GLOBALIZATION, CULTURAL DIVERSITY AND RESILIENCE OF THE ORGANIZATION

Abstract

This paper addresses the current climate of globalization and its effects on businesses. It delves into the widespread homogenization leading to some loss of cultural diversity. The paradox presented is this loss of diversity in conjunction with the necessity in going global to establish competitive advantage in today’s business climate. Important to successfully engaging in globalization, is the understanding of the markets within which the host company wishes to expand into. There should occur tailored marketing and HR strategies to establish a sentiment of acceptance and openness to find common ground for business success. At the same time, a cohesive message should be developed to assure a strong brand guided by clear intentions. Different strategies can be implemented for successful international relations and are best utilized depending on the type of organization and management style characteristic of that organization. Attention should be paid to the organization characteristic of each market, as different styles of management may function better for some based on home culture. Merging different cultures can evoke conflict, so special attention should be paid to embracing and celebrating cultural diversity, with supporting employee training implemented. In the case of conflict, processes should be developed for resolution. In addition to recognition of cultural diversity internally, awareness and obedience of relevant cultural laws is essential in maintaining global success and avoidance of shutdown. Working with local employees can assist in local market understanding of both the laws and the culture. Both risks and benefits of globalization are discussed, with an emphasis on openness to adaptability.