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Developing Mutual Culture in Business Environment

Essay by   •  May 28, 2017  •  Essay  •  500 Words (2 Pages)  •  1,149 Views

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The characteristics of MNEs for successful short term and long term strategies are developing mutual goals and objectives, common interests, identifying risks, weighing the rights and responsibilities of stakeholders, maintaining trust, avoiding ambiguity, making consensus-based decisions in unknown probabilities and uncertain consequences, following an ethical utilitarian approach in analyzing issues


By creating awareness of the differences and similarities between the cultures of home and host countries, and by defining the gap between the present situation and the desired Joint Venture culture i.e. MUTUAL Culture can be achieved by the following:

• By motivating and rewarding employees with precise targets and incentives.

• By being aware of the possibility of differentiated gender roles and the importance of feelings of pride and status.

• By conducting regular meetings to their customers so they could get to know that what their customers really think and what type of services they really want.

• By listening process and using feedback technique they could find that what potential needs are of customers and how they could provide with effective solutions.

• By coordinating and functioning among all business units will help them to bring a product that will satisfy needs of customers and that will be unique.

All the hofstede's and trompenar value dimensions in understanding cultural dimensions of various countries could help in analysing where the company stands on each dimension and for doing business in other countries by joint ventures, FDI, exports, strategic alliances we better understand how those cultural differences between the home country and host counter affects in internationalization without losing standards and making more profits. Based on the above observation, it is recommended that for a successful joint venture, the company needs to assess the opportunities and risks of this dimension and the proposed model of culture.

Now if we target expanding into Asian markets, apart from developing behavioural changes, one needs to know the legal issues such as rules, regulations, documentation and the taxes of that country. This is where PEST and SWOT Analysis comes handy to scan and identify the market environment.

When we send an expatriate from home country to host country, no matter the training he's been provided, nothing could prevent one from having a culture shock in one or two circumstances. Headquarters spend a huge sum of money and time on training the expatriates but they fail to take the same amount of time planning for his return. Most companies prefer to send an expatriate who is single rather than married.

We should also keep



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