Impact Of Culture In International Market For MNC | Hitree |Assignment
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Added on 2020-02-12
Impact Of Culture In International Market For MNC | Hitree |Assignment
Added on 2020-02-12
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CASE STUDY ANALYSIS
Table of ContentsIntroduction.................................................................................................................................................3Question 1...................................................................................................................................................3Question 2...................................................................................................................................................7Conclusion...................................................................................................................................................9References.................................................................................................................................................10
IntroductionAvailability of information, advancement in technology, standardization have givenopportunities to organization to expand their business in the international market. Culture is thebelief, attitude of individual that make them differed from the other group of individuals. Itcannot be learned and not inherited. For making the meaningful strategies for working in theglobal market, it is very essential to identify the cultural background of particular nation so thatfirms can sustain such market for longer period (Thuita, 2015). Present report is based on theCase study of HiTree which is a multinational organization and operating in the field ofinformation technology. Assignment will discuss the advantage and disadvantage of culture forMNC which are working in the international market. Cultural impact on leadership will bediscussed in this study (Karin Andreassi and et.al, 2014).Question 1Culture advantage and disadvantageBusiness cannot be continued on its existing methods for longer duration when it wishesto operate in the global market. Every country has its set variables which can be differed fromthe home nation. Rules, regulations, taxations, holiday periods are different in each location. It isnecessary for the firms to understand the culture of particular place before entering into suchmarket (Luo, 2016). If corporations ignore this aspect then they will not be able to run theirbusiness in other counties significantly. As per the given case scenario Hitree has subsidiary inthe Germany, it has around 1000 employees who belong from different nations. Cited firm hasstrong organizational culture and it acts differed in different countries. Such as Germany hasculture of involvement so HiTree give more value to employee participation. That is benefit forthe organization, as it develops strong relationship between employees and employers. By thisway misunderstanding and conflict situation do not take place. Company follow the culture ofthe nation and each business meeting with the clients is done accordingly (Jiang, Gollan andBrooks, 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 giveadvantage 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 citedfirm in such market. HiTree has another subsidiary in the Finland as well and in such place cited firm adoptsculture of this nation (Adler and Graham, 2017). As in this region local organizations haveculture of working in a team. So cited firm also adopts consensus culture in which it manages itsworkers in group. Managers focus on working together that develops communication betweenthem. Team meetings and consensus decision making increase level of job satisfaction amongstaff members. Population of the Finland have productive nature and they utilize their timeeffective. In such place company mainly focus on providing quality services on time. Itconcentrates on resolving the issues of customers immediately so that it can enhance thesatisfaction level of them. That is advantage for the firm and it gives benefit to the organizationin 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 activitiesas well. In Europe and US there are western culture followed by the persons. But India is famousfor the traditional culture. In such place company develop personal relationship with theemployees, try to find out their necessity and fulfill those. Friendly relationship gives benefit tothe 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 employeesthose who belong to another country and working in another culture, they find it difficult towork. Communication is the main problem they feel uneasy when they have to make otherunderstand their point of view. As if Indian workers gets promoted in the Finland then it becameproblematic for individual and that is why it fails to be productive there (Luo, 2016). So it is verydifficult for the HiTree to manage its staff members in the same direction. Company has to moldits HRM policies as per the need of country (Adler and Graham, 2017). Cross-culture difference constrains management practicesMultinational corporations those which are operating their business in many countries. Itis very important for them to understand the national culture of particular nation. As HiTree has
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