Cross cultural management in international business Essay - 1

Cross cultural management in international business - Essay Example The management plays a critical role in entrenching diverse in the system. The MNCs are a good example of organisations that must embrace diversity in their organisational structure. These organisations employ most of their staff from a different cultural background (because the top manager may come from their headquarters) hence the need for considering diversity. For that reason, diversity is a critical component for the survival of organisations (e.g. MNCs). The essay will assess the importance of diversity in the workforce, how diversity influences the success of MNCs using the case of Carlos Ghosn of Nissan Renault and Rattan Tata of Tata Group, two phenomenon individuals who transformed their MNCs. Besides, the paper will present how the MNCs transition to embracing diversity. The markets have become so diverse that organisations must find diverse approaches to penetrating such markets and satisfy their consumer demands (Makela, et al., 2011). The MNCs are of particular interest because they have a network of branches that interacts with customers from different cultural backgrounds. The diversity of employees brings the advantage of different employees from cultures to devise appropriate ways of remaining relevant (Harter et al. 2010; PwC Saratoga, 2010). The global market has become so competitive that organisations must devise novel ways of competing to access certain markets (Makela, et al., 2011; PwC Saratoga, 2011). When organisations are making entry into a diverse cultural market, they must have a strategy of incorporating the concept of diversity to gain access and respond to the customers’ demands while remaining competitive (Caldwell, 2003; Doremus et al., 1998). Therefore, the concept of diversity seems pivotal in leveraging the competi tive advantage (Ariely et al., 2005). Organisations that have diverse workforce bring in new innovative