Question

What role does culture play on managers in global situations. For example, a US firm in Saudi Arabia, Indonesia, Singapore or Germany would all face different problems from a cultural perspective. What about a foreign venture into North America.

Answer 1

Introduction:

The term culture can be defined as the customs , beliefs, behaviours and set of principles followed by a certain group of people.

Culture play on managers in Global situations:

• Cultural behaviours mainly differs from country to country or region to region hence it is very essential for the managers to give utmost importance to the local cultures while operating business globally.
• While extending business from one territory to other, it is important to maintain cordial relations with local business partners and employees by embracing their culture.
• Should maintain proper balance between corporate/ organizational culture and demographic culture so that company values can not be compromised.
• While introducing new policies, it must be kept in a view that no individual cultural perspective is hurted.

Foreign venture into North America:

America is a diverse country and have high cultural standards.

1. The first and foremost thing is to know the business etiquette of American partners from the way they greet and to the way they communicate.

2. Since North America has different states with diverse cultures including it is always advisable to know the local culture of that particular state.

3. The Dos and don'ts while interacting with local employees and negotiating with Governing bodies.

4. Before introducing new products/ services, should keep in mind whether it is culturally acceptable or not. Because the product which is well acceptable in one country can be offensive to the other. Always advisable to launch a product/ service which is locally preferred.

5. The proper understanding of work culture of the employees will help in setting the company's policies and procedures.