IBUS50007 Staffordshire University: Globalization in Business Analysis

This presentation examines the multifaceted impact of globalization on business, focusing on the interplay between culture and international operations. It begins by defining globalization and culture, emphasizing the increasing interdependence of economies, cultures, and populations worldwide. The concept of cultural distance is introduced as a key factor in understanding differences between countries, organizations, and stakeholders. The presentation then explores the evolution of culture, drawing on Darwin's theories to highlight the role of inherited customs and habits in shaping human identity. The core of the presentation delves into the impact of culture on business, emphasizing the importance of cross-cultural understanding and management styles. Hofstede's cultural dimensions are presented to illustrate the various aspects of cultural values. Finally, the presentation discusses the opportunities and challenges presented by globalization at the international level, stressing the need for business managers to consider the globalized environment when formulating effective organizational strategies. The presentation is designed to fulfill the requirements of the IBUS50007 assignment at Staffordshire University.

GLOBALISATION IN
BUSINESS

WHAT IS GLOBALIZATION?
Globalization is known to define the
phenomena where the world is growing to be
increasingly interdependent on the
economies, cultures and populations of the
world.

WHAT IS CULTURE?
Culture is the shared patters of behaviors that is
learned by socialization among the specific group of
people.
CULTURAL DISTANCE:
The degree of differences between the cultural
values among different countries, organizations
and stakeholders.

GLOBAL IMPACT OF CULTURE
Globalization is drawing people from diverse cultural backgrounds into
close relationships through mediums such as tourism, presence of
multinational organizations along with geographical unities such as the
European Union (EU).

EVOLUTION OF CULTURE
Culture evolution is the theory that deals with the entire concept of social change. It
can, to some extent, be traced back to the theories of Darwin. He had argued that for
human beings, customs and habits that are inherited which contribute to the human
identity of an individual or group is grounded in the theory of human evolution and the
capability of humans for acquiring knowledge.

IMPACT OF CULTURE IN
BUSINESS
Culture manifests the understanding that there will be a cross-
cultural mixture taking place in business relationships.
However, there are various degrees of priority that is
understood among the various styles of management.

HOFSTEDE’S CULTURAL
DIMENSIONS POWER DISTANCE
COLLECTIVISM vs. INDIVIDUALISM
UNCERTAINTY AVOIDANCE
FEMININITY vs. MASCULINITY
SHORT-TERM vs. LONG TERM
ORIENTATION
RESTRAINT vs. INDULGENCE
LOW HIGH
The degree of inequality among employees
that exists, and is accepted, in the workplace.
The strength between people and their
community that they are in.
The degree to which people in the workplace
are able to deal with anxiety of the uncertain.
The distribution of the roles that is present in
the workplace between men and women
employees.
The orientation in which the company
executives set their company goals.
The extent to which the society around the
workplace is able to fulfil an employees’
desires.
Embraces hierarchy
Individualist
Uncomfortable with uncertainty
Power is important
Futuristic orientation
Satisfaction is good
Egalitarian
Collectivist
Comfortable with uncertainty
Nurture is important
Short-term orientation
Normative repression

IMPACT OF GLOBALIZATION
IN BUSINESS
At the international level, the world economy and the differences that lie between
countries present many opportunities, along with challenges to the business
world. Business managers need to take into consideration the globalized
environment that they are doing their business in, to formulate effective
organizational strategies.

THANK YOU
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