EU Business Cultural Diversity
... European Business: Chapter10 “Managing Cultural Diversity” A. ... We have a Cultural system that we learn through interaction with our families and peers that guide our beliefs and our actions. ... According to Murdock (1945) it is possible to do a cultural analysis by analyzing the cultural universals that are present in all societies and form the whole socio-cultural environment. In this framework you would take the universals that are affected in the business market you are trying to penetrate. For instance, if you are trying to open a restaurant in different countries there are certain cultural elements you need to analyze. ... 1 shows several main elements of culture that have an impact on business in different societies. One of the major factors of a culture that has a huge impact on Business is Language. There are so many different languages in the EU that it is virtually impossible for anyone to speak all the languages and dialects that you would encounter in each nation. ... For example if a German business wanted to expand to the UK they would need to learn English. If not their business would suffer tremendously and would probably fail within the first year or two. Knowing the language of the business environment in which you operate is key to success. ... This can lead to a loss of business. If you don’t know the language of your business market then it is virtually impossible for you to learn the culture. Law is also taken into account as a major element affecting business. ... but other countries such as Japan may not have as many laws covering this area due to their cultural traits. Religion is another key element of culture that has an impact on business. ... Initially it looks like a huge challenge to operate corporations across the EU. ... In order to make the transition from operating only in their local nations to operating across the EU these companies will have to do a lot of research and go through a lot of growing pains. ... In order for the EU to move forward economically this challenge is not an option they have to make it happen or face stagnation. As more nations are added to the EU more opportunities will arise for economic expansion. EU companies will eventually become experts in adapting to different organizational structures. Herein lies the opportunity for other companies around the world to learn from the EU corporations.