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Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them. Tylor has pointed out that "culture is complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society". According to this definition, it is easy to know that every nation has different cultural preferences, national tastes and value standards. These factors impact on every part of management in multinat... ... middle of paper ... ...lopment' The Journal of Management Development 21(2): 83-100 Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass Miroshnik, V. (2002). Culture and international management: a review' The Journal of Management Development 21(7): 521-544 Tylor, Edward B. (1977). Primitive Culture: Researches into the Development of Mythology, Philosophy, Religion, Art, and Custom. London:John Murray Sonderberg, A-M & N Holden. (2002), Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121 Wright, P., Geroy, G. and Baker, D. (1996), Management Training Challenges in Vietnam, Corporate University Review, July/August, pp. 40-1.
With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies
Moorhouse, A. (2005, November). International Management Organizational Behavior. Retrieved October 16, 2008, from University of California Berkley: http://www.ocf.berkeley.edu/~matran/Files/proKarenLeary.doc
In any firm, having an effective management culture is critical to a firm’s success. But once you look at this topic on an international scale, culture can change based on what is right and wrong in a different country. To demonstrate this theory, I have interviewed two different people who have either came to work in the United States from another country, or born domestically and have experience working abroad. One of them is my father, James Lai (Exhibit A); he is an immigrant from Hong Kong, China and have worked extensively in the graphics design industry for many large companies. Some of these companies that he has worked for includes the following: Toymax (now currently a subsidiary of Jakk Pacific Inc.), TecnoZone, The Zone & ENE Group
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
Globalisation allows individuals, groups, corporations, and countries to reach around the world farther, faster, more deeply, and more cheaply than ever before. Most large local companies regard globalisation as opportunity, thereby exploring overseas markets for maximum market share and optimum business strategies. However, managers would face a series of challenges caused by leadership models, cultural backgrounds, political and economic risks, HR management, etc. To study multinational management skills is very useful for my future career. In this essay, I will set goals for this subject, identify the skills I have honed and need to improve, and explain my strategies for achieving goals.
If a company try to enter in a foreign market, what can not be avoided is the culture differences. According to Greet Hofstede 's Cultural Dimensions, there are five dimensions of culture, which are power/distance(PD), individualism(IDV), masculinity(MAS), uncertainty/avoidance index(UAI), long term orientation(LTO). PD is the extent to which the members of organizations have less power who accept and expect that the unequal power. It suggests that a level
As globalization increases, an awareness of the differences in managerial styles between countries also increases (Carpenter, Taylor, & Erdogan, 2009). Melony Gallant (2013) wrote that “it’s always interesting to see how cultures compare and
Understanding a country’s culture is critical to success as business is conducted on a global scale. Each country has its own culture or shared beliefs, values, and customs that shape their behaviors. Despite how influential as organizational culture may be managerial practices, the country’s culture may be even more influential. Geert Hofstede created what he called cultural dimensions to help managers understand the differences in cultures. His research showed that culture impacts employees’ work-related behaviors and attitudes (Robbins and Coulter, 2002). Those five dimensions are: power distance, uncertainty avoidance, individualism, masculinity, and time orientation (Grewel and Levy, 2013; Javidan and House,
It is true to say that globalisation is a two-way street. As international business and trade continue to grow, models of organisations and approaches to management are beginning to merge; nevertheless it remains imperative for firms to understand and govern across the myriad of cultural differences which still exist. These differences seem most apparent in China, where managerial values are deeply rooted in archaic and powerful culture. Some authors argue that even with a certain degree of convergence between Chinese and Western cultures, such convergence does have its restrictions.
In this essay, author is concerned as to how corporate organization and their management decisions are affected by diversity in culture and related differences in expectations, norms and behaviour of particular groups of managers, colleagues, customers or employees (Earley, 2006). Few examples will be quoted in this essay by author wherever needed for proper understanding of viewpoint. In starting author will give a brief overview on topic covered. This will later be supported with discussions on globalization and challenges international organizations face in its launch in various countries, organizational culture and its implications, implication of national culture on an organization and how management of organization in international context is impact by organizational and national culture. At the end essay will be concluded with an analytical conclusion of topics discussed.
Understand and heed cultural differences - cultural variables in transacting international business. (1991, January 28). Business America. FindArticles.com., Retrieved March 20, 2009, from http://findarticles.com/p/articles/mi_m1052/is_n2_v112/ai_10412261/pg_4?tag=content;col1
The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the primary factor in the growth of the world economy during this time. However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provided a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine it what ways, and to what degree it has changed over time.
The word 'culture' is often described in terms of concrete ideas or social artifacts. Gary R. Weaver describes some common conceptions such as "good taste," "art or music," or "something that people in exotic foreign lands had."1 However, culture in the context of international assignments relates to how people perceive the world and the influence this perception has on their actions. It is culture on the interpersonal level. Different cultures can perceive the same thing differently, which leads to miscommunication and misunderstanding when one crosses into another culture not their own.
Hofstede, G . (1983). The cultural relativity of organizational practices & theories. Journal of International Business Studies ,14 (2), 75-89.