Why Multi National Corporations Become Successful

Task 2c: Evaluate the impact of cultural differences on international business performance in the international market D2

I partially agree with this thesis. Just because MNCs are capable of changing a country, they have no obligation to do so. It is not their moral responsibility to do so either. Although they should support just background institutions, they do not have to.

In the current era of globalization, the new economic and political reforms has made it evident and clear that leaders of organization not only need to build trans- global competence, but there is also a need to build cross cultural competence. Cross- cultural competences is known to be enhancement of flexibility and awareness for having the capability and ability for thriving and surviving across the global era as a business organizations (Jonsen, 2010).

In a global economy, U.S. companies are becoming more diverse, whether through a global customer base, or through acquisition of other companies based outside of the U.S. With these developments the workplace becomes an amalgamation of individuals with different worldviews. These differences are the result of different educational backgrounds, and cultural norms. Though there are sometimes impediments that are created due to a conflict in viewpoints, overwhelmingly the benefits from the variety of perspectives outweighs any of the detriments. This view is not only one held by me personally, but one that most quality managers of successful international companies hold true as well. My interview with my direct manager, Dianna Ulrich-Hope, proved valuable in confirming my notions. As a Director of Pricing at Micro Focus, a global software company, her insights regarding international collaboration amongst professionals helped see how my cultural agility competencies align, and how to leverage them.

As organizations become increasingly global, the success of organizations is dependent on the leader’s skills in merging diverse cultures in building high performance teams across multiple countries. Global organizations are required to adapt to continuous changes in culturally diverse global business environment. Multinational leaders must become adapt to leading a culturally diverse workforce if the organization is to become transcontinental. Therefore, there must be an emphasis on diversity training and cultural sensitivity training across the organization, especially among members of executive leadership. Inclusive leadership has been presented as the most applicable global leadership style as businesses make the transition from a local to global mindset. This synopsis will discuss integrating varied perspective, negotiating strategies and cultural mindsets, and communicating methods that facilitate organizational strategy, This document will conclude with a summarization of this discussion.

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)

The precise meaning of culture seems too difficult to grasp, but it might be described as shared values, behaviors and assumptions that distinguish one group from another and are passed on from one generation to the next (Schein. E, 1990). Culture can leave a very significant influence on cognition and perception without even being aware of it (Schneider S.C., Barsoux J.L. and Stahl G.K., 2014). So culture differs from country to country at some extent. National cultural differences is the top reason why an alarming rate of up to 70% of joint ventures fail (www.ugmconsulting.com). Also, it is of vital importance when dealing with cross-border management issues. Therefore, this reflective essay aims to critically evaluate four

The increasing number of multinational companies, the expand global market place and the diversity of the customers across cultures require new points of view. More and more companies use multicultural teams to develop new products or business solutions. Multicultural teams are task oriented groups of people from different cultures. Well managed multicultural teams thanks to the different point of views of their team members can superior national teams in the number of possible alternatives and solutions. But diversity is a “double- edged sword”: means positive dynamics and problems caused by cultural clashes. Managing these teams became a main subject of human resource

Business in the 21st century necessitates the exploration of global markets, and employing multicultural teams in order to accomplish corporate goals. This realization has prompted many companies to seek expansion internationally. To remain competitive, the leadership of a U.S. corporation has employed me as a consultant to lead a team to expand their operations in Greece, Germany, Iran, and Singapore. As this expansion unfolds, I would form a culturally diverse leadership team, with the purpose of developing culturally appropriate groups to carry out the expansion goals in these markets. In order to develop a successful global team, I must scrutinize the organizational culture, the necessary leadership style, the impact of the group’s culture on workplace productivity, and the overall impact on the organization itself.

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

After the involvement of globalization in the 19th century, there has been an increase in global business environment. Most companies are going multinational and building teams that cross national borders and migrate members from different countries to achieve the competitive advantage and gain benefits from concentrating skillset of people around the globe. Although a large portion of these teams are intended to pool resources and increment operational efficiencies, the cultural diversity of team members may create a better learning curve for establishing effective process than culturally homogeneous groups (Gibson & Vermeulen, 2003). Culture contrasts can also make considerable obstacles to successful operation, however these may be unobtrusive and hard to perceive until significant damage has already been done. Managers and individuals from multicultural teams are confronted with the challenge of how to get most of an individual 's qualities, while minimizing coordination misfortunes from communication problems, misunderstandings, language differences and varying work style. According to the above points, this essay will describe the managerial role for controlling the multi-cultural team with different mode of communication preferences, and will give an appropriate example by relating it with relevant academic literature.

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.

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.

Since MNCs operate across borders, they have led to globalisation, meaning the whole world is interconnected hence a lot of advantages and disadvantages have been experienced due to this. One of the most noted challenge brought about by these companies

Many opportunities are associated with a culturally diverse workplace and global expansion may have potential to provide just such a diverse work group. Cross-culturalism in business can provide leaders and employees with a wonderful opportunity to work with people from different backgrounds and cultures. In addition, “the more opportunities for business leaders to interact with people from different cultures, the more likely they will be to have positive attitudes from different cultures and identify, learn and apply diverse culturally-appropriate business behaviors” (Caligiuri & Tarique, 2012, p. 614). Culturally diverse environments offer a multitude of benefits including “the variety of perspectives, skills and personal attributes” (Matveeve & Nelson, 2004, p. 254). Moreover, multicultural teams have potential to “generate more ideas of higher quality in brainstorming tasks” (Matveeve &