Globalization and Culture

[Name of the institute]Globalization and Culture

Introduction

The world in which we live today is showing rapid and frequent changes in terms of technological advancements and formulation of latest methodologies. The only thing that is constant in this world is change. As a result of adoption of these latest technologies and methodologies organizations face cut throat competition. Moreover, the phenomenon of globalization fuels up this competition. Competition and globalization urges an organization to take actions through which not only the organizations attain competitive advantage but also reap the advantages of globalization by marking its strong presence all over the globe. The aim and objective of this paper is also to talk about the phenomenon of globalization, culture and its impact on organization performance. For this purpose the organization that is selected for this purpose is Toyota Japan.

Necessity of Global Mindset to Do Business in the Global Market Place

If we take into consideration research then it would be revealed to us that in order to fulfil the global role organizations should possess global mindset. According to Harvard Business Review global mindset allows an organization to get adjusted in different type of environments and they possess skills to deal with international clients and partners such as distributors and manufacturers. The concept of global mindset can be defined as an approach that involves three important factors. These three important factors are intellectual, psychological and social capital (Blog.communicaid.com, 2010).

The world which is described as flat now, it is the immense need of an organization to adopt the mindset which we call global mindset. Global mindset means that an organization must possess ability to highly differentiate and highly integrate knowledge structure. When an organization possess global mindset it becomes able to amalgamate an openness towards diversity across variegated cultures as well as markets with a potential to synthesize across this diversity. Today, only those organizations get success that believe that no matter what business you do but you should believe that all sorts of business is global business, no matter where your customers are all the customers are local customers and the fact should also be considered that competition comes from everywhere (Rosen, 2000).

Affects of Global Mindset on Risk Assessment for Toyota

No matter how large or small the operation of the business is there are certain risks with which the business confronts. When an organization operates globally then there are different sorts of challenges and risk that the organization faces. Toyota is an organization that operates in Japan, North America, Europe, and Asia (Data Monitor, 2012). So, the organization faces different risks that it must evaluate while operating internationally and when thinking about the expansion of the business. Following part describes risks that Toyota may face because of global mindset.

Risk of Difference of Culture

Different countries have different cultures. When an organization decides to expand its operation in other country then it must also consider the culture of that country that may affect the communication process with the customers. It had previously happened with ...