in Al Nakheel Mall, Riyadh, to tackle cultural challenges and ensure successful operations. The management should take the initiative to establish clear communication between the different departments and ensure that everyone understands the company’s policies and objectives. Additionally, the management should foster a culture of collaboration and trust by encouraging constructive dialogue among all departments (Alsaffar et al., 2019). This can be achieved through regular meetings and training sessions where people can exchange ideas and share their experiences.
5.2. Structural Intervention
The structural intervention involves changing the organizational structure of the company in order to facilitate communication and collaboration among different departments. Al Nakheel Mall, Riyadh, should consider implementing different management structures, such as matrix and flat organizations, to ensure that all departments work towards the same goal (Akhavan, 2020). This will also help foster an environment of trust and cooperation, which is key to tackling cultural challenges.
Adaptation involves changing and adjusting the current policies, procedures, and practices to suit the cultural needs of the organization better. Al Nakheel Mall, Riyadh, should consider introducing measures that will help to bridge the gap between different cultures and ensure that everyone is working towards the same goal. This can be achieved by implementing flexible working arrangements, mentorship programs, and cultural training programs to help employees understand cultural differences and foster better collaboration (Alsaffar et al., 2019).
If none of the above strategies are successful, Al Nakheel Mall, Riyadh, should consider exiting the market or reorganizing its operations to manage cultural challenges better. This could involve relocating to a different location or restructuring the organization to focus on different markets. It is important to remember that this should be used as a last resort and that the company should first attempt to resolve the cultural challenges using the abovementioned strategies.
6.0 Goal Compatibility
Goal compatibility refers to the alignment of goals between two or more organizations. In the context of Al Nakheel Mall, Riyadh, goal compatibility would involve ensuring that the goals of the mall and the supply chain management team are aligned (Akhavan, 2020). This could include agreeing on the objectives of the supply chain management team, the timeline for achieving those objectives, and the resources needed to do so.
6.1 Goal Incompatibility
Goal incompatibility refers to the lack of alignment between the goals of two or more organizations. In the context of Al Nakheel Mall, Riyadh, goal incompatibility would involve the supply chain management team having objectives that need to be aligned with the goals of the mall (Akhavan, 2020). For example, if the supply chain management team wanted to reduce costs, but the mall wanted to increase sales, the goals would be incompatible.
7.0 Coercive Power
Coercive power refers to the ability to influence another organization through the threat of sanctions or other forms of punishment. In the context of Al Nakheel Mall, Riyadh, the mall could use coercive power to force the supply chain management team to comply with its objectives (Asmael & Turky, 2022). This could include threatening to reduce funding or terminate contracts if the team does not meet its targets.
7.1 Non-Coercive Power
Non-coercive power refers to the ability to influence another organization without the threat of sanctions or other forms of punishment. In the context of Al Nakheel Mall, Riyadh, the mall could use non-coercive power to motivate the supply chain management team to achieve its objectives (Akhavan, 2020). This could include offering rewards for meeting targets or providing additional resources to help the team achieve its goals.
In conclusion, supply chain collaboration is important to a company’s success. In order to ensure successful supply chain collaboration, it is essential to manage resources, processes, and activities across organizational and cultural boundaries. This can involve mobilizing members, involving members, empowering members, embracing members, and ensuring goal compatibility. It is also important to ensure that coercive power is not abused and that non-coercive power is used instead. Al Nakheel Mall, Riyadh, and Lefties can ensure successful supply chain collaboration by managing resources, processes, and activities across organizational and cultural boundaries.
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