Topic > Multinational companies: cultural difference in the organization...

Cultural difference in the organization. For decades we have witnessed the rise of multinational companies in the global world. It has influenced the world in such a way that only a small part of the income of multinational corporations exceeds the national income of counties. This clearly explains the effect of globalization. Multinational companies are not only multinational in their products, but also face many challenges, and cultural difference is one of the main ones. It is very important for any difference to understand the cultural differences inside and outside the organization as it can lead to being a failure of the company. It is very important to carefully study the cultural differences that a company must work on to be successful. It has also been seen that companies that ignore this fact have suffered heavy losses and the biggest example was the failure of Disneyland in France as the culture was ignored. We will further examine how culture plays a vital role in creating a successful organization. Culture directly or indirectly has the impact of the different activities carried out by management and the values ​​created have a specific response to each situation (Hawkins et al). Different culture also varies from country to country. Arriving late for work or passing on your responsibility to your child has been seen in Indian culture, it has also been seen how the shape, name, size and color can define the culture of the product (pride and ferrel 1985). According to Berham some companies choose staff and advertising for promotion in their local culture. in which the main purpose of multinational corporations is to earn or maximize profit. so what they do is but...... middle of paper ...... about how Cultural differences pose a major challenge to managers internally and externally and how several successful multinationals have overcome these challenges. This was a short report I did and there is so much more we can look into. References 1) Hawkins, DI, Best, RJ & Coney, KA 2001. Consumer Behavior: Building a Marketing Strategy 8th ed 2) William M. Pride, (1985). OC Ferrell Co International Inc. (4th ed.)3) Umoren, J. A. (1996). Democracy and ethnicity in Africa.4) International journal of business and management (2008), vol.35) Managing talent across national borders: challenges faced by an international retail group6) Boussebaa, M. & Morgan, G (2008) "Managing talent across national borders: challenges faced by an international retail group", Critical Perspectives on International Business, Vol. 4, pages.25 – 41.