...The Role of Cultures in Global Management Abstract What is culture and how other people deal with culture on a daily basis. Countries around the world work daily with different cultures in a business setting. There are many different ways that culture practices get done throughout the world. Middle East does things different than what the United States does. Global management and cultures bring many issues with it. Managers and staff need to find new ways to handle values, beliefs and social norms when working a business around the world. Most businesses have an assortment of different cultures and backgrounds because there are different people working within the group. This “Group of people" has the same religion, language, beliefs, and values share a culture no matter what. This, in turn, joined with all different types of people in the same cultural system. An examination made of the art of administering groups who are from different cultures, taking into account their different set of values, carry out, and ways of achieving different goals. A review presented of some of the problems that inherent in from one country to another because manager reject or is helpless of internalizing the local culture in which the displacement operates. Culture provides two functions that affect global management today. With the growth in global activities of both domestic and multinational companies, managers need a good perceptive of culture. People’s cultural...
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...multinational and the division in the country you have chosen, addressing the following areas: Describe the importance of understanding culture in global business dealings Apply knowledge to determine the best strategies of expansion in global firms Examine different strategies that can be employed when dealing with human resource management (HRM) in a foreign division Discuss relationships between various multinational strategies and types of organizational structure This section should be 2–3 pages of additional work, not including the previous sections. Describe the importance of understanding culture in global business dealings Culture influences how people interact with each other in the business world. Culture guides decision making behavior, thinking patterns and values. (Brunot) To be successful in global expansion, the need for effective cross –cultural communication has become essential. Knowing a foreign culture is a long-term process of incorporation, comprehension and integration. (IDESLI) Before expanding globally it is important to take the time to know the culture of the country you are expanding in, this shows a sign of respect that will be valued. A businesses that successfully respond to the culture and lifestyle in their new global expansion area has a better chance of developing a successful business. It is important to know how business is done in the country you are expanding in and what one should never do. (IDELSI) Language should...
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...Culture and its implication on the international business management. Introduction Today, problems associated with global business management have been identified as factors that negatively impact the performance and productivity of multinational corporations and in turn, adversely affect regional and national economic growth The goal of this paper is to analyze the influence of culture in international business. The globalization of the world economy has intensified international relationships, increasing the importance of cultural dimension. The world is being affected by the globalization of the economy. This phenomenon is bringing movement of companies, assets, services, capital and people. Analyzing globalization this process is taking the world to major changes in the economic, technologic and social areas, which are having consequences in all organizations and societies that participate in this globalized market. It is a process that does not bring equal benefits to all participants. The globalization concentrates more of its actions in some sectors of economic activity and some regions and countries, rather than acting everywhere. With the world getting flatter doing business anywhere in the world is easier today, because of major changes in technology, global politics and expanded educational opportunities. But it is not only businesses that are affected. Governments, NGOs and society itself is changing at a fast pace. Nevertheless going forward can only happen...
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...International Marketing 1 The Scope and Challenge of International Marketing Objectives What you should learn from Module 1 What is meant by international marketing. To understand the scope of the international marketing task To comprehend the importance of the self-reference criterion (SRC) in international marketing. To be able to identify and manage the factors influencing internationalisation of companies. To evaluate the progression of becoming an international marketer. To see how international marketing concepts influence international marketers. To appreciate the increasing importance of global awareness. 1.1 The Internationalisation of Business 1.2 International Marketing Defined 1.3 The International Marketing Task 1.4 Environmental Adjustment Needed 1.5 Self-reference Criterion: An Obstacle 1.6 Becoming International 1.7 International Marketing Orientations 1.8 Globalisation of Markets 1.9 Developing a Global Awareness 1.10 Orientation of International Marketing Summary The first section of International Marketing offers an overview of international marketing and a discussion of the global business, political and legal environments confronting the marketer. International Marketing is defined as Performance of Business activities beyond national borders. The task of international marketer is explained. Key obstacles to international marketing are not just foreign environments but also our won self reverence criteria (SRC) and ethnocentrism. This...
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...Executive Summary The article begins by questioning the place of cultural boundaries in the place of international business. However, how can we really learn and incorporate another culture into own businesses practices. The article questions our methods of learning another culture and challenges us to no just learn the “black and white” rules of another culture but to actually learn about the settle differences and apply them to our daily practices. It will take more than studying and reading about other cultures to fully understand and connect with people of other cultures. The U.S department of education held a conference to evaluate the meaning of globalization and what it meant to different people around the world. People who oppose the idea of globalization view it as a tool to impose western cultural values on different cultures around the world. Many people view globalization as a tool of “cultural imperialism”, in which America can spread their pop culture and consumer values for their own elfish needs. However, others view globalization has necessary and essential agreement between nations to effectively and efficiently spread world resources. These people believe that globalization can help stem worldwide poverty in some areas and stimulate positive growth in developing countries. From a more objective perspective, globalization is the “embodiment of the world merging into massive transactional networks and nexuses of countries in terms of trade, commerce, capital...
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...Introduction With the initiation of global economy comes an increased interaction between people of different countries and an increase in the need to deal with cultural differences. Thus, there must be an understanding of how the international project will affect people and how people will affect the project. This requires an understanding of economic, demographic, educational, ethical, ethnic, religious, and other characteristic of the people for whom the project affects or who have an interest in the project (Egeland, 2011). Today’s projects have dramatically increased in complexity, which requires a culturally and functionally diverse mix of individuals who must be assimilated into an effective unit – a project team. In order for the project to succeed it will be predicated upon the effectiveness of teamwork during all phases of the project life cycle (Knutson, J, 2001). Therefore, it is critical that organizations involved in international projects take into consideration “cultural risk”, which, if not consciously recognized may lead to ineffectiveness and in some cases prove to be very costly (Sennara & Hartman, 2002). Therefore, it must be understood that the most crucial element in international projects is “culture” (PM Hut, 2012). What is Culture? “Culture” refers to a way of life for a group or community that practices and shares values and common experiences that shapes the way in which the group or community understands the world. These values and practices...
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...an international business when choosing to internationalise into an emerging/developing market? Discuss any international business concepts or theories that could be used to help justify your answer. In the past few decades internationalisation has been a phenomenon in being a main subject in international business research. Globalisation has allowed countless commercial opportunities to occur over the border of their national country by maintaining competition and the continuing growth of international firms (Tikhonova, 2012). In foreign countries, legal and political systems as well as the economy are essential to have knowledge in as it explains how political systems, laws and regulations and economic differences affect international business opportunities. Although these factors are vital in understanding the foreign environment, it is not as broad as culture. Culture is a factor that includes several aspects that range from different dimensions which on a broad level includes linguistic, regional, religious and ethnic dimensions (Reference for Business’s website, 2014). Fundamentally for an international firm to endure success in emerging markets it is relevantly important to have full understanding of consumers and their cultural differences. In order for a firm to reach their full potential and succeed in an emergent market they need to have the ability to adjust and connect to the markets within, in which can be effectively achieved by learning international differences...
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...Knowledge of Cultures and Politics as Critical Success Factors in Enhancing Managers Success in Managing International Business Dzulfakar Bin Abdullah (Student no: 20131241445) UiTM Programme Code : BM 995 (Doctor of Philosophy in Business Management) Course Code : MGT 950 (Global Strategic Sustainable Management) Assignment 3: Theoretical Paper Lecturer : AP Dr Roshidi Hassan ABSTRACT Business life in the new millennium is becoming increasingly global. The concepts of globalization apply to both large multi-national corporations as well as to local organizations. Knowledge of local culture and politics has become critical success factors (CFSs) for multi-national corporations in their effort for global expansion. Thus in enhancing the success of managing international business (IB) managers must have knowledge of local cultures and political situations. Research on the impact of local culture and political stability on successful management of international business has become of interest only recently due to globalization process. The paper reviews several literatures that try to prove that knowledge of culture and political situation as CFSs for the success of managing international business. Keywords: Critical Success Factors (CFSs), Knowledge, Culture, Politics, International Business, Success. Knowledge of Cultures and Politics as Critical Success Factors in Enhancing Managers Success in Managing International Business Introduction Globalization...
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...The Importance of Intercultural Communication Western International University The Importance of Intercultural Communication Doing business globally is not just about dollars and cents anymore, sure money matters most but in order to get a deal done internationally there is a ton of preparation that has to be done. Communication between global business parties requires extensive research and time in order for both parties to grasp each other’s cultures. Learning and understanding the culture of a potential business partner comes way before the dotted line and depending on who grasps cultures better will be the difference between a company or its competitors making a deal. The world is a much smaller place than it once was, and one would think that given that fact it would be easier to grasp intercultural communication; however, learning and understanding other cultures brings with it an array of challenges such as onstage and backstage behaviors, how people learn and want to be communicated with, how certain cultures view and respond to other cultures, these and other barriers present enormous challenges to intercultural communication and to doing business globally. Getting a deal done internationally is enough of a reason to learn about other cultures as stated above if it makes dollars it makes sense, but learning another culture is very intricate process. “The failure of companies that go international usually occurs because someone didn’t understand...
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...International Teams: Beyond Cultural Differences Multicultural teams are different. In addition to culture the team needs to consider: * the purpose for its existence, - the influence of personality differences, - the impact of cultural and professional identities, - the importance of emotional intelligence, - the vital role of adequate support systems. Team leaders need updated global competencies which they may not have learned in business school. Multicultural Teams are Complex Cross-cultural knowledge is an obvious pre-requisite for working with any team whose members come from different cultures. We acquire this knowledge from our reading, from our studies, from company-sponsored seminars and most importantly by maintaining a very high level of self-awareness when we step outside our own cultural boundaries. However managing cross-culturally is complex because real business issues are complex and often require more than a linear solution. So, how do we avoid the trap of over-simplifying the complexity of the issues faced by international teams? Let’s agree that there is more to understanding an international team than being aware of the diversity of national cultures represented by the members. We know from experience that there are key differences found on any team which may include gender, race, individual personality, cognitive and emotional intelligence, educational, and occupational backgrounds. Consulting to international teams and executives...
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...Be Attuned to Business Etiquette [pic] Prepared by: [pic] Jeshua Johnson Bri Johnson Case # March 21, 2002 Dr. Castro’s International Business Class Executive Summary: Many overlook the importance of knowing business etiquette, especially when dealing with business partners from foreign countries and/or other cultures. Oftentimes, business partners in foreign firms have different cultural practices and customs. Being aware of these various customs and practices is crucial to being successful in an international business environment. The importance of these customs to their cultures can vary into such extremes as describing proper manners in situations to outlining how to live a proper life according to the religious practices of the country. These customs can dictate basic protocol for certain situations, guidelines for proper nonverbal communication, ways to show gratitude correctly, and the words you choose to use. There are six considerations to keep in mind when dealing with business etiquette across cultural boundaries: 1. Be prepared, 2. Slow down, 3. Establish trust, 4. Understand the importance of language, 5. Respect the culture, and 6. Understand the components of culture. These components include aesthetics, attitudes and beliefs, religion, material culture, education, language, societal organization, legal characteristics, and political structures. Understanding these basic considerations and components can improve...
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...getting more and more international chains such as hotels, companies around the world, international trade always occurs between different countries, and many organisations’ work environment becomes more multicultural. Eubanks et al. (Samovar & Porter, 2010, p.137) illustrated that ‘cross-cultural or intercultural communication is between individuals and groups whose perceptions and symbol systems are distinct enough to alter communication event’. This assignment discusses what the potential communication barriers across cultures could be and what the solutions are to overcome these cultural challenges. Robbins et al. (2011) indicated that language could be the most common problem in cross-cultural communication, even people use same language could have communication problem because of different age and context groups could use words differently. Except language differences, problems relates to language difficulties, could be semantics, word connotations and tone differences. Semantics could cause communication barrier as there could be some uncommon words within different languages that might be difficult to translate, for instance, there is no direct Russian equivalents for the English terms – efficiency, free market and regulation. Connotations could be another reason to result in language difficulties. Individuals from various nations could imply words differently that incur misunderstanding or confusion. such as for Chinese people, to emphasize the importance of customer service...
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...Abstract This paper will cover some issues what conducting business overseas and the importance of having a multicultural and diverse work environment. Multiculturalism and Diversity Management Some of the issues a foreign country could face when outsourcing to another host country is it eliminate direct communication between the company and the client they services. It prevents the company from forming a strong working relationship with the company and customers and often leads to frustration on both sides especially if the product doesn’t meet quality standards, often the manufacturer must repeat production for accurate results if the product is not the company standards and also there are concerns of not having control to some aspects of the company. Other issues the company might face is the delaying communication and project implementation and the company may rely on the outsource provider that could perhaps may lead to problems if the outsourcer back out on their contract if they feel the working relationship is not going so well as well as hidden costs, for example if a contract is already sign and there are other additional services that are needed there will be a cost associated. Anything that is not covered is considered additional cost to the company. Other issues the company might face are the treat to security and confidentiality. This is one of the most important aspects of any business; you are in charge of keeping payroll, medical, and other confidential...
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...CULTURE AND ETHICS IN BUSINESS LEARNING JOURNAL CHALLENGES OF MANAGER’S CULTURAL DIFFERENCES FOR THE INTERNATIONAL BUSINESS ENVIRONMENT Introduction Business today has seen a high surge in globalization. This increase of international business all over has led to a number of ties and relations among people from different culture and nationalities. Managers who still haven’t adapted to the new age managerial skills and are still following the conventional route have found themselves extremely ineffective in the global platform. A need of global managers who understand multi-cultural competencies has arrived and most scholars debate that the working style, values and behaviour of a manager are directly a persona of their national culture. Thus in order to be competitive in this global market, the traditional approach by the managers must transcend to a global one. A global manager is one who has the ability to manage the complexities in a business which is conducted or laid upon multi-cultural diversities. A global manager has many challenges when managing people from different cultures; this includes the people from both High context society as well as low context society. Challenges Lack of communication: When a manager is working with his team members who have different native tongue, it’s most possible at time that the information flow is not constant. Adding to the woes are the multitasking employees and talking to employees over...
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...to managers operating in China, taking into consideration issues outside their normal experience, for example government regulation and cultural differences. According to Justin Lin, The World Bank's chief economist, China, which became the world's second largest economy in 2010, may become the world's largest economy in 2030, overtaking the United States, if current trends continue. Taking this into consideration we can see that not only is China the world’s main production market but also the world’s centre for consumption. It is crucial that western businesses and managers understand how to do business in China and the issues they may face in management practice in an international and cross-cultural context. Political and regulatory considerations for doing business in China, Anti-gifting regulations in China The giving of gifts is an essential part of Chinese culture (Yang 1988). Personal and corporate gifts accounted for approximately 25% of luxury goods sales in China in 2012. Bain et al (2013) This sale percentage is now at risk as the Chinese government attempts to combat both the act of corruption and a negative view among the population of the behaviour of politicians. As part of the anti-corruption campaign, in July 2012, the State Council passed regulations stating that government agencies are prohibited from purchasing luxury goods. As the new leadership in China pledged to increase efforts to curb corruption, it is generally expected that the anti-corruption...
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