Cultural Conflict In The Process Of Multinational Enterprises

Along with the deepening of economic globalization, the transnational operation of enterprises has become an irreversible trend of the times. More and more enterprises go abroad to engage in transnational production and business activities taking advantage of global human, financial, material and other resources. During transnational business process, the daily production and living are also stamped with the stigma of the mother culture. The business activities of enterprises will inevitably touch on the differences between the culture of the home country and the host culture. If these differences couldn’t be properly settled, it will produce cultural conflict and a direct impact on the development of transnational business, even a huge loss to the enterprises. It will bring a great significance to the promotion of transnational business development by Identifying cultural differences, Analyzing the causes of conflicts, Making reasonable suggestions.The cultural has the thousands of definitions and the broader culture includes the various levels of political form, the building of the legal system, form of community organizations, ethnic culture, and enterprise culture. These aspects of the culture emerged as a huge difference due to geographical and historical reasons in a different country. Transnational business enterprises face different cultures from the mother country and have to handle kinds of difficulties. Firstly, this article starts from the definition of culture, detailing the recognition of cultural differences and cultural conflicts phenomenon. Then, cultural differences and cultural conflicts from politics, law, community organizations, nationality, and enterprise, are analysis using the cases. The final chapter made a number of cultural conflict coping strategies, and offer advice and suggestions for enterprises to multinational operations.In Cultural Statement part, it sequentially describes the meaning, level, features, and fuctions of culture and then discusses the cultural differences between the three levels and five dimensions, and finally guides the meaning, characteristics, and causes of cultural conflict.Refer to cultural conflicts occurs in multinational operations, it discusses from Political Evironment, Legal Evironment, Social Organization, National Culture, and Corporate Culture by targeted analysis and cases.This article uses Huawei Frustrated in Oversea Expansion to illustrate the political environment restrictions to multinational enterprises, uses the Apple Warranty Event promping that multinational corporations shall recognize the legal environment differences and comply with the laws of the host system, cites Operation Lesstions of Shougang Hierro Peru to alert the important impact of the social organization, and finally clarify the conflict of national culture and corporate culture respectively through Disneyland Operating in France compared with Japan, Inspiration of Lenovo’s Acquisition of IBM’s PC Business. How to avoid these conflicts in multinational operations? The artical proposes five measures in last Chapter:1)Analyze and Identify Cultural Differences, Propose Pre-arranged Plans to Cultural Conflicts;2) Form Effective Models and Working Methods for Oversea Operations;3) Build Benefit-shared Model and Common Corporate Culture to Achieve Localization;4) Selection of Appropriate Personnel for Transnational Operations;5) Cross-cultural Training...