Mgt 501

Multinational companies (companies that operate in two or more nations simultaneously) are the logical outgrowth of regional companies that are seeking to expand their business. When seeking global expansion, companies have a plethora of issues to contend with. The company must be able to successfully penetrate and establish itself as a viable competitor against pre-existing companies and a very nationalistic population.

Companies also have to deal with the cultural differences that arise while trying to prop up their companies in the new market. Cultural differences can be seemingly transparent. But depending upon the type of product that a company would market, it could make a huge difference in the approach that a company would take.

In order to illustrate some cultural differences, one can compare and contrast several cultural practices involving business meetings. For instance, different cultures view the concept of punctuality in a different light. It is imperative to be on time for meetings in Switzerland (perhaps illustrating their demand for precision time pieces). However, Italians and Spaniards are notoriously late to business meetings. The practice of giving a gift in America is shunned as it is a sign of an attempted bribery. However, this practice is essential in Japan – as long as it is wrapped in red and gold and presented with both hands.

Different cultures also have their management hierarchy arranged to reflect their civilization. In hierarchal cultures, meetings with mid-level managers are hardly productive as meetings are viewed as an opportunity to exchange ideas. Decisions are made from the top down, and not much latitude is provided to mid-management. European associates expect to discuss processes and trials during meetings, as they are interested in the systemic operations of proposals.

These examples of meetings just scratch the surface of what an expatriate manager would need to grasp in order to not offend the...