Reference no: EM131731238
Question: Organizations large and small must develop strategies to compete in the global economy. For some organizations, strategies leading to direct investment in foreign operations are valuable for growth, lower costs, and better management of the organization's risk. For other organizations, only exporting goods and services for selling in other countries is sufficient to meet their goals. For still other firms, particularly small ones, participation in international markets may be limited, but competition from foreign fi rms in their local domestic markets may require that they respond with competitive actions. In all cases, understanding other cultures and effectively managing crosscultural activities and contexts are crucial. Without insight and sensitivity to other cultures, senior managers are unlikely to formulate effective strategies.
Without appreciation for other cultures, associates and midlevel and lower-level managers can also fail in their efforts to implement carefully developed strategic plans. Furthermore, managers must prepare associates to work in international environments. This preparation often requires training and international assignments. Managers must also develop all of the organization's human capital-including women, who often have not had as many opportunities for expatriate assignments as men-and must ensure that the organization has the capabilities to take advantage of and exploit opportunities in international markets when they are identifi ed. Cultural diversity among the fi rm's human capital can be an advantage if managers use it effectively. Many organizations operate or sell their products in foreign markets. Thus, managers and associates must understand cultural diversity and use this knowledge to their advantage in managing it.
Critical Thinking Questions
1. Given the complexity and challenges in operating in foreign countries, why do organizations enter international markets?
2. How can understanding and managing cultural diversity among associates contribute positively to an organization's performance?
3. How can being knowledgeable of diverse cultures enhance an individual's professional career?