MGT604 Managing in a Global Context Essay Sample

MGT604 Managing in a Global Context

Assessment instructions

Based on the previously chosen research question, findings from the Annotated Bibliography (Assignment 2) and feedback from the lecturer, write a 2,500-word Research Essay. Drawing on additional research sources, formulate your own argument and give recommendation(s) to business organisations that operate across cultures. Your Research Essay should be a piece of academic writing with references. Minimum five (5) academic articles and/or book chapters must be used. It must address the chosen topic, explain why it is important, identify the main issues, include a comprehensive literature review, formulate your argument, and offer conclusions or recommendation(s) on how, in your opinion, business organisations should address the discussed issue.

ASSESSMENT TEMPLATE

Here is a recommended structure with some questions, which might guide your work on the research essay:

Introduction

Introduce your topic and concepts.

What is this essay about?

Why is this topic important?

Who may benefit from reading your research essay?

Literature Review

Discuss the literature used for this essay.

Summarise what other authors wrote about the issue.

Do you agree/disagree with their findings?

Main Discussion

Formulate your main argument/hypothesis.

Use examples from existing literature to support your claim(s).

Use examples from your own experience to support your statement(s).

Conclusions and/or recommendations

Summarise the main issue discussed in this essay.

In your opinion, has it been sufficiently studied?

What are your recommendations for business managers?
Submit your Research Essay at before the end of Week 11 to TurnitIn in the subject Moodle site (see the date and time).

Solution

Introduction

The nature of modern-day business is that companies operate in an extremely competitive market. On the other hand, it is quite clear that choices and preferences depend on the socio-cultural backgrounds of the people of a country. Business organizations need to manage such socio-cultural diversity while operating in such a diverse socio-cultural environment. As per the MBA Assignment Expert, This essay is going to discuss several socio-cultural aspects of Australia in which global businesses operate. This analysis is quite significant in managing business operations in such a global context as this essay is going to analyse several socio-cultural aspects of Australia. Analysis of this essay may benefit several global business organizations that choose to operate in such socio-culturally diverse countries. 

Identified Issues

This topic is quite important because after globalization most businesses operate worldwide in diverse socio-cultural backgrounds. Moreover, due to the emergence of globalization, companies may operate in several countries and regions to maximize the volume of revenue. However, operating in different countries is not being quite easy for these multinational companies, since several external environmental factors can impact the business of organizations that operate in various countries. It is quite evident that businesses of global organizations depend mostly on the choices and preferences of such countries.

Literature Review

Several scholarly pieces of research have been conducted to show that operating in different countries may not be quite easy for these multinational companies, since several external environmental factors may impact the business of organizations that operate in various countries. Several external factors that may affect businesses of global organizations in different countries are political, economic, social, technological, environmental, and legal factors prevailing in a country. However, the most significant external environmental impact is the socio-cultural impact existing in the country. Some countries are culturally quite diverse, and the socio-cultural impact on businesses of multinational organizations is much high in such countries. Several races, as well as people of different cultures, languages, and religions, may live in such countries. Moreover, the educational backgrounds of people in these countries are quite significant determinants of the preference patterns of the country. In this essay, research on workplace bullying due to socio-cultural diversities conducted by Salin et al., (2018), has been considered. The authors of this piece of research identified that socio-cultural diversities play the most significant role in the business activities of an organization. Business organizations must resolve such issues by continuous innovations in their product line. Business organizations use several tools to address this major issue of socio-cultural diversities. This piece of research is based on quantitative data analysis, where the set of data is collected from thirteen different countries and the sample size is 199.

Technological innovations influence business organizations to operate globally to gain a competitive advantage. It can be seen that due to geographical existence, different countries have advantages in producing different commodities. It is simply because economic resources are diverse in different countries. As a result, a country may specialize in a particular commodity because of the endowments of some economic resources or simply due to productivity and mobility. Moreover, there are differences in geological deposits and climate conditions. Hence, the significance of international trade depends on the fact that different countries have different economic resources. In addition, there are differences in the supply of capital, labour, and natural resources in different countries. As a result, different countries may have production facilities for different commodities. These differences in facilities of production of commodities create an opportunity for a country to specialize in the production of specific commodities as well as the exchange of surplus products by cross border trade. Moreover, international trade takes place when leaders of business organizations feel it is more profitable in operating in different international markets and consumers will also buy commodities when they find that foreign commodities are cheaper. However, the fact is not as simple that several external environmental factors play a significant role in international trade and these factors are political, economic, social, technological, environmental as well as legal factors prevailing in a country. Among these external environmental factors, socio-cultural factors play the most significant role in the business operations of global organizations in different countries. 

There are some countries with huge socio-cultural diversities and there are many indigenous and non-indigenous races living in such countries. In addition, there is a large immigrant population in this country. As a result, there is a prevalence of huge socio-cultural differences in this country. Research conducted by Salin et al., (2018), shows that cross-cultural differences may create some adverse impact on international trade. As per this research, there may be workplace harassment as well as workplace bullying among professionals in human resource management. However, global organizations may feel international trade is quite profitable as well as lucrative and continue to operate in such diversities. These organizations should have to manage these cross-cultural diversities in the context of international trade.   

As opined by Salin et al., (2018), cross-cultural differences in conceptualizations, as well as perceptions, may give rise to workplace harassment as well as workplace bullying among professionals of human resource management. It could be found that social exclusion and work-related harassment bullying take place in the workplace in several countries with socio-cultural diversities. Leaders of several businesses find it quite difficult in expanding their businesses in such a diverse market. It is quite clear, that such global businesses have to conduct extensive market research on the needs of the consumers in such diversity, as well as several market research has to be conducted on the choices and preferences of consumers of this country. According to Cooke et al., (2019), such socio-cultural diversities may develop several consequences, such as an increase in unskilled workers, a rise in operations of MNCs and the growth of alternative transnational investors. In contrast to the above two pieces of research, Vuong, (2021), shows in his research the semiconducting principles of exchange of environmental and monetary values. In his research, it is identified that the principal value of humankind is healing nature. In this research environmental issues are also included in the socio-cultural factors of business operation.

It is quite clear that international trade will be there as international business organizations find it more lucrative as well as more profitable in operating in the international market. However, this piece of the article finds that there is some pressure on socio-cultural diversities prevailing in the country. Firstly, there is a difference between the country of the trading organization and the country in which it operates. Secondly, there is a prevalence of socio-cultural diversities in Australia as there are several races in this country. Moreover, this research finds that there may arise some kind of adversities initially while operating in such diverse countries. Theses section has been agreed that these are the major issues which have been faced by industries to operate their business in various nations. However, these adversities must be removed, and the organization should focus on changing its production pattern as per the need of such a diverse country. As opined by Gopalkrishnan, (2018), this type of adversities caused by socio-cultural diversities may create some impact on the mental health of professionals in human resource development. 

It is evident from the review of several kinds of literature that, the authors of the article have correctly, identified socio-cultural issues and the impacts of such issues. It is quite obvious that socio-cultural issues are primarily created due to political, economic, technological, environmental as well as legal conditions prevailing in a country.  

Main Discussion

Hypothesis 

H0: Socio-cultural factors such as demography, culture, economy, common attitudes, beliefs, and value systems have a huge impact on global organisations.
H1: Socio-cultural factors such as demography, culture, economy, common attitudes, beliefs, and value systems have no impact on global organisations.

Analysis

The socio-cultural factor is a broad term, and this refers to factors such as beliefs and patterns of a group population, habits, common traditions and many more. Again, the demand condition of a country depends mostly on such socio-cultural factors. The most important socio-cultural factors that have an impact on multinational companies and their business activities are social attitudes toward foreign commodities and services, preferences of consumers of a country, education levels, religion, language, and culture of people of a country (Alexander et al., 2019). Australia is a country with huge socio-cultural diversities (Salin et al., 2018). There are many indigenous as well as non-indigenous races living in the county. Moreover, there is a huge immigrant population in this country. Again, Socio-cultural factors that have a huge impact on global organizations are demography, culture, economy, common attitudes, beliefs, and value systems (Wiedmann&Lenzen, 2018). There are several elements of each of these socio-cultural factors and the impacts of those factors may explain the hypothesis.

In the present-day scenarios of business operations, international trade plays a significant role. International trade is quite lucrative for traders as well as for consumers. Technological innovations have a great influence on business organizations and their operations in the global market to gain a competitive advantage (Xu et al., 2020). It may be seen that due to geographical existence, different countries have advantages in producing different commodities. It is because economic resources are diverse in different countries. Hence, a country may specialize in a particular commodity because of the endowments of some economic resources or simply due to productivity and mobility. Moreover, there are differences in geological deposits and climate conditions (Gopalkrishnan, 2018). Hence, the significance of international trade depends on the fact that different countries have different economic resources. In addition, there are differences in the supply of capital, labour, and natural resources in different countries. As a result, different countries may have production facilities for different commodities. These differences in facilities of production of commodities create an opportunity for a country to specialize in the production of specific commodities as well as the exchange of surplus products by cross border trade (Ortiz et al., 2021). In addition, cross border trade happens when traders feel it is more profitable and lucrative in operating in different countries and buyers will also buy commodities when they find that foreign commodities are cheaper than domestic alternatives. However, the fact is quite complex, and several external environmental factors play a significant role in international trade these factors are political, economic, social, technological, environmental as well as legal factors prevailing in a country (Cave, Jenny, and Dianne Dredge, 2020). Among these external environmental factors, socio-cultural factors play the most significant role in the business operations of global organizations in different countries. 

It is quite clear in the context of the Australian market, that there exist several indigenous as well as non-indigenous races with huge cultural diversities. It is to be mentioned at this point that there are two types of socio-cultural differences, for example, external and internal. External differences refer to the socio-cultural differences between a trading nation and the country in which it operates. Another socio-cultural difference exists in the internal market of a country like Australia where there is a large number of diverse cultural races living in such a country. It is quite evident that international trade will take place because international business organizations find it more lucrative and more profitable in operating in the international market. However, there is some pressure on socio-cultural diversities prevailing in the country. Firstly, there is a difference between the country of the trading organization and the country in which it operates. Secondly, there is a prevalence of socio-cultural diversities in Australia as there are several races in this country. In addition, this research finds that there may arise some kind of adversities initially while operating in such diverse countries. This type of adversities caused by socio-cultural diversities may create some impacts on the mental health of professionals in human resource development. For example, these adversities must be managed in the global context and the organization should focus on changing its production pattern as per the need of such a diverse country.

 
Figure 1: Different factors that impact international business activity
Source: (Gopalkrishnan, (2018)

It may be pointed out at this point that not all the sectors of the economy respond in a similar pattern or at similar intensity. Some sectors are more sensitive than others in a socio-cultural context (Aman et al., 2019). One example may be considered in this regard, and it is the tourism sector that is more sensitive to responding to socio-cultural impact (Cave, Jenny, and Dianne Dredge, 2020). These sectors as well as their businesses should be more resilient to these socio-cultural impacts.
 

Figure 2: Cross border corporate practices and HRM
Source: (Cave, Jenny, and Dianne Dredge, 2020)

The above figure depicts the cross-border practices of corporate and human resource management. This reveals that there is an export of human resource practices in the direction of the country where it operates, and local culture is adaptable as well as customs in the direction of headquarters of the global organization. This shows that there is an integration or mix of cultures of both countries while managing global cultures. An example of cross-cultural diversity may be considered at this point (Cave, Jenny, and Dianne Dredge, 2020). A simple, as well as the common business practice, may be different in other countries and cultures. For example, accepting business cards in Japan is ceremonial in that country. When a Japanese businessman presents a business card he will bow and present the card by joining his two hands. However, this may not be the same in other countries. Hence, local culture and customs should be adopted and known by global organizations so that they may show respect to their culture.

Conclusion and Recommendation

The above discussion may be summarized in this section and there are some recommendations to manage socio-cultural differences in the global context. It is quite clear from this discussion that international trade takes place because cross border trade is quite lucrative for both producers as well as consumers. This is because there is a difference in factor endowments in different countries. Moreover, there are differences in geological deposits and climate conditions in different countries. As a result, countries have different production facilities. Production facility differences in commodities create different opportunities for countries to specialize in the production of some commodities. In addition, the exchange of surplus commodities takes place by cross border trade. Moreover, international trade happens when traders find it is more profitable as well as lucrative in operating in different countries. 

The recommendation for business mangers is to emerge their sustainable practices to the operations. Not only producers but also buyers will buy commodities when they feel that foreign products are cheaper than similar domestic products. However, the above discussion finds that cross border trade is not as simple as that. There are several external factors prevailing in a country that may impact business operations in a foreign country. These external factors are political, economic, social, technological, environmental as well as legal factors prevailing in the country. These recommendations are successfully analysed to resolve the current issues.  Among these external factors, the most important factor is the socio-cultural factor that has a vast impact on business operations.

It is quite clear that business organizations have to manage socio-cultural factors to operate in different countries. Firstly, it is recommended that business organizations should be resilient to these external factors, and they should adopt suitable tools in this direction. Secondly, it is recommended that business organizations should be adaptable to the local customs and culture of the country in which it operates. Thirdly, it is recommended that business organizations should build strong organizational communication to manage these socio-cultural issues in the global context.

Reference List

Alexander, M. M., Gutiérrez, A., Millard, A. R., Richards, M. P., & Gerrard, C. M. (2019). Economic and socio-cultural consequences of changing political rule on human and faunal diets in medieval Valencia (c. fifth–fifteenth century AD) as evidenced by stable isotopes. Archaeological and Anthropological Sciences, 11(8), 3875-3893. Retrieved from: https://link.springer.com/article/10.1007/s12520-019-00810-x

Aman, J., Abbas, J., Mahmood, S., Nurunnabi, M., &Bano, S. (2019). The influence of islamic religiosity on the perceived socio-cultural impact of sustainable tourism development in Pakistan: A structural equation modeling approach. Sustainability, 11(11), 3039. DOI: https://doi.org/10.3390/su11113039

Cave, Jenny, and Dianne Dredge. "Regenerative tourism needs diverse economic practices." Tourism Geographies 22, no. 3 (2020): 503-513.  DOI: https://doi.org/10.1080/14616688.2020.1768434

Cooke, F. L., Wood, G., Wang, M., & Veen, A. (2019). How far has international HRM travelled? A systematic review of literature on multinational corporations (2000–2014). Human Resource Management Review, 29(1), 59-75. DOI: https://doi.org/10.1016/j.hrmr.2018.05.001

Gopalkrishnan, N. (2018). Cultural diversity and mental health: Considerations for policy and practice. Frontiers in public health, 6, 179. DOI: https://doi.org/10.3389/fpubh.2018.00179

Ortiz, A. M. D., Outhwaite, C. L., Dalin, C., & Newbold, T. (2021). A review of the interactions between biodiversity, agriculture, climate change, and international trade: research and policy priorities. One Earth, 4(1), 88-101. DOI: https://doi.org/10.1016/j.oneear.2020.12.008

Salin, D., Cowan, R., Adewumi, O., Apospori, E., Bochantin, J., D’Cruz, P., ... &Zedlacher, E. (2018). Workplace bullying across the globe: A cross-cultural comparison. Personnel Review. DOI: https://doi.org/10.1108/PR-03-2017-0092

Vuong, Q. H. (2021). The semiconducting principle of monetary and environmental values exchange. Economics and Business Letter, 10(3), 284-290. Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3726928

Wiedmann, T., &Lenzen, M. (2018). Environmental and social footprints of international trade. Nature Geoscience, 11(5), 314-321. Retrieved from: https://www.nature.com/articles/s41561-018-0113-9

Xu, Z., Li, Y., Chau, S. N., Dietz, T., Li, C., Wan, L., ... & Liu, J. (2020). Impacts of international trade on global sustainable development. Nature Sustainability, 3(11), 964-971. Retrieved from: https://www.nature.com/articles/s41893-020-0572-z