Organizations Development and Cultural Understanding - Assignment Example

GLOBAL BUSINESS ISSUES How can the understating of differences in culture help in organisational development in foreign countries? Even though governments, political processes and others can help in overcoming of barriers as well as obstacles presented by cultural diversity and in the exploitation of similarities, they cannot do it all for the business. The business that’s willing to go overseas should devise ways and also know how the understanding of cultures can boost their business. While multinational corporations set out to spread their wings across borders, the issue of culture differences has to be put under consideration. The assessing of the conditions of culture in geographical areas of interest can be one of the most complex and difficult obligation. The ways of a culture of a people makes it complicated for outsiders to have an accurate assessment. The duty of people assessing this is to determine the cultural values and their implication to the norms necessary to do business. The inadequate process of screening the cultures of the host may result to mistakes that are too costly for a business. Examples of costs may include; offensive techniques of a product promotion, and those techniques that may not also be applicable to the cultures of the home or origin of the business. Embassies or high commissions usually have commercial sections that can be of vital importance to solve this puzzle and also there are experts of a country’s culture like those from universities that can still offer helpful directions to locate good sources of such information. It is not easy, though. (Harris and Mcdonald, 2004 p 77) Cultural diversity enhances in ensuring greater flexibility in corporations so as to overcome challenges in new environments and also have a competitive edge against competitors. Further, while indulgence in negotiations are called for with the customers of a different culture an upper-hand in understanding will most highly result into good outcomes. (Mishal, et al 2001 p 100) Diversity of cultures of the top managers and the boards will also lead to experience internationally and it will reduce a great deal of costs for information-processing. More diversified top-management cultures also have a larger capacity of information processing. Also the natives of a foreign country have a head-start while the processing of information is concerned and especially if the source of information is their own home countries. They can as well provide resolutions to help in improved approaches to information processing. High levels of diversity in cultures facilitates in the utilisation and development of the international experience at the firm level. However, the transformation of the internationally gained experience can end up siring fruits in terms of returns only if it’s used by experts. These must not be mere experts, but those who have knowledge on the perils and potentials of the world market. At a higher level executives who are culturally diversified and have the understanding of the host markets can notice challenges and opportunities of the foreign country from a far. This can help the business in the achieving of goals. This can further help in the upgrading of MNCs and the exploitation of the potentials of the foreign market. Still a culturally diversified board can lead to reduced costs of governance in the monitoring and evaluation of the top executive’s performance. The monitoring and evaluation of the management at the subsidiaries of the company can also become easier. Cultural diversity on the top staff can, however, only be enhanced through the company’s doing business at the international level. (Luo, 2007 p 82) MNCs in Europe usually witness the AU increase diversity culturally as days go by. This leads in the abilities of ideas interchange and also the better understanding of other individuals from different cultures. This is noted by Martins in his book about the benefits of China’s involvement in business with European countries. Through, the interaction of the two business communities the benefits of cultural diversity can be easily noted. It leads the more intensified collaborations and interaction of knowledge. Firstly, the knowledge collaboration can result into collaborated innovation as well. This is even considered to be a way of strategically putting together of the universities’ complementary knowledge and also the industrial innovations. Secondly, the positive impact of cultural diversity upon the innovation factor and also on its ability to come up with collaborations that are unique, results into more sophisticated innovativeness as well as the competitiveness. Lastly, the cultural interaction aids in trust building especially where there are established personal relations. European countries can also tap the vast talent in China in their business interactions. This may also lead to long term and collaborations that are deeper not only with Chinese but also within their other business stretches. (Martins and Remenyi 2007, p 491) How can a business use political processes to overcome differences in culture and also exploit cultural similarities? China has been one of the destinies that have attracted a lot of attention for European businesses. Their investments in China even exceed those of North America in volume. However, one of the views by business leaders concerning difficulties of doing business in China by European MNCs is the linguistic and cultural difference. Politically, these leaders blame the Chinese government for low or no transparency levels and new-law implementation within a very short time period. (Shambaugh and pp 210-212) The case above is just an ideal example, but its aim is not to make the reputation of China dirty. Thus, avoid obstacles like the one of China stated above, the political systems or the governments can help by, for example; coming up with organisations to help overcome the cultural barriers. For instance, the UK government has established the UK Trade and Investment Organisation to help the companies based in the UK succeed in doing business in the global economic arena. The organisation helps businesses achieve their best by providing expert’s advice which is unique to a given situation. These experts provide companies carrying out business internationally with pieces of advice, knowledge as well as practical support. These expatriates also conduct researches from their designated offices worldwide, regarding doing business in their respective markets of duty. Another leaf that can be borrowed from the UK’s government approach to the diversity in culture is the customer-tailored ways of handling needs. The government understands the vastness of cultural complexities and thus provides the businesses doing their business internationally with expatriates for trade advice. These experts are in the U.K and also in the overseas high commission of the UK. These experts can offer advice on the target market’s expectations. Also the experts can provide advice on matters concerning ethics of doing business in the overseas markets and also the business etiquette to expect in the new markets. These services are usually provided at a cost. (uktradeinvest.gov.uk, 2007) Another way that the political systems can help overcome the barriers of cultural diversity as well as take the advantage of similarities can be the use of political unions. For example, the European community can help in doing organised research on the impact of the diversity of cultures. They also devise on ways to determine how cultures can work in a synergetic way. The AU can also help in overcoming the distinctive nature of cultures in the member states and also the many differences in outlooks as well as values among the countries which are members. These researches may help to build a more firm anchorage in unity. Therefore, the regional political unions can also provide with an easier outlook upon venturing into new markets. (Moran, et al 2007 p 503). Under the political perspective, therefore, home political processes can aid in making easy the function of doing business in foreign countries just like the host countries’ political systems and governments. Reference list: Harris, P and McDonald, F. (2004). European Business and Marketing: Strategic Issues. SAGE. Edition: 2, illustrated: p 77. Luo, Y. (2007). Global Dimensions of Corporate Governance: Global Dimensions of Business. Blackwell Publishing, Edition: illustrated, p 82. Martins, B and Remenyi, D. (2007) ECKM 2007: 8th European Conference on Knowledge Management 2007: Consorci Escola Industrial de Barcelona, Barcelona, Spain, 6-7 September 2007. Academic Conferences Limited. Edition: illustrated, p 491. Mishal, S. et al. (2001). Investment in Peace: Politics of Economic Cooperation Between Israel, Jordan, and the Palestinian Authority. Sussex Academic Press. Edition: illustrated, pp 82,100. Moran, R. T. et al. (2007). Managing Cultural Differences: Global Leadership Strategies for the 21st Century. Butterworth-Heinemann. Edition: 7: p 503. Shambaugh, et al. (2007). China-Europe Relations: Perceptions, Policies and Prospects. Routledge. Edition: illustrated: pp 210-212. Uktradeinvest.gov.uk, (2007). Helping Your Business Internationalise. Retrieved February 13, 2009 http://74.125.77.132/search?q=cache:VErDTSZDj_cJ:https://www.uktradeinvest. gov.uk/ukti/ShowDoc/BEA%2BRepository/345/391808+how+does+the+UK+go vernment+overcome+cultural+differences+in+doing+business%3F&hl=en&ct=cl nk&cd=6&gl=ke Read More