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International Managment

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Submitted By beka07
Words 499
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9/23/2013
Prof. Shapero
Internatonal Management - Chapter 4

In order to be successful doing business globally it’s important to understand cultural diversity. To understand different cultures and to adapt effectively is a major challenge for the most Multinational Companies. From that reason stereotypes and overgeneralization should be avoided. Chapter 4 is showing how companies from different countries present and resolve problems that company is facing with on different ways. The Toyota one of the most famous car companies in the world is a great example how culture can make influence in resolving business problems. “Culture can affect technology transfer, managerial attitudes, managerial ideology, and even business-government relations” (Luthans & Doh, pg. 109). When Toyota announced a massive recall of many of its vehicles, that made $2 billion lost for the company, Toyota managed the crisis was even worse than company financial consequences. The president of the company didn’t appear in publicly for two weeks after the recall announcement. When he appeared, he was minimizing the problem. This example clearly shows the differences between how Americans and Japanese workers address management problems. “In Japan, employees’ identities are closely tied to their company’s image and loyalty to the firm overrides concerns about consumers” ( Luthans & Doh, pg. 107). Japanese culture doesn’t connect companies with their customers, customer service is not main point of companies while in the United States understanding customers and managing their concerns is a main point. Even with this scandal that happened to Toyota media from Japan and media in United States of America had different reaction. While American culture demands transparency and action, Japanese culture assumes that taking ownership of problems and apologies will suffice. President of

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