Research Methodologies: Culture Impact on Global Companies, Diageo PLC

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This report delves into the critical impact of cultural changes on global companies, with a specific focus on Diageo PLC. It begins with a literature review, defining culture change within the context of global businesses and exploring its effects on operations. The report examines how cultural differences, including communication, etiquette, and organizational hierarchy, influence business practices. It then investigates the strategies employed by Diageo PLC to manage these differences, such as flat communication, cross-cultural training, and the utilization of technology. The analysis highlights both the positive and negative influences of culture change on business operations, emphasizing the need for companies to adapt and implement effective management techniques to navigate the complexities of a globalized market. The conclusion summarizes the key findings, underscoring the importance of understanding and addressing cultural nuances for sustained success in international business ventures.
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Research Methodologies
(Submission 2)
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Table of Contents
TITLE: ............................................................................................................................................1
Chapter 1: Literature Review Introduction .....................................................................................1
Chapter 2: Literature Review Main Body........................................................................................1
The concept of culture change in the context of global companies............................................1
The impact of culture change over the operations of global businesses. ...................................2
The ways that are opt by Diageo PLC to manage culture differences at global level. .............4
Chapter 3: Literature Review Conclusion .......................................................................................5
REFERENCES................................................................................................................................6
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TITLE:
To identify impact of cultural changes on global companies and ways to manage culture
difference at global level: Diageo PLC.
Chapter 1: Literature Review Introduction
Literature Review is refers as an exhaustive summery of earlier examination in a
specified subject subject area. It is a theoretical framework and different sources in regards to a
chosen subject area. There are different roots that barnacled in the review, for example, books,
articles, sites, government reports, articles and journals and so forth (Kolawole, 2018). The
principle thought process of a writing literature is to offer base of learning and data in regards to
selected area of study. It help in developing an in-depth evaluation via analysing the opinion and
views of authors and writers. A literature review comprise three stages Introduction, main body
and conclusion. Introduction give the data about point and outline about those activities which
will be effective in carry out the main body. Main body compose the writing and brief data about
the goal of literature review. Conclusion represents the potential outcome that are being analysed
by the researcher through detailed investigation. In the present study area, the literature will
provides an in-side out of the area of identifying the impact of cultural changes on global
companies and ways to manage culture difference at global level (Turton, 2017). Thus in this
proper discussion will be taken place over the aspect of culture change and the ways which are
significantly opt by Diageo PLC. that supports them in attaining growth via managing changes
that occurs in the culture.
Chapter 2: Literature Review Main Body
The concept of culture change in the context of global companies.
As per the opinion stated by Steve Denning, 2011, culture is defined as a patterned way
of feeling, thinking, reacting, acquiring and transmitting mainly through symbols. In addition,
Culture mainly constituting the distinctive achievement of human groups which involves their
embodiments in arty-facts. Therefore the important core of culture is based on traditional ideas
or perception specifically their attracted values. In another words, culture change is refers as the
term which is used in public policy making which incorporates the impact of culture capital over
the individual and behaviour of a community (Nyagah, 2018). It mainly places stress over the
social and cultural capital aspects of determination creating and the way in that this act with
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different elements like the accessibility of data or the commercial enterprise inducement lining
individuals to assist behaviour. In the context of global business culture performs a vital role,
Therefore with the expansion of business at new place or region culture changes (Wilson, 2018).
As each country has their own culture and norms, so it is quite crucial for a business to adopt
culture as their comprises various issues which affects the operations of firm at global level. Now
a day's businesses are expanding at continuous basis and culture differences occurs. However,
this may have impacted over the operations of business. Organisational culture mainly involves
an enterprises experience, expectations, philosophy and the valued which are effective in
assisting the employees behaviour and that represents the self image of members, inner working
environment, interaction with the outside world, future expectations etc. An organisation mainly
works for achieving their predetermined objectives which are effectual in providing suitable
guidance to the business managers in carry out the operations in right manner. Culture change
mainly based on changing the working environment in which the business is working, it is quite
tough for an enterprise to implement change in their executions, thus it has create impact over
the operations of the firm. Businesses which are deals at global level are gone through by the
concept of culture change. In the context of operating business at international level, it is
important for the businesses to analyse the culture of the country or area in which they are
planned to expand, as it is important in developing effective strategies to execute business
operations in viable manner to attain profit and growth (Ogunleye and Oyaromade, 2019). For
the purpose of effectively working in the change environment it is important for the business to
analyse the market and the taste preference of the buyers, thus it plays vital role in making easy
expansion of the business with clear goal of achieving success and development.
The impact of culture change over the operations of global businesses.
Culture introduces as the cognition and characteristics of a special abstraction of people,
outlined through everything through religion, language, social habits, cuisine, music and arts.
According to the Kingsley Davis, 2013, Cultural changes occurring in any branch of culture
including, technology, art, philosophy, art and so on. In addition, culture change refers as a
changes in the rules and forms of social organisation.
On the other hand Marce Kaplan and Ben Dollar, 2019, culture refers as a business
problem, not merely an human resource problem. The executive teams and CEO must take
responsibility or duty for an enterprise's culture, with human resource supporting that duty via
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measurement, infrastructure and process. Culture has major effect on customer behaviour,
primary choice of buying, spending pattern and expense nature. Critical cultural differences
impacting the suitability as well as attraction of commodity in different area of the globe are
inactive stay on. Along with this, society has a likely influence on the tolerability and attraction
of various area of mercantile in different sphere (Olatunji, 2017). As a result of this the
international an organisation has to give wary thinking to culture in scheming, marketing and
promoting any product and service that is provided.
One of the main barriers that businesses face on the part of globalisation is difference in
natural languages. The language diversity has increased issues for an organisation in integrating
their employees and promoting products or services on the truly national level. For example:
when a new service or product enters another language region, it may take on an Anglicized
name. For instance, French call a self-service restaurant “Le Self” and Russians call tight denim
pants “dzhinsi”.
According to the Katie Reynolds, 2017, as businesses continue to enlarge their operations
across borders and the international marketplace becomes progressively more accessible for
small as well as large companies. Cross-cultural and multinational teams are becoming ever
more similar. It means, companies can benefit from a progressively divers knowledge and new
approaches to business issues. There are basically three core area where culture difference highly
impact on business operations of global companies (Weber and Gerard, 2019). Communication,
etiquette, and organizational hierarchy are consider three area impacted by culture. Apart from
this, communication is major impact of culture that directly impact on business operations while
selling of products to the customers. As lack of communication negatively effect on an
organisation and its success at international level. Poor communication can impact work
production because the employees might not receive proper data to complete a task or activity
assigned to them (Petkovic, 2018). On the other side, Effective communication is important in
enhancing productivity and performance because it directly impact the employee's behaviour and
the way they perform. Apart from this, various approaches to professional communication or act
are just one of the numerous differences within workplace norms or conditions from around the
globe. Organizational hierarchy as well as attitudes towards administration roles or
responsibilities can also vary widely between cultures. Therefore, changes in culture in positively
and negatively impact on business operations of an enterprise.
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The ways that are opt by Diageo PLC to manage culture differences at global level.
There are different ways that must be used by Diageo PLC to mange difference in culture
at global level. Adoption of flat communication, implementation of training, utilisation of
technology etc. Are consider more effective and useful ways for managing culture difference in
systematic manner.
Adoption of flat communication: Flat communication is more effective way because
with the help of this, Diageo PLC can easily reduce conflicts among employees. In this, each
employees have own rights to provide their opinion about business process, product, services,
physical evidence, promotion and many other activities (Rodriguez, 2019). It will further support
an organisation to retain employees for long time and achieve better outputs within given time
duration.
Utilisation of technology: It is consider more essential and useful way for Diageo PLC to
communicate with their workforce. It is use when there requirement of direct communication
with workforce. With the help of technology, employees become more able to share their idea
with organisation on a frequent basis. Therefore, proper utilisation of technology helps an
enterprise by overcoming impact of culture difference among employees. As it will further
support an enterprise by improving its brand image at global level.
Implementation of cross-cultural training: It is another essential and important way for
an organisation to use and overcome impact of culture difference systematically (Uthman,
2017). For this, Diageo PLC must provide training to their employees about the foreign
language, culture, trends etc. As it will helps an organisation in improvement of its growth and
success at international level. Cross-cultural training will support an organisation to train their
employees and gain better advantages within given time duration.
Adoption of leadership style: This way help an enterprise to reduce high impact of
culture difference in effective and systematic manner. Business manager or leader tend to have
their own leadership style with some being participative while others autocratic. As these style
assist Diageo PLC to lead their all workers systematically which further output in business
success and growth at international level (Santosh, 2017).
Therefore, above discussed all points are beneficially and essential for Diageo PLC to
reduce direct impact of cultural difference. It will be more effective for the development and
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success of an organisation. It will also support an organisation to gain competitive advantages
easily and within a given time duration.
Chapter 3: Literature Review Conclusion
From the execution if the in-depth study it has been concluded that culture change is
refers as an essential aspect which is requires to be considered by the businesses to operate at
international level. In the terms of multinational businesses, culture change is crucial terms as
businesses are requires to be aware about the culture and the norms of the new area of region for
the sack of implementing suitable business practices. Culture change has positive as well as
negative influence over the operations of a business. Therefore, culture change has positive
impact in the manner of acquiring fresh and skilled talents at work place, thus expansion of
business develops opportunities for the business in attaining growth via the suitable guidelines of
talented and skilled work forces. On the contrary it has numerous negative influence like
operational error, lack of communication, lac of supervision etc. culture differences affects the
operations of an enterprises at global level. As per the detailed evaluation over the aspect of
culture change it has been found that businesses are adopting multiple ways like flat
communication, proper training methods, improving HR processes etc. to manage culture
difference at global level. Thus businesses are concern over hiring skilled and talented
employees for the purpose of strengthen their workforce to hand culture differences and attempt
the operations in effectual manner. Businesses are also concern over improvising the
communication among organisation employees and top management, as it is effective in
providing suitable guidance to the employees to attempt operations in effective manner.
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REFERENCES
Books and Journals
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