Intercultural Business Competencies

Intercultural Business
Competencies

Executive Summary
Intercultural competency refers an ability to function in an effective manner across cultures
and acting accordingly. It makes multinational companies able to take competitive advantages
and becoming successful in expanding business. Globalization affects company’s performance to
the great extent as it creates several problems like cultural problems, languages problems and
others. Competition also affects companies as it puts pressure on companies foe investing in
advanced technologies, resources and others for successful expansion. Globalisation strategies
also play an important role as it helps companies in becoming intercultural competent and
solving all problems.

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Intercultural issues which Tesco is facing..............................................................................2
Intercultural impact on the performance of Tesco.................................................................5
Summary of main points..................................................................................................................8
Conclusion.......................................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................12
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INTRODUCTION
Intercultural competency refers some skills which makes companies able to take advantages
of global competition and operating globally in an effective manner (Arasaratnam-Smith, 2017).
This present study is based on Tesco, which is British multinational retailer. It was founded in
the year of 1919 by Jack Cohen. This retailer faced several problems while expanding business
in other countries due to different cultures and communication problems. This present study is
going to show intercultural issues which Tesco faced. It also shows effective ways which Tesco
used for dealing with all issues like cultural differences, languages problems and global
competition. Further, it discusses some impacts of all these issues on its performance, its image
and its productivity. lastly, it gives suggestions for better improvement and making developing
strategies for taking advantages of competition.
MAIN BODY
Intercultural issues which Tesco is facing
Tesco is a British multinational retailer and well known for its qualitative products and services
to customers. It has around 450,000 employees that helps it out in accomplishing its goals.
Rather than skilled employees there are several other reasons for which it becomes successful till
nw. Some effectiveness of this retailer is it focuses on sustainability, motivation to employees
and others. But on the other hand, it is found that it is facing some intercultural problems and
other communicational problems due to dealing in several countries. All issues related to
intercultural and communications are having impacts on its overall performance. Some main
issues which it is facing include:
Language problems: It is found that due to operating in different countries it faces languages
problems. It is also found that this company employs diverse workforce or workforce from
different countries in order to promote equality and diversity. Diversity and equality has several
positive impacts as it makes it able to bring innovation within organization. Different cultures of
employees use different ways of performing functions and provide better suggestions in taking
decisions. But on the other hand, diversity or employing different cultures of employees as well
as operating in different countries are having some negative impacts on its performance. Local
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