Cultural Differences and Communication: Definition, Benefits, Risks, and Solutions

This presentation discusses the definition, benefits, risks, and solutions of cultural differences and communication in global organizations. It highlights the importance of proper international cross-cultural management to mitigate risks and achieve organizational goals. The benefits of using cultural diversity in firms include gaining a proper understanding of customer demands and preferences, growing diverse teams with diverse ideas, and managing the supply chain effectively. However, cross-cultural diversity can also lead to conflicts among local and expatriate employees, affect the management of the supply chain, and even lead to bankruptcy if the negotiation process is not understood properly. The presentation suggests that clear understanding and respect for the culture of the host country can mitigate any type of conflict among the workers as well as the supply chain.

CULTURAL DIFFERENCES
AND COMMUNICATION

• Due to globalisation of business and pursuit of effective
competition the organizations are entering the market of the
different countries,
• These countries are having different cultures which are affecting
the organizational culture of the companies itself (Peeters, Dehon
& Garcia-Prieto, 2015).
• Cultural diversity is used by the global companies now a days
both positively and negatively (Rodriguez, Montiel & Ekema-
Agbaw, 2017).
DEFINITION AND CLASSIFICATIONS OF
CULTURAL DIVERSITY

BENEFITS OF TOPIC
• The global organisations are using cross cultural issues
and diversity in order to support the profitability of their
own business.
• These companies get proper understanding of the
customer demands and preferences by using the cultural
diversity in the firms (Mazanec et al. 2015).

BENEFITS OF TOPIC
• The teams of these global corporations are
growing diverse which relates to the diversity of
ideas (Brouthers, Marshall & Keig, 2016).
• These ideas then are applied to manage the
supply chain or convincing the partners at the
time of negotiation.
• Proper international management of cultural
diversity leads to prosperity of the firms.

RISK OF TOPIC
• Cross cultural diversity of the firms often leads to increase
the conflict among the local and expatriate employees
(Gurung & Prater, 2017).
• The firms if not aware with the cross cultural management,
cannot utilise the workforce properly which also affects in
managing the supply chain.
• The companies in case fail to understand the proper
negotiation process, fail to achieve the organisational
goals and often to bankruptcy (Stahl et al., 2017).

SOLUTION TO REDUCE THE RISK OF
TOPIC
• Proper method of international cross-cultural management is
therefore necessary.
• In order to reduce these risks, the organizations need to have
clear understanding of the culture where they are going to
enter for business (Ferris et al., 2018).
• This will help them to indulge in effective communication,
negotiation and proper understanding of the customer’s
demands.
• Proper understanding and respect for the culture of the host
country can mitigate any type of conflict among the workers
as well as the supply chain (Brouthers, Marshall & Keig, 2016).

REFERENCES•
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• Ferris, D. L., Reb, J., Lian, H., Sim, S., & Ang, D. (2018). What goes up must... Keep going up? Cultural differences in cognitive styles
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Services: Strategies, Issues and Challenges (pp. 49-82).
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