Cultural Influence on Management of Organizations

2245 Words Aug 2nd, 2011 9 Pages
Cultural influence on management of organizations

1. Introduction

As businesses and firms grow in size, they are crossing borders and becoming multi-national companies. When the firms cross borders, several management strategies need to be aligned in accordance with the cross-cultural needs.

This assignment will examine two famous multi-national companies on their application of cultural aspects and analyze how successfully they have applied those aspects and reasons for their success.

Before proceeding with examination and analysis, let’s look what culture means.

According to Hodgetts and Luthans (2000), acquired knowledge will form values and behavior and subsequently influence the behavior of individuals or society.

According
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For instance, the Spicy Chicken Sandwich which is mixed some Chinese characteristics that to put spicy chicken into sandwich can be found in this market. From October 20th in 2004, McDonald’s had begun to ordering suitable menu for Chinese market, such like the breakfast product. The products like scrambled eggs, pancakes and hot tea which have typical Chinese elements can be found in McDonalds‟ breakfast menu in China.

“The good market response proved that our strategy of product localization is correct,” said by the by marketing manager (2009).

Chinese are very much of family oriented and kinship based. Therefore, McDonald takes the “family” as the main target group, including three groups. They are children, their parents and young people.

Pricing adaptation

China is a developing country with a lower economic level than America. Hence, McDonald has adapted their pricing strategy in the Chinese market in accordance with the economic level. The same product would be available at different prices from Chinese and American markets.

Advertising

According to Chinese culture, the color red is regarded as color of good fortune. Hence, McDonald’s advertisements in Chinese market always contain a warm picture. It sometimes looks like the elderly and the young generation within a happy and relaxing atmosphere with easy-listening background
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