Cultural Influence on Management of Organizations

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Cultural influence on management of organizations

1. Introduction

As businesses and firms grow in size, they are crossing borders and becoming multi-national companies. When the firms cross borders, several management strategies need to be aligned in accordance with the cross-cultural needs.

This assignment will examine two famous multi-national companies on their application of cultural aspects and analyze how successfully they have applied those aspects and reasons for their success.

Before proceeding with examination and analysis, let’s look what culture means.

According to Hodgetts and Luthans (2000), acquired knowledge will form values and behavior and subsequently influence the behavior of individuals or society.

According to this definition, culture can be learned. It can be adopted. Therefore, the successfulness of a cross-cultural company will depend on how much they have learned the culture of the host country.

2. Elements of culture
There are different types of cultures across the world and each culture has its unique essence. While defining the term ‘culture’, there are several elements that together constitute as the culture of a particular region or the culture of particular people. What are the elements of culture? Here is your answer: * Language: The various languages are essentially an important part of the culture. Read information about different languages. * Norms: Every society or every civilization has a set of norms, which are an inseparable part, and an important element of the culture. This can include the folkways, mores, taboos and rituals in a culture. * Values: The social values of a particular civilization are also considered as an element of the culture. The values of a culture often refer to the things to be achieved or the things, which are considered of great worth or value in a particular culture. * Religion and Beliefs: The religion and the beliefs of the people in a civilization play an important role in shaping up of the culture as well. Read information about world religions. * Social Collectives: Social collectives refer to the social groups, organizations, communities, institutions, classes, and societies, which are considered as symbolic social constructions. * Statuses and Roles: A status or a social role is nothing but a slot or position within a group or society, which gives an overall idea of the social structure and hence is an important element of culture. This can also include traditional gender-based or age-based roles. * Cultural Integration: This includes the degree of harmony or integration within the various elements of culture. This can include elements like sub-cultures, local cultures and the difference between historical and cultural traditions. 3. Cross cultural aspects in McDonald and Kentucky Fried Chicken

For the purpose of this assignment I have chosen two very famous fast food chains of the world. The McDonald and Kentucky Fried Chicken are renowned for adaptation of cross cultural aspects in their strategies.

In this section I will be examining the degree of application of cross cultural aspects in th Chinese market by both companies.

a. About McDonald and cross cultural adaptation

McDonald's is the leading global foodservice retailer serving more than 58 million people in 118 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated independently by local people. They serve the world some of its favorite foods - World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. (www.mcdonalds.com)

Product and position adaptation

When McDonald opened their restaurant in April 1992 on Beijing’s Wangfujing Street it the world’s largest McDonald’s restaurant. They have localized their menu to some extent.

McDonald believed that the customers visit to their restaurants are going to enjoy the Western-style fast food....
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