Understanding diverse cultures and adapting business operations to suit different cultures is vital part of International business expansion. According to David (2009, p. 7), “the failure to understand cultural differences can bear serious consequences”. In addition, knowledge for and appreciation of other cultures is
Collaborative: Leaders must be able to get the individuals to work in a collaborative environment. 3.1.4 – Culturally sensitive leadership in a globalised business world. Leaders must look at individuals and business acquaintances as people from different backgrounds and try and create an environment without stereotypes. In the earlier era, it was easier to work in an environment where individuals belonged to the same culture and the basic psychological needs and motivations and the sensitivity to the existing differences were enough. But today, globalisation has changed the work environment, the way we work and has increased the cultural differences.
In today’s market scenario, it has become crucial to understand the importance of culture. Doing business abroad without mapping the culture may ultimately defeat the purpose of the organizations. Today’s managers need to be trained on multi culture perspectives, not only to effectively interact with the cross-border customers and suppliers, but also with their own employees, who will now be in increased numbers from different cultures of origin. Culture plays extremely important role in the
Influences of Cultural Differences in Communication Due to the cultural difference, it may give rise to several issues that influence working relationship among Malaysians and Americans. According to Hoecklin (1994), an organization might work with people from different cultures, as well as languages and customs. This may lead to ineffective communication, misunderstandings and even fail in the business. Every cultures hold their own believes and practices. Therefore, to work with company from different cultures, avoid mismanaging cultural differences is important for an organization to develop relationship among each other.
The managers more likely disregard the subordinate’s opinion as compared to other cultures. Importance of each individual is linked to the power they have. (CDA Media, 2016) Conclusion International Business Management is all about thinking globally and acting locally. International business has encouraged the idea of bringing all the countries together. Though there are many challenges from language, culture, technical development and business attitude that are faced by the managers working globally.
Attempting to force-fit global HR and business standards into markets without acknowledging local values and culture can make it difficult to attract and retain top local talent. At the same time, companies that develop geography-specific strategies should keep in mind the reason why many workers look to them in the first place. Respect for the global talent brand, access to global colleagues, improved resources, global mobility opportunities—these aren’t just the reasons that employees are attracted to an organization. They are also the reasons they
A business’ ethical responsibility clarifies the principles, norms or expectations that have to deal with the employees, consumers or the host community affected by a business’ activity. Carroll expresses the importance for a corporation to adjust to their host community. The actual societal and ethical customs of the given host may in fact go beyond what is at present required by law – making it vital to know that the corporate integrity and ethical conduct may possibly go beyond law and regulations of the given host country (Ibid: 42). In the case of MNCs, this type of situation can happen when conducting business in a country where its legal systems are non-functioning and likely suffers from oppressed regimes and corrupted government officials
My cultural identity reflects who I am. Music, religion, and the country I live in all contribute to my culture identity. My culture identity does change from time-to-time because I learn new things that shape my perspective on different stuff. Your culture identity makes up your personality and who you are. It can be dependent on religion, food, your social status, music, race, country, fashion, anything really.
Trying to ignore the social responsibilities might stain an organization’s image and reputation. Thus, performing social responsibility is not simply a choice; it is a need of any corporation. In the twenty-first century, businesses are in the bottlenecks where globalization, science and technology advancement and integrated knowledge are taking place in today’s society (Chan, n.d.). To gain a foothold in this economy, image and reputation play an important role to differentiate a company from one another. With good reputation, it helps firms to create competitive advantage in the business environment.
The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. As mentioned, marketers cannot control the factors of the external environment. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011).