Globalization, Culture, and Diversity Impact on Siemens: A Report

This report examines the impact of globalization, culture, and diversity on Siemens, a major industrial manufacturing company. It explores cross-cultural issues like language barriers and discrimination, and the effects of regionalization and globalization, including currency fluctuations and cultural adaptation challenges. The report highlights the adverse impacts of globalization, such as income inequality, unemployment, and environmental concerns. It also provides recommendations for Siemens to manage cultural differences, reduce negative globalization impacts through policy and training, and promote sustainable practices. The study emphasizes the importance of addressing these issues for Siemens' continued success in the global market. The report concludes by emphasizing the need for effective strategies to mitigate the negative effects of globalization.

Running head: Management & business context
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Management & business context
Table of Contents
Introduction.................................................................................................................................................3
Cross cultural and diversity issues...............................................................................................................3
Issues and impact of regionalization and globalization on business............................................................4
Recommendation.........................................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................6
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Management & business context
Introduction
Globalization is the process of increased interconnectedness in various countries. In today’s
competitive world, the significance of globalization has increased. Here is the discussion about
the operations and activities of Siemens Company. The company focuses on the technology,
automations, railway vehicles and PLM software. In today’s modern world, the firm is increasing
revenue and profits by providing the innovative products and services. The paper also explains
that how globalization affect the progress of the firm adversely. Cross cultural and diversity
issues also have been explained in the task. Further detail of the task has been detailed below.
Siemens AG is a German conglomerate firm with its headquarter is situated in Berlin and
Munich. It is the biggest industrial manufacturing organization in Europe with branch offices in
abroad. There are approx 372,000 employees employed in the company. Siemens is a global
powerhouse monitoring on the areas of automation, electrification and digitization. It is one of
the biggest producers of energy efficient and resource saving technologies. Along with this, the
company is a leading supplier of systems for transmission and power generation as well as
medical diagnosis. The main aim of the company is to provide innovative and latest technologies
to the people across the world (Oriontalent, 2018).
Cross cultural and diversity issues
Culture may be defined as the acquired knowledge and experience that people use to interpret
knowledge and create social behavior. By using effective cross cultural management, the people
have been able to learn and communicate with each other. When people join the company, they
bring with them beliefs, values that they have been taught (Kraidy, 2017). On the other hand,
diversity also plays a vital role in each and every company. Diversity may be defined as the
concept of diversity entails respect and acceptance (Bochner, 2013). Culture and diversity play a
vital and empirical role in each and every company to conduct business activities and operations
successfully and effectively. In today’s era cross cultural and diversity issues are raised at the
workplace that could affect the success and growth of the firm. These issues also affect the
people and management adversely (Chhokar, Brodbeck and House, 2013). The cross cultural
issues include language, alternative dress, food, availability of goods, driving patterns and
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different management philosophies. These factors create cultural shock in the workplace. Due to
language barriers, the employees are unable to understand and know the language and culture of
different countries that influences the sustainability of the firm. In addition, there is
discrimination in the workplace in terms of sex, gender, age and caste that may affect the
profitability of the company (Oinas, 2017). It also creates diversity issues within the
organization. Along with this, harassment and gender gap are other issues in a diversified work
environment. Moreover, poor communication also has a direct impact on the success and targets
of the organization negatively. The cross cultural and diversity issues affect the revenue and
returns of the Siemens company adversely. The firm needs to focuses and analyze these issues
and challenges to overcome the competitors and make a favorable working environment in the
organization (Mignolo and Escobar, 2013).
Issues and impact of regionalization and globalization on business
Globalization is one of the significant forces impacting on the business and economy. In
addition, Globalization may be defined as a process of integration and interaction among the
employees, organizations and governments of different countries as it is a process which is
driven by the investment and international trade with adding information technology (Hirst,
Thompson and Bromley, 2015). On the other hand, regionalization is process of dividing an area
into a smaller segment known as regions. Furthermore, it is a process of dividing a country into
administrative regions. The decision makers are far away and they are unable to make unique
decisions within the organization. Siemens is a multinational company and it is operating and
managing across 190 separate nation states. The threat is one of the biggest challenges for the
firm caused by currency fluctuations. Siemens Company has established its branch in China also
(Dobrin, 2016). China is a significant part of the firm to expand the business operations and
activities. Culture and globalization have impacted a lot on the manner and way these
multinational firms run their business operations. Globalization affects the culture of the
company adversely. Due to globalization, people are failed to adopt a foreign culture in the
workplace. This has been issue and barrier dealt by the firm to manage and handle the issues.
Furthermore, culture also affects the profitability of the organization adversely. It shall be noted
that income inequality has risen in the country due to globalization. Globalization also increases
unemployment in the marketplace thus it affects the growth of Siemens. It also may influence the
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environment and globalization creates financial problems for the company. Additionally,
workers are provided unhealthy working conditions and culture leading to health hazards
(Fritsch, 2015). The company uses child labor to provide support in their business operations and
activities. It shall be stated that deadly diseases like AIDS and other communicable diseases are
increasing due to direct consequences of globalization. In this way, most of the health issues
occur in Siemens due to globalization. Deforestation arises due to globalization as it also
destroys the land which entails lots of resources and minerals. Globalization business has
exploited the resources and capital of the firm. The globalization tends to make the world more
effective and homogenous place. As a result, the company is failed and unable to preserve the
old tradition, beliefs, custom, and culture of people across the world (Sunkel and Inotai, 2016).
In this way, the organization is unable to compete and strive with competitors in the international
market. Due to globalization, adequate opportunities are not provided to unskilled workers in the
global environment. On the other hand, it is accountable for the emergence of various
companies. Therefore, it is stated that they are not able to provide good and unique working
condition to the workers in the workplace. Furthermore, globalization increases competition and
this competition can be interconnected with products, services, and technology. It shall be
revealed that customers have various types of choices in the market as it affects the behavior of
people (Caldwell, 2013). All these globalization issues could affect the sustainability of Siemens
and it increases and enhances rivalries in the international market. Let’s talk about
regionalization; it creates issues such as restructuring and controlling issues. Apart from this,
regionalization can be inclusive that can influence the revenue and returns of the firm. In
addition, Siemens has not been able to maintain control on the small business due to
regionalization issues (Baylis, Smith and Owens, 2017).
Recommendation
The company needs to manage the different cultures through the formulation of effective and
dynamic marketing policies and plans which can be employed by the firm to maximize their
profits and market share. Furthermore, the firm should focus on the policies, plans, and strategies
to reduce the negative impact of globalization. In addition, the government should make unique
and dynamic rules, legislation and laws to handle the globalization issues globally. To avoid the
negative impact of globalization and regionalization, the government and company must focus
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on the joint research and development to make a good image in the minds of the consumers.
Moreover, it shall be noted that the federal government must coordinate with companies to
handle the development and expansion. Additionally, the company should provide training and
development coaching to the employees to understand the culture of different countries. They
must check the safety protocols and individual governments to carry the business activities
successfully. New and innovative technologies shall be used by the organization to manage the
issues of globalization. Siemens should make policies and strategies to protect the environment
and business operations. People should promote and enhance the educational programs to
improve the quality of human resources for next generation. Apart from this, the organization
must promote and preserve the custom and culture of the people. Deforestation shall be reduced
and eliminated by the organization as well as people across the world. The national and
international institution should deal with various urgent issues related to society in order to
reduce the negative impact of globalization. In addition, people must improve and enhance the
multilateral standards and agreements to make globalization inclusive and fairer. Along with this,
the firm should focus on the infrastructure and energy sector to eliminate the adverse impact of
globalization. The company should also reduce the carbon emissions to detect the adverse impact
of globalization. In this way, the Siemens can avert and reduce the negative impact of
globalization.
Conclusion
On the above-mentioned study, it has been evaluated that Globalization plays a significant role in
today’s era. Globalization affects the sustainability and business operations of the Siemens
Company. Due to globalization, culture and diversity issues are raised in the workplace. These
issues affect the profitability and outcomes of the firm. It is recommended that the company
should make strict rules and policies to overcome these challenges and issues.
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References
Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an
introduction to international relations. Oxford University Press.
Bochner, S. ed., 2013. Cultures in contact: Studies in cross-cultural interaction (Vol. 1).
Elsevier.
Caldwell, C., 2013. Diversity issues in movement observation and assessment. American Journal
of Dance Therapy, 35(2), pp.183-200.
Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the
world: The GLOBE book of in-depth studies of 25 societies. Routledge.
Dobrin, K., 2016. Globalization of the world economy and the global financial crisis (No.
p16103).
Fritsch, S., 2015. Technological innovation, globalization, and varieties of capitalism: the case of
Siemens AG as example for contingent institutional adaptation. Business and Politics, 17(1),
pp.125-159.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Kraidy, M., 2017. Hybridity, or the cultural logic of globalization. Temple University Press.
Mignolo, W.D. and Escobar, A. eds., 2013. Globalization and the decolonial option. Routledge.
Oinas, P., 2017. Proximity, distance and diversity: issues on economic interaction and local
development. Routledge.
Oriontalent.,2018. About Siemens, Retrieved from 1st May 2018, <
https://www.oriontalent.com/siemens/>
Sunkel, O. and Inotai, A., 2016. Globalism and the new regionalism (Vol. 1). Springer.
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