This term paper explores the effect of culture on international business. In order to do so, it first evaluates the influence of national culture and then the influence of corporate culture on international management. In the end it presents and analyzes a new framework which argues that these two types of culture interrelate and that both shape international management practices.
In 2010 Wal-Mart Inc. has been the world’s top retailer with revenues of US$ mil 405,046. However, they have never managed to establish Wal-Mart Germany since they have entered the market in late 1997. They left the market with huge losses in 2006.
“In Germany, analysts say, Wal-Mart never got traction in a market characterized by unrelenting price competition, well-established discounters and the cultural resistance of German shoppers to hypermarkets, which sell fresh vegetables a few aisles away from lawn mowers.”
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Main Part
- The importance of national culture on international management
- The importance of corporate culture on international management
- A new attempt: national and corporate culture interact
- Conclusion
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This term paper examines the influence of culture on international business by evaluating the impact of both national and corporate culture on international management. It also explores the interaction between these two types of culture and how they jointly shape international management practices.
- The impact of national culture on international business and management practices
- The significance of corporate culture in shaping organizational behavior and achieving success in international markets
- The interaction between national and corporate culture and its influence on international management practices
- The importance of understanding and adapting to cultural differences for effective international business operations
- The potential challenges and benefits of managing diversity within organizations with a strong corporate culture
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the stage for the discussion by highlighting the crucial role of culture in international business, particularly in light of global expansion. It uses the example of Wal-Mart's unsuccessful foray into the German market to illustrate the potential consequences of cultural mismatch. The paper argues for the need to consider culture in international management and explores the ongoing debate surrounding the relative importance of national and corporate culture.
The main part of the paper delves into the importance of national culture on international management, emphasizing the diverse cultural landscapes and the challenges of adapting to new environments. It presents the concept of comparative management and its significance in navigating cultural differences. The paper also highlights the interconnectedness of different aspects of national culture and its profound impact on international business.
Further, the importance of corporate culture in international management is discussed, exploring both its positive and negative effects. The paper explains how corporate culture shapes employee behavior, fosters a sense of belonging, and serves as a control mechanism. It also emphasizes the potential for innovation and creativity driven by a strong corporate culture. Additionally, the paper acknowledges the challenges associated with a strong corporate culture, such as managing diversity and the potential for xenophobia.
Schlüsselwörter (Keywords)
The key themes and concepts explored in this paper include national culture, corporate culture, international management, cultural diversity, comparative management, cultural adaptation, intercultural competence, organizational behavior, and globalization.
- Quote paper
- Eva Schruff (Author), 2012, The Importance of National and Corporate Culture on International Management, Munich, GRIN Verlag, https://www.grin.com/document/300251
