Study Of Culture And Globalisation Management Essay

field of operations Of Culture And Globalisation worry EssayWhy does nuance intimacy? Globalisation creates one of the most important achievements in todays world the cogency to trade internation wholey. Understanding heathenish goings ordain that increase the mastery of companies going aboard. Each sphere has disaccordent currencies and behaviour norms. When global companies argon born the workforce becomes diverse. Cultural savvy is a key vary to a successful business nerve. Globalization provides better opportunities to companies investing in a new market. The internationalisation of business has exposed firms to a large dress of norms for doing business. This essay will show how Wal-Mart, one of the biggest retail chains, deals with heathenish difference when opening its doors to japans Market. Wal-Mart after part non directly transfer its corporate finis of rugged-cost, richly - pop out role model, tremendously successful in US, to japan. Wal-Mart is movin g into a completely new market, and as such they essential(prenominal)iness enter the market as a uninfected flush toiletvas. Roger Mark understandably states that in society to acquit global success, its no longer enough to have got a hot new mathematical product that will save time, or a novel idea that could overturn an industry. You also motif to understand the heathenish reputes, behaviour hyphens, negotiating techniques and business practices of the estate where you argon doing business. Wal-Mart and Japan have different habits. Wal-Mart is moving more than to raw the middleman and forcing stores to re master(prenominal) open for 24 hours. The Nipponese finale is establish more on fresh produce and has high demands for perishable goods kind of than processed food. The Japanese are known for their high demand of feature goods and high income. Wal-Mart is trying to force their showtime cost high bulk and low quality products on the Japanese market. The conn ection essential respect if their own corporate socialisation is enough to solve the businesss with diverse cultures. If the participation itself does not understand the heathenish differences it faces wedgestructure it reap the benefits? Culture is comprised of twain(prenominal) value and norms.Culture is a social interest which clearly identifies mountain interest, thoughts and behaviours. In order for Wal-Mart to survive they must(prenominal) contest cultural motley beca drill this is in umpteen stages of the internationalization of the business and in all establish of the market entry. When entering a new market the business ask to adapt to the specific taste of local anesthetic anesthetic mountain. Wal-Mart give the sacknot deliver the same layout of stores end-to-end the world, they must adapt to Japanese culture. According to Kurt Barnard It was a dumb function for Wal-Mart to do. By not understanding cross-cultural influences and not changing the coif fe of their stores to fit cultural differences, Wal-Mart will be unable to compete in foreign markets. Wal-Mart fate to move a fashion from Ethnocentrism and adopt a Polycentrism shape up when entering a new market. Fast franchise corresponding McDonald in condition(p) their lesson in India. Today McDonalds has localized its products to suit its consumers taste and to recognise the local culture, therefore creating regional flavours for particular markets. Culture plays an important part on how global companies operate. Wal-Mart necessitate to adapt the taste of its innkeeper terra firma. If we manage the Japanese culture we tail assembly clearly see that their living space is frequently smaller than the average American ho hire, therefore the high-bulk model will not relate to them. Wal-Mart must understand their behaviour first in order to respect the local culture of Japan. What do Japanese nation consider as good quality in service and product? in one case Wal-Mart d etermines this it can use the information to better sales campaigns and business interactions sooner of using one approach that they trust works everywhere. The firm must determine the countries norms and set, and therefore have a cross- cultural awareness among the Japanese and American cultures.Japanese culture is primaryd on community, family and beingness part of large group. This is not the same as the American sort of life. Global companies need to know that half of business acquirements fail because they do not input measures that deal with cultural differences. Wal-Mart acquired a Japanese business. victorious over a Japanese firm is the best way of understanding the culture of the Japanese. Why did this not work to Wal-Marts advantage?Companies must remove the knowledge of the local culture and the way of doing things. People respond differently to gestures and signs. One of the bits Wal-Mart faced was language barriers in Japan. Wal-Mart is using English-speakin g executives to slip by a retail operation that heavily depends on a circumstantial understanding of domestic culture. In Japan Harmony is the key value in Japanese society, so when they pass by with each other they use non-verbal expression. Global companies must understand that languages can influence the business in so many ways. Language is the most important aspect to the business success because this should unlock local societies. Wal-Mart knew full surface that entering markets like Japan through acquisition brings together employees from Seiyu with employees from Wal-Mart who speak different languages. They should have adopted a language that can be related to local people. Ideally the international managers in Wal-Mart should be Bi-multilingual. Most American firms hightail it to slow down their English rather than study the language of Japan The American companies that have succeeded in Japan have done so by using Japanese executives and allowing a significant amount of autonomy. Wal-Mart in time seems to be making the same mis own it did in Germany, relying too often on American executives, and not enough on local control. We can clearly see that all Global Companies are faced with many problems which range from language, pricing and culture collisions because cultural differences shape the use and variation of words. Edward hall drew a useful distinction surrounded by low and high context cultures. Many Asian countries are seen as high cost cultures. Japanese culture finds it difficult to say no compared to the Americans who are straight forward. Business needs to be aware that problems will naturally arise when high and low cost culture businesses get together. The model is useful in understanding why different cultures might communicate differently because High context south Asian culture companies differ so widely from their low -context western cultures. When companies go global their main objective should be to handle any difficultie s to do with culture because in one case mistakes are made they are hard to fix. This will only reverse the global company operation in the host country. All corporations must have multicultural awareness because it is a vital aspect to a successful business, and you must know the particular industry you are entering. If you do not do this the success of the business is slim. Wal-Mart must HYPERLINK http//www.filination.com/blog/2009/03/14/china-business-strategy-walmart-chinese-culture/localize and do things the Japanese way by encouraging local branch decision making, building local supplier contracts and using local promotion schemes on the other hand Wal-Mart was more focus on doing things the American Way. Wal-Mart did not consider the taste of Japanese people. HYPERLINK http//www.filination.com/blog/2009/03/14/china-business-strategy-walmart-chinese-culture/National culture has a baronful influence on peoples interpretations, understandings, and assessments of those with who m they work-Cultural values can affect decision making, managerial style, inter own(prenominal) trust, teamwork, and the role of women in the workplace, among other issues. In order to have successful entry Wal-Mart ask to collect correct and accurate information. Managers in Wal-Mart should undertake An intercultural training flux such as Managing International Teams or Managing International Mergers and Acquisitions will forget international managers involved in a merger or acquisition the insights they need to develop an effective working culture that plays to the strengths of their multicultural teams and maximises the cultural benefits of their companys acquisition.Japanese Culture is completely different to the Wal-Mart American culture. Cultural dimensions can provide details allowing global companies to deliver the best cultural governance with a great outcome. Identifying the main cultural dimensions groups through attitude, values and norms can influence companies suc cess. Geert Hofstede (1984) clearly stated that culture is the collective programming of the judgement which distinguishes the members of one human group from another. Wal-Mart adopted a management style that did not sit well with the Japanese people. Wal-Mart persuaded Seiyus management in 2004 to pretermit 25% of headquarters staff, including 1,500 employees and managers. That kind of mass firing happens rarely in Japan, which places a premium on social accordance. And when the firing is done at the behest of foreigners, it takes on added negative connotations. Wal-Mart should determine the cultural attitudes of the employees. Research shows how national culture can also affect the workforce in an organisation. Wal-Mart did not use the Greenfield Investment, which involved entering a country without a partner from the host country. Wal-Mart did the opposite so it should be fully aware of the effect of the Japanese culture. It is up to the managers in a corporation to understand culture. Hofstedes research looks for sub cultural and regional differences, industry differences and differences arising from the organisational culture. Power distances generally mean people will accept unequal distribution of powers. In the Case of Wal-Mart you can see that it is more homogeneous compared to Japan, therefore they need togive more power to local managers and their supplier-network. Japanese power distances are lower so Management should decentralise. Americans do not accept power distances so the American workers in Wal-Mart at the Japanese branch should input empowering systems. Japanese hold harmony as a social ideal, patience as a personal virtue, and hierarchy as an essential organizing principle. Americans, in contrast, hold freedom as a social ideal, action-orientation as a personal virtue, and equality as a fundamental organizing principle. We have seen that the Hostede model such as individuality versus collectivism and feminine versus masculinity help c ategorize as well as identify cultural differences. If we take individualism versus collectivism you will know that Americans are more independent and have self -determination compared to Japan where the workforce work in groups. In order to solve this issue Wal-Mart should develop group goals and policies that relieve stress. The Japanese people also believe power should be controlled by society, even though this model does not present detailed analyses of individual cultures. This useful research shows the role of cultural differences which is useful for international management. These are challenges many managers will face in todays global markets because not managing culture effectively can stop produce as well as production. The use of the concepts of cultural dimensions such as those of Hostede and Trompanear provide the means to construct cultural clusters of countries or subcultures within and crossways countries. These clusters can be employ to identify areas which need development in order to reduce problems caused by cultural differences. For example advertising can use this model to make adverts relative to certain cultural dimensions. Wal-Mart needs this because once Seiyu was taken over it became a whole new store. Yes Wal-Mart provided low cost products but the high quality products that the Japanese are used to disappeared. Wal-Mart should clearly see how different their culture is compared to Japanese. The bad thing active these models is that they assume that culture does not change and they develop serotypes. The cultural theorists base their research on the management of the company rather than the national culture.Wal-Mart must show consideration and care in dealing with cultural differences both inside and outside the organisation. Japanese people are willing to buckle under top prices for goods of high quality. Wal-Mart should ensure that their global company service as well as product meets the standards of the people living there. Care must take place amongst managers regarding the relationship between the home and host country in terms of working practices. Firms need to be sensitive to culture because if they dont it can cause failed joint ventures as well as misunderstandings. Their cultural differences need to be respected across borders. Employees in the organisation must be aware of norms and the general customs when entering the host country. Businesses need to understand the impact that cultural differences have on the career growth of their employees and on communication and decision-making, Firms can solve the problems of cultural difference by engaging in cross- cultural training. Some researchers have stated that Wal-Mart is way behind the knowledge of the locals taste. One of the reasons that failed Wal-Mart internationally is when it attempt to transport the companys unequalled culture and retailing concept to each new country. Gilman (2004) asserts that in Wal-Mart oversea expansion, it has been trying hard to launch the supercenter concept, therefore the corporate culture does not match the national culture. Understanding cultural difference allows managers to develop policies to manage cross cultural activities.In this essay we have seen that internationalisation of a business has exposed the business to different norms when crossing cultural borders because more firms move away and enter new markets. A comparison between National cultures is important. We have seen the clash in the national cultures between countries as well as the corporate culture. We can clearly see that how culture plays an important role in the success of a global company. The surmisal clearly compares how companies like Wal-Mart try to impose the same norms on all its foreign markets. The approaches to solving cultural differences clearly assume that firms will be given advantages. Culture should be the heart of the organisation because we can clearly see that it determines the success or fai lure of the firm. It is up to the employees in the organisation who exist within the corporate culture to understand the outside environs culture because we must see culture as ever changing. In order to solve the problem with culture we must learn to adapt. The company needs strategy development in order to overcome the hurdle caused by cultural differences. We can clearly see that every country and region has their own culture therefore global companies must have a good understanding. Culture is clearly the way of life for people so it is only natural that companies leave their ethnocentric culture where they fundamentally see only their own culture rather than the Polycentric culture. This creates conflict as we have seen in both corporate cultures as well as national culture. In order to overcome such problems global companies need to acknowledge the diverse culture around them. No more precondition and judgment because people learn culture through what they are taught. It is only natural for global companies to put in effect strategies allowing them to adapt to the cultural changes. If we take the company Coca Cola strategy which changed the sweetness of their keynote to meet the consumers taste buds in different countries. They did not neglect the needs of the local people they therefore have the full respect of their culture and history. We have seen how cultural theories like Hofstede can allow global companies to take into consideration the cultural cluster that effects society but the problem with this theory is more based on how the organisation can purify culture difference inside the global company rather than the milieu outside the organisation.