Intercultural Management

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Topic Review: General Management

Effective cross-cultural management has to be grounded in a detailed knowledge of individual cultures. Discuss using examples from two multinational companies.

I/ Introduction: In times of rapid globalisation and economic development growth, the environment of business has become more and more complicated as a huge number of firms want to globally expand their businesses. Subsequently, the managerial implications of cross-cultural management is the challenge of this development. As Abbe (2007) states, cross-cultural leadership has developed as a way to understand leaders who work in the global markets. Culture is the “software of mind” that can influence people’s patterns of thinking and behaving. …show more content…

As a result, it is critical and essential for adaptation to achieve corporate success. 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.

III/ Examples of Two Multinational Companies: 1. Wal-Mart: In the United States, there are more than 4,000 Wal-Mart stores. On average, it costs more than $2,000 each year at Wal-Mart for every American household.

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