Cultural Sensitivity, Cultural Awareness, And Trade Management

802 Words Jun 21st, 2016 4 Pages
‘Cultural Sensitivity’. ‘Cultural Awareness’. ‘Cultural Intelligence’. These terms pop up repeatedly when investigating global management strategy. In team management, human resource management, and trade management it is evident that at least those three attributes are necessary to successfully manage any type of global industry or commerce. According to Taylor M Carpenter in the Principles of Management , ‘Fortune 500 companies have reported a shortage of global managers having the necessary skills’, leaving these companies unable to implement global strategies due to lack of capable leadership. An example of deficient cultural sensitivity can be attributed to the consequential decision made by Pepsico to use a light blue color in their advertisements designed to increase sales in South East Asia. This decision actually led to a decrease in sales: As it happens, light blue is the color of mourning in the region, so it created a negative connotation with the brand. If the person in charge of managing that campaign had a deeper cultural awareness of their target market, this simple faux pas that led to a loss and embarrassment for the company could’ve been avoided.
Cultural Intelligence is key in any international situation, as it is in any business environment. Commonplace events like a brainstorming meeting, an interview, or a negotiation can take on many different nuances depending upon the culture of the people involved in the transaction. For instance; a German job…

Related Documents