Exploring the Significance and Implications of Cultural Models for Multi National Enterprise's Decision Making.
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Topic: Exploring the significance and implications of cultural models for Multi National Enterprise’s decision making.
By definition culture is the “learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviours and symbols” (Cavusgil et al. 2008 126). According to Trompenaars F. and Hampden- Turner C. 2005, culture is the summation of the outer layer: explicit products, the middle layers: norms and values and the core: assumptions about existence. In which “explicit culture is the observable reality of the language, food, buildings, houses, monuments, agriculture, shrines, markets, fashions and art. They are the symbols of a deeper level of culture, the norms and values. Norms are the mutual sense a group has of what is right and wrong. Values, on the other hand, are closely related to the ideals shared by a group.” (Trompenaars F. and Hampden- Turner C. 2005).
The importance of culture cannot be undermined in any context, culture plays a role, may it be hiring of workers, remuneration plans, office space management or the target customer. For example, Disney’s base product, in the US, the Disneyland and Disneyworld theme parks were extremely successful. But their new venture Euro Disneyland was a failure. Located in France, it failed to take into consideration the European culture, in forms- worker were forced to having to speak English in meetings, even if most people in attendance spoke French, liquor was not sold outside of the hotels or specific areas however Europeans were used to having outings with alcoholic beverages.
This essay is an attempt to understand the effectiveness of cultural models and typologies in decision making during expansion. It should be noted that Disney from the above example did extensive research for the location of Euro Disneyland but failed to do any research on and understand the culture of the location. Cultural models can serve as a blackboard...
By definition culture is the “learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, ideas, attitudes, behaviours and symbols” (Cavusgil et al. 2008 126). According to Trompenaars F. and Hampden- Turner C. 2005, culture is the summation of the outer layer: explicit products, the middle layers: norms and values and the core: assumptions about existence. In which “explicit culture is the observable reality of the language, food, buildings, houses, monuments, agriculture, shrines, markets, fashions and art. They are the symbols of a deeper level of culture, the norms and values. Norms are the mutual sense a group has of what is right and wrong. Values, on the other hand, are closely related to the ideals shared by a group.” (Trompenaars F. and Hampden- Turner C. 2005).
The importance of culture cannot be undermined in any context, culture plays a role, may it be hiring of workers, remuneration plans, office space management or the target customer. For example, Disney’s base product, in the US, the Disneyland and Disneyworld theme parks were extremely successful. But their new venture Euro Disneyland was a failure. Located in France, it failed to take into consideration the European culture, in forms- worker were forced to having to speak English in meetings, even if most people in attendance spoke French, liquor was not sold outside of the hotels or specific areas however Europeans were used to having outings with alcoholic beverages.
This essay is an attempt to understand the effectiveness of cultural models and typologies in decision making during expansion. It should be noted that Disney from the above example did extensive research for the location of Euro Disneyland but failed to do any research on and understand the culture of the location. Cultural models can serve as a blackboard...