chapter  7
16 Pages

Global firms and cross-cultural management

ByFederica Codignola

Cross-cultural and multinational challenges in global business management have become a fundamental theme in recent times. As firms continue to expand across borders and the global marketplace becomes progressively more reachable for small and large businesses alike, the current scenario offers increasing opportunities to working globally. Nevertheless, numerous cases of failure exist linked to the management's incapacity to identify cross-cultural issues and to appropriately and effectively deal with these. As the current global scenario is becoming increasingly complex, global managers will have to become more perceptive and responsive to the challenges

and risks deriving from the multicultural backgrounds of countries they deal with or work in. Disregarding cultural complexities whilst managing global firms can be perilous. Embracing a county’s cultural diversity may or may not be a factor of success for a firm. However, not understanding and not exploiting such diversity will undoubtedly increase the possibility of failure or stagnation.