Cultural difference and its impact on transnational businesses
International Business Strategy – Week 2 Briefing Notes
The reading is about Cultural difference and its impact on transnational businesses and helping us understand this phenomenon to devise strategies which accommodate this factor while looking at the global picture, either at global expansion or global product launch.
First of all we must understand what is Culture and how does it affect on our approach to any given situation and the way we will handle the situation. In simple words, Culture is how we do things, as a nation, as a team, as an organisation. There is a term which is being often used now a days is that “there is no wrong way of doing thing”. It simply means that there are different ways of dealing with a problem or situation which in fact comes from different cultures. With the current growth in media communication and ease in travelling have helped in converging certain aspects of culture across national boundaries, there are still enormous amount of difference. These differences impact
While I do agree with the different level of cultures which are described by the author as Nation, Business, Industry and Organisation I would like to add another level which is Religion. Religion is the way by which a person/nation conducts his/their daily affairs. All the rest four level of cultures are influenced by this. Culture is not a static phenomenon but changes irregularly over time with a change in people’s needs and wants.
The most interesting thing I found was the culture analysing and comparing frameworks described by Hofstede, Trompenaar, Johnson and Scholes. The all have explained different influences on organisational culture. For me the most influential factor is the leadership and management style which varies from people to people and play a key role in deciding the culture of the organisation. For example if the leader have a proactive approach towards all issues the team under him will have the same approach and will work accordingly
The reading is about Cultural difference and its impact on transnational businesses and helping us understand this phenomenon to devise strategies which accommodate this factor while looking at the global picture, either at global expansion or global product launch.
First of all we must understand what is Culture and how does it affect on our approach to any given situation and the way we will handle the situation. In simple words, Culture is how we do things, as a nation, as a team, as an organisation. There is a term which is being often used now a days is that “there is no wrong way of doing thing”. It simply means that there are different ways of dealing with a problem or situation which in fact comes from different cultures. With the current growth in media communication and ease in travelling have helped in converging certain aspects of culture across national boundaries, there are still enormous amount of difference. These differences impact
While I do agree with the different level of cultures which are described by the author as Nation, Business, Industry and Organisation I would like to add another level which is Religion. Religion is the way by which a person/nation conducts his/their daily affairs. All the rest four level of cultures are influenced by this. Culture is not a static phenomenon but changes irregularly over time with a change in people’s needs and wants.
The most interesting thing I found was the culture analysing and comparing frameworks described by Hofstede, Trompenaar, Johnson and Scholes. The all have explained different influences on organisational culture. For me the most influential factor is the leadership and management style which varies from people to people and play a key role in deciding the culture of the organisation. For example if the leader have a proactive approach towards all issues the team under him will have the same approach and will work accordingly