Management Culture and Globalisation for Food Habits-myassignmenthelp

Question: Discuss about theManagement Culture and Globalisation for Food Habits. Answer: The multinational companies require managing cultures of various groups of shareholders to operate in a global environment. Culture can be defined as the distinct attributes like food habits, social behaviours, consumption patterns and lifestyle patterns groups a different people have which in common. Culture of people have roots in various aspects like country of origin, race, religion, occupation and several other factors which form parts of the identity of people. It has profound impact on the communication pattern, lifestyle and perceptions of individuals (De Mooij 2013). For example, in the eastern culture eye contact is considered rude while in western culture it is regarded as a positive body language. The cultural perceptions have deep impact on the decisions people in the society take pertaining to consumption, profession and investment. The global companies irrespective of their counties of origin and industries they function in require to exhibit positive acceptance of cul tural diversity in order to be able to acquire customers, employees and investors respectively to operate in the market. Their knowledge and ability of managing people from various cultures allow them to operate globally. Thus, management of multiple cultures has become empirical to the global expansion of multinational companies (Rialti et al. 2016). The first area where global companies require managing culture is while acquiring and retaining talent. The management bodies of companies earlier used to view employees as mere operators. The leadership style in these organisations was increasing authoritative where the superiors ordered and directed the subordinates. The mangers commanded their followers and did not consider empowering them or encourage them to participate in the planning of business strategies (Vinayak, Khan and Jain 2017). Max Weber introduced the system of bureaucracy, which stands on power distributed among the people in organisations based on strict lines of hierarchy. The hierarchical organisational, fixed lines of authority and strict division of labour were the characteristics of business organisations. The managers in these organisations during used command and authority to lead the departments under their control. However, this authoritative leadership style based on bureaucracy did not support prompt dec ision making because involvement of too many layers of authority made taking decisions extremely complex. Globalisation, which started in the nineteenth century led to the expansion of big companies all over world. The theory of scientific management of resources proposed by Fredrick Taylor led the business organisations manage their resources scientifically. The business organisations manage their resources using advanced technology and human resource management strategies. Globalisation has led the multinational companies like Microsoft to enter foreign countries taking advantage of the strong bilateral relationship of their home countries with these countries (Beamond, Farndale and Hrtel 2016). For example, American companies have entered economies of South America, Europe and Asia with which the government of the United States have strong bilateral relationships. The multinational companies, in order to achieve economies of scale in these markets and earn high profits utilise re sources in their host countries. They employ people in these host countries and harness their talents. It is here that the significance of cultural management comes into action. The transnational organisations while employing the people should form policies to manage them with due respect to their culture. The model of cultural dimensions of Hofstede states that there are marked differences among the people coming from the eastern countries like India and western nations like the United Kingdom. The people may perceive same gestures of managers differently according to their cultural backgrounds and perception (Gilpin 2016). The model points out the people of the eastern countries are characterised by more importance to long-term relationship, collectivistic attitude and high power index. The western countries on the other hand are characterised by short-term relationships, individualistic attitude and lower power index. The managers of the global companies are required to lead thei r juniors coming from diverse cultural backgrounds. They must manage these subordinates so as not to harm their cultural feelings and perceptions. Violation of cultural feelings would lead to resentment and conflict between the management and the employees (Cumberland et al. 2016). These conflicts would further attract actions from the host governments including penal actions. Hence, in the light of the above discussion, it can be pointed out that managers leading teams of employees in the global companies require to be sensitive about the cultural background and perception of their members of their teams. This understanding would encourage greater integration among the geographically dispersed branches of the multinational companies. They employees in these branches owing to the multicultural environment within these companies would be encouraged to integrate their skills and motivation to form more robust business strategies aimed at gaining a stronger market position (Omri and Ka houli 2014). Thus, cultural management can help global companies to harness the talent of global human resources to gain more command over the global market. The second situation when cultural management by companies help in their globalisation is while catering to the needs of the customers. The multinational companies today are present in several countries and serve an international base of consumers. This helps them to generate huge revenue and diversify their business risks. Thus, catering to the needs of these customers on a continuous basis is of utmost importance for the revenue generation in these companies. The cultural attributes of the consumers like their religion, nation of origin and historical background have deep impact on their purchase decisions (Claessens and Horen 2014). This impact of culture on consumers decisions is so great that the multinational companies have to design and market their products in ways, which suits the cultural perception of the consumers. High brand equity help the multinational companies to hold high position in the market and generate high revenue. The consumers develop brand loyalty towards t he products, which relate to their cultures, needs and lifestyle. Again, the companies in order to gain more permanent hold over the market try to create brand affinity where the customers would keep on consuming their products yielding steady inflow of cash for them. Here, the companies try to relate to the culture of the consumers by adopting features related to it (Coady et al. 2015). For example, the multinational fast food chains like KFC offer vegetarian food items while serving customers who consider vegetarian food a part of their culture and religion. When consumers can relate culturally to a brand they consume the brand on regular basis which earns robust revenue for the companies owning those brands. Thus, cultural connectivity with customers helps companies to generate high revenue and strengthen their hold in the global market. Cultural management is very important in global collaboration among multinational companies and business firms. Today, the term culture is not restricted to employees and customers but embraces business entities as well. Every business entity has its own culture, which is expressed through its mission, vision and strategies. Globalisation has ushered in a new market trend where firms require sharing knowledge, capital and technology to bring about innovations in their products. The global firms today carry out robust open innovation with other firms all round the world to make products catering to specific markets to gain more competitive advantage (Oshri, Kotlarsky and Willcocks 2015). This requires them to integrate their respective organisational cultures in order to create an environment, which allows collaboration by all the firms participating in open innovation experiments. Thus, management of culture of between firms is very crucial in collaborating to bring about innovative products. Thus, management of organisational cultures lead to collaboration among companies, which help firms, create more market specific products and gain greater global advantage. An indirect yet important aspect of cultural management is attraction of market capital, which accounts for the robust strengths of the multinational companies. One can note that the leading global companies are public limited companies listed on the stock exchanges in the home countries. Globalisation has made it crucial for these companies to be present in major home countries in form of subsidiaries. The major wholly owned subsidiaries of the multinational companies are also public limited companies listed on the major stock exchanges in the countries. For example, Unilever is listed on London Stock Exchange in its home country the United Kingdom, Euronext in Europe, New York Stock Exchange in the United States and several other major stock exchanges around the world. These public limited public limited companies and their wholly owned public limited subsidiary companies can create positive image by cultural management among employees and customers. This culturally diverse image h elps them to attract revenue from investors in all their home and host countries, which fuel their global operations. It can also be pointed out that cultural integration between companies allows one company to invest in each others capital. Thus, this cultural management enable companies attract both individual and institutional investors, which provides them with strong financial bases capable of fuelling their global functions. Thus, cultural management enables companies to attract global capital to support their global operations. It can be summed up that cultural management holds a very important place in the daily business operations. Management of cultural diversity help multinational organisations gain multicultural employee image in the global market. They design their products and marketing strategies to relate to the cultures of their various consumer segments. This helps them to earn huge revenue from the global market. This strong multicultural image of the multinational companies attracts investments from both individual and institutional investors. Thus cultural management helps companies to attract employees, revenue and investment which support their global operations. Thus managing cultures help in globalisation of corporate organisations and allow customers to consume products from the global market. References: Beamond, M.T., Farndale, E. and Hrtel, C.E., 2016. 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