Cross-Cultural Management Leadership




Table of Contents. 1

Executive Summary. 2

Introduction. 3

Performance of the Regal Advertising Agency. 4

Leadership. 4

Organizational Culture. 5

Communication. 6

Contextual Factors. 6

Criteria for a Solution. 10

Constraints. 10

Control 11

Possible Options. 13

Evaluation of Options and Recommendations. 13

List of References. 17

Appendices. 21








The current management within Regal Advertising Agency is highly effective as demonstrated by the participatory leadership that is exhibited by Richard Jones and John Adams. The innovativeness, creativity and high productivity among RAA’s employees in the creation of advertisings for the company’s clients is attributed to the effective leadership of its managers. In order to grow the business into the international market, it is necessary for RAA to expand into new locations. Expansion into new markets means that the management team within the company must adopt effective leadership strategies, which will align with the business culture of the new locations. Nigeria, Bulgaria and Brazil are recommended as appropriate markets for the company’s internationalisation strategy or global expansion. Transformational, transactional and paternalistic approaches are recommended, as suitable leadership strategies, which will enable the company to achieve high performance and competiveness within its new locations. The recommendations of the three locations are based on the economic, technological and social cultural attractiveness of these markets.



The success of companies is based on the kind of leadership and management processes, which are used to promote work activities. Effective leadership is defined by the approaches, styles and traits that are employed in achieving success through a company’s workforce (Merrell, 2012, p. 21). Managers or business leaders become effective if they are able to adopt leadership styles that are congruent with the cultural values of their employees. The roles of managers in a company, such as supervision, planning, coordinating, organising and controlling work processes, are affected by internal and external issues or factors (Yukl, 2012, p. 68). There are various strategies that company managers and leaders can employ to achieve success, high performance and competitiveness within their local and international markets. These include participatory leadership, effective communication processes, employee motivation, teamwork and training (Stahl & Brannen, 2013, p. 495). This report describes the leadership, managerial and organisational landscapes within Regal Advertising Agency’s business operations. The goal of the report is to analyse and evaluate the effectiveness of the current managerial, leadership and organisation within the company. The report also presents a discussion of various issues or factors within the company’s current and new markets, which are likely to affect its organisation, leadership and management strategies. In line with this analysis, the report presents strategies in leadership, management and organisational structure, which the company would employ so that it becomes successful in its new markets or locations. The report also presents recommendations related to the company’s growth or expansion into new locations and markets. 



Regal Advertising Agency’s current success in the market is attributed to the effective leadership styles of its managers. The participatory leadership style, which is exhibited by Richard Jones and John Adams, is the reasons why the company’s employees are highly motivated and productive. Sarwar (2013, p. 87) argues that participatory leadership is effective because it prevents possible resistance to the policies and decisions made within a company. Since the employees of RAA are involved in the decision-making processes, it is unlikely that they will be opposed to the decisions that are reached on the operations of the company. Cunyat & Melguizo (2013, p. 59) adds that when there is no resistance, the speed at which new ideas are adopted and implemented is increased. It is through the participatory leadership style within RAA that the company was able to adjust rapidly to changes in the market. For instance, the company was able to overcome the economic challenges of the recession, due to its adaptability in policy issues, business strategy and decisions on marketing strategies.


The current style of leadership within RAA has resulted in an increase in employee morale. Yates (2011, p. 53) reports that participatory leadership style provides employees with a voice, which makes them to feel that they are liable for the performance of the company. In return, the employees are encouraged or motivated to achieve the highest standards of performance. Through the participatory leadership approach, employees are enabled to participate actively in implementing improvements in the working conditions (Ong, Richardson, Yanqing, Qile & Johnson, 2009, p. 157). When working conditions are favorable, employee morale is boosted, which results in improved performance (Galvin, Gibbs, Sullivan & Williams, 2014, p. 36). RAA’s managers encourage creativity among employees. Merrell (2012, p. 21) asserts that when employees are provided with an opportunity of presenting their opinions and suggestions, diverse and creative solutions are proposed. This empowers employees to become innovative and allows them to employ more efficient work strategies and processes (Yukl, 2012, p. 67).



The fact that Richard and John manage RAA through cross functional teams is attributed to the company’s high performance in the market. Druskat & Wheeler (2010, p. 450) demonstrate that team work leads to a higher level of performance than projects that are led by individuals. The positive results of the self managed team pilot within the company reveal that when employees are managed through teams, the level of participation among employees in work activities increases significantly. Cunyat & Melguizo (2013, p. 60) show that when employees are organised into teams, their decisions and work activities are often goal oriented. The team work approach to management within RAA has allowed its employees to work collaboratively towards the achievement of the company’s goals and objectives.


The human resource management approach within RAA is also attributed to the competitiveness of the company within the advertising market. This is revealed by the human resource policies, which have enabled the company to employ highly motivated, creative and innovative designers and copywriters. The competitive staff members are the forces behind the creative and high quality design of advertisements for the company’s clients. Sarwar (2013, p. 84) says that the recruitment strategy and policies of a company determines its ability in attracting and employing skilled, talented and innovative members of staff. Since an organisation succeeds through its employees, the importance of effective human resource management approaches is evident.


The participatory style of leadership, which characterise RAA’s, means that effective communication approaches are used within the company. The organisation of the company is based on exchange of ideas and opinions and consensus decision making. It is through this organisation that the company’s functional areas and teams are allowed to collaborate and coordinate in problem solving. Yates (2011, p. 52) argues that effective leadership promotes a two way communication paradigm, which motivates employees and encourages them to be part of organisational decisions, business strategies and change projects. The effective leadership, management and organisation within RAA reveals that it would achieve significant success if implements such strategies in its new markets or locations.


The leading, organising and managing approaches, which are employed within RAA’s current and new markets, are influenced by several issue or factors, both internal and external to business processes. Legal issues play a significant role in the leadership, management and organising processes within the company (Aycan, Schyns, Sun, Felfe & Saher, 2013, p. 964). For instance, employment regulations defines the company’s human resource policies and management processes. Recruitment processes within RAA will be influenced by the legal provisions on the rights of individuals to employment. The management staff within RAA will be mandated to employ unbiased recruitment approaches. However, the human resource policies are often aligned with the interests of a company to attract and employ an effective workforce. Ulrich & Smallwood (2013, p. 10) assert that the human resource management practices and policies are aligned with the company’s strategic goals of becoming competitive in the market. It is as a result of this that companies recruit the most skilled, experienced, talented and innovative employees (Galvin, Gibbs, Sullivan & Williams, 2014, p. 35). However, the human resource management practices within companies must not violate the legal provisions within the labor market of its local operations. RAA’s new markets may have specific employment laws, such as support for recruitment of local staff, which may influence the human resource management practices and policies within the company (Tuleja, 2014, p. 10).


Economic factors may influence the organisation of RAA’s management structure and leadership strategies. Cunyat & Melguizo (2013, p. 59) reveal that the economic performance of a company determines its ability in meeting operational costs that are associated with international operations. Therefore, the ability of RAA to manage its operations within new locations would be determined by its financial capacity for meeting operational and managerial costs. A decentralised organisational structure is effective because it facilitate decision making and allows a company to operate its business in line with the characteristics of its local markets (Galvin, Gibbs, Sullivan & Williams, 2014, p. 35). Economic constraints within RAA’s new locations may limit the decentralised organisation of its management processes. Furthermore, economic factors influence human resource management practices, such as training for both employees and managers. The ability of a company to invest in training programs is influenced by its economic or financial performance (Cunningham, 2012, p. 30). Effective managerial and leadership strategies are characterised by the use of teams to implement projects (Ong, Richardson, Yanqing, Qile & Johnson, 2009, p. 160). Nonetheless, economic factors would influence the ability of a company to implement research and teamwork activities and processes, such as research and development (Mishra, Boynton & Mishra, 2014, p. 185). Economic performance and business rivalry within the market may influence the decision making processes of business leaders and managers. The management staff within RAA may be forced to make unpopular decisions to enable the company to survive through hard economic times, such as recessions.


Kumari & Malhotra (2012, p. 78) reveal that issues related to technology have a significant impact on management processes, leadership strategies and the organisation of companies. This means that factors within the technological environment of the company’s current and new markets will influence the kind of leadership strategies, management processes and the organisation of the company. Ulrich & Smallwood (2013, p. 11) illustrate that advances in technology have promoted the decision making processes among managers or organisational leaders. This is depicted by the use of decision support systems and other IT applications to promote access to relevant and accurate data and aid decision making processes. The effectiveness of managerial decisions within RAA is likely to be influenced by their access to modern technologies and business applications. Therefore, if the level of technological infrastructure and networks within the company’s new locations is low, managerial processes, such as decision making may be slowed. Keeffe, Darling & Natesan (2009, p. 90) argue that technological applications promote communication and coordinated business practices within a company in a significant manner. The two way communication approach, which is currently employed within RAA, and the resultant consensus decision making processes, are likely to be influenced by access to various business technologies within its new markets.


According to Ong, Richardson, Yanqing, Qile & Johnson (2009, p. 158), the management practices, leadership approaches and organisational policies and culture are significantly influenced by social cultural issues within a company’s business environment. The organisational culture within RAA is currently characterised by participatory leadership, which makes all employees to believe that they have a role to play in the business processes and decisions that are made within the company. The social cultural issues, such as the beliefs of employees and business etiquette within its new markets or locations, may influence the approaches and styles of leadership that are employed within the company (Ramthun & Matkin, 2012, p. 305). The kind of professional and social relationships that are practiced within a specific business environment and society influence the approach that managers employ in communicating and relating to their employees (Kallas, 2009, p. 10). Changes in organisational culture, which may be influenced by diversity, may impact on the communication processes within the company (Caligiuri & Tarique, 2012, p. 613). For instance, the working culture of a collectivist society may be characterised by enhanced relationships within the work environment, which in return would promote the effectiveness of managerial functions. The organisation of RAA’s functional areas and levels of management may also be influenced by social cultural issues. Ulrich & Smallwood (2013, p. 10) explain that the arrangement of organisational management structure is related with the systems that are in line with the social cultural values and culture of the organisation.

The social corporate responsibility obligations of RAA and the associated environmental issues would influence managerial decisions. Srivastava (2013, p. 555) says that organisational leadership focus on a company’s corporate social responsibility, so that it can enhance its image within its new markets. Human resource management practices within RAA may be influenced by its employment obligations to the local communities of its new locations. This means that the management team may recruit local staff in their new markets, so that it offers opportunities for growth within the society. This may influence the organisational culture that pertains to the relationship between employees and the management staff. This is attributed to the fact that the local workforce may not have adequate understanding of the leadership strategies of the company and its work values, as defined within the organisational structure. The success of the company within its current and new markets will therefore be defined by the understanding of the management team of the issues within the business environment, which influence management processes, and adjusting to them appropriately.



The success of RAA in new markets will be achieved through the adoption and implementation of effective cross cultural leadership approaches. Abyad (2011, p. 10) reveals that it should never be assumed that managers who are highly effective in one country will still be effective in another culture. It is because of this that managers should understand that managing diverse individuals in another culture would mandate them to adopt effective cross cultural management strategies in order to drive their companies into success within new locations (Ofori & Toor, 2009, p. 120). RAA’s management team should be able to adjust their management or leadership styles appropriately so that they can be effective in leading employees within the new locations. Hofstede’s dimensions on cross cultural leadership, such as individualism and collectivism, illustrate the role of culture in influencing the leadership styles that are adopted by organisations (Takahashi, Ishikawa & Kanai, 2012, p. 532). Three leadership styles are reported by scientific proof to be effective in managing individuals across cultures. These are paternalistic Leadership, transactional leadership and transformational leadership (Festing & Maletzky, 2011, p. 188).


RAA should would a paternalistic approach to leadership in its new locations. It is through this approach that the company’s leaders should instill a strong level of discipline among its employees. Gandolfi (2012, p. 523) adds that paternalistic leadership is effective in promoting moral integrity among the subordinates. Moral leadership and benevolence are the two main elements of the paternalistic approach to leadership, which would allow the management team within RAA to be effective in leading the company’s teams within the new locations. The cultural beliefs and values of individuals within the new location will dictate that RAA employs a moral approach to leadership, so that employees within the new location will be highly motivated in innovative design of advertisements. Plaister-Ten (2014, p. 53) reveals that paternalistic approach to leadership allows the leadership styles of managers to align with the national culture of the company’s operations and therefore positively influencing the innovation and creativity of employees (Appendix I). Paternalistic approach to organisational control is commonly applied in eastern cultures. Regardless of the effectiveness of this approach in cross cultural leadership, it is important to note that its application and effectiveness within western cultures has not been documented adequately within scientific research reports.

RAA would also adopt and implement the transformational approach to leadership in its new locations. Holt, Bjorklund & Green (2009, p. 150) explain that it is through transformational leadership that leaders are able to give their subordinates adequate support and enthusiasm. This illustrates that both paternalistic and transformational approaches are suitable for RAA because they encourage creativity and innovation among employees. Dunn, Dastoor & Sims (2012, p. 46) add that transformational leadership is characterised by the use of incentives or rewards to motivate the performance or productivity of employees. Through the transformational approach, leaders within RAA will be able to engage their employees effectively in effective communication processes. Effective communication influences productivity within a multicultural or diverse business environment (Van Hove, 2012, p. 7). This will support the participatory leadership style, which is currently exhibited by the leadership of Richard Jones and John Adams. Both paternalistic and transformational approaches in leadership are aimed at achieving the desired change within an organisation through innovation. This reveals that the two approaches to leadership will allow RAA to implement effective strategies in work activities, which will allow it to become competitive in designing advertisements within its new markets.


The transactional approach or strategy in leadership can also be adopted and implemented by RAA’s leadership within its new locations.  Transactional leadership employs reinforcements, such as rewarding employees who demonstrate desired behaviors, to promote performance in work activities (Alves, Lovelace, Manz, Toyasaki & Ke (2010, p. 337). Through transactional leadership, RAA will be able to meet the interests of its employees, while motivating their creativity in the design and implementation of advertisements for its clients. The illustrations on paternalistic, transactional and transformational leadership styles reveal that they are relevant and effective for RAA, because its success depends on the creativity of its employees to become competitive and successful in its new markets. The goals, behaviors and the desired change, which characterise both transactional and transformational leadership styles and approaches, are highlighted on Appendix II.


The discussion within this paper reveals the importance of effective cross cultural leadership within a company’s new markets in achieving business success and competitiveness. The participatory leadership, which is exhibited by RAA’s managers, is attributed to its highly motivated, creative and innovative workforce. Expansion into new locations within the international market in advertising is necessary for achieving RAA’s internationalisation strategy and objectives. This is the reason why three international locations are recommended for RAA’s internationalisation strategy. Nigeria, Bulgaria and Brazil, are recommended for RAA’s business expansion, because these locations would promote its brand within the international markets and enhance its cross-cultural experience. The company’s managers should however adopt an open mind and flexibility in leadership, so that they can implement effective leadership styles, structures, behaviors and approaches, which would fit the business cultures of the three locations. Transactional, transformational and paternalistic approaches are recommended, as effective leadership strategies for managing the company’s business activities in its new locations.


It is recommended for RAA to expand internationally into Nigeria, Bulgaria and Brazil. Expansion into the three locations is recommended because it will allow the company to achieve its internationalisation objectives or global expansion goals. Furthermore, this expansion will allow the company to reach new markets and therefore increase its sales or revenue. The three locations will also offer the company an opportunity to operate within new cultural environment. This will enable its management to gain experience in cross cultural leadership. Furthermore, expansion into the three markets will give the company a global or international image. This will popularise its brand within the international market. More notably, through expansion into the three locations, the company will be able to grow further into the African, European and South American market.


Nigeria is the second largest economy in Africa, which makes it an attractive market for RAA. The fact that Nigeria is the most populous nation in Africa further reveals the large market opportunities that are available in this location for RAA advertising business. More importantly, Nigeria is a rapidly growing or emerging economy, which is characterised by a robust business culture. The social, economic and technological environment within Nigeria is also favorable for the advertising business. A hierarchical leadership culture characterises Nigerian organisations or companies (Lemieux, 2012, p. 32). This means that the leadership style within RAA’s operations should be aligned with the leadership and business culture of this location.


The hierarchical culture in leading Nigerian business organisations mandates leaders to adopt a fatherly role in influencing their subordinates (Lemieux, 2012, p. 44). It is as a result of this that leadership within RAA’s business within the Nigerian market should adopt and implement the paternalistic approach or style in leadership.  Through paternalistic style, RAA’s leaders will be able to develop hierarchical relationships with their employees in Nigeria. This will allow the leaders to win the respect and loyalty of their employees. The leadership culture within Nigeria mandates leaders to develop direct relationships with their followers, which goes beyond the work related engagements (Lemieux, 2012, p. 41). This is due to the fact that Nigerian workers are more likely to seek personal advice from their managers, as they engage in business issues. It is through a paternalistic style in leadership that RAA’s management team will be able to develop effective and long term relationships with their employees in Nigeria, and therefore motivating them for more creativity and innovativeness in the design   and implementation of the clients’ advertisements.


Since Bulgaria is situated at the cross roads of Asia, Middle East and Europe, its population is very diverse (Sachsenroeder, 2008, p. 21). This means that RAA’s cross cultural leadership approaches within the Bulgaria market should embrace the element of diversity. Bulgaria is an open economy, which makes it an attractive location for RAA’s business expansion objectives. The Bulgarian economy is also stable, which makes its economic landscape appropriate for RAA’s international expansion plans. The Bulgarian business culture is characterised by high value for face to face communication (Sachsenroeder, 2008, p. 25). In line with this, transformational leadership style is recommended for the management of RAA’s business operations within this location. Through transformational leadership, the company’s leaders will be able to engage actively with its employees and clients. The vocal nature of the Bulgarian culture makes transformational leadership as the most effective approach in leading employees within this location. Through transformational leadership, RAA’s employees within Bulgaria will feel that they are included in business processes and decision making. This will motivate the talkative Bulgarians to become more creative and effective in the development of advertisements for the company’s customers.

Informal leadership structures are recommended within RAA’s business activities within Brazil. This is due to the informal nature of Brazilian business culture and etiquette (Crocitti & Levine, 2009, p. 13). A combination of transformational and transactional leadership style is recommended for RAA’s leaders in the management of the company’s Brazilian operations. Through transformational leadership, the company’s management will be able to develop informal relationships with its employees, business partners and clients. This will motivate their contribution into the success of the company and its competitiveness within this new location or market. Transactional leadership will enable the company’s leaders to reward employees who depict the desired business behavior and therefore making them highly productive, creative and innovative. Expansion of RAA’s business into Brazil is recommended because of its large population of more than 199 million people. This means that the company is exposed to a large market within this location. Furthermore, the economic stability and rapid growth of Brazil makes it the most suitable location within South America, for RAA’s international expansion goals.


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Appendix II: Transactional and Transformational Leadership






Inspirational, empowering



Use of reinforcements

(e.g., rewarding desired







Employee self interest

Desired change


Major, innovative


Regular, routine












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