Multinational Company Case Study

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Cross-Cultural Management in Management of Multinational Company Multinational Company plays a significant role in the globalization process and contributes fortunes to the national economies. In this rapidly changing environment, multinational companies need to find new management methods to improve their global competitiveness. In the process of managing a multinational company, the cross-cultural management is considered to be one of the most impart aspects in management of multinational company. In this essay, I would like to talk about the culture shock in management of Multinational Company and how to solve the problems. The first point would like to slightly discuss the causes of the culture conflicts in management of multinational…show more content…
Culture differences appear on three levels: material, system and spiritual. The culture differences cause different management methods between western and eastern countries. Firstly, the have different management ideas. Western companies are deeply influenced by the thought of democracy, they believe in law. They manage their company by regulatory framework, managing methods including but not limited to law, contract and litigation. While eastern companied believe in people first, which is a traditional thought from Chinese ancient philosophy. They construct the company management on social ethics of people oriented. Secondly the decision-making method is different. Western people are more individualistic, they make decisions by themselves, which is effective for decision-making and each person performs their own functions. However eastern people put emphasis on collectivism, obeying the minority is subordinate to the majority, which can dram the wisdom of the masses and avoid business risk. Last but not least, the standard of estimating result is also different. Western companies value more about the result instead of the process, which is all about profit. While eastern counties will have a moral standard to estimate is the process is humanized enough. What's more, the management structure is also different. All in all, every company has its own corporate culture. Multinational…show more content…
It makes the different forms of a corporate culture to comprehence, understand and cooperate, in order to generate more positive effect and managing the company more effectively. To successfully manage that, I have three points. First, establish the right concept of cross-cultural management. Specifically, it is about admitting and understanding the objective existence of cultural differences, respect other cultures. In addition to that, one should see culture differences as an opportunity and advantage instead of threat and disadvantage. Although culture differences have brought challenges to multinational companies, they have also brought business opportunities. The company just have to use it right. Second, having a correct attitude of the existence of cross-cultural. The manager should realize that there is no good or bad in a corporate culture, there are simply differences. Cultural is an abstract concept, it cannot be solved by making law like other problems. Only by understanding the different forms of a corporate culture, realizing its pros and cons, adjust your own behavior and coordinate with each other can resolve the
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