Multiple Stakeholders

Multiple Stakeholders
Organizations expand globally to gain access to the valuable resources found throughout the world.
Global expansion also provides an enlarged customer base and the opportunity for greater profit. As to
the effect of culture on the decision where to expand, organizations tend to expand into countries with a
similar national culture. This results in the least amount of conflict. The cost of expansion is an
important factor and may ultimately drive the decision-making process. The ability to compromise in
terms of culture is important. Organizations can make use of electronic communication media, global
networks, and global teams to develop and transmit a strong global culture. Technologies assist in the
communication of norms and values while global networks (and teams) socialize managers into these
values and norms. Transferring managers between subsidiaries enables them to internalize norms and
values. Organizations need strong and clear top-management norms and values, communicated from the
top down. Managing global organizations shares some of the challenges inherent in managing domestic
operations. Differences in cultures add to the difficulty of managing global organizations. Given today’s
increasingly global environment, most managers will need to enter the global environment where they
will experience these additional challenges.