Impact of Culture on Strategic Planning for Global Organizations

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This essay critically evaluates the conceptual grounds of international organizational policy and strategy, analyzing the impact of political structures, culture, language, and other factors on international organizational strategy. It discusses maximizing organizational effectiveness through political and ethnographic findings, assessing the roles of religion, political structures, cultural norms, and globalization in shaping international organizational policy. The essay also evaluates how these roles affect decision-making processes and enable a consensus view of international organizational policy and strategy, using Apple Inc. as a case study to illustrate the practical implications of cultural and political influences on business strategy.
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Running head: CULTURE AND ITS IMPACT ON STRATEGY
CULTURE AND ITS IMPACT ON STRATEGY
Name of the Student
Name of the University
Author Note
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1CULTURE AND ITS IMPACT ON STRATEGY
Table of Contents
Task 1:.................................................................................................................................2
Question 1.1.....................................................................................................................2
Question 1.2.....................................................................................................................2
Question 1.3.....................................................................................................................3
Task 2:.................................................................................................................................4
Question 2.1.....................................................................................................................4
Question 2.2.....................................................................................................................5
Task 3:.................................................................................................................................6
Question 3.1.....................................................................................................................6
Question 3.2.....................................................................................................................7
References............................................................................................................................9
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2CULTURE AND ITS IMPACT ON STRATEGY
Task 1:
Question 1.1
Identify and critically evaluate the conceptual grounds on which the current perception of
international organisational policy and strategy are based.
The international organizational strategies as well as the policies are generally based on
the various conceptual grounds. The organizational policies that have been adapted by the
American multinational company that deals in technology, Apple Inc have led to the huge
success of the company. The concerned company is known to implement the various methods
that are related to the recruitment of the best of the employees. This might help the concerned
company in the completion of the most important projects that had been undertaken (Yarbrough
and Yarbrough 2014). The company is also known for the inclusion of the staff members who
might belong to different ethnic and cultural backgrounds thereby leading to the conditions of
having a healthy diversity among the staff members of the organization who have been serving
the organization at the various locations. The company in discussion being a multinational
organization tends to recruit the members of the workforce from the global talent pool.
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3CULTURE AND ITS IMPACT ON STRATEGY
Figure 1: Workforce Diversity
Source: (Apple.com 2018)
Apple Inc. is further known for the fact that a huge portion of the organizational leaders
in the company are women. The number of the members of the female workforce of the
organization aged below 30 is higher as compared to their male counterparts (Apple.com 2018).
The company is known to develop the policies that might help in the matters that pertain to the
stability of the operations within the company (Wilensky 2015). The workforce of the company
is known to have been offered promotions on the basis of the services that they extend towards
the company thereby leading to the appraisal of the people who have been dedicated to the
concerned company in discussion, Apple Inc. These might be referred to be the conceptual
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4CULTURE AND ITS IMPACT ON STRATEGY
grounds on which the current perception of international organizational policy and strategy are
based.
Question 1.2
Critically analyse the impact of political structures, culture, language, religion and beliefs,
social customs, ethnicity, ethos and geographical location of current perceptions on
international organisational strategy
The concerned company in discussion, Apple Inc., might be affected due to the various
factors like the political scenario of the region wherein it has been operating, the cultural
practices of the area, the various social customs that might exist within the regional boundaries
of the area as well as the geographical location of the region wherein the concerned business
organization has been functioning (Canary, Blevins and Ghorbani 2015). The political factors as
well as the might have a huge influence over the operations of the concerned company. The
political factors might include the various taxes that might be implemented by the respective
governmental bodies of the area (Preston and Windsor 2013). An example of this might be cited
in the well-known legal activity that involved the FBI and the company in discussion, Apple Inc.
The legal battle had taken place in the year 2015 and was initiated with the government demand
for a software that would enable the unlocking of an Apple device without the automatic deletion
of the data that is present within the device memory. The CEO of the company had argued the
fact that the creation and the distribution of the software might lead to the conditions wherein
there might arise a security breach on the part of the company towards its clientele (Latimes.com
2018). The other factor that tends to affect the organizational strategy of Apple Inc. is the fact
that the cultural and the ethnic factors that are exclusive to the locations wherein the company
might be aiming an expansion such as the cultural diversity as observed within the various Asian
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5CULTURE AND ITS IMPACT ON STRATEGY
countries wherein the company might have expanded. The various expatriate agents who have
been employed by the organization to overlook the operations of the concern at the worldwide
locations wherein the concerned business organization has been operating (Cavusgil et al. 2014).
The organization might face issues and roadblocks due to the linguistic problems that might be
present due to the difference in the languages spoken by the local members of the concerned
location and the expatriates who have been employed to help in the smoothness of the operations
within the area. The company might also face certain legal as well as the commercial barriers
while expanding in the various countries that might have a difference in the governance styles
within the country. The Chinese government, for example, poses barriers to the expansion of the
company in the country like the completion of the various formal processes that are required to
be completed for the commencement of the business activities of foreign organizations within
the country of China (Export.gov 2018).
Question 1.3
Determine how to maximise organisational effectiveness and strategy by using findings of
political and ethnographic study exploit outcomes
The organizational effectiveness and the strategies might be affected by the various
political as well as the ethnographical findings that are related to the area wherein the concerned
company might plan to expand. The political matters that might affect the operations of the
concerned organization are related to the change in the trade policies of the various countries
wherein the concerned business organization might be operational (Butler and Wilson 2015).
These might include the various taxes levied on the foreign organizations that have been
operating at a different global market existent within the territorial boundaries of the concerned
host country. The organization might also be affected by the changes in the governmental
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6CULTURE AND ITS IMPACT ON STRATEGY
policies that pertain to the taxes that are levied on the various organizations operating within the
boundaries of the concerned state. The other political factor that might affect the organizational
performance is the legal factors that are related to the matters of trade within the concerned
territorial boundaries of the country or the state.
The ethnographic conditions that exist within the various territorial boundaries existent in
the world might also pose to be a factor that influences the strategy adopted by the concerned
organization (Falkner 2017). This might be observed in the matters that are related to the matters
that pertain to the culture and the ethnic factors that are present within the country wherein the
company has been planning an expansion. The ethnographical study of the concerned country
might help the company to formulate the various strategies that need to be adopted by the
company in order to thrive in the concerned market. The ethnographical background of the
concerned members of the workforce of the organization has helped in the development as well
as the implementation of the various changes within the operational strategies in order to
accommodate the various members of the organizational workforce.
Task 2:
Question 2.1
Critically assess the roles of religion, political structures, cultural norms, ethnicity, ethos, the
concept of ’the State’, business and economic models and globalisation in the development of
international organisational policy and strategy.
The international decision making of an organization might be hugely affected by the
influences of the various cultural impacts within the concerned organization. The political
aspects that are present within the various countries might affect the decisions and the various
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7CULTURE AND ITS IMPACT ON STRATEGY
strategies that are undertaken by the various multinational organizations that have been present
within the global market (Jervis 2017). The diversity among the organizational workforce might
result in the conditions of secularity within the organization thereby resulting in the conditions
wherein the organization as well as the various products and the services of the concerned
business organization might receive an unbiased recognition and popularity among the clientele
of the organization (Luthans and Doh 2018).
The concept of the State might also affect the various international strategies that are
adopted by the organization. The company in discussion, Apple Inc is known to have abided by
the various policies that are resulting from the inclusion of the members of the workforce who
might belong to the different cultural and ethnic backgrounds. The annual diversity report of the
company has revealed the fact that a huge portion of the organizational leaders in the company
are women who majorly belong to the minority section of the communities. The number of the
members of the female workforce of the organization aged below 30 is higher as compared to
their male counterparts (Apple.com 2018). This has led to the conditions that are related to the
development of the respect for the various cultures that exist all over the world (Ahammad et al.
2016). The globalization of the business and the economic models implemented within the
organization has led to the conditions wherein the concerned organization has been termed to be
a multinational organization that have been operational all over the world in the various countries
(Boons and Lüdeke-Freund 2013). The concerned company is known to have been operating at
various locations inclusive of the countries of India and China. It has been observed that the
workforces at these countries do not work in a similar manner like their counterparts in the
United States. The cultural and the political factors that are existent within the countries differ
from those that exist within the territorial boundaries of the United States.
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8CULTURE AND ITS IMPACT ON STRATEGY
Question 2.2
Critically evaluate how the roles of religion, political structures, cultural norms, ethnicity,
ethos, the concept of ’the State’, business and economic models and globalisation affect the
process of and participation in decision-making and enable a consensus view of international
organisational policy and strategy.
The business strategy adopted by Apple tends to help the concerned organization to
achieve a huge success in the matters that pertain to the overall success of the organization. The
mission statement of Apple states that the company develops the best personal computers that
exist on earth, develops the necessary software. The mission statement further states that the
company is responsible for the definition of the futuristic thoughts over the mobile media as well
as the other computing devices (Apple 2018). The mission statement of the company has been
communicated well among the employees of the American multinational company that deals in
technology, Apple Inc. The concerned clientele of the organization might however have to incur
a rise in the costs of the various accessories that are utilized along with the various technological
products that are manufactured by Apple Inc. This has resulted from the fact that the current
president of the United States has levied a 10% charge on the various products that are
manufactured in China. Apple is known to own a manufacturing unit in China and thus there
might be a hike in the prices of the products that are manufactured in the Chinese unit
(Theweek.co.uk 2018). The diversity among the organizational workforce might result in the
conditions of secularity within the organization in discussion, Apple Inc. thereby resulting in the
conditions wherein the organization as well as the various products and the services of the
American multinational company that deals in technology, Apple Inc might receive an unbiased
recognition and popularity among the clientele of Apple Inc. (Bryman and Bell 2015). The
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9CULTURE AND ITS IMPACT ON STRATEGY
organizational workforce has also been affected by the factors that pertain to the concept of the
State and the political and territorial boundaries that are related to the concept as well. The
members of the workforce of the organization are also affected by the inclusion of the various
members who have been belonging to the various different cultural backgrounds. This has led to
the conditions that are related to the development of the respect for the various cultures that exist
all over the world. The globalization of the business and the economic models implemented
within the organization has led to the conditions wherein the concerned organization has been
termed to be a multinational organization that have been operational all over the world in the
various countries (Odell 2014). The diversity in the workforce of the organization has helped in
the improvement of the products and the services extended by the organization towards the
clients belonging to the varied cultural and ethnic backgrounds.
Task 3:
Question 3.1
Critically evaluate and explore contrasting stakeholders structures, their power and status
The stakeholders of an organization might refer to all the people who might hold a stake
within the concerned company. The stakeholder theory generally refers to the theories pertaining
to the business ethics and the organizational management that aim at the addressal of the various
morals and the values that are required for the proper management of the organization (Mansell
2015). The stakeholder analysis refers to the process of making an assessment of the system as
well as the various potential changes that are related to the concerned and the interested parties
(Missonier and Loufrani-Fedida 2014). The stakeholders of an organization are observed to be
affected greatly due to the factors that are related to the failure or the success of the organization.
The various stakeholders of Apple Inc. might include the clientele of the organization, the
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10CULTURE AND ITS IMPACT ON STRATEGY
employees of the organization, the investors of the organization, the board of directors as well as
the CEO of the concerned technology magnet multinational organization in discussion, Apple
Inc (Fifka 2013). The suppliers of the various raw materials and the other parts that might be
compiled to create the various products that are generally marketed to the target clients of the
organization.
The employees of the organization might be termed to be one of the primary stakeholders
of the organization. The concerned company is known to have employed a staff of over 123000
members across the 22 different countries wherein the company has been functioning
(Apple.com 2018). The company might boast of having the maximum number of staff in the
United States however the concerned technology magnet also employs a huge number of staff
within the departments related to the activities of manufacturing the products, the sales of the
products, the marketing of the products as well as the after-sales services that need to be
provided to the clients of the organization at any given point of time. The other major
stakeholders of the organization refer to the clients of the organization (Missonier and Loufrani-
Fedida 2014). The clients of the organization tend to be considered as one of the major
stakeholders of the organization due to the fact that the clients of the organization are responsible
for the success and the failure of a certain product or service that is marketed by the concerned
company in discussion, the multinational technology magnet of America, Apple Inc. The other
various stakeholders of the company might include the suppliers of the organization who have
been entrusted with the duty of assuring the maintenance of the quality of the products that are
marketed by the concerned technology company in discussion, Apple Inc. The key stakeholders
of the concern might also include the various agencies that are functional at the state levels and
those that operational at the higher levels in the governmental hierarchy like the NIST, the NSA
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11CULTURE AND ITS IMPACT ON STRATEGY
and other such organizations. The federal government of the concerned country, the United
States might also be considered to be one of the major stakeholders of the company.
Question 3.2
Produce researched, logical, powerful and coherent arguments for discussion with
stakeholders and influencers that challenge the status quo on thinking and structures.
The various stakeholders of Apple Inc. might include the clientele of the organization, the
employees of the organization, the investors of the organization, the board of directors as well as
the CEO of the concerned technology magnet multinational organization in discussion, Apple
Inc. The suppliers of the various raw materials and the other parts that might be compiled to
create the various products that are generally marketed to the target clients of the organization.
The employees of the organization might be termed to be one of the primary stakeholders of the
organization (Andriof et al. 2017). The concerned company in discussion, the multinational
technology magnet of America, Apple Inc. is known to have employed a staff of over 123000
members across the 22 different countries wherein the company has been functioning
(Apple.com 2018). The employees might include the various members who have been involved
in the development of the software that is implemented in order to develop a unique product that
might help in the improvement of the competitive advantage of the concerned company in
discussion, the multinational technology magnet of America, Apple Inc. The internal
stakeholders might be influenced by the various techniques of the performance appraisal or the
inclusion of the chosen members of the team that is appointed for the manufacture of the various
products that are launched by the concerned company in discussion, the multinational technology
magnet of America, Apple Inc. The external stakeholders of the company might refer to the
clients of the company at large. The clients of the organization tend to be considered as one of
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