Question

Hometown Culture

One of the major dilemmas in global management concerns the degree to which a multinational firm should adapt its business practices to particular locations and cultures versus the degree to which it should maintain consistency across all its operations. In general, firms prefer consistency because it streamlines operations and may result in global economies of scale. At the same time, multinational firms cannot gloss over differences without running the risk of losing a particular market to more responsive (local) competition.

In this exercise, students will interpret their “hometown” culture for a large multinational company. Suppose that a large multinational equipment company (based outside their country of origin) is planning to open a major production facility and retail dealership in their hometown. This company has hired a student as a consultant to help it successfully establish operations in his or her hometown.

Step 1: Describe your hometown. Write a brief sketch not more than 1 page in which you describe the important cultural features of your hometown, including such aspects as language, dress, courtesy/customs, and attitudes toward “foreignness” and newcomers. Try as much as possible to capture aspects of the location and culture of the hometown that would be important for newcomers to recognize and respect.

Step 2: Make recommendations.

Make some recommendations to the multinational company of things to pay attention to if it wants to run smooth operations in your hometown. To what degree might the company use a consistent (same) approach in entering your hometown that it might make in entering other people’s hometowns to try to streamline operations? Will your hometown be likely to require a foreign multinational to make more particular adaptations?

Step 3: Discuss what you feel are the main challenges of entering global markets, particularly in regard to achieving the appropriate mix of consistency and adaptation.

Answer 1

1.I belong to West Sussex with a population around 6 lakhs, which is close to Hampshire, England. It is a beautiful country side with fertile and densely populated coastal plain on the one side and towards north the rolling chalk hills.The density of population is approx.425 per km2 .The economy of the town mainly depends on the rich and middle class farmers, who carry out mixed farming and pasture lands for sheep.There are fishing fleets too towards the coastal side.

The number of industries are quite less,except for furniture manufacturing due to huge supply of wood and there are few clay and glass industries to spot. And yeah,there are great numbers of sea side resorts due to the large inflow of tourists to Sussex.

Our town is known for its strong tradition of its bonfire celebrations and its musical heritage.The town is known for its largest art festival.Though we have a distinct dialect ,thanks this being a tourist attraction we are used to different forms of English and few other languages.

The town is prefered for education also from around the world for the existance of very old universities.

2.The approach to new industries would be welcoming as the general public is open to wider choices and development of the area.But at the same time the town has a distinct culture and the people dislike any alteration.The general economic standard of the people are high so labour will be available only for a bigger wage structure.

3.The main challenges faced by globalised markets are, the product and labour safety, differences in technology,,political influence,environmental issues of the area,corruption,problems concerned with transport, lack of required skilled labour availability,legel and regulatory structure,lack of infra structure,etc.