What Are The Cultural Challenges For Multinational Companies In Developing Countries

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

Communication culture has changed throughout the world with all the new technological advancements. These advancements in technology have made it easier to get a hold of people all over the world, but we still have to be effective communicators. We still have to get our message across clearly and take in account for other’s cultural differences. Businesses want everyone to get along and things to run smoothly. Therefore, businesses try to make sure every message is given and received clearly. If you do not respect other’s languages, it can cause problems like people not wanting to work with you or formation of cliques in the work place. Every business will tell you that they do not want these problems. Once these problems are present then the business has to fix them to ensure a positive work environment.

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

My research is focused on the problems associated with cross-cultural communication and how awareness of culture, language, tradition, and business practices can increase the advantages to globalization. This report will be field specific in

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.

Communication – verbal and otherwise – remains an important dimension of international management, and there are different communication styles, how communication is processed and interpreted, and how culture and language influence communication and miscommunication (Luthans & Doh, 2012).

Many corporate are now conducting training on cross-cultural communication for their workforce. In the US, opinions of cultural experts are invited before taking a judicial decision. In short, every person or organization can make small steps to minimize this

Communication in the global workplace is a complex concept with the increased diversity of cultural

Culture is one of the terms that have been becoming more familiar in the 21st century among the multinational companies all around the world. The world has been shrunken by the fasting travelling and communicating technologies which has brought down the barriers for the organisations having business in international market. But still then there are few barriers that make the international business critical and hard for everyone to succeed in it. This is due to the factor that the businesses have direct influence over the culture that is followed in the respective country where the business is carried out. So it would be interesting to

The importance of understanding cultural, ethnic and gender differences by managers and professionals in a business setting is essential to make the work environment comfortable. In every culture there are basic standards of thinking, and acting and these cultural differences strongly influence workplace values and communication. What may be considered acceptable and natural in the workplace for one person may be unacceptable for another person. People from diverse cultures bring new ways of thinking, creativity and language skills needed to survive in today’s work force. In many

Culture influences all aspects of an individual’s life including food and dietary habits, dressing, communication with others and the relationship with other members of the community among others. One of the most critical aspects of culture in business is communication. Cross-cultural communication is one of the perspectives of cross-cultural lifestyles. It refers to communication that takes place from a person in a particular culture to another person in a different culture (). In a globalised world, cross-effective cultural communication is a growing concern among enterprises that operate in different cultures, multinational corporations and those employing staff from different cultures. Cross-cultural communication must take place within a conscious context, where the sender of the

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

For the successful business, it is must to be aware of the culture of international country with we are doing business or trading. Cultural difference in business can aid in building international competencies as well as enabling to get a competitive benefit. It is difficult to be aware of every aspect of the other country’s organisational culture.

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

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.