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Cultural diversity is a source of international competitive advantage. Critical evaluation

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  1. Definitions
  2. Problems with cultural diversity
  3. Advantages of cultural diversity
  4. Case studies: YORK

Most companies employ people from different culture and aim to manage them in the best possible way, in order to use this diversity to their advantage. The management of such workers must be adapted to meet their needs. To become a real international competitive advantage, cultural diversity in the company has to be seriously managed and thought out. While it can lead to a great success id managed well, it may also cause the failure of a company that is unable to do so. A clear knowledge of the cultural diversity that firms deal with in the modern business scenario provides a genuine international competitive advantage. Firms must develop a good understanding of the culture of others countries if they want to be efficient on their markets. For instance Americans could lose Japanese clients if they failed to understand that Japanese use a period politeness to signal their intentions, and Europeans could easily be offended by the informal attitude of the Americans.

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