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Cross-Cultural Issues Faced By the Airbus Consortium - Essay Example

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There are various determinants for international business that restrict the organizational capabilities to avail opportunities internationally. The paper will explore one of the major determinants that many experts have considered that is the cross-cultural aspects of international business…
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Cross-Cultural Issues Faced By the Airbus Consortium
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Download file to see previous pages Cultural differences are often very difficult to observe and measure while failure to understand the culture may have intensified effects on the business organisation that can reduce the business performance (Ghemawat & Reiche, 2011). The poor understanding of cross-culture has a radical influence on the business process as well as on the management as it may increase the propensity towards committing business blunders. Notably, the success or the failure of a business greatly relies on the performance of human resources within organisations. Consequently, the limitation of certain understandings such language, business etiquette, norms and values by the human resources in an organisation at international level has often collapsed many business organisations (The Culturosity Group, LLC, 2004) Overview of the Airbus Consortium Airbus is a subsidiary company of Netherlands based European Aeronautic Defense and Space Company (EADS) with its headquarter located in Toulouse, France and the ingenuity of major European countries including France, Spain, Germany, and the United Kingdom is combined to create a giant company to compete with other major companies such as Boeing of the United States. The consortium is a key manufacturer of military airlifters as well as commercial jetliners, continuously involved since the previous 40 years (Airbus S.A.S., 2012). Airbus operates globally and creates value for its widespread customers and shareholders. The company employs more than 55,000 personnel from an excess of 100 nationalities around the world. The company’s operations greatly rely on industrial cooperation as well as on partnership with world’s a few of the major companies. The company has more than 1500 suppliers spread over 30 countries. Its success is attributed to a mix of ideas, vision, and knowledge such as a combination of diverse cultures in its work process. The company with its global presence and expanding business operations has now become an international family (Airbus S. A. S., 2012). Source: (Observatory of Sustainability in Aviation, 2012) Airbus consortium is a multi-national company which has a workforce from all around the world. However, the company has always been cautious and has respected diversity and business ethics within the organisation. The company continuously strives to seek opportunities in order to reap the benefits provided by a culturally diverse workforce committed to accomplishing the organisational goals. The company with its multi-culture team ensures that it is efficient to understand the various needs of its diverse customers, stakeholders and suppliers present all around the world. It can be considered that Airbus is one of the most culturally diverse companies in the world. The company values the cultural mix and shares experiences and knowledge towards developing expertise along with a stimulating work environment. Diversity within the company is not limited to nationality and culture only, it also values diversity in gender, generations and ensures that fair employment opportunities are provided irrespective of employees nationality, cultural background, gender and experience among others (Airbus S. A. S., 2012). ...Download file to see next pagesRead More
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