Essay about Impact Of Cultural Differences On Business

1562 Words Oct 20th, 2016 7 Pages
In today’s multicultural global environment, businesses frequently encounter cultural differences that affect all aspects of the business. Cultural differences include disparities in attitudes, behaviours, norms and values of people who live or work together. Businesses will have diverse managerial approaches depending on the cultures that encompass its workforce. The potential usefulness Trompenaars and Hall’s cultural framework to businesses have been discussed widely. Both cultural frameworks propose a set of cultural dimensions such as low context versus high context languages, individualism versus collectivism, and universalism versus pluralism that affects human emotion, thinking and behaviour in the workplace in predictable ways. This paper discusses the impact of cultural differences on business basing the argument on Hall’s concept of low context versus high context language, and individualism versus collectivism, as well as Trompenaars’ cultural dimension of universalism versus pluralism. The discussion will be based on North America and Latin America cultures using IBM as an example to show how the company’s practices are affected by cultural differences in these two regions.

Hall and Trompenaars Cultural Dimensions

Hall and Trompenaars’ proposed criteria for cultural differentiation illustrates how to manage complexity in a heterogeneous business environment, which is a major challenge facing multinational companies and their international managers.…

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