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Globalization and multinational corporations
How multinational companies influence culture
Cross cultural differences in business
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Recommended: Globalization and multinational corporations
A multinational corporation is an entity that its headquarters is based in one country and incorporates a group of organizations that are geographically distant and have various goals. "Such an entity can be conceptualized as an inter-organizational network that is embedded in an external network consisting of all other organizations such as managers, customers, suppliers and regulators"(Ghoshal & Barlett, 1990). As the organizations develop and find their way into significant growth they are inclined to identify the goals, perspectives, assimilation, and rules of their framework. The role of the managers in such entities is to coordinate organizations that work in various cultures and environments, in which the levels of involvement, diversity, …show more content…
While the way of doing business may be similar everywhere in the world, cultural differences can have a significant impact on how these organizations operate. Local cultures can disorient a newly appointed expat manager and can lead to culture shock (s.,2011). Culture shock can be caused due to difference in ethics, ideology, execution and values between a manager 's native country and the local culture. Although culture shock can be disruptive to the manager 's performance, it can be defeated using a set of techniques and mechanisms. The manager has to understand and embrace the new culture and accept the differences it may have with his own. He should observe how people deal in the new culture and mimic the basic ways of dealings and conversing. Also, he should create a comfort zone where he can meet new people and practice his hobbies and interests with from time to time. Furthermore, it is useful to use stress reduction mechanisms to help him blend in to the new society …show more content…
Albeit in the same continent and the close proximity, German and French managerial styles have their differences. "In Germany there is a clear chain of command in each department, and information and instructions are passed down from the top. Managers work long hours, obey the rules and, though expecting immediate obedience, insist on fair play. For their part, German employees welcome close instruction: they know where they stand and what they are expected to do" (Sarosi,2016). Meanwhile in France the "style is more autocratic, though this is not always evident at first glance. In France, the boss seems to have a more roving role than his focused German counterpart, and often appears to consult with middle managers, technical staff and workers – but decisions are generally made by the chief executive and orders are top-down. The role and status of the leader in France is revealed by a glance at French history. Napoleon and Petain, for example, are remembered for their heroics rather than their failures. Ultimate success is less important than the thrill of the chase and the ability to quicken the national pulse. Hence, unlike elsewhere, there is a high tolerance in French companies of management blunders"
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
Justin Matos Reasoning and Analysis Paper When you come from a different country do you have trouble communicating with others? Is it hard to adapt to the new culture or stay within your own culture? Around the world, many people are rewarded for been direct and independent. Been able to take care of yourself and work well with others who are not in your culture can help you achieve great things.
Cross-cultural aspect is considered as a vital issue in this global economy and people from various cultural backgrounds are working together and bringing different values, viewpoints and business practices. This seminar on “leading in a cross-cultural context” was an eye-opener for me, as the Cross-Cultural Adaptability Inventory (CCAI) assessment questions were relative to knowing your own cultural values and how you bring forward your attitude and behavior when you are introduced to a new culture and people. It reflects your ability to be open and understand people with cultural differences.
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.
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
A major challenge of doing business internationally is to adapt effectively to different culture. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgett &Luthans, 2005). Doing business overseas has its challenges as well as it rewards.
Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).
Throughout the previous 20 years or longer, Multinational Corporation and partnership have changed remarkably. Most importantly, for business to compete successfully and remain competitive, employers must have competent supervisors international to differentiate their business’ strategy. Employers operating abroad must first understand the correlation among their Human Resource leaders, their company’s strategy and their firm’s performance; therefore, the owners should trust its Human Resource leaders to select and recruit chief executives and the type of staffing policy. Multinational firms have a choice among three staffing strategy that have its pros and cons, such as ethnocentric, polycentric and geocentric.
In today’s global market, more than ever, multinational enterprises [MNEs] have expanded their operations internationally. This rapid growth requires suitable staff to run new units in foreign countries. Leadership of these new units and MNEs in general requires a global mindset. “Each unit requires executives that navigate economic complexities, cultural ambiguities, and political challenges” (Daniels, 2013) while running an efficient and productive unit. MNEs need staff with international business background and understanding in order to have a successfully operated unit.
Expatriates who had to return to the home country company before the international assignment is completed might be facing emotional consequences such as loss of self-esteem and self-confidence and these consequences will more likely lead to more problems for the parent company by decline in productivity as well as being a reluctance for other employees to accept international assignments (Medich, 1995). Selmer & Lauring, (2012) believes that more attention should be focused on a clear direction about expatriates work assignments and developed training programs for expatriate and his / her family when addressing expatriate failure. Cultural training and adjustment is very important expatriate and his / her family should be helped on these problems both from home country companies prior to departure and from subsidiaries during the assignment period (Selmer & Lauring,
The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...
Culture shock refers to the trauma an individual experience when they move to a culture different from their home culture (Macionis & Linda, 2010). Following my experience with culture shock, there are five key sociological concepts and individuals have different reactions to the culture shock: either culturally relativistic or ethnocentric. These two words, culture shock, have been part of my personal vocabulary since I was younger. When I was born, my American parents lived in England.
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.
Mira Wilkins defines a multinational enterprise (MNE) as a “firm that extends itself over borders to do business outside its headquarters country.” By 1870, a period denoted as industrial capitalism, MNCs started to evolve and the nature...
Manager need to understand the different culture and environment in the country which they are going to venture in to avoid cultural challenges.