Impact of cultural difference on performance of mnc

Most companies started small but nowadays they have set up countless businesses in various countries in the world. Various societies have different cultures and this has a great impact on the general performance of foreign or multinational companies. Some of the cultures can have positive business impacts or very negative effects. It is important therefore for multinational companies to carry out cultural analysis in the areas they intend to set up businesses before starting the business. Multinational companies that have been at the receiving end of the cultural difference impacts in the global business arena include Levono, Delta Airlines, Deloitte Michelin, Mercedes-Benz, and Amazon among others (Harzing & Pinnnington, 2011) Nepal and Australia have very distinct cultures and multinational companies that set up businesses in these two countries experience both advantages and disadvantages of this cultural difference.

This really has a great effect on their performance and it can either lower or improve their business performance. Nepal is an Asian country that is still developing both politically and economically. Globalization has made the country start welcoming foreign companies which are impacting both negatively and positively on its economy (Léonard, 2014). On the other hand, Australia is a more developed country as compared to Nepal and its economic strength is greater than that of Nepal. Globalization gained roots much earlier and it has achieved abundantly from it. Consequently, the performance of the companies might be negatively affected. On the other hand, Australians are known to be early birds when it comes to reporting to their workstations. At around 5. 00 am many Australians will be at bus and railway stations ready to commute to their workstations.

Work hours are usually from 8. When a rigid non-Christian multinational company set up a business in Australia, it can terribly fail to achieve its goals. If the company has to employ some Australians, it has to respect their worship days which are mostly on Sundays and Saturdays. If this is not respected, these workers may opt to resign and this might negatively affect the performance of the company (Shearer, 2008). Communication styles Communication is a pivotal aspect of every business (Norton, 2008). Customers have to be communicated to. Secondary Question The secondary question of the project is whether multinational companies can be able to adapt to various cultures and employ strategies that will help them withstand cultural differences that can negatively affect their performance.

Research Design and Methodology Qualitative Research The research was done through observation where Nepalese and Australians were observed reporting and leaving their workstations. Nepalese mostly reported to their workstations at around 11. 00 am and left at around 9. 00 pm. Only one Nepalese said that he was well served but the other four were very irritated and promised never to return to the bank. Quantitative Research To find out how religion affected the performance of multinational companies, the number of churches in the Austrian capital city was taken. There were 210 churches. This indicated that the country is mostly occupied by Christians. Then another rigid multinational company that did not respect its workers’ religious beliefs in Australian capital was used as a sample to find out its annual revenue.