INTERNATIONAL MANAGEMNT

Management in International Context: Cultural Complexities and Management Models

Management in International Context: Cultural Complexities and Management Models

Introduction

International management is a reality in today's business environment. When a firm decides to expand business across the border, it faces many challenges including management of diversity, language barriers, diverse regulations, diverse norms and traditions, and so on. Culture and business are very much inter-linked, until and unless a firm understands the culture of a new society where it plans to expand, it is impossible to achieve targets and objectives. Language barriers are one of the major issues faced by multinational firms. Cultures vary nation to the nation and continent to continent. The concept of fair business practices get even more ambiguous when one moves in to newer culture.

Multinational corporations are defined in various ways. A common definition is than MNC with a dominant HQ in one country and various subsidiaries across different countries. International management goes along with international strategy of a firm. Definition of MNCs suggests that some companies will be more multicultural than other depending on the expansion of business in various countries. Extent of diversity is based on multi-currency revenues, number of subsidiaries, and number of foreign assets and so on. Management must also be diverse. It is perceived better to employ a local manager for another country subsidiary or franchise. However, this decision is based on the business norms of a company and origin of country. For example, American companies prefer to have foreign managers in their international units while Japanese companies prefer to keep control through regional managers.

Case of McDonalds'

In 1999, Jose Bove initiated an anti globalization movement, was thrown behind bars for sabotaging McDonald's restaurant, he claimed that French people support his move. Around 40,000 thousand French citizens showed their support. However, french people were not the only to support it, but McDonald's faced hostility in around 50 countries. This global issue of McDonald's illustrates a friendly Ronald McDonald of U.S. imperialism. McDonald's practices of marketing were against local cultures according to commentators of business management (David 2004, pp. 12). The unhealthy food, value chain system and fast food concept all lead to these protests. Until now, McDonald's bends backwards to merge into home cultures. The marketing philosophy of McDonald shows itself as a local company for local consumers. In reality, the franchise system of McDonald makes it natural that a local franchise in France is operated by French manager and local franchise in India is managed by Indian manager. Local menus are chosen by the regional manager as they know better about local tastes. Local mangers are best placed to find better suppliers and launch appropriate marketing campaigns according to the norms of local community.

A goofy Ronald McDonald replaced a French strip character (in comic) who symbolizes individuality and resistance to royal forces in McDonalds marketing campaign, in 2000s. McDonald in France took an additional proportion to win support of locals by condemning the eating habits in US. In one advertisement, a huge American cowboy protests ...