International Business : The Challenges Of Globalization

In this essay, I am going to discuss how practices of managing culture have been used to develop the management of Globalization in the post-bureaucratic era. Globalization has led to the increasing number of global business relationships, the emergence of new global work structures and work environments. To address this I will discuss Cultural globalization, the practices of Frederick Taylor (Carol Carlson Dean, (1997)) that have led to the social dominance, as corporations around the world have started to adopt these practices to increase bureaucracy for interest and welfare of the companies. Proceeding on to the second point on Global leaders in a heterogeneous vs. homogeneous world. Where (Rego, A., Clegg, S. & Cunha, M. 2011) describe the heterogeneous view “We live in an increasingly borderless world that is nonetheless still filled with linguistic, cultural, political, temporal, economic, and social borders." compared to (Osifo.S, Eromosele. O December 2011) who says that globalisation has allowed “Organizations have an innate tendency to develop homogeneity, in the sense of shared beliefs and shared values. And finally triple bottom line approach in multinationals. Where pressures from stakeholders, have given companies incentive to focus on triple bottom line (Carol M. Sánchez, Alexandra S. Schmid, 2013)

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.

Nowadays, exploring the differences in overall cultural value structures among different cultures has gradually grew business’s attention across the world. No matter small companies or global conglomerates, how to get involve and maintain their competitive advantages and long-term sustainable success in global business trade has been a heated topic to discuss. To fully understand the ethic differences and cultural influences, the following four aspects will help us to uncover the similarities and differences between the American and Chinese cultures.

The need for the best use of scarce resources has made the issue of management very important in every organization.

There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.

Cross Cultural management explains the behaviour of people in organizations worldwide, helping managers and firms to understand how to act in business matters dealing with the different cultures. (Adler, 2008)

It is critical to organizations because the employees are from different cultural backgrounds. These distinctions have to be considered when making decisions because they have an impact on formal work relationships and performance. This understanding is more paramount to multinational organizations because they have business operations right at the heart of different cultures in the various countries. The success of global firms depends on how well the management handles the cultural differences and uses them to the advantage of the

Globally, the world of business has also led to an increase in ethical difficulty and dilemmas for managers of cross border firms. In the article titled, Okpara John O. (2014), “The effects of national culture on managers’ attitudes toward business ethics: implications for organizational change”, Okpara John O argues how the impact of globalization in the world of business evaluates the importance of incorporating cultural differences into ethics research. The article is integral part of the idea that cultural differences exist among managers from different continent. These differences in individuals can be highly contributed to perceptions of power management, readiness to cope with unforeseen circumstances, impact for material goods and quality of life among staff, open-minded to change, and group oriented-related within an organizational environment. These differences definitely affect the ethical attitudes and decision-making abilities of managers, especially those in multicultural environments. Recently, when multinational organizations that are spread across the boundaries of different countries displaying different cultures develop their organizational codes of conduct, they are now taking into account the cultural attributes of their local entities and the people who make those entities into consideration. Therefore, a code of conduct ethics that balances cross-cultural perceptions and values is likely to have a greater chance of acceptance among the managers who are expected to abide by it especially when such managers represent different cultures. Okpara John O.

     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

Conducting ethical business in the United States can be seen as clear cut to us. Although we are a diverse nation, as U.S. citizens, most gain experience in the professional environment where ethics is explained thoroughly enough that one is able to determine what is ethical and what is unethical. When it comes to ethics in the international arena, Thomas Donaldson explained how that structure almost does not exist since ethical culture, practices and the social norm is different in each country. In the article, Donaldson debunked previous theories like cultural relativism and ethical imperialism while coming up with a guideline that can help companies proceed in understanding cultural difference while still being ethical. (Donaldson, 1996, pp. 48-52) As I read through the article, it made me remember past events that had cultural dilemma while helping me find new ways to help my ethical decision making skills.

The definitions in Table 1 and ethics models in Table 2 will be adopted for the purpose of this paper.

In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.

In this era of Globalisation, cross cultural management is the biggest challenge that is faced by the organisations. Within the business context, cross culture refers to interaction between different cultures. Cross cultural management refers to managing the employees from different cultural background in one environment (Adler, 2008). Cross culture management is a significant issue within the organisations as the success of an organisation depends upon the smooth interaction of the employees. This paper is aimed at providing insight on the cross cultural management and the main issues and challenges relating to cross cultural management. For the purpose of this paper, two articles, “Cross-cultural Differences in Management”, by Amman & Jordan

This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach.

When dealing with intercultural business a person should be well aware of the characteristics of the culture he is to be in contact with. He should be well prepared to face attitudes not common in his home country.