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Multiculturalism and Diversity Management

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Multiculturalism and Diversity Management

Shaketia Robinson
July 20, 2012
Global Operation- IP1
Professor Castro

In order for PPQ Parts to expand globally, multiculturalism and diversity management training is a necessity. Although there is vast opportunity in doing business abroad, it is important to understand all the pros and cons of these ventures. Many times businesses tend to focus on all the advantages of expansion, and tend to overlook that there are some issues that may arise as a result of the expansion. For example, the host country could face some issues due to the expansion. One article states: “some authorities in international marketing believe that unconscious references to a firm's domestic cultural values contribute to most international business problems” (Snavely, 2012). This stems from businesses not taking the time to truly learn the host country’s way of living; including the culture, language, religions, and general beliefs. It is vital that all strategies related to the business are tailored to all the host countries’ cultural factors. Some cultural barriers and diversity issues that are commonly encountered by international/multinational (MNC) and global organizations include: cross-cultural issues, language, corruption and bribery, and legal requirements. (Moore, 2012) Every culture has their own way of doing business that may be awkward to those that are use to their own traditions. Mannerisms and gestures may differ completely, whereas a term of endearment in US may be of offense to someone from China. These minor differences can cause major disturbances in communication, and can lead to complete misunderstandings in a business transaction. Taking the time to thoroughly research the country that is in consideration for the expansion is the first step. (Moore, 2012)
Language is another issue businesses often struggle with. A general understanding of the language is good, but often time’s simple nuances can get lost in translation. Certain inflection in a person’s voice can change the entire meaning of the sentence, and when doing business it is important that everyone walks away with a thorough understanding of what was discussed. It may be of value to hire an interpreter, one who has a concrete knowledge of this country and its language, to further guide in all research and participate in trainings. (Moore, 2012)
Corruption and bribery has increasingly become the most major issue when dealing with international business. Governments of some foreign countries are often corrupt and require some sort of bribery in order to do business in their country. The Foreign Corrupt Practices Act was passed in 1977 to prohibit US businesses from bribing any government official in other countries. This becomes a tricky subject when dealing with countries that consider it a part of their culture to give gifts. (Moore, 2012)
Legal requirements are another issue that arises more than often. Licenses and permits necessary to conduct business is different in every country, and the procedures for acquiring real-estate can be tricky as well. It is vital that research is done to ensure the proper procedures are followed when acquiring these legal requirements. Failure to do so may result in the unintentional breaking of the countries’ laws. The cost of hiring a lawyer from the host country is well worth it, because they can ensure that all procedures and protocols are handled properly. (Moore, 2012) Diversity has increasingly become a major topic of discussion in the international arena, even though it is not a new concept. Diversity is the mixture of cultures, races, and backgrounds co-existing in a peaceful, productive manner. It has become increasingly important over the last couple of decades because expanding business globally forces business to deal with the tolerance of those that differ from them. The mistreatment of individuals because of their race or background is morally repugnant and should not be allowed in any instance. Issues that can occur related to multiculturalism and diversity Issues that may arise during global expansion and proposed methods of addressing them The importance of and the implications of each of these items in PPQ Parts's expansion plans to Germany and Japan

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