Posted at 11.16.2018
With a stride ahead to the 21st century, the overall economy on the planet is developing within an unprecedented way, which has been causing a tremendous of opportunities for the introduction of the multinational overall economy. However, cultural variety can be an indispensable while usually being forgotten factor in the activities involved in the cutthroat competition worldwide, which includes been knowing as an intangible barrier in the international trade. Because of this, the research of the effect that cultural variety exerts on the multinational management in order to effectively avoid the cultural barrier, reduce the doubt in the cross-cultural surroundings is challenging.
This paper aims to work out the result of cultural diversity on multinational management via the research study of Disney in Tokyo and Paris. In the mean time, it proposes some advice and suggestions for how to undertake the market research, deal with the multinational firm and acquire the competitive benefit.
Cultural variety exits in every corner of the society, and various country, region or cultural has its own cultural diversity, which includes been reflecting in the worthiness, ethnic customs, politics and legislations, faith and belief, terminology and thought process, and laws and norms. All factors of which could be the substantial trap for the multinational organizations that aren't sensitive to the crucial influence of ethnic diversity. There can be an old saying that each coin has two factors, and cultural variety does not have any exceptions, it has both benefits and drawback for the individual and the organization. For one thing, working with people with different cultural background would broaden the opportunity of knowledge and develop the individual's attitude toward other cultures, result in more opportunities for business, and also to accomplish the individual workplace task so as to solve personal problems. For another, people from different cultures work together could raise the quality and quantity of the employee for the organization, and maybe it's a drive for innovating products in an effort to provide for the diverse customer, and the sales, market talk about and export opportunities might be upgraded as well, in addition, the expectation of the community, political objective and legal requirement of the power could be satisfied. However, social variety could do injury to the average person and the organization. On the main one hand, it would increase the incident of inter-personal and intra-organizational conflicts, working out cost, the ability for mismanagement which may lead to the dissatisfaction of the employees, lower output and job performance, and so on. Because of this, to cope with the problems mixed up in cultural diversity is vital since it might exert great influence on the utilization function and method of individuals (Julia, 1992: 78-87) In the economical activities of the international trade, it pays to know the information on the use mode and approach to the prospective people before introducing the products in to the market. However, social diversity sometimes may be superficial, and two divergent ethnicities could be assimilated after having a certain period of time of exchange, leading to the social fusion at last.
Cross-cultural managementrefers to the management of people, issues, and articles with different ethnic background, which is a process of how to tackle the problems brought on by different ethnicities, and in accordance of which, creating the special firm culture that is suitable for the management of the corporation (Walter, 2003:80-84) The goal of cross-cultural management is to harmonize different ethnics, different civilizations in different growing phases to form a new culture of the corporation by adopting a accommodating strategy, the center which is to solve the issues of cultural conflicts within the rule of fabricating a pleasant work place for the staff from different civilizations, to be able to explore the maximization of the gains and potentials for the organization.
Disney is an internationally famous animation company that was set up by Walter Disney in 1923 in america. It has built the first theme area in California in 1953, which known as "Dream World", it was a huge success of the business. Then in Florida, Paris, Tokyo, Hongkong and other areas, Disney theme parks have been setup and welcomed by both young and the adult. So far, it includes about 60-time experience of working multinationally (Philip, 2005: 545-550)
The successful operation of Disney land in the us has influenced the managers of the corporation to extend the business overseas, and it has been a way of transmitting the American culture to the outside world. In 1982, there was an agreement authorized by Disney and the Oriental real real estate in Japan, permitting Disney to use the Disney land theme area. To adapt to the concrete situations in Japan, all the guide and neighborhood panel in the park
Success of Disney were published in Japanese, in the meantime, it has modify the layout of the playground relating to the street of Japan, for example, "Disney castle secret travel" has been dyed the localized color based on the popular story of "Haunted house" in Japan at that time. The most apparent adjustment was the favour of the food, the park has not only opened up a restaurant to gratify the desire for food of the neighborhood people, but the picnic was permitted as well. Then, the Tokyo Disney land has become one of the most attractive parks in Japan that is inducing a huge number of visitors. However, japan culture is the normal oriental culture, which is divergent to that of the United States, why Disney company could achieve such success in Japan? (Harvey & Allard, 2005:36-37) Firstly, Japanese culture acknowledged and accepted American culture after the WWII. Most Japanese people were keen on American culture that could be displayed by Disney land, under this scenario, the approval of American culture by the Japanese people is understandable and well-reasoned. Second, Japanese culture advocates collectivism. The collective activities in Disney land were just what Japanese people pursuit, which includes intangibly advertised the consumption, causing a significant of profits. Thirdly, Tokyo was the first place where Disney setup the theme park international. The alien culture has strong attractions and appeals on the Japanese market, and it was the foundation after which Disney has successfully developed its cross-cultural operation.
The great success of Disney land in Tokyo has promoted the building of another theme park in Paris. This Western european Disney was started to grow since the beginning of the 20th century, however, it was in front of a whole lot of unprecedented problems, for case, the arrivals of site visitors is much less than expectations, no to mention the profits from the visitor. Some negative record on the management and the wear of Disney land has discredited to the business. By 1995, the Paris Disney has lost 25 billion dollars as the reason which lies in the lack of localization in terms of the operation strategy, of inappropriate layout of the recruiting, and the over-optimistic anticipation of the problem. For instance, the actual fact that the People from france have a strong national take great pride in and sense of superiority, plus they regarded the extension of Disney land is a social invasion (Nicole, 2005: 13). Subsequently, they have got boycotted the Disney land. It could be seen that culture has an essential role in the multinational management, and being unacquainted with this importance, there must be some negative influence on the introduction of the business. Disney has realized the value of cultural variety and has begun to make changes after being failed in Paris. Because the beginning of the 21st century, it has been adjusting the operation strategy via change of name of the recreation area into "Disneyland Paris", selecting the French as the overall administrator, and restructured the business in accordance with the French management setting, increasing the amount of European employees. By 2002, Paris Disney has attained profits for the first time.
It could be seen from the evaluation and evaluation of the multinational operation of Disney in Tokyo and Paris, that an effective cross-cultural management is very significant in the international market. They have succeeded in forming a range where ethnicities of different countries have been fused and assimilated in order to provide for the procedure of the organization. The success of Disney could be categorized as four aspects.
An effective cross-cultural management is the key factor for the organization to success in the international competition. The success of Disney land experienced demonstrated that emphasizing on the cultural diversity and removing the cultural issues are of great value in the transnational business. Within the multinational business, if the enterprise lack the data and skill of the cross-boundary management, the ethnical conflicts might occur, including the troublesome personal romantic relationship, failed communication, and misunderstanding between the director and the employee, etc, which would reduce the work efficiency and improve the internal loss, because the cultural variety would immediately lead to the ethnic conflicts, serious romance between the staff, failed communications between that personnel and the low job performance and lower work efficiency. On the contrary, if the organization could manage well in the cross-boundary business, then, the complicated problems that are related to cultural diversity cannot bring about any loss, instead, it might offer some competitive benefit to the organization and improve the labor force of the venture.
Doing the marketplace research before entering into the prospective market is vital, and the marketplace research includes the info on the politics, market, culture, legislations and the surroundings, and based after which, analysing and looking at advantages and drawbacks of the overseas culture and the native culture, in order to find out the choice of the customer to be able to meet them.
The starting of efficient cross-cultural management has three methods. The first step is to recognize the cultural diversity. The management should first separate the difference between ethnicities could the effective measures be studied since most social issues have been induced by cultural variety. Secondly, enterprises should have a sensitive nasal area to the ethnic diversity, while this capacity could be obtained by training, which could, to a big extent, boost the mutual understanding and communication in that staff could adapt to situations involved in various cultures. Last but not the least, accumulating the common value and culture within the corporation, which is helpful with regards to the decrease of the cultural issues, and it might facilitate every single worker to act relative to the the operation strategy, then to securely connect the parent or guardian company and subsidiaries, at the same time, to capture the reputation in the international market and fortify the version to the changing environment.
An enterprise that is skilled at the cross-cultural management will be good at utilizing cultural diversity at the most and better to seize competitive benefit, including building up a communication route for shared understanding, doing like Romans do while in Rome, i. e. adating its operation strategy relative to the cultural environment of the target market. Not merely make good use of the management strategy of the mark market, but also pay much focus on publicity of the culture and value of the enterprise, with an effort to gain the approval and support from the neighborhood federal government, counterpart, customers and relevant unities concerned in the prospective market. Effectively use the social diversity, on the main one hands, could eliminate misunderstanding between people from different cultures, on the other, it could generate a harmonious inner environment for the cross-boundary operation, additionally, succeed higher work efficiency and better competitiveness in the multinational business world.
To sum up, cultural diversity can be an objective existence that has been forming since early times, which could not be absolutely voided and taken away by any solo corporation, and there is absolutely no culture that are more advanced than any others. Additionally, cultural diversity could be seen from different perspectives, the discourse above is merely a tiny part. In the cutthroat competition and ever before fierce market, a thorough understanding of the function of culture diversity, and its benefits and drawbacks for both individuals and organizations are of great importance, for the reason that from which, businesses could know what are dos and don'ts in the cross-cultural management.