The Trend of Globalisation from Business and Culture Perspective

Affect of Globalisation of Business and Culture

The advent of globalization have made business and indeed culture to grow significantly which variably affects most today's organization's international business outlook and strategy, it has also made management to be more effective and challenging.

As business is been globalized so is individuals culture (Merz, He & Alden, 2008). A very good example is the Indian experience, when they used to follow their cultural traditions unlike now that they more shifting to the western culture due to the inflow of MNEs and international organizations to India in so many diverse fields like medical tourism, pharmaceuticals, entertainment and of recent technology and others.

As a result of globalization many countries businesses and cultures are been transformed significantly, thereby making international business strategy and management a core ingredient, as against when companies formulate such international strategy taking into account some of the country's specific culture, but with the transformation companies now design such policies with a global outlook while also meeting local needs (Merz, He & Alden, 2008).

Marketing standardization has also gone global with firms strengthen how they manage their business and culture, especially in situations where consumers tend not to focus on their nationality and this is as a result of the culture consumers have internationally. And it is important that global consumer culture is always been noted when formulating for an effective and efficient international business strategy.

The business world is changing with the adoption of more modern business ways by firms such that it gives companies the ability to think globally and also to act locally. A good example is that of the McDonalds, its operation is global while equally meeting the consumer's needs of its local countries, such that it operates as local despite been international like what it does in Korea were it serves customers a local familiar delicacy called "kimchee burgers" which is well known domestically by the Korean customers. As a deliberate policy the company is using the kimchee burger as an identity of its Korean corporate citizenship culture so as to sustain international acceptability and preserve its worldwide position while changing the burger name to meeting local cultural needs. This shows the extent at which globalization of business and culture has thus affected modern firm's operational capabilities in international business strategy and management.

Effective Management as vital key to robust Culturally Diverse Social Capital

Most often the consumer and labor market has become increasingly important as a result of localization policies of companies and the resultant multiplier effect of globalization practice.

Most organization are often operating across borders with employees from diverse cultures and adapting to international best practices. Since they function at international with a pool of staff from different cultural backgrounds and disciplines assist organizations at managing their entire business operations and achieving desired objectives (Sparrow, 2009).

It is therefore very important that culturally diverse social capital be considerably managed for effective functionality by MNEs as they form the key to efficient attaining of strategic corporate objectives of the organization especially in respect to human resource management or of other divisions functionalities.

It is pertinent to know that social capital can be grouped in three namely structural social capitals, relational and cognitive social capitals. When one focus on the network of people it is said