Impact of Cultural Differences on Corporate Strategies of Multinational Firms
Introduction
Culture is extremely powerful. The rules of the game, what behavior is ethical and accepted, the mood of the organization, and the enthusiasm of employees are all contained in the culture. So, culture can be a powerful, hidden asset or it can be a liability - a time bomb waiting to go off. If your leadership team has not pro-actively created a corporate culture to support the company's purpose, then chances are that the culture is a hidden liability.
Every business has its own character which is unique and called corporate identity. It has one major part, corporate culture, often described as the “personality of an organization”. In that case multinational firms play a major role in this, as knowing how to communicate through their point of view is a great advantage.
To answer the relevant question it is essential to understand what the corporate culture is especially its meanings to a multinational firm. This essay will examine it by explaining the cultural dimensions of G. Hofstede in general and in respect of global business. The corporate culture is also called organizational culture. It includes the mission statement, which makes clear the purposes, values and direction of the organization, as well as the beliefs and expectations.
Culture shows up in both visible and invisible ways. Some manifestations of this energy field called "culture" are easy to observe. You can see the dress code, work environment, perks, and titles in a company. This is the surface layer of culture. These are only some of the visible manifestations of a culture.
Importance of Cultural difference of multinational firms:
“Culture is the different ways in which people behave, act, or think towards themselves, families, and other people in the society. It includes customs connected with social, political, family, and religious values. Different cultures have deviating values for time and its use, for personal space, and for family values and chats. These differences must
Culture is extremely powerful. The rules of the game, what behavior is ethical and accepted, the mood of the organization, and the enthusiasm of employees are all contained in the culture. So, culture can be a powerful, hidden asset or it can be a liability - a time bomb waiting to go off. If your leadership team has not pro-actively created a corporate culture to support the company's purpose, then chances are that the culture is a hidden liability.
Every business has its own character which is unique and called corporate identity. It has one major part, corporate culture, often described as the “personality of an organization”. In that case multinational firms play a major role in this, as knowing how to communicate through their point of view is a great advantage.
To answer the relevant question it is essential to understand what the corporate culture is especially its meanings to a multinational firm. This essay will examine it by explaining the cultural dimensions of G. Hofstede in general and in respect of global business. The corporate culture is also called organizational culture. It includes the mission statement, which makes clear the purposes, values and direction of the organization, as well as the beliefs and expectations.
Culture shows up in both visible and invisible ways. Some manifestations of this energy field called "culture" are easy to observe. You can see the dress code, work environment, perks, and titles in a company. This is the surface layer of culture. These are only some of the visible manifestations of a culture.
Importance of Cultural difference of multinational firms:
“Culture is the different ways in which people behave, act, or think towards themselves, families, and other people in the society. It includes customs connected with social, political, family, and religious values. Different cultures have deviating values for time and its use, for personal space, and for family values and chats. These differences must
Links: The other problems faces by firms are: Hofstede’s (1980) five cultural dimensions limitation focuses difference in various cultural regions which are: