Unit 1 IP
Global Operations Management
June 8, 2012
Unit 1 IP
PPQ Auto Parts is striving to expand their company globally over the next few years. In order to properly and successfully expand the business, the managers of PPQ must be trained in multiculturalism and diversity management; which have large playing factors in whether or not the company will be successful abroad. The executives of PPQ Auto Parts must fully understand and be aware of any political and economic distress that could potentially affect the company’s expansion as well.
When considering expanding a business abroad, especially for PPQ, individuals should look into the possible issues the host ...view middle of the document...
Other large cultural and diversity issues are related to gender, race and sexual orientation can be extremely different from one country to the next. Prior to expanding into a country one should be aware of how the host country perceives these. A useful tool in becoming aware of how a country may perceive these situations is Hofstede's Five Dimensions. These include power distance, collectivism versus individualism, femininity versus masculinity, uncertainty avoidance, and long-term versus short-term oriented cultures (Chaney & Martin, 2007, p. 65). In terms of PPQ Auto Parts, the awareness of Germany and Japan's placement in all five areas may have an impact on the decision to enter the market or not. For example, both countries are masculine, but the level of masculinity varies. PPQ representatives should consider the levels of Germany and Japan when entering the market. The United States is at a level of 62 while Germany is a 66. This comparison seems to portray that in terms of masculinity vs. femininity, there will not be many problems for the business. However, Japan is at a 95, and this difference should be considered (Masculinity, n.d.). PPQ Auto Parts will need to explore ways in which tackling this difference in masculinity can be overcome.
Diversity is a melting pot of traditions, societies and customs. The world has become more and more accessible to many individuals, thus causing the diversity. Diversity has become a truly important topic in the international business world. Due to the world becoming such a large melting pot, this causes things to evolve and become more efficient and effective. If a business understands diversity within each country they can then recognize a culture’s wants and needs. When understanding the wants and needs of a culture this can further help the company develop their products or services to better fit a specific culture. Diversity can also affect a company’s workplace, because a firm is marketing to a wide range of consumers ethical issues could be brought up if not properly reviewed and applied. Diversity in a workplace as stated before can help the efficiency and effectiveness of a company because there are a variety of different backgrounds to help build a better company.
Various issues may occur if any issue related to multiculturalism and diversity are ignored. With the world becoming more entwined , these problems are bound to come up, and in doing so, can be extremely harmful to the company. If an employee is feeling discriminated against, legals issues may arise, not to mention the time and energy being taken away from the core job functions of the company. Not only is time being taken away from the individuals and company, it is quite expensive to fund a legal war. Settlements may cost thousands and staying in court and having a hearing can cost even more. Other than legal issues, a company known to have discrimination problems may begin to have a high turn over...