Managing Cultural Diversity in International Business

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Table of Contents

Introduction
Background
Main Body
Reference List

Introduction

There are significant cultural differences among people of different races, regions as well as tribe. People’s cultures often shape their attitudes and perceptions towards issues of morality and values or virtues as well as how they interact with their environments.

People’s norms as well as values are significantly different across the continents and their perceptions are greatly influenced by their cultures. The report therefore examines these cultural differences across the globe from the business perspective. The US-Polish case has been examined in relation to these cultural diversities (Canen 1999, pp. 3-10).

Background

The report is a covers the effects that cultural diversity has on any business firm and how such diversity can be exploited to the advantage of the firm rather than being perceived as a problem. The firm under focus is a US-Polish corporation which is a multinational corporation with its operations in areas of different cultural backgrounds.

In Poland the company did not focus so much on the success of the firm or hard work. An individual was not perceived with great importance as in the US case. This therefore enabled the firm to change its strategies in its operations so as to appeal to the US population hence enabling it to do well.

Objectives

The main objective here was to determine the significance of cultural diversity and how it affects the success or failure of an enterprise. The report looks at how an enterprise can use cultural diversity to its advantage over its competitors both in the operations and marketing of its products and services.

With the increase in cultural interactions due to globalization, one cannot ignore the issue of cultural diversity if he/she intends to succeed in his/her ventures. The report there looks at how exploiting or ignoring such differences can affect an enterprise.

Main Body

US/Polish Company

It was realized that there were significant cultural differences in the firm based in Poland and its US branch. In the US for instance, those applying for managerial posts were for instance subjected to minor tasks like sales before being considered for the position. This was not the case with Poland as those applying for the same were immediately considered.

The employees were also subjected to accountability in the US as opposed to the case in Poland. The issue of trust was also significantly different in the two cases. In the US case, employees were trusted and treated with dignity unlike the Polish case where there was the superior–inferior relationship and employees were treated with suspicion.

In the case of formality, the US managers were a bit informal, communicating to each other directly and freely without being ambiguous. In the polish case however, employees were addressed with formality.

The issue of hierarchy is not significantly visible in the US case as the managers often spoke to the other employees informally so as to eliminate any arising ambiguity in the communication system. Employees were assessed at individual level so as to determine their productivity as opposed to the polish case where the assessment was collective (Parboteeah 2010, pp. 462-465).

A joint venture in the US-Polish case has proved beneficial. In the US system for instance an individual is compelled to improve his/her productivity given that the person is assessed at an individual level and this leads to the general improvement in the company’s productivity. The Polish managers have been able to borrow ideas about the management of cultural diversity and its significance in the success of the company hence leading to improvement in the company’s production, marketing and delivery.

Global Business

With globalization, interaction of people from different cultures has become common. People interact through international organizations the WHO being just an example. The reductions in the air ticket prices and improved internet connections have increased intercultural interaction.

A business person therefore needs to have some insight into a people’s culture so as to effectively do business with them. Organizational or societal cultures are often influence by regional or even national cultural groupings and these are usually persistent over a long period of time. It is therefore very important for one to put such considerations in mind so as to succeed in business.

People from different cultures may have different attitudes of perceptions about a given product. The knowledge of this might be of great benefit particularly when one is coming up with the most appropriate marketing strategy for a certain market hence penetrating the market even more.

Consumption patterns and individual needs are often different across cultures and this is vital knowledge for entrepreneurs. Any company or firm must embrace cultural diversity so as to be successful. This therefore demands that the company understands the cultures of different people.

This results in the employees feeling comfortable at their work place hence becoming more productive. The fact that they are comfortable makes them feel appreciated and would hence not opt to move somewhere else. This is beneficial to any firm as the costs of retaining or recruiting new workers is significantly reduced and the company will develop a positive image as well (Goldsborough 2007, pp. 200).

Whenever a firm incorporates people from different cultures speaking different languages in its operation, it always has an advantage over the other competitors given that it is able to penetrate new markets. The knowledge of different cultures enables firms to effectively navigate market complexities that are brought about by culture like social hierarchies, people’s business practices as well as their norms and values.

Obstacles

Some of the challenges encountered while trying to embrace cultural diversity include;

Problems in the political environment,
Challenges that are caused by the economic environment,
Legal issues and
The significant cultural differences.

Conclusion

Cultural diversity if perceived by a firm as advantageous rather than a shortfall can greatly influence the firms marketing strategy, its productivity as well as giving it a competitive advantage over the others. An organization needs to embrace cultural diversity for both the employees and the clients to feel appreciated and this will in the long run result in the productivity of that organization. It helps in the understanding of the behaviors of the consumer and this helps in designing the best marketing strategies.

Recommendations

Cultural diversity must be embraced by an organization for it to make it in its operations and service delivery.
Joint ventures to be done for the firms to learn about cultural diversity and how to go about it.
Skills, backgrounds as well as the employees’ cultures and traditions must be understood by the management so as to ensure that they are comfortable in their working environment hence increased productivity.

Reference List

Canen, A., & Canen, A., 1999. Logistics and Cultural Diversity: Hand in Hand for

Organizational Success, Cross Cultural Management: An International Journal, Vol. 6, No. 1, pp. 3-10.

Goldsborough, W., & Anderson, D., 2007, Import/Export Management. New York, Free Press.

Parboteeah, K., & Cullin, J., 2010, International Business – Organizational and National Cultures in a Polish – U.S Joint Venture. New York, South-Western College Pub.

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