Cultural Understanding And Globalization Cultural Understanding Business Essay


Cultural identity is the identity of a group or culture, or of an individual as far as one is influenced by one's belonging to a group or culture. Cultural identity is similar to and has overlaps with, but is not synonymous with, identity politics.

Cross Cultures differences:

Cultural differences distinguish societies from one another. In today's world of globalization, the world is certainly becoming smaller and people of various cultures are able to communicate freely. Nowadays there are different ways to express thoughts, ideas which can span across cultures through different forms of media like the television, the newspapers and the Internet. There are many who would love to disregard the existence of cultural differences due to the advancement in science and technology.

All cultures are known to have a set of beliefs that defines the code of conduct and values for that particular culture. People living together in a society share the same culture.

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Another important contributor to the cultural difference is the history of a particular region or country. The events of the past certainly shape the moods and opinions of people living in that specific country. When a large group of people observe a set of traditions, social norms and values, it gives rise to culture. One should also spare a thought to the immense important mythology has, in shaping a set of myths which gave rise to cultural differences.

Globalization on International Companies:

Globalization is a difficult term to define because it has come to mean so many things. In general, globalization refers to the trend toward countries joining together economically, through education, society and politics, and viewing themselves not only through their national identity but also as part of the world as a whole. Globalization is said to bring people of all nations closer together, especially through a common medium like the economy or the Internet.

In our world, there are few places a person can't get to within a day of travel, and few people a person can't reach via telephone or Internet. Because of modern modes of travel and communication, citizens of a nation are more conscious of the world at large and may be influenced by other cultures in a variety of ways. Time and space matter less, and even language barriers are being overcome as people all over the world communicate through trade, social Internet forums, various media sources, and a variety of other ways.

Arguments for globalization include the following:

It is reducing poverty worldwide.

It is allowing access to technology in developing countries.

It promotes world peace.

It has benefited women and children's rights.

It raises life expectancy.

Arguments against globalization are likely to come from people or nations who wish to resist trends in the global society. For instance, a Fundamentalist Islamic country may resist globalization because they see it as equivalent to westernization-weakening the religious strength of a country and exposing its people to corrupting ideas. Similarly, globalization may be feared or a matter of a concern to any country with strong isolationist policies. In the US, much of the arguments for resisting globalization come from conservative groups.

Some people worry about how certain trends, such as outsourcing, might affect the nation. Concern exists that while outsourcing might benefit a nation which gets jobs, this takes jobs from the country or company that out sources. In this way, though the economy of the world is more globalize, the economy of an individual nation might suffer.

Even though globalization may be a subject of argument, it's highly unlikely to end any time soon. It would take mass destruction of all modern methods of communication and transport, in addition to all countries taking strong isolationist policies in order to reverse the globalization trends in the world. This doesn't mean that some nations or people won't resist what they view as globalization, but you could compare this trend to a runaway train. At this point, there is little to do to stop the communication of minds all over the world through vehicles like the Internet. Even teens and kids are communicating with children from "the four corners" of the globe. It's therefore unlikely that globalization will experience a downward trend, and will likely continue to influence our world in myriad ways.

How Globalization Impacted Companies Due to Cultures:

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Globalization has had an impact on different cultures and companies around the world.

"Culture" is defined as patterns of human activity and the symbols that give these activities significance. Culture is what people eat, how they dress, beliefs they hold, and activities they practice. Globalization has joined different cultures and made it into something different. As Erla Zwingle, from the National Geographic article titled "Globalization" states, "When cultures receive outside influences, they ignore some and adopt others, and then almost immediately start to transform them.

One classic culture aspect is food. Someone in America can be eating Japanese noodles for lunch while someone in Sydney, Australia is eating classic Italian meatballs. India is known for its curry and exotic spices. France is known for its cheeses. North America is known for its burgers and fries. McDonald's is a North American company which is now a global enterprise with 31,000 locations worldwide. This company is just one example of food causing cultural influence on the global scale.

Another common practice brought about by globalization is the usage of Chinese characters in tattoos. These tattoos are popular with today's youth despite the lack of social acceptance of tattoos in China. Also, there is a lack of comprehension in the meaning of Chinese characters that people get, making this an example of cultural appropriation.

The internet breaks down cultural boundaries across the world by enabling easy, near-instantaneous communication between people anywhere in a variety of digital forms and media. The Internet is associated with the process of cultural globalization because it allows interaction and communication between people with very different lifestyles and from very different cultures. Photo sharing websites allow interaction even where language would otherwise be a barrier.

Theories of Globalization:

Joseph Stiglitz, Economist, Nobel Prize winner. Former Chief Economist of the World Bank, Chief Economics adviser during the Clinton administration. He describes what is wrong with globalization as it is currently managed. He talks about the role of the International Monetary Fund and the influence of its policies. He explains how IMF policies have worsened the situation for the poor people of the developing countries. He explains how the middle class in the advanced industrial countries suffers from the wrong way globalization is managed today.

Stiglitz and Roubini on the Globalize Economy

In Globalization and Its Discontents (2002), Stiglitz argues that what are often called "developing economies" are, in fact, not developing at all, and puts much of the blame on the IMF.

Stiglitz bases his argument on the themes that his decades of theoretical work have emphasized: namely, what happens when people lack the key information that bears on the decisions they have to make, or when markets for important kinds of transactions are inadequate or don't exist, or when other institutions that standard economic thinking takes for granted are absent or flawed. Stiglitz stresses the point: "Recent advances in economic theory" (in part referring to his own work) "have shown that whenever information is imperfect and markets incomplete, which is to say always, and especially in developing countries, then the invisible hand works most imperfectly." As a result, Stiglitz continues, governments can improve the outcome by well-chosen interventions. Stiglitz argues that when families and firms seek to buy too little compared to what the economy can produce, governments can fight recessions and depressions by using expansionary monetary and fiscal policies to spur the demand for goods and services. At the microeconomic level, governments can regulate banks and other financial institutions to keep them sound. They can also use tax policy to steer investment into more productive industries and trade policies to allow new industries to mature to the point at which they can survive foreign competition. And governments can use a variety of devices, ranging from job creation to manpower training to welfare assistance, to put unemployed labor back to work and cushion human hardship.

Stiglitz complains bitterly that the IMF has done great damage through the economic policies it has prescribed that countries must follow in order to qualify for IMF loans, or for loans from banks and other private-sector lenders that look to the IMF to indicate whether a borrower is creditworthy. The organization and its officials, he argues, have ignored the implications of incomplete information, inadequate markets, and unworkable institutions-all of which are especially characteristic of newly developing countries. As a result, Stiglitz argues, the IMF has often called for policies that conform to textbook economics but do not make sense for the countries to which the IMF is recommending them. Stiglitz seeks to show that these policies have been disastrous for the countries that have followed them.

Stiglitz wrote on how Globalization failed and why?

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According to James M. Rossi, Globalization and Its Discontents is a concise, devastating, and relentless indictment of the global economic policies of the International Monetary Fund, World Trade Organization, and World Bank. Stiglitz singles out the IMF for most of the blame: flawed economic theories, lack of transparency and accountability to the public, and the pursuit of special corporate interests. The book draws on Stiglitz's personal experience as chairman of the Council of Economic Advisers under Bill Clinton from 1993 and chief economist at the World Bank from 1997. During this period Stiglitz became disillusioned with the IMF and other international institutions, which he came to believe acted against the interests of impoverished developing countries. Stiglitz argues that the policies pursued by the IMF are based on neoliberal assumptions that are fundamentally unsound:

Behind the free market ideology there is a model, often attributed to Adam Smith, which argues that market forces--the profit motive--drive the economy to efficient outcomes as if by an invisible hand. One of the great achievements of modern economics is to show the sense in which, and the conditions under which, Smith's conclusion is correct. It turns out that these conditions are highly restrictive. Indeed, more recent advances in economic theory --ironically occurring precisely during the period of the most relentless pursuit of the Washington Consensus policies--have shown that whenever information is imperfect and markets incomplete, which is to say always, and especially in developing countries, then the invisible hand works most imperfectly. Significantly, there are desirable government interventions which, in principle, can improve upon the efficiency of the market. These restrictions on the conditions under which markets result in efficiency are important--many of the key activities of government can be understood as responses to the resulting market failures.

Stiglitz argues that IMF policies contributed to bringing about the East Asian financial crisis, as well as the Argentine economic crisis. Also noted was the failure of Russia's conversion to a market economy and low levels of development in Sub-Saharan Africa. Specific policies criticized by Stiglitz include fiscal austerity, high interest rates, trade liberalization, and the liberalization of capital markets and insistence on the privatization of state assets.

Roubini wrote on the Last Recession and Globalization.

Davos' WEF may be the congregation of the world's globalization elites but, a little paradoxically, this year some of the main themes discussed in Davos is that of the growing income and wealth inequality, the middle classes anxiety about job security, trade and globalization, the rising backlash against globalization and what to do about it to prevent trade and asset protectionism and a retreat from globalization. I myself recently wrote a presentation on this topic (available here to RGE Premium subscribers) and I was one of the panellists in a Davos session where these issues were discussed (see here and here and here and here for some news reports on this Davos debate). The same issue of the challenges that globalization entails have been discussed in recent month by a wide range of thoughtful analysts including Martin Wolf, Larry Summers, Ben Bernanke and many others.


Globalization has, in the long run, beneficial effects for individual countries and the global economy. Over the last 50 years the countries that join and integrated themselves in the global economy have done well and those that did not join the globalization train have tended to lag behind. But the current backlash against globalization derives from the fact that trade and globalization creates both gainers and losers; the net gains are positive but losers will rightly resist change that makes them worse off.

Hofstede Cultural Dimension and Understating

"Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."     Prof. Geert Hofstede, Emeritus Professor, Maastricht University.

Geert Hofstede's research on cultural differences

Hofstede argues that for those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the chances are we'll make some very bad decisions.


Geert Hofstede's research gives us insights into other cultures so that we can be more effective when interacting with people in other countries. If understood and applied properly, this information should reduce your level of frustration, anxiety, and concern. But most important, Geert Hofstede will give you the 'edge of understanding' which translates to more successful results.

One example of cultural differences in business is between the Middle Eastern countries and the Western countries, especially the United States.


When negotiating in Western countries, the objective is to work toward a target of mutual understanding and agreement and 'shake-hands' when that agreement is reached - a cultural signal of the end of negotiations and the start of 'working together'.


In Middle Eastern countries much negotiation takes place leading into the 'agreement', signified by shaking hands. However, the deal is not complete in the Middle Eastern culture. In fact, it is a cultural sign that 'serious' negotiations are just beginning.







In this task I am going to undertake the cultural difference amongst three multinational organizations, and how cultures impact on these companies growth and also the cultural understanding of these companies.

For this I have selected three multinational organizations which are operating in different cultures and I am going to discuss about the core values, the difference between the cultural understandings of these companies and also, how different cultures impact on these companies atmosphere, growth, and their operations.

Core Values and Objectives on Standard Chartered Bank

The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson. Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.

Standard Chartered is a British financial services company headquartered in London, UK with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people.

Principles of the SCB: Standard chartered is listening to its customers and colleagues and build strong relationships based on mutual respect. We work quickly, thoughtfully and effectively to deliver the best solution. We work quickly, thoughtfully and effectively.

Mission Statement: To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Leasing Products and Solutions, and by adopting and living our core values.

VISION: Stand up for what we believe to be right. We accept accountability and take calculated risks. We encourage others to do the same

Cultural Understandings of Standard Chartered Bank

Standard Chartered employs 30,000 people in over 500 locations in more than 50 countries. It is one of the world's most international banks, with a management team comprising 70 nationalities.

Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalization.

It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, custody, foreign exchange, debt capital markets and corporate finance.

Standard Chartered is well established in growth markets and aims to be the right partner for its customers. The Bank combines deep local knowledge with global capability.

The Bank is trusted across its network for its standard of governance and its commitment to making a difference in the communities in which it operates.

Core Values and Objectives on Royal Bank of Scotland

The Royal Bank of Scotland plc (Scottish Gaelic: Banca Rìoghail na h-Alba) is one of the retail banking subsidiaries of the Royal Bank of Scotland Group plc, and together with NatWest and Ulster Bank, provides branch banking facilities throughout the British Isles. Royal Bank of Scotland has around 700 branches, mainly in Scotland though there are branches in many larger towns and cities throughout England and Wales. The Royal Bank of Scotland and its parent, the Royal Bank of Scotland Group, are completely separate from the fellow Edinburgh based bank, the Bank of Scotland, which pre-dates the Royal Bank of Scotland by 32 years. The Bank of Scotland was effective in raising funds for the Jacobite Rebellion and as a result, The Royal Bank of Scotland was established to provide a bank with strong Hanoverian and Whig ties.

4 bullet points on Values , mission and vision

MISSION STATEMENT: "Making it happens''

VISION: Always earning the right to be our clients' first choice.

GOALS They have different goals according to different countries they are as follow.

In Canada, to be the undisputed leader in financial services in Canada

Internationally, to be a premier provider of select banking, wealth management and capital markets services in markets of choice

Cultural Understanding of Royal Bank of Scotland

The Royal Bank of Scotland (RBS) Group is the eighth largest bank in the world with a market capitalisation of £49bn. The three principal areas of its income generation are the UK, Europe, and the US. The bulk of both the group's income and assets continues to be generated in Europe. Its mainstream, UK banking operation has a 'back office' processing strategy run through the Manufacturing division, which consists of ten separate business areas and around 28,000 manufacturing employees, who work in 92 specialist centres.

When operating at this scale, it is essential that an organisation can measure operational performance, manage its people and control workflow efficiently and effectively.

Core Values and Objectives of Barclays Bank

Barclays plc is a British financial services firm operating worldwide. It is a holding company that is listed on the London and New York stock exchanges, and was listed on the Tokyo Stock Exchange until 2008. It is also a constituent of the FTSE 100 Index.

Barclays PLC is ranked as the 25th largest company in the world by Forbes Global 2000 (2008 list). According to Datamonitor, by market share, Barclays is the largest financial services provider globally with $3.7 trillion of assets. It is the second largest bank in the United Kingdom and the world based on asset size. Its share price fell by 90% in the year to 23 January 2009, but has recovered substantially, leaving it higher as of 3 September 2009 than it had been a year before.

The bank's headquarters are at One Churchill Place in Canary Wharf, in London's Docklands, having moved there in May 2005 from Lombard Street in the City of London.


To be the premier European wealth manager

Barclays Wealth is the UK's leading wealth manager in terms of assets under management and the largest retail multi-manager. In Barclays Stockbrokers we lead the UK market for execution-only retail brokerage with over 400,000 accounts.


Barclays are committed to building a world-class organization. We aspire to be amongst the most valuable and admired financial services companies in the world:


A business that leads in its chosen markets

A portfolio of brands that are synonymous with quality and integrity

A culture based on high performance and behavioural excellence

Cultural Understanding of Barclays

Barclays strives to create an environment which welcomes and supports different cultures, beliefs and backgrounds within the business.

Across the UK, Barclays runs Cultural Diversity Networks which are open to colleagues who are interested in race equality issues. These groups give members an opportunity to work with external organizations on a range of events and initiatives. In the past these have included co-coordinating sponsorship of an Asian festival in London, and acting as mentors for students in a program led by charity MERLIN (Minority Ethnic Role Models for Learning and Inspiration).

Barclays Capital's Cultural Awareness Network aims to increase cultural awareness among its employees, allowing them to better understand their clients and colleagues around the world.

Barclays Wealth's Multicultural Network has more than 300 members and celebrates key faith and cultural festivals throughout the year.


Only Harvard Style References are Accepted.

Put at least 7 sources.








Task 2 Objectives

Analyses different Management Policies in the organizations

Show Formal and Informal Relationships in the organization


What is management policy?

Policy-based management is an administrative approach that is used to simplify the management of a given endeavour by establishing policies to deal with situations that are likely to occur. Policies are operating rules that can be referred to as a means of maintaining order, security, consistency, or other ways of successfully furthering a goal or mission. For example, a town council might have in place a policy against hiring the relatives of council members for civic positions. Then, each time that situation arose, council members could refer to the policy rather than deciding on the merits of individual cases. In the computing world, policy-based management is used as an administrative tool throughout an enterprise or a network, or on workstations that have multiple users. Policy-based management includes policy-based network management, the use of delineated policies to control access to and priorities for the use of resources. Policy-based management may be used in systems management , or the creation and operation of an efficient computing environment.


Corporate and Social Responsibility Policy

Organisations can no longer afford to ignore the communities that they operate within. They need to be aware and engaged with the issues affecting their customers, business partners and the wider economies of their markets. In this case study, Standard Chartered Bank reveals its key focuses for corporate social responsibility.

Standard Chartered Bank operates in over 70 countries, impacting and influencing economies as far a field as Asia, Africa and the Middle East. The bank works in communities that are particularly vulnerable to both climate change and economic disparity. DM Arulraj, head of HR for Singapore and South Asia, says Standard Chartered therefore has a responsibility to play a role in stimulating social development in the markets it operates in.

Recruitment and selection policy

Selection methods will be reliable, objective and guard against bias. Essential and desirable requirements for roles will be published in the role profile and person specification. The selection process normally consists of a paper short list and if successful, applicants are invited to interview. Some positions may require additional assessments test or assessment centre. If this is the case, details will be included in the application pack. Any test used will have been validated in relation to the job, free of bias and administered and assessed by a suitably competent person. All members of recruitment panels will have received guidance/briefing on recruitment and selection techniques.

Training and Development Policy

Activities designed to facilitate the learning and development of new and existing skills, and to improve the performance of specific tasks or roles. Training may involve structured programs or more informal and interactive activities such as group discussion or role playing which promote experiential learning. A wide variety of activities including class room based course, on the job training and business or simulation games are used for training. Training may be provided by an internal training officer or department, or by external training organisation. The effectiveness of training can be maximized by conducting a training needs analysis beforehand and following up with evaluation of training. Training should result in individual learning and enhanced organizational performance.

Remuneration policy:

Standard chartered's remuneration policy is determined by the board of directors, the remuneration policy ensures the bank to its continued ability to attract, motivate and to retain highly professional potential executive talent for which standard chartered competes in international market.

Standard Chartered's HIV/AIDS policy:

Standard Chartered's HIV/AIDS policy comes from a desire to protect basic

Human rights preserve the integrity of its labour force, reduce costs associated

With HIV/AIDS, and respond to what the company recognises as a global challenge.

The policy applies to all business operations in all countries in which Standard

Chartered operates and to all employees of Standard Chartered Bank globally.

A temporary different position in relation to any part of this policy, in any of the

Countries in which Standard Chartered operates, is only permitted if there are

Significant differences in local circumstances that make the implementation of

Aspects/details of this policy unattainable

In the event this position has to be taken in a particular country, all efforts will

be taken by Senior Management to align the local circumstances to this global




A strategic partnership is a formal arrangement between two or more organisations (including companies, charities, representative bodies, other government departments) in which the various parties share information and strategy, work together to support each other's objectives, and jointly fund and support research, training and other activities in in strategically important gap areas.

We value Strategic Partnerships because they provide a key link between user needs and long-term research, and they provide a clear route to exploitation for the funded activities.

Formal Relationship

Formal relationships are those which have any official binding between both the partners. The formal relationships are mostly because of the improvement of the business and the internal environment of the organisation. Formal relationship can of different kinds it can be between the employees and the employers and may be between the enterprise and its other stakeholders.

Informal Relationship:

Informal relationship will be narrated as the relationship between two partners which have no official bindings informal relationships are friends, family and other relationships which are not directly involved in any business or enterprise and have nothing to do with the business and profit.


Introduction to virtual teams

A virtual team - also known as a geographically dispersed team (GDT) - is a group of individuals who work across time, space, and organizational boundaries with links strengthened by webs of communication technology. Members of virtual teams communicate electronically, so they may never meet face to face. Virtual teams are made possible by a proliferation of fiber optic technology that has significantly increased the scope of off-site communication. Virtual teams allow companies to procure the best talent without geographical restrictions According to Hambley, O'Neil, & Kline (2007) "virtual teams require new ways of working across boundaries through systems, processes, technology, and people (Duarte & Snyder, 1999), which requires effective leadership...despite the widespread increase in virtual teamwork, there has been relatively little focus on the role of virtual team leaders

Relationship with Suppliers

There is always a formal relationship between the companies and its suppliers. Because the company cannot bear any leverage regarding to its suppliers as they are the most important stake holders of the company.

Sales Executives Relationships

In today's growing economy and the fast means of communications sales executives bear a vital role in the improvement of any company.

For any company sales are the most important factor to increase their growth they can increase their growth only by increasing their sales so they have to be in the relationship with its sales executives.

Recruitment and Selections Agency Partnerships

Recruitment and selection agencies provides man power to the companies and the most of the multinational companies are having their relationships with the different recruitment agencies who provides them finest man power according to their needs.

TASK # 3


In this task we have to investigate two organisations which virtual in nature and we also have to argue why these companies are virtual.

In the second part of the task we have to identify the areas which furniture works needs to consider for the virtual organisation and have to make a presentation on good management.

Insurance 2go is a online mobile phones insurance company. Insurance2go is a subsidiary of loyal insurance company ltd that has s register office in Helston.

Loyal Insurance Limited is trading as Insurance2Go which is authorized and regulated by the Financial Services Authority (FSA). Insurance2go only offers mobile phone insurance underwritten as a single undertaking insurance company.

Insurance2go does not provide any advice or recommendation to its clients for mobile phone insurance; they do however provide some information to help their clients to make their own choice how to proceed.

Insurance2go is a totally internet based organisation, its customers are totally virtual all the dealings and the business caring by the company is based on internet weather one has to get a quote for its mobile phone or have to claim about someone's damaged or stolen phone one can do every thing on internet or on phone there is no face to face interaction between both the parties so that's why it is called as a virtual organisation.

There are many companies across the world which are based on internet based business such as ebay. All the business carried out on ebay is based on internet there is no face to face interaction to any person. It works like a plat form for people where people do online shopping.

John Lewis started business in 1864 with its first shop in London. The unique promise of john Lewis to its customers is that the price we sell will always be less then what is selling in the neighbor hood.

John Lewis work hard to offer its customers everything under one roof i.e. the best fashions, furnishings and household goods of all kinds at competitive rates with excellent service and free delivery.

The john Lewis stocks more than 100,000 lines focused on the best of home, fashion, giftware and flowers and is consistently ranked one of the top online shopping destinations in the UK. In May 2010 John Lewis achieved the accolade of the Best Online Retailer Awards.

Because of the online selling of goods to its customers by taking orders from website and delivering the goods to customers without any direct communication between the company and the customers we can call it a virtual organisation where no face to face or direct connection is made between company and customers.

Furniture Works:

Based on the comparison between the above mentioned organisation and the furniture works it has decided to move on further to increase it sales by establishing its production function abroad. The company was initially working on ground basis like stores and ware houses now it has decided to move on a little further, so the has created its own website where customers can approach different samples of the product and they can order online which will be delivered to the customer.

Furniture Works in Pakistan:

Furniture works is based in united kingdom in this era of globalization the company has decided to open its branch in Pakistan as the economy of the Pakistan is growing day by day there is a vast chance of capturing furniture industry so furniture works has made a virtual company in Pakistan which will work under the same management of furniture works following the rules and regulations of the company it is situated in.

Boundary less organisation:

By introducing its website the furniture works has been a boundry less organisation like other virtual organisations like john Lewis and eBay. Boundary less organisation would behave properly and encourage better integration between departments of the company, with staff and management. There is a systematic flow of information and ideas between staff and management. The management of the company has to overcome limitations imposed by boundary less culture and other internal corporate divisions.

Organisation Structure:

Furniture works will be adopting the matrix structure it allows responsibilities for different functions and processes and it allocates proper management solutions to the problems as it would create teams of peoples for various sections of the organisation like sales after sales services and customers services.

Matrix Structure:

Furniture Works would operate as a matrix structure in which teams will be created for the purpose of a specified task and for each task there would be a project manager to look after specified task. The project managers would be responsible for completing project within specified deadline and budget. Project manager would be given task and they have to perform in order to achieve results for company. The company would adopt matrix structure as project team which is dynamic and able to view its problems in a different way and specialists have been brought together to ensure smooth running of business.

Task# 4



Communication is a process that helps to reach information from one person to another or one place to another place. This is a two way process and it is only possible when two or more than two people participate. Communication can be in different forms like through internet, telephone, face to face and through video technology.

Online and direct communication:

Now days in modern business time organization are taking a lot of new steps to improve their work efficiency to provide best services to their customers and they are using a lot of new techniques. Now a day's organizations are mostly using two big sources of communications and they are online and direct communication. They are as follow.

Online communication:

Online communication is process that a organization use through electronic mail and they keep contact with people/ customers through internet in form of e mails, online system, websites, phone calls etc. some important points that are concern with online communications are as follow.


Now a days mostly organizations have their websites where they provide all important information about their organization or about their business so people can see required information on their website and they can understand the nature of business about any organization.


In new and modern technology organizations are connect all time with internet and they keep contact with customers through e mails about their query or any other required information and customer can ask them quotation about their product through e mails if they want to buy some thing from an organization.


Mostly organization are connected with internet so they give us option to chat with them if we have any question about their services or their products and they provides us reply in few minutes or in a day.

Video calls:

Now a days with the help of modern technology a lot of organization offers video calls option to their customers if they want to get information through video calls or if they buy new products and they do, not know how to use that product than they guide to their customers through video calls.

Phone calls:

Phone calls are also a form of online communication because we use a phone through line so it is also a part of online communications.

Ask for explanation.

Direct communication:

Direct communication is a process where two or more than two people are physical or face to face involved with each other that is called direct communication. In direct communication we discuss following points and they are as follow.

Face to face talk:

In direct communication we talk with other person face to face so we should thing about that what we want to discuss with person because in face to face discuss if we are not sure what we wan to talk with other person than it creates bad impression on other person.

Be prepared:

In direct communication we should always be organized that what we want to say and we can convey our message in a good way. And other person can understand us easily.

Positive talk:

In direct communication we should always use positive talk style because positive style is helpful in organizations where there is a lot of direct communication.

Good body language movement

In direct communication a positive and good body language is very important because when we give a good body movement, like smile and show interest that we are listening some one else very carefully than he/she feels good that we are giving him/her importance and it puts good impression on other person.

Be welcoming

When some one is invited by you by some discussion than we should always welcome them in a good way it puts good impression on other person and specially in organizations where there is alto of direct communication or direct dealing than it put good impression on other person and he can talk with us in a friendly and good atmosphere.

Types of Direct communications Methods:


In direct communications face to face meeting are the most reliable procedure, in face to face meeting persons understand the need of the other persons and cross questioning make so many things clear to all the parties wich cant be in indirect communication.


Another form of the direct communication is different kind of lectures, the lectures can of different kinds and on different occasions but when people sit together and discuss their matters with each others they understand in better way as compared to the indirect means of communications.

Religious Gatherings:

Religious gathering is another means of direct communications, people gather around for different occasions specially on religious occasions and they discuss their matters with each others and they get solutions for their matters.

Community Gatherings

Community gatherings are another means of direct communication, the community gatherings may be planned or unplanned but when people gather and share their issues with each other they may get some positive solutions for their issues.

Explanation of Formal and Informal Communication in Companies:

Formal Communications:

Formal communications is one in which a communicator indicates the official intimation of a meeting or a official gathering in which a place and the agenda must be indicated.

Informal Communications:

Informal communications are the un official gatherings of the members of the staff it can be any occasion or a ceremony, informal communication does not include any authority lines as in the case of the formal communications.

Recommendations to the furniture works

I would like to recommend furniture works to adopt the online communication like phone calls, website and email orders.

By doing this furniture works can increase its sale by taking orders on phone through email and posting their catalogs on the website so the clients can easily access the offers and sales options


Task# 5

Multi National Organizational structure

A multinational organizational structure is a set up that a company follow for their work and an organization always works around that structure. It depends on a business what kind of business an organization deals or what kind of services they offer to their customers and also set their goals and objectives according to their organizational structure because their goals and objectives are always concern with their organizational structure. A structure of company allows their employees about their duties and responsibilities.


''Organizational structure is a process that tells the employees of a company about their work nature, responsibilities, duties etc. it also tells them division of different departments, functions and people links that work with in an organization.''


Effective global structure

For any international business they always need an effective global structure to run their business positive and successful way to achieve their objective that they make for their company. Furniture Works has decided to open its function in Germany. The idea behind this move is to develop a virtual organisation. Furniture Works dealing in selling of furniture's was previously selling products in shop environment. Later, management of the company decided to sell its product on the internet. Hence, the company developed a successful 'internet sales' strategy

Joint Ventures

Joint ventures are when two or more organisations comes together and share their efforts to achieve a particular goal or objective. So furniture works has decided to make a alliance with some the current market leaders. This would help furniture works to better understand the trends of the new market and helps to make the strategy for the new market.

Successful Joint Ventures will lead Furniture Works to:-

Access to new markets

Increased sales

Risk sharing

Understanding the new markets

Helps to make strategies

Virtual organization

Furniture works decided to work as a virtual organisation by creating its website and making and alliance with some of the different online search engines.

Furniture works decided to make alliance with google and yahoo search engines it will help furniture works to increase sales by becoming the part of the worlds biggest search engines.

Globalization Strategy:

Nature of project/ work

In effective global structure an organization see the nature of their project or work nature weather their nature of project is suitable for international business and what kind of things are required for their business in international market.

Qualified managers

For effective global organizational structure a company always need high qualified international managers that have alot of international business experience and they know all important points that are concern with the international business and they can run business effective and successful way.

Cost of project and resources requirement

Before starting business in international market we need to discuss cost of our project and what kind of resources are required for our business and how can we provide these resources to our business. Cost of project gives us estimate about initially money that we need in starting of our business.

International team

Before starting business in international market we always need to make international team to run our business positive and successful way because international team creates good relation between the people of different countries and they work together and it makes global team. people of home country where we start our business can be very helpful for our business because they have proper information about their country and they can give us some useful suggestion how we can run our business successfully in global market.

Proper planning

Before starting a project in international market we always need to do proper planning before starting and we discuss how we can run our business successfully and positive way and we do proper planning about our business and we make some goals and objectives for future.


For any international business we always see suitable location for our business and we see weather that location is good for our business and we can run our business in that area in a good way. We see location plays very important role for starting business in an international market.

Verbal communication

Language is very important factor for international business because when we start business in any other country than language plays important role in our business and we need to make global team who have international language experience especially relative experience about that country where they decide to start business.

Social and culture understanding

For any international business we always need to get proper information about social and culture of that country because we need to follow social and culture of that country where we start our business. And success of our business depends on social and culture understanding of a country.

For example in Pakistan many international mobile companies are doing their business and they give ads in news papers to congrats people of Pakistan when they are celebrating any national events.