Culture Advantage and Disadvantage for MNCs in International Market

CASE STUDY ANALYSIS

Table of Contents
Introduction...............................................................................................................................................3
Question 1..................................................................................................................................................3
Question 2..................................................................................................................................................6
Conclusion..................................................................................................................................................8
References................................................................................................................................................10

Introduction
Availability of information, advancement in technology, standardization have given
opportunities to organization to expand their business in the international market. Culture is the
belief, attitude of individual that make them differed from the other group of individuals. It
cannot be learned and not inherited. For making the meaningful strategies for working in the
global market, it is very essential to identify the cultural background of particular nation so that
firms can sustain such market for longer period (Thuita, 2015). Present report is based on the
Case study of HiTree which is a multinational organization and operating in the field of
information technology. Assignment will discuss the advantage and disadvantage of culture for
MNC which are working in the international market. Cultural impact on leadership will be
discussed in this study (Karin Andreassi and et.al, 2014).
Question 1
Culture advantage and disadvantage
Business cannot be continued on its existing methods for longer duration when it wishes
to operate in the global market. Every country has its set variables which can be differed from
the home nation. Rules, regulations, taxations, holiday periods are different in each location. It is
necessary for the firms to understand the culture of particular place before entering into such
market (Luo, 2016). If corporations ignore this aspect then they will not be able to run their
business in other counties significantly. As per the given case scenario Hitree has subsidiary in
the Germany, it has around 1000 employees who belong from different nations. Cited firm has
strong organizational culture and it acts differed in different countries. Such as Germany has
culture of involvement so HiTree give more value to employee participation. That is benefit for
the organization, as it develops strong relationship between employees and employers. By this
way misunderstanding and conflict situation do not take place. Company follow the culture of
the nation and each business meeting with the clients is done accordingly (Jiang, Gollan and
Brooks, 2015). They communicate directly with the customers and introduce own self first.
Employees are getting involved in the decision making process, adoption of such culture give
advantage of employee’s satisfaction in the workplace. So they be loyal towards the brand and

retain in the organization for longer period. That helps in increasing the revenues of the cited
firm in such market.
HiTree has another subsidiary in the Finland as well and in such place cited firm adopts
culture of this nation (Adler and Graham, 2017). As in this region local organizations have
culture of working in a team. So cited firm also adopts consensus culture in which it manages its
workers in group. Managers focus on working together that develops communication between
them. Team meetings and consensus decision making increase level of job satisfaction among
staff members. Population of the Finland have productive nature and they utilize their time
effective. In such place company mainly focus on providing quality services on time. It
concentrates on resolving the issues of customers immediately so that it can enhance the
satisfaction level of them. That is advantage for the firm and it gives benefit to the organization
in managing their people accordingly. That would develop better understanding among people
(Nguyen, L.D., Ermasova. and Pham, 2016).
In the Indian market HiTree is engaged in the manufacturing and development activities
as well. In Europe and US there are western culture followed by the persons. But India is famous
for the traditional culture. In such place company develop personal relationship with the
employees, try to find out their necessity and fulfill those. Friendly relationship gives benefit to
the organization in motivating the people and making them loyal towards the brand (Thuita,
2015).
On other hand cross-culture difference create problem in the HiTree because employees
those who belong to another country and working in another culture, they find it difficult to
work. Communication is the main problem they feel uneasy when they have to make other
understand their point of view. As if Indian workers gets promoted in the Finland then it became
problematic for individual and that is why it fails to be productive there (Luo, 2016). So it is very
difficult for the HiTree to manage its staff members in the same direction. Company has to mold
its HRM policies as per the need of country (Adler and Graham, 2017).
Cross-culture difference constrains management practices
Multinational corporations those which are operating their business in many countries. It
is very important for them to understand the national culture of particular nation. As HiTree has