Effective Cross-Cultural Management in the UK Company Essay - 2

Effective Cross-Cultural Management in the UK Company - Essay Example According to Hennart and Zeng (2002), amalgamation of organizational structure, team dynamics and business infrastructure has gone through a regime shift, which has been witnessed over last 20 years primarily because of a globalized world. Due to a strongly interconnected world, frequency as well as amount of knowledge and information transmission across borders has increased to a great extent (Hofstede and McCrae, 2004). Considering the current intensity of competition and business environment, it is noticed that companies headquartered in a particular country are seeking entry into international field by means of business expansion on a global magnitude. Johnson, Lenartowicz and Apud (2006) suggested that the underlying motive behind implementation of such a strategy is to gain an advantageous position. In effect, companies gain access to a larger base of customer and are able to amplify growth rate (Minbaeva and Michailova, 2004). Empirical research scholars such as, Moran, Harris and Moran (2007) and Morley and Robins (2001), provide a different view point. According to the authors, companies implement global expansion strategies in order to spread risk evenly. Such strategies offer companies with the opportunity to diversify their business portfolio, thereby setting up compound earning sources and learning foreign cultures. The fundamental motive behind undergoing such a learning process is to support innovation.