The Importance of Cross-Cultural Training in Doing Business

It is no longer feasible that a corporation can successfully move through the global marketplace without learning to recognize the cultural norms of each country. It falls to the executives and managers to implement these changes and to ensure that their companies are working to move towards a more inclusive, and ultimately, more profitable way of doing business that appreciates and respects all cultures and work

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.

Since each national market has its own set of values and beliefs, that one has to appreciate in order to pursue a future in said globalized-world, it is no wonder we observe a constant rise in the demand for intercultural and cross-cultural trainings.

Interpersonal cross-cultural competencies and capabilities are critical to the US Army’s strategic objective in the future operating environment. The operational environment requires a holistic view of political, military, economic, social, information, and infrastructure systems. A country’s culture can be defined as a programming of the mind that distinguishes the members of a region or nation from another. South Africa has a rich and complex culture and history of its own since its independence from Britain nearly a century ago. This essay will go on to discuss in depth the culture and history, as well as geography and military history and concluding with an understanding of how the people of South Africa live.

As per the 14th Annual Global CEO Survey by Price Waterhouse Cooper for the year 2011, the need had been identified to bridge the gap of global skills as one of the biggest concerns, specifically for companies considering attraction, recruitment, development and retention of talents across the globe (Moran, 2014). Costly mistakes, frustration, and confusion are the main consequences of absence of global skills mainly because of ignorance regarding the effect of culture across the work place. This is because ignorance of culture differences result in unproductivity across the organization (Latimer, 2012).

It is crucial for today's business personnel to understand the impact of cross cultural differences on business, trade and internal company organization. The success or failure of a company, venture, merger or acquisition is essentially in the hands of people. If these people are not cross culturally aware then misunderstandings, offence and a breakdown in communication can occur.

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

Firstly, learning may influence work attitudes and ethics. For instance, work commitment and ethics are the backbones of a particular culture.

The training helps contribute to people’s cross-cultural competency and enables them to develop an awareness of cultural difference (Gannon & Poon, 1997; Gudykunst, Ting-Toomey, & Wiseman, 1991; Milhouse, 1996). Black and Mendenhall (1990) suggested that cross-cultural training provides for positive outcomes in terms of people’s cross-cultural skill development, adjustment and performance. Cross-cultural training for expatriate managers was found to have a strong impact on cross-cultural skill development, adjustability and job performance (Deshphande & Viswesvaran, 1992). Gannon and Poon (1997), in a study of MBA students undergoing crosscultural training and education as part of their course, found that that cross-cultural training promoted cultural awareness and confidence on the part of students. This study confirms the general proposition that cross-cultural training increased people’s level of confidence in dealing with others of different cultural backgrounds (Milhouse, 1996).

GBCA – SOUTH AFRICA Abstract This paper will endeavor to form a comprehensive analysis of South African culture, principally for the perspective of doing business in that nation. Ultimately, the paper will point out the crucial points for US businesses to consider before committing to a multinational corporate operation in South Africa. The analysis will discourse the major elements and dimensions of South African culture; tracing them to methodologies employed by local businesses already participating in that economy.

Work-related cross-cultural interactions are very often failed costing organisations large amounts of money and significant effort. In addition, according to EEOC reports for 2011, nearly 100,000 filings for workplace discrimination had took place in the private sector, representing an all-time high. Workplace adjustment is another significant reason associated with organisation’s turnover and costs. According to Oberg (1954), people have the tendency to suffer from culture shock when they moved between different types of cultures. The phenomenon of culture shock is crucially important on the grounds that it results into both psychological and physiological effects such as depression and insomnia.

Brail can be classified into two cultures; the upper class and the non-westernized rural culture. The most prominent reason multinational businesses fail abroad is because they are unaware of the culture. Therefore, it is imperative that managers learn to adopt and implement distinct ways of working in this country. In addition to learning a new language, a manager should become a part of the cultural processes.

There are many different impacts that culture has on the way business is conducted; cultural systems of values and beliefs lead to specific interpretations of events and interactions, and different demands and expectations for business relationships often exist for individuals from different cultural backgrounds. Engaging in international and multicultural business requires a level of understanding and awareness of specific cultural issues that might arise due to different customs, perspectives, and values, and a general awareness of the influence of culture is a good thing in business as well as it allows for ongoing learning and consideration without rushing to judgment. Through both a specific and a general understanding of cultural issues in business, more effective strategies for conducting business on an international level can be developed and implemented. The following paragraphs provide specific examples from four differently cultures, identifying the importance of cultural understanding in all international dealings.

Business culture has been researched and analyzed for differences among American and Mexican business cultures. It is important to stress differences to relocating staff as a measure to ensure proper business interactions during all phases of Shell 2 Shore’s expansion into Mexico City. Communications in the forms of verbal, non-verbal, and written communications will be addressed in this section. This section is extremely important in expansion efforts. Cultural and business culture training for staff should be considered important and necessary to ensure that Shell 2 Shore is received within the community.

Cultural difference between countries raises many issues for firms entering foreign markets. Understanding the local culture is the initial step in helping firms better understand the