The Is The World Still Not Homogenous? How Does This Influence The Decisions Made By Multinational Companies?

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How far is the world still not homogenous? How does this influence the decisions made by multinational companies?
The competitive advantage of every multinational company is determined with their ability to coordinate information and critical resources that spread across numerous geographical locations. However, the world population is diverse and it is increasingly getting hard to find a homogenous society (Matsumoto 1995). A homogenous society is the one most of its individuals share same religious systems, ethnicity, cultural values and language. The reality is that even within the same ethnic society, there are different religions and values.
Moreover, the previously homogenous societies are increasingly becoming
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Most of the MNCs emanate from the developed countries and most of their investments target the diverse cultural societies in the developing nations, whose societies continue to change. These MNCs must undertake a number of strategic decisions in order to ensure their success in the multicultural societies.
The managers in the global companies make a broad range of decisions in the plant and firm levels, encompassing traditional functions such as marketing, finance, human resources and production. Most of these decisions centre into three broad categories of the extent to which the specific actions should be differentiated or standardized, hiring across the global market and the decisions on the extent of decentralization of specific actions.
Decisions Concerning Differentiation and Standardization
The definition of the concept of standardization in business is hugely dependent on the nature of business activity under consideration (Roach 2007). Although the concept is easily defined in the marketing context, since it is defined in terms of the 4Ps (product, price, place and promotion), the concept is more complex when used in the context of the product choices. A multinational corporation would be forced to make a decision on whether to adopt complete standardization, which involves creation of completely new product for each geographical market or complete
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