Cross Cultural Management in International Business

The MNCs are a good example of organizations that must embrace diversity in their organizational structure. These organizations 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 organizations (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 Ratan 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 organizations 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 organizations must devise novel ways of competing to access certain markets (Makela, et al., 2011. PwC Saratoga, 2011). When organizations 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 a competitive advantage (Ariely et al., 2005). Organizations that have a diverse workforce bring in new innovative&nbsp.ideas that help in building the competitive advantage of the organization.