

Managing In A Cross Cultural Environment Essay

4092 words - 16 pages

Managing in a Cross-cultural EnvironmentUniversity of PhoenixIn the business world today, many companies are moving more toward a global stage have to deal with cultural differences and other daily changing factors. As multinational corporations become "more transnational, their strategies must address the cultural similarities and differences in their varied markets" (Hodgetts, 2005, p. 128). In this paper, each contributor will identify two separate companies that have faced challenges in the areas of cross-cultural management. The paper will also review specific issues faced by the course scenario company, Riordan Manufacturing in comparison with the contributors selected companies, how each selected companies responded to the specific issue and outcomes of the company's selected response.Key Course ConceptsDiversity and MulticulturalismBoth Disney and L'Oreal have a very high-level of knowledge base concerning multiculturalism and diversity. They are operating under the Phase IV in the Evolution Cycle according to Nancy Alder. This phase is mostly characterized by when an organization demonstrates a high-level of understanding for the cultural dynamics when planning their strategy, developing and locating production facilities, culturally designing marketing techniques and products, and acquiring the ability to manage cross-cultural interaction throughout the organization.It is shown the both these companies have achieved success when they have taken the risk to ensure they operate under a multicultural approach. A contingency approach takes into account that there are different HRM practices in different cultures and for some different HRM practices within the same culture (Alder, 1991). As stated earlier, L'Oréal Cosmetics have developed products for an entire marketing area through a global process and scientific research.Riordan can build from the templates created and developed by both of these organizations. One key note is how the HR Group developed a complete multicultural procedure that allows the organization to train, understand, and fulfill the global market base. Additionally, through the developed programs and diversity training methods these organizations have risen to the top of potential employee selection base.Cultural Differences in Selected Countries and RegionsThere are risks involved when maintaining operations overseas such as the foreign currency and economy. Wal-Mart must be cautious when selecting a country for their company. The organization must be mindful of the potential risks such as economy fluctuations, and unsecure foreign investments. Completing research on foreign business practices is vital because unacceptable practices in America may be acceptable in other countries and Wal-Mart must be current on this knowledge. It is important for Wal-Mart to attempt an accurate forecast on the future outlook on global economies and then pursue decisions and investments consequently.Assess the readiness of...

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