Diversity Management - Case Study Example

Media Report With the increasing levels of globalization that mainly result from liberalization of markets, efficient flow of information, and integration of economies, the level of competition in the local and global market has increased tremendously. This has resulted from the entry of multinational companies which have a huge financial base to segment the market, attract customer loyalty towards their products and services, and position their products and services strategically in the market (Newcomb, 2014). Electronics industry is one of the sectors that have experienced frequent changes resulting from entry of substitutes in the market. A recent article by Reuters discusses the measures that are being taken by Apple Inc in order to cater for the varying needs of the people. The article expresses the importance of workforce diversity in the organization and how multinationals are trying to achieve this aspect in order to improve their reputation in the market. The article highlights the importance of a diverse workforce in the expansion program by Apple Inc (Farr, 2014). In addition, it discusses the impact the strategies that have been implemented by Apple Inc have on the competitive advantage of the company in the global market. Diversity management Initially, companies were only focused in their profits. However, the attention has now shifted towards customer relationship management. Apple Inc has been expanding its operations to different markets across the world. However, in some markets, customers want to be associated with products that have been produced by the local population. This has hampered the company’s ambitions to use foreign subordinates in the subsidiaries. Instead, the firm is forced to employ the local population in order for the firm to gain the local status. For instance, in China, the company had to acquire a local firm which had already segmented the market and use it to enter the Chinese market (Magala, 2005). Besides increasing the overall performance of the business in the market, the move enabled the company to acquire local employees who were conversant with the local culture. Therefore, they advised the company on effective marketing strategies that are compatible with the people’s culture. This was instrumental in the overall success of Apple Company in the Chinese market. Currently, companies are trying to reduce the risks and uncertainties associated with concentrating in a single market and product. Apple Inc has created an internal innovative culture which has made it possible for the organization to come up with innovative products and services, an aspect that has enabled the firm to retain its competitive position in the market despite high competition and an influx of cheap products (Guynn, 2014. In the past five years, the company has recorded high growth which is attributed to its diverse workforce which is able to understand the varying needs of the target market. The expanding market requires the companies to have a workforce that can deal with varying challenges that arise each day. Currently, the market has become dynamic. The tastes and preferences of the target market keeps on changing. Therefore, the companies are required to have employees who have varying ways of dealing with arising issues in the market. In addition, the employees who emanates from different parts of the world play an important in improving the reputation of the firm in the market (Derr, Roussillon, & Bournois, 2002). This is because the customers feel represented, an aspect that increases their trust towards the company’s products and services. In order to achieve this objective, Apple Inc is intending to use the data on the cultural, racial, and religious background of the customers in order to ensure that the workforce is a representation of the global population. An effective recruitment strategy is significant in ensuring that employees from different cultural background are absorbed in the organization’s workforce. The panel should be trained on how to identify subordinates who are cultural sensitive. In addition, they should be enlightened on areas that they need to look for when recruiting employees (David, 2011). This is to ensure that employees who have been recruited are compatible with the overall goals of the organization. In Apple’s case, the company will have to restructure its policies in order to fit the global strategy of the company. This is through drafting policies that will enable the company to ensure that the subsidiaries that are located in various parts of the world recruits local employees in order to attract the local market towards the company’s products. Corporate Strategies and Cross-cultural Dimensions Some markets have been segmented by other major players such as Samsung. As a result, in order for Apple Inc to penetrate these markets, the company must enter into joint ventures with already existing companies. This is to enable the company to use the already laid infrastructures and technologies to push its products in the market. In many cases, the dominant firms have created a barrier of entry which makes it very hard for the firm to penetrate the market. This is one of the major hindrances that have prevented Apple Inc from segmenting the Indian market (Burke, 2010). This is because Indians are very loyal to their cultures. As a result, they do not welcome products from western firms because they feel that they will erode their cultures. This has made many firms to struggle while trying to penetrate and attract the customers’ loyalty. The US market has been significant in providing stability to the company. In order for the company to compete in the global platform, it requires to have a strong base. Therefore, in case the firm is facing stiff competition in other markets, it has been using the money from the US market to stage a stiff competition. This is through the use of audio, visual, and print media. In addition, the culture of innovation and trying up new mechanisms has enabled the company to exploit the social media and internet marketing. For instance, it has diverted its attention towards the social media in order to reach the global market. This is through using the platform to conduct research and collect the views of the customers concerning the products and services being offered in the market (Peñaloza, Toulouse, & Visconti, 2012). This has been significant in enabling the company to identify any change in the consumption behaviour of the target market and make the necessary changes on the products and services in order to prevent the customers from being diverted towards the substitutes in the market. This has been achieved by having a diverse workforce that is able to disseminate the information from customers emanating from different cultures, religious, gender, and races. Employees are the ones that interact with the customers every day. Therefore, they are an integral part of information to the company. In addition, they represent the company in the society. Currently, the customers want to be associated with a company that participates in activities that improves the lives of the local population. Apple Inc has been participating in corporate social responsibility (Deresky, 2011). However, the society has been raising issues related to the company’s workforce. They have been stating that the workforce is not balanced and is not a representation of the global population. As a result, the company embarked on a mission to ensure that the recruitments are gender, racial, and cultural sensitive. Since then, the company can boast of a balanced workforce although, it is yet to achieve the intended balance. The company’s recent performance in the market can be attributed to this strategy which has made it possible to gain global recognition. This is despite the price wars between the company and Samsung. Impact of Cultural Diversity in the Organization Within culturally homogeneous groups, members of the group have a higher tendency of communicating to each other more effectively. Therefore, they are likely to share ideas, brainstorm solutions, and coordinate activities, an aspect that would increase the level of effectiveness. Although Apple Inc is the leading company in the world, it faces stiff competition from Samsung, Sony, and Microsoft (Bhattacharyya, 2010). Therefore, in order to retain its competitive advantage, it has to ensure that the subordinates remain united and motivated towards a common objective. Therefore, effective handling of diverse workforce is significant in achieving its expansion program. According to social identity theory, cultural diversity plays a significant role in enhancing the level of satisfaction and cooperation while at the same time decreasing the emotional conflict. Therefore, Apple Inc is aiming at enhancing the level of stability within its organization through addressing the weak links that have been emanating from employing people emanating from the same cultural background. Conclusion The success by Apple Inc can be attributed to Apple’s relentless effort to gain a global outlook. Although the challenges in the market have intensified, the company has been able to overcome them and record high results. This has been contributed immensely by the company’s ability to manage cross-cultural issues. Through the set strategies, the firm has been able to diversify its operations to different markets across the world. Moreover, it has been able to establish a strong brand, an aspect that has made it easy for the firm to penetrate the global market. References Bhattacharyya, D. K. 2010. Cross-cultural management: Texts and cases. New Delhi: PHI Learning Ldt. Burke, R. J. 2010. Cross cultural management: Volume 17, Issue 1. Bingley, UK: Emerald. David, F. R. 2011. Strategic management: Concepts and cases. Upper Saddle River, NJ: Prentice Hall. Deresky, H. 2011. International management: Managing across borders and cultures : texts and cases. Upper Saddle River (NJ: Pearson Education. Derr, C. B., Roussillon, S., & Bournois, F. 2002. Cross-cultural approaches to leadership development. Westport, Conn.: Quorum Books. Farr, C. (2014, August 12). Apples Cook stresses need to make workforce more diverse| Reuters. Retrieved from http://www.reuters.com/article/2014/08/12/us-apple-diversity-idUSKBN0GC1WW20140812 Guynn, J. 2014, August 15. Apples workforce is mostly white, Asian and male. Retrieved from http://www.usatoday.com/story/tech/2014/08/12/apple-diversity-white-asian-male/13951329/ Magala, S. 2005. Cross-cultural competence. London: Routledge. Newcomb, A. 2014, August 12. What Apple Is Doing About Lack of Diversity in the Workplace - ABC News. Retrieved from http://abcnews.go.com/Technology/apple-lack-diversity-workplace/story?id=24950798 Peñaloza, L., Toulouse, N., & Visconti, L. M. 2012. Marketing management: A cultural perspective. Abingdon, Oxon: Routledge. Read More