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Impact of Cultural Differences on Worldwide Business

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Abstract

            This paper looks at culture and how it affects companies worldwide. In business people from different cultures come together to make money and through this conflict may arise. Using Unilever Company, a reputable food manufacturing and body products company, that has a branch in a good number of companies, this paper has looked at the challenges Unilever faces in regard to cultural differences and how they are coping with them. Using several cultural theories and terminologies, this paper has given possible scenarios that may arise due to possible cultural differences and how they may be dealt with.  Although this paper is written in detail, the topic is extensive and requires more research in order to be covered exhaustively.

Keywords: Culture, monochromic, polychromic, high and low context, culture fluency

The business has been growing tremendously over the last few decades through the internationalization of operations. Over time, the economies of countries around the world become increasingly integrated as technological advances speed up the progress of migration of people across international borders, the flow of capital, and the trade of goods and services. Sophisticated communications and transportation technologies is probably the biggest factor that has led to internationalization as it is now easier to make business deals across borders. Internalization offers increased profits to companies and nations, it also has its pitfalls including differing expectations, cultures and values, legal systems and standards of living as well as unexpected global cause-and-effect linkages (Harrison 2002). This paper shall look at the need for international companies to understand and adapt to local cultures and the challenges they may face while operating in a diverse cultural environment.

Impact of Cultural Differences on Worldwide Business

References:
  • Ditzel, U. (2007). Cultural differences in business life – Understanding German and American business culture.GRIN Verlag Publisher.
  • Harrison, L.E. (2002). Culture matters: How values shape human progress. 4th and, Basic Books Publisher.
  • Hurley, L. The importance of understanding cultural differences in business. Retrieved August 23, 2010, from http://www.helium.com/items/657179-the-importance-of-understanding cultural-differences-in-business.
  • Robert, T. M., Harris R.P., & Moran R. (2007). (7th Ed) V.S.Managing cultural differences: global  leadership strategies for the 21st century. Butterworth- Heinemann Publisher
  • Vedina, R. (2001). Cultural differences in business: Russian managerial values. R. Vedina Publisher.

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