Key Effects of Regional Cultural Issues on Corporate Organizational Culture

This report discusses the key effects of regional cultural issues on corporate organizational culture and strategies used by managers to solve them. It also highlights the impact of culture on cost calculation, global pricing strategy, communication, and currency rates. The report concludes with the importance of training, introducing events, cost and pricing strategies, enhancing communication systems, and building policies to comply with regional requirements. Reference: Chetty, T., 2019. Big data: toward the influence of organisation culture and artificial intelligence on firm performance (Doctoral dissertation, University of Pretoria).

INTERNATIONAL
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
key effects of regional cultural
issues on the corporate organisational culture............................................................................1
Strategies apply by managers to solve cultural issues ................................................................2
CONCLUSION................................................................................................................................3

INTRODUCTION
International management is wider field which is related with managing all the trade
action related with global actions. It is related with all the relevant international trade policies.
There will be many factor which influence international business, culture is one of them. To
understanding the concept, Ray Limited has been taken. This report is define all the issue ,
corporation face due to having cultural difference .between various regional. It also consider the
way ans strategies use by management department which directly impact on overcoming the
effect of issue by implementing effective business strategies.
key effects of regional cultural
issues on the corporate organisational culture
 International Accounting:- Tax compliance is plays a crucial role, in international
business. Accounting can present a challenge to Ray Ltd., which is liable for pay
corporation tax abroad. Different tax system, rates, and compliance requirement make the
accounting function of the firm significantly challenging. Being aware of tax treaties
between countries like, Japan, Germany and Brazil will help to ensure that company is
not paying double taxes unnecessarily. It is really difficult for head department of Ray
limited to understand all the legal terms which effect with culture of different countries
(Chetty,2019).
 Impact of culture on Cost calculation and global pricing strategy:- Setting the price
of the product or services can present challenges for companies, doing business globally.
Ray Ltd. Consider costs to remain competitive, while ensuring profit. It is typical for firm
to set the price according to different countries, the cost of production, shipping, trade
rates, marketing as well as margin of the firm, must taken into consideration while doing
accounting. This also impact from culture because living standard also impact providing
rates of the country ((Govender, 2018).
 Communication and cultural differences:- Communication and cultural values plays a
crucial role for running a business. Communication across the cultures a very real
challenge for Ray Ltd. Effective communication with colleagues, clients, customers in
abroad is important for success in global business. The company deals with other
countries, and every country have different language, culture, religion it makes difficult
1

to understand clients needs. Being aware of religions value, cultural traditions can
influence this, will help to better navigate potential communication problems in firm.
 Currency rates:- Every country has its own currency and fluctuation in currency rate is
one of the most challenging for international business. While price setting and payment
methods are major considerations, currency rate fluctuation becomes more challenging
for the firm. Major fluctuations impacts the business stability, expenses, and profits. One
of the way that firm use to protect itself is to pay suppliers and production costs in the
same currency (Marwah, 2016)
Strategies apply by managers to solve cultural issues
Training: To overcome diversity gap between employees of different regional it is
essential to start training program. Ray Ltd. Is a company with its subsidiaries in many countries
so it makes it expensive for the company as it has to change its system time to time. It faces this
challenge affectively by giving proper training and guidance to its working as well as it makes it
system flexible so that necessary changes can be made in it.
Introducing events: This will also an effective way through which manger build great
understanding between global virtual team members as they met in events and program. It will
help in reducing cultural difference among them
Cost and pricing strategies- In it a company faces challenges related to cost and price of
a product or strategy. Ray Ltd. Is also affected by this as it has a lot of competition that derives
the price in the market. The company uses many ways to overcome it as it operated in many
countries so it put a flexible method of pricing which helps it to determine price according to the
prices that are prevailing in the market
Enhance communication system- As there are many challenges in communication due
to different style, understanding, etc. and in culture as each has its own culture that is different
from the other. Ray Ltd. does not makes its system rigid and because of that it makes changes in
accordance with the needs and requirements and thus helping it to establish a good
communication network (Mcgaw, 2018).
Build policies to comply with all regional: It is a challenge faced by most of the firms
as there are a lot of fluctuations in the rate of the currency and it posses a danger to the
companies as it can reduce their net worth in no time (McSherry and Pearce, 2018). Ray Ltd.
Tackle this challenge by keeping a reserve of the currency so that it can be used in adverse
2

situations. It also have a team of expert that helps in identifying the market situations and thus
the firm can take decisions according to their business future policies. (Otterloo, N., 2020).
CONCLUSION
From the above analysis it has been concluded that while running trade activities in
global market, an organization face many issue just because of engaging different cultural
people to the organization. It is really hard to successfully run business by making global virtual
team . Individual have different perception, they share unique personally, value, beliefs on cost
and accounting as well as pricing rate of decide by countries. To solve issue management
department need to proved training and engaged personal with group event it will help in
increasing corporation among local workforce and build great unde4rstsandinh through which
they can overcome al these problems.
3

REFRENCES
Books and journals
Books and journals:-
Chetty, T., 2019. Big data: toward the influence of organisation culture and artificial
intelligence on firm performance (Doctoral dissertation, University of Pretoria).
Govender, K., 2018. The Relationship Among Leadership, Organisation Culture, and
Performance in the Public Service. Advanced Science Letters. 24(7). pp.4914-4917.
Marwah, P., 2016. Organisation Culture in Academic Institutions. International Journal of
Management, IT and Engineering. 6(4). pp.124-145.
Mcgaw, L. N., 2018. The Influence of corporate governance on the organisation culture in the
automotive companies in Kenya (Doctoral dissertation, Strathmore University).
McSherry, R. and Pearce, P., 2018. Measuring health care workers’ perceptions of what
constitutes a compassionate organisation culture and working environment: Findings
from a quantitative feasibility survey. Journal of nursing management. 26(2). pp.127-
139.
4