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Cultural challenges faced by companies overseas
Case study of international business and globalization
Case study of international business and globalization
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Summary
The case involved a company, Fletcher Guitars who was working with a Spanish company Guitarra Dominguez to create Latin guitars which had a become popular product. The US company had sent Adam, a manager, to Spain to raise production to meet the growing demand. When the manager arrive he was exposed to the Spanish culture which would be seen as inefficient following American philosophy. The workers took each guitar with care and precision treating in like a child. The Adam looked and their work and employed his knowledge to create figures that were projected to meet the demands but, Salvador the Spanish owner was not inclined. Salvador was unwilling to change his work environment which had been devolved to maximize quality over quantity.
Question 1
The global mindset is an attitude that managers and individuals in leadership can develop when they take a group and work with them having the perspective that there are different values and beliefs in the collection. A manager who can adapt when in an environment where the workforce does not share some of their principles will be able to prosper. Failure
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Taking the case as an example the workers in Spain were accustomed to lifestyle that involved work at a leisure pace and creating work in the same manor of creating art. This philosophy is foreign to the bottom line attitude that we Americans have developed as a result of living a highly competitive environment. The manager was given goals from his superior that needed to be accomplished. The cultural disconnect can result in managers who can’t put other culture into their perspective. Workers will have trouble changing and in the case of the Korean airliner the only way to fix the problem was subtle changes like changing the language the workers use to English. Problems occur when cultures clash and the two sides are unable to reach an
One’s culture somewhat affects the way one views others and the world. It is up to the person whether they want to view things with an open new mind or from one’s cultural perspective. A few examples of how culture somewhat affects someone’s view of others and the world can be found in Interpreter of Maladies by Jhumpa Lahiri and in “By Any Other Name” in the book Springboard. It depends on what one’s viewpoints are on other cultures and traditions. If someone thinks that their culture is better than any other, then they might approach the world differently than how a someone that is open to new ideas and is willing to make a change.
People’s personal ethnic culture, personal belief and opinions can have an effect on the work they do as they may feel like something isn’t right, or they believe strongly towards or against something. As well as this, people’s attitudes can also have an effect on work itself due to something such as wages received. They may not feel like what one is gaining isn’t fair to what they are personally earning and this can cause people to slack or feel like they are being treated
Problem Analysis and Social Identity Theory. The employees had strong identity with the hotel and enjoyed status of being associated with the hotel. Value Congruence and Differing values in the work place (bureaucratic and administrative vs. creative and empowerment). Becker was not trained on the cultural differences and values, and his values were not congruent with the employees ' values. Power distance, Thai employees took direction from management and carried out management requests - empowerment counter-acted the high power-distance. Behavior Modification and Outcome Valences. Previously, employees realized that there were consequences to
In the nineties, this airline was according to Gladwell’s research seventeen times more likely to crash than United Airlines. The company was losing credibility because of its crash rate. To solve this problem, the company brought in experts to assist them redesign the company. These experts looked at the plane and realized that the problem in all of the crashes had nothing to do with the plane, even if there was a plane malfunction. What they concluded was that the communication of the piolets and the co-piolets was horrible. In South Korea, the culture is heavy on the ideas of respect. It affects everything that they do, right down to how they communicate. The co-piolet always feels the need to address the piolet with respect. It is hard to question and even tell a person you respect that they are doing something wrong. The experts claimed that this poor communication caused a series of small problems to turn into a crashed flight. To solve the communication problem, the experts decided to make everyone speak English. This improved the communication because they were unfamiliar with the language, and they didn’t have to show as much respect as they would have to in their native language. By recognizing that cultural legacy of respect, these experts were able to address the flaws in the culture, and change it to help make flights
Hollander (1985) defined leadership as the process of influence between a leader and followers to attain group, organizational, or societal groups. Some leaders are innate, however now a days most of the leaders develop himself/herself by education. Education system takes a great place to develop leadership quality in context of globalization. “Students are now consumers who define quality education from a global perspective” (Drucker, 1995). Current education system has been changed in Asia basically in Thailand to create more efficient and effective leaders. There are lots of multinational and international organizations that are operating their businesses all over the world. Because of globalization cross-cultural workplaces has become a challenge for the organization. The culture of multinational or international organization has shared by the members of the organization. The individual level, the intra-organizational level and the inter-organizational levels are the three levels of contrast for cross-cultural organization. (Rhein, 2013)
Provide an understanding of pressures that can affect an international company accused of worker exploitation.
Globalization has many implications for leadership today and in the future. Global perspectives are being spread to the farthest points in the world and to the most isolated people. People of different cultures come to the United States daily to live, travel, or engage in business. Leaders must respond to this challenge of globalization so they can effectively reach out to as many people as possible. Opening themselves to the world's changes allows leaders to compare and contrast their culture with the arts, language, beliefs, customs, philosophies, and ways of living of other people. By observing and questioning another culture, leaders can understand the origin of an individual's viewpoints and become more sensitive to the cultural needs of that individual. By continually exposing themselves to other cultures, young leaders can thoroughly develop this global perspective and devote themselves to making connections with the entire world.
The importance of culture in International business today cannot be underestimated and it is imperative that attention is paid at strategic, organizational and the individual levels. The “Blue Ridge Spain” case elucidates these at all three levels. My analysis of this case is from the perspective of the Spanish corporation, Terralumen S.A. National culture is the shared implicit beliefs and tacit values that truly differentiate one cultural group from another. I will be using Geert Hofstede’s frame work to deconstruct this case into its separate dimensions.
In the West Indies Yacht Club Resort, the firm was encouraged a lot by the local government to post available jobs for natives to come and work, yet the resort was timid in that situation because of strict employment laws once they were hired on. Due to turmoil among native and expatriate workers, senior officials were stuck with several problems: (1) the turnover ratio in managerial positions, the customer complaints, and the culture feud, which was at the center of their little problem. From the beginning of the resort until now, the resort has gone from the elite to mediocre due to growing competition and declining customer satisfaction. The organization of the resort is somewhat systematic although it doesn't have any extreme training programs. None of the managers have had extensive training except for what they had received at other places of business.
4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.
There has been increased the outcry by international labor organizations accusing multinational companies of foul play when dealing with their workers. Many multinational companies, in a bid, to reduce operation costs and costs of production, end up suppressing their clueless workers. Some multinational companies have gone to the extent on having their central productions being done in low-income earning companies where they would not have many responsibilities to bear for the workers. Coca-Cola, however, has received widespread criticism for its mistreatment of workers and the way it has...
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
Global knowledge is the world’s leading form of knowledge to support and prepare students, teachers, leaders, parents and many others as they adapt to various transformations around the world. Global knowledge is presented and introduced by various means and resources. Various programs are designed to help students, leaders, parents, teachers and many others to function in a global knowledge society. Global knowledge is effective when it is delivered by qualified, knowledgeable and caring instructors. Once a qualified leader is in charge of a team or group he / she will deliver continuous learning, support, public training, workshops, private trainings, etc. the process will be in place.
The maxim of thinking globally and acting locally has very successfully been enhanced within MTV Networks International. It has positioned itself as globally acceptable TV network and it has dominated in the entertainment market across the world. Youths in different countries enjoy the MTV shows and programs. However, this has had both negative effects and positive effects on the youths.