Cultural Understanding And Globalization Business Essay

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Cross cultural understanding primarily refers to the simple ability of people around the business environment to recognize, interpret and correctly react to people or situations that could call for chaos due to cultural differences. The main reason of cross cultural training is to make the learner(s) know the appropriate skills required to achieve cross cultural understanding.

This task is to research into how three organizations are currently carrying out business across different cultures.

The companies in focus are:

Dell incorporation

Epson Incorporation

LG Incorporation


The objectives of this task include;

Selection of 3 multinational and International Organizations

Detailed investigation about the 3 Companies' cultural Understanding

Write a Report on the Value of the Analyzed Cultural Understandings that were developed.







Once the background of cross cultural understanding have been solidly put in place, the workers, either through continued training or experiences within the company will attain a more better appreciation of cultural differences. The different types of appreciation are cross cultural knowledge, cross cultural awareness, cross cultural sensitivity and cross cultural competence. Although all the terms may seem the same in meaning, simple differences exist between them.


A generic website on culture explains more on cultural understanding. It reads 'Culture is changing constantly. Certain products of culture are governments, languages, buildings and manmade things. It is a powerful tool for the survival of mankind. Cultural patterns of ancient people are reflected in their artifacts and are studied by archaeologists to understand their way of life. Culture is an important part of a society for the very existence of society. Culture also plays an important role to establish discipline in a society. According to the behavior patterns and perceptions, there are three levels of culture.


Globalization is worldwide interaction among the different countries to develop the global economy. Globalization talks about the integration of economics and societies worldwide.

Globalization involves technological, economic, political, and cultural exchanges, with the help of advances in communication, transportation, and infrastructure.

Sometimes removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by removing limitations, imported raw materials cost will go down and the supply will increase, to produce the final products for export will make it much cheaper. (for example electronics, car parts, and clothes).

However positive integration aims at standardizing international economic laws and policies. This means a country which has its own policies on taxation trades with a country with its own set of policies on tariffs. Likewise, these countries have their own policies on tariffs.

Effects of Globalization

According to economists, there are a lot of global scenarios connected with integration and globalisation.

It is easy to identify the changes brought by globalization.

Internationational trade improvement: Due to globalization more countries where product can be purchased or sold has increased dramatically.

Technological progress: Due to need of competitive globally up gradation of level of technology is done by governments.

High improvement of multinational companies: Multinational companies have subsidiaries in different countries. Normally head office is found where the company was established.

An example is a furniture company whose head office is in China and has branches in different countries. It's the head office which controls the subsidiaries, and the subsidiaries normally take decisions on production. The subsidiaries main job is to increase the profits and production. They can do it as they have already gone into the local markets.


There are various theories about globalization amongst which are

World-System Theory

World polity theory

World culture theory

World System theory


Globalization is the process, completed in the twentieth century, by which the capitalist world-system spreads across the actual globe. Since that world-system has maintained some of its main features over several centuries, globalization does not constitute a new phenomenon. At the turn of the twenty-first century, the capitalist world economy is in crisis; therefore, according to the theory's leading proponent, the current "ideological celebration of so-called globalization is in reality the swan song of our historical system" (I. Wallerstein, Utopistics, 1998: 32).


According to James M. Rossi, 'Globalization and Its Discontents is a exact, ridiculing, and effortless decline of the global economic policies on IMF, World Trade Organization, and World Bank'. Stiglitz brought out with exemption the IMF for most of the problems.

Stiglitz wrote on the issues as it concerns the world businesses today and the effect of the global economy.



With opportunity to get into a lot of people working in the same companyin more than 40 countries around 40 places in the whole world, Hofstedeits looked into data on cultural analysis to express his findings. He used five different ways to differentiate one culture from another.

He marked every country with a scale of 0 to 100 for the dimensions used, the greater the score the higher it is shown in the community.

The Five Dimensions of Culture

The five dimensions are:

1. Power/Distance (PD) - This deals with the level of inequality and which is accepted amidst people with and without power. A high power distance mark shows that the community accepts an unequal distribution of power and people.

2. Individualism (IDV) - This with deals with the strength of the relationship people have with others from another community. A high individualism mark shows that there is laxity in the relationship with other people in other community.

3. Masculinity (MAS) - This expresses how much a community the existing roles of male and females in the society. High masculinitymarks are seen in countries where men are seen as being touch and strong. Women who work outside the house chores are seen as being low to men in the society.

4. Uncertainty/Avoidance Index (UAI) - This has to do with a great level of anxiety in individuals in the society and how they feel when they are in uncertain situations. High mark on uncertain index society expresses how they avoid too gig issues where it is possible to.

5. Long Term Orientation (LTO) - This explains how much the community give preference to old and far existing values in the society than the new ones that are just cropping up.









Dell Inc. is a multinational company that deals in information technology based in Round Rock, Texas in United States, it develops, sells and supports computers and other computer related products and services. Founder was Michael Dell. This is one of the largest technological corporations in the world, giving employment to more than 96,000 people worldwide.


The DELL Corporation sells specific brand names to different market segments.

Their Business represent brand where the company concentrate more on long life-cycles, serviceability and reliability.

Dell's Home Office/Consumer class talks about value, performance, and expandability.

Dell service and support brands include Dell On Call (extended domestic support services), Dell Everdream Desktop Management ,Dell Support Center (extended support services abroad), Dell Business Support a Service", and Your Tech Team


mission is to provide customers with superb value technology.


The business of DELL is basically high quality, relevant technology, customized systems.


Its value is related to its mission which is superior service and support, easy to buy, easy to use.

Vision Statement:

the vision statement of DELL reads 'It's the way we do business. It's the way we interact with the community. It's the way we interpret the world around us-- our customers needs, the future of technology, and the global business climate. Whatever changes the future may bring our vision -- Dell Vision --   will be our guiding force'.

Mission Statement:

Mission of DELL is to be the most successful Computer Company in the world with delivering the best customer experience in markets they serve. In doing so, Dell will meet customer expectations of:

• High standard quality

• Leadership in technology

• good pricing

• Individual and company accountability

• Best customer service and support

• Superior status in corporate citizenship

• stability in finance

Cultural Understanding of Dell Incorporation

During its early years Dell explains the dynamic and culture of Dell,Inc.. Hardworking, versatile people were running the company who were action-orientated and good listener. Many of those early employees with gaining experience fill important positions at the company, but exceptionally Some employees who worked hard time as the company grew, and performed well when the company was smaller didn't get any benefit out of success of company. At a fast-growing company, Dell practices the idea that the job grows faster than the person. Some job will vary enormously during different stages of the growth of the company.

Dell's Corporate Culture

Dell's corporate culture follows the home country standard, the United States of America. Thus, employees must be speaking in English at work . The work atmosphere is justas same as in the USA. This includes the corporate culture and bureaucratic element to maintain convergence on administrative procedures. One interesting example is, Dell China which also aims to localize itself in the local community in its mission to go global, act local. Though company kept the overall brand image of Dell intact, slight changes are made to appeal to the local Chinese consumer and become insiders in the hard to penetrate market that is the People's Republic of China.


Seiko Epson Corporation/ Epson, is a one of the world's largest manufacturers of computer printers, information and imaging related equipment with Japanese technology. and one of the world's largest Based in Japan ,Nangana, Suwa., Japan, the company has numerous subsidiaries worldwide and manufactures scanners, dot matrix, desktop computers, laser printers, home theatre projectors, televisions, inkjets, robots and many and other associated electronic components. Since its foundation the company has been manufacturing Seiko timepieces. A net sale of 2006/2007 is estimated nearly 1.416 trillion.


Epson is a global leader in imaging products including printers, 3LCD projectors and small and medium-sized LCDs. With an innovative and creative culture, Epson is dedicated to exceeding the vision and expectations of customers worldwide with products known for their superior quality, functionality, compactness and energy efficiency.


Mission Statement

Its mission is 'To meet customers needs and expectations, Epson shall establish a sales and service culture evolving from the effective and efficient utilization of resources by :-

Enhancing value-added services to the customer.

Having knowledgeable and competent workforce, which emphasizes teamwork.

Vision Statement

Epson vision reads 'Having an effective and efficient IT infrastructure in the whole world'.


The company website discloses the company strategy as 'Our strategy for success is a simple yet successful one. It revolves around a progressive management philosophy, strong marketing, efficient production operations, powerful R & D and a responsible social role in the community. Using these key factors as the recipe for success, our resources have been channelled into understanding customer needs and then producing products that satisfies these needs'.

 Cultural Understanding of Epson Incorporation

Epson is a global leader in imaging products including printers, 3LCD projectors and small and medium-sized LCDs. With an innovative and creative culture, Epson is dedicated to exceeding the vision and expectations of customers worldwide with products known for their superior quality, functionality, compactness and energy efficiency.


The LG Corp is second largest conglomerate that produces chemicals, electronics, , and telecommunications products from South Korea and operates subsidiaries like LG Electronics, LG Telecom, LG Chem and LG Display, in over 80 countries.

LG Corp founded by Koo In-Hwoi who established Lak-Hui Chemical Industrial Corp. in 1947. In 1952, Lak-Hui (pronounced "Lucky", currently LG Chem) was the first Korean company to enter the plastics industry. After expansion of its plastics business, it established GoldStar Co., Ltd., (currently LG Electronics Inc.) in 1958.


LG's vision is 'to deliver innovative digital products and services that make our customers' lives better, easier and happier through increased functionality and fun'.


The mission of LG is:

To create value for customers

To respect human dignity

To become the best in its class by winning customers' acclaim as a true leader in the global market


FROM: Management Consultant

TO: Board of Directors

DATE: 22nd July, 2010



As a matter of fact, Stiglitz did not really define what he means by the term "globalization." From a free-market understanding, globalization talks about the freedom to choose among opportunities available on a global scale: Buyers are free to maximize their purchasing power, and sellers are free to compete in order to satisfy consumers' needs and remunerate the scarce resources they use. To this effect, globalization expresses a world of opportunities opened to buyers and the end of privileges for sellers. It is clear that globalization is an improvement for those who are given chance to choose, and for those who can successfully satisfy buyers' requests. But it is not important for those who cannot choose-where more-or-less altruistic policymakers decide on their behalf-and it is even harmful for those who enjoy normative privileges.

The following should be considered in putting up or developing a good value for cultural understanding:

Level of cultural awareness

Using the right way to resolve issues.

Considering the ways of other too in resolving issues,

Considering the way of others too, and

Using the management way which is the way of the company.









Having a strategic plan is irrelevant if a person don't convert the plan into action. Implementation of your strategic plan sometimes tends to be the most difficult step of the whole process. To make a plan is easy, but getting people ready to play their individual roles in several departments to abide by it and follow it is another most difficult job. However, the good side of it is if you have a good plan only with a little work, the plan can be put in action which helps the growth of the company.

One good recommendation makes the strategic plan. If your employees don't get appreciation for their ideas and only person try to implement his/her thought, then there is the chance they'll be confused and unable to implement your strategic vision. On the other hand, keeping your employees in the centre on the big picture gives a strong believes in them in your strategic plan for the company.


The objectives of this task include:

Analyses different Management Policies in the organizations

Show Formal and Informal Relationships in the organization


FROM: Management Consultant

TO: Board of Directors

DATE: 22nd July, 2010



Management practice is the show of events and how activities are being carried out in Dell, Epson and LG corporations. It is also the methods or techniques found to be the most effective and practical means in achieving an objective (such as preventing or minimizing pollution) while making the optimum use of the firm's resources.


The management of Dell Incorporation, Epson and LG Incorporation all has different policies as regards the sustainability of their market. However, the following areas are attended to in the same manner by all the three organizations.

Corporate and Social Responsibility Policy

Corporate social responsibility has to with the contribution of the companies to their host communities. This Dell, Epson and LG gave a priority in order to enjoy their stay in the host communities especially where the production of the materials are situated. These companies provide amenities to these host communities like good roads, electricity, support to the aged in some communities e.g. in Africa.

Recruitment and selection policy

Recruitment and selection give chance to management to decide and gradually change and improve the behavioural characteristics and competences of the workers. For example: team work, which focus on people who like to work in a team rather than individualist,preferred by recruiters after 1980. rather than rigid lists of skills and abilities preference goes to broader-based competences. Thus now we can say that there is greater regard for personal flexibility and adaptability.

Dell, Epson and LG all have their pattern of instruction to the human resources department on the company's recruitment and selection policy. They all have internalization policy which gives room for staffers to be employed from the host environment so as to allow for easy adaptability of the workforce to the work environment.

Remuneration policy.

The expectation of every worker is to be paid after the delivery of the required service at the end of a given period of time. However, because these companies are multi-national organizations they base the pay of their members of staff to the currency applied in the host country except those that expatriates who are paid partly in their currency and partly in the host country's currency.

Marketing strategy

Different organizations have different policies on how it markets it goods and services. However, these companies all have the same system of marketing strategy as they deal with customers round the globe. They allow regional assembling of some of their products while most of the products are assembled and finished in the main base like in China, Japan and a host of other places.

Appointment of Directors

Directors of these companies are formally appointed at the annual general meetings where the stakeholders would meet especially the shareholders to terminate the appointment of existing director and/or appoint or re-appoint any director of the companies. Appointment is based on company rule that governs the companies in its companies and allied matters and memorandum of association.

Sales Strategy

For a large multinational organization which have many products/services and different ways to market then there is perhaps more factors to consider but the base of a good sales strategy remain as it is. The main thing is what you are selling, who you are selling to and how you plan to achieve it. Dell, Epson and LG all have the drive which allows sales of their products to be done throughout the whole world. A sales network is developed which allows for distribution network of these goods.


Organizations have a formal and well structured chart which is the way that the organization is organized by those with responsibility for overseeing the organization. They put up structures which would help the organization to continue in the formal pattern. These formal structures form on paper in the form of organizational charts. But gradually an informal structure develops in most of the organizations due to real everyday interactions between the members of the organization. This informal structure may be different from formal one which is set on paper.


Partnership is the coming together of two or more individuals or organizations to do a thing together so as to achieve a common goal. Virtual teams also could be an organization or business which operates primarily through electronic means like independent organizations that share resources to achieve their aims.


Relationship with Suppliers

Dell, Epson and LG allow for a smooth and cordial relationship with their suppliers as these are the people who make all the companies products to be in existence. Without good rapport with the suppliers there would be hitches to the flow of the companies' production which would affect the availability of its products in the market.

Most of these communications is done virtually i.e. through the internet as this is a very fast and easy means of passing messages from one person to the other with little or no hitch.

Sales Executives Relationships

Sales executives are the drives for every organization's profit making. To sale products, DELL EPSON and LG companies make use of experienced sales executives who are also good virtually as technology has increased the rate of activities that could be done in a jiffy. Most sales are done over the internet now which also helps in reducing cost (travelling cost and others) to a large extent.

Partnerships with other Shops in China and other parts of the world

Customer networking is one of the strategies adopted by most multi-national companies around the world as this helps in improving sales of goods and in knowing what the customers want at a particular time. Dell, Epson and LG adopt this system which helps in meeting with the sales agencies in different locations through the internet.

Partnerships with Dealerships to sell products

There are dealership deed and agreements all over the world now. Sales of products are not only the responsibility of the manufacturing companies. These companies also make use of dealership arrangements with private individuals or companies that assist in the sale of their products in different countries. These companies get the dealership agreement to distribute and sell the company's products. This is necessary because these companies have presence in almost all the parts of this world.

Recruitment and Selections Agency Partnerships

Human resources departments of organizations sometimes require the assistance of recruitment and selection agencies in getting the right staff to work in the organization more so, multi-national organizations like Dell, Epson and LG. Most of these services are rendered online as it makes the job easy. Therefore, virtual organizations are very important in ensuring smooth and easy services.






Organizations today are giving different view to virtual organizations and how to figure out the way out to reinforcing the new strategy which will help or enable the organization to work better and faster in other to achieve its desired goals and aims in the organization and the business world entirely. A virtual organization is such that has given a good shape of reality to its stakeholders through an easy means of passing information, marketing and sales of the company to the general market.


This task is basically to carry out the following:

Carry out appropriate research into at least 2 organizations which operate in a virtual manner.

To identify and develop suitable areas which management of Furniture Works needs to look into when setting up a virtual organization.

To produce a presentation advising management on a sound management practice in a virtual organization.

The organizations to look into include:

Tesco stores

Asda stores

The two organizations have a lot of things in common which range from the kind of services rendered to the public and the nature of their goods sold to the customers. They both deal in groceries and every kind of household stuff.

Virtual organizations may have only a few of the people it desires to work with I a particular place at a time, however, the organization can still exist in a virtual way which is through the internet even without keeping an office block still can exist and still do great sales.



Furniture Works need to consider the following situations to enable the organization to set up and implement Virtual Organizations. These include:

A need for process innovation - There would be increase in productivity as a result of implementing virtual organizations. Furniture Works need to consider the need for this innovation as it realized the need for internet sales.

Sharing of core competencies - Virtual organizations help address the nulls in an organization resulting from the early stage, returns and retirement stage. It would allow for shared competencies as an organization that requires internet sales as its strategy.

Globalization - Many companies now know that there is a vast pool of unused resources skills, knowledge and abilities in the world. The ability of Furniture Works to start up the internet sales strategy will make it have global networking which would increase sales.

Cost reduction - This, Furniture Works would gain from when it starts the internet sales strategy as there would be cost reduction from a whole lot of overheads and other expenses which would have accrued to the company.

Differences in values: quality life is a major factor in attracting and retaining quality employees for long term. Employers have realized balance of work and personal life and thus family requirements, flexibility and personal fulfillment are important considerations among employees.




In today's business environment, most communication is conducted via electronic means.  The most common forms are phone, fax, bulletin boards, email,discussion boards. This can replace in the future with technology like desktop videoconferencing technologies.  The current commonly used technologies are on the written word.  It is expected that as soon as bandwidth issues are resolved wider use of audio and video communication will take place in future.


The objective of this task is to write a report to the management of Furniture Works describing the various aspects of effective online and direct communications that are available to the organization.

Problems associated with online communication and the benefits of online communication to the organization.


FROM: Management Consultant

TO: Board of Directors

DATE: 22nd July, 2010



Online communication gets effective with needs genuine direct connection with others.  But offline relationships, are encouraged through distinct communication which is quality one.



Five basic principles for effective online communication that the management of Furniture Works needs to follow in order to have a good internet sales strategy include:

1)  Get it written

Information to be passed should be written down to ensure clarity and clear understanding even by the person who is sending the information. Also, the copy written down would serve as record for the preparer of the information.

2)  Clarity of thought

Online communication gets effective by being clear with your message so that there won't be reason to pass the wrong information to the recipient.

3)  Follow Basic Netiquette

There are simple basic principles to follow when sending information through the internet which would help make sending of the information easy and smooth without hitches.

Respect. Don't say anything online that wouldn't be comfortable saying directly to someone's face. Don't take benefit of distance.

Benefit of the doubt. You can't be right all the time. Give benefit of doubt to others in case of decision making.

4)  Be Genuine

The information you pass online requires you to be very genuine as if the recipient is right in front of you.

5)  Be Humble

Courtesy matters in every life dealings. Be willing to admit mistakes.  Written communication has its limitations; however, there are some benefits to the written word. It shows our identity, personality and nature from the words we write.

Other available sales strategy available to Furniture Works

If you market your business online (Furniture Works new Sales strategy) you likely spend a lot of time communicating with customers and prospects via e-mail. You may also spend time networking on message boards and other online groups.


For effective online and direct communication, Furniture Works should put in place basic training for all members of staff especially the sales department staffs who would work more with the strategy. Also, the following strategies should be followed to ensure an ordered communication line.


Be conversational:

Being conversational tends to make information very easy for both the recipient and the sender as the decoding and encoding norms would be easy to play around with.

Maintain a positive tone:

There are positive and negative tones. A positive tone brings the business closer to a success when the sender of the information passes the message with the right tone.

Ask for clarification:

Whenever there are issues, the sender needs to make clear the message being passed to the recipient so as to avoid troubles from misinterpretation.

Apologize early and often:

There is no harm and financial loss when you apologise for mistakes and this can also reduce the burden that can accrue if issues are not resolved amicably.

Forgive for mistakes:

online communication is new for many learners. So everyone makes mistakes. Try to forgive which will make your life easier and you will be practicing effective online communication.

Use humour:

Sense of humour reduces the stress off the sender and even the receiver of the information.

Read before you send:

Every information to be passed to another person require the effort of the sender to recheck the message before it is being sent out as errors sometimes may not be easily corrected.




Business success depends on expansion that an organization has made. Global structure for business is such a structure that need be considered for any business like Furniture Works that wishes to expand the scope of business especially through the


Is to write a reflective report making suitable recommendations to the management of Furniture Works on how effective global structures could be created.


Multi national companies like Dell Incorporation, Epson and LG Group that had been the focus of this report have always maintained effective global structure which has been helping the organizations in its strategic operations in the global market. This Furniture Works can also put in place as this would help in improving the sales strategy and the entire business of the company.

Below are some of the recommendations to Furniture Works on how effective global structure could be achieved by the company.

Every global company's competitive advantage lies on its ability to put together resources and information that are spread across various areas. There are many organisations that operate today with the mind to improve on its ability and the quest for financial survival in the global market.


Managers of Furniture Works should practice the particular process so that virtual team adapt the situation easily, through that they learn to use a different type of technologies to communicate with accuracy and appropriately.

Building relationships

Effective and smooth relationship in business and real life gives the success of any being and organizations in the world. For Furniture Works to succeed in business it has to build a strong and formidable relationship with its members of staff and clients/customers as a whole.

Managing conflicts

Conflict resolution should be at the rear of the mind of the management of Furniture Works as conflict in any organization is unavoidable. The managers should develop skills to manage conflict in the company so as to improve on the virtual stance of the business.

Trust is a base for effective resolution. Due to the diverse background of team members, different issues raise between different cultures, which is known as conflict differs. So to enjoy a better global relationship it is must for Furniture Works to develop a understanding of conflict processes makes goal achiavable in virtual team in management.