Cultural Elements Of The Decision Making Of Multinational Organizations

So far as international business is concerned, the four dimensions of culture form an important facet. Knowledge of the manner in which different features of a business are viewed in different cultures, can help a manager in understanding and sailing successfully across the international business market.

Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.

In multinational workplaces understanding how important the significance of cultural differences is larger than we might think. Organizations that are diverse have to work together because their functionality impacts the productivity of the workplace. It is vital to have an understanding the different cultures to develop a strong organization. Certain principles will help you acknowledge that different cultures exist within the organization. As a manager, you have to analyze the reasons for the development of the differences and

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

     Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum

Using appropriate theories critically analyse the role of culture in International Business. Support your answer by quoting relevant examples from the case study.

2. When a company grows in size and makes the decision to expand internationally, it is vital for its image among current and future customers to complete projects effectively and on time. Furthermore, it is also likely that such an expansion would entail the representation of more than one culture among the workforce. Indeed, while many employees will be relocated from the home country, a further proportion will be hired from the host country. To facilitate the relations and

Culture and the environment affect a business in many ways. Culture is not simply a different language, a different shade of skin, or different styles of food. Culture, and the environment in which you are a part of, affect the running of day to day business operations of all companies’ day in and day out. This paper will assess how Linda Myers, from the article, “The would-be pioneer,” (Green, S., 2011) was affected by the huge culture shock of working for a global conglomerate from Seoul, South Korea. We will discuss what went wrong with Ms. Myers approach to business, Hofstede’s five dimensions of culture as it

The success and failure can be explained using a core perspective named institution-based view, which was introduced as part of the concept of global business. Culture, an informal institution plays a major role in the success and failures of multinational enterprises around the world. The formal institution includes laws, regulations, and rules, also termed as political systems, legal systems, and economic systems. Informal institution includes cultures, ethics, and norms. Both come under the main umbrella of institution based view of the unified framework model for global business. (Peng, 2014)

Interest in the business culture of the world originated over 20 years ago, but that does not mean that it did not exist before. The formation of the culture of any country is influenced by many factors, such as historical events, life, education of parents, lifestyle, ethnicity, tradition and religion. Even the language in which to communicate in the country, has a very important role. It was he who determines the structure of thinking people belonging to the same society. This leads to the fact that people who speak different native languages under the influence of more and different cultural values, often do not understand each other. Many of these factors that people face every day and do not pay attention to them, have a strong impact on them, resulting in the formation in a certain society, its concepts, habits and norms. Different geographical locations and climatic zones as well leave their imprint on the development and formation of different national cultures.

Countries have different cultural characteristics which affect their corporate culture and some of these characteristics guide the decisions made by a firm, including the decision to replace a CEO. In this paper I study this

As Economic globalization accelerated into the future international business is becoming more dynamic. National culture has become a point of attention for the researchers. There are a number of definations for culture which different researchers study. According to

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

Culture can have various aspects to it, which some are innate and passed down from generation to generation, and some are changed through time based on influence from what may be popular in culture. Although some individuals living outside of their home country find themselves assimilating to culture in that particular culture, it is undeniable that ascribed characteristics do not change (Kahn, 2015). Most individuals are products of influence, whether if it is the media, coworkers, or other people we meet along the way in our life. Some individuals approach different cultures with an open mind and respect while others may feel uncomfortable. Some cultures value working together as one, and others may be selfish thinking that it is all about me. When conducting business on a multinational project, which is done more often that we think, it is helpful to be understanding of some aspects of the particular cultures being dealt with to work in harmony. Therefore, it is beneficial to become familiar with both the 7 dimensions of culture as described by Hofstede and Tropennars and Hampden-Turner’s model of culture can be helpful in preventing misunderstandings. For the purposes of this assignment, I will focus on my country of origin Mexico, and compare and contrast with the United States and Jordan.

According to Berry and Pootinga (2006), “culture is a shared way of life of a group of socially interacting people, transmitted from one generation to the next via acculturation and socialization processes that distinguish one group’s members from others”. Thus, a multinational company is a set of different backgrounds and cultures.