Question

The advantages and disadvantages of cultural diversity for the Multi National Company and its level of importance with examples and references.

Answer 1

The Cultural Diversity in the team of the Multinational business has the advantages:

· This is the competitive advantage of a team to be diverse which give the business the knowledge of new scope and markets,

· The innovation-driven business operations are high in such case making it drive past the competition of the markets,

· The business is much more culture-sensitive and has the needful local knowledge to be confident about its operations with diversity.

For example, the business of Coca Cola the beverage manufacturing company would know the ways to promote and get the market share in the Asian markets with diversity in its business structures.

However, the disadvantages are:

· The communication may be an issue in a diverse team as the people of various languages are employed here,

· The cost of training would be higher for a diverse team as the people would need special care for training due to diversity.

For example, if the e-commerce business of Amazon enters the Indian markets it has to spend more on the training as the nation has 26 major languages so the cost of training would be higher.