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Introduction Essay Sample

Cultural Factor in Multinational Enterprise

Multinational enterprises that invest and operate in several distant markets bring about foreign subsidiaries or affiliates. They also participate in the international joint ventures including strategic alliances, as well as use overseas supplies among many other activities. They thus function as a unit that has several other subunits which work within a divergent context of the environment (Luo, 2002). They have to ensure the fitting in of the national cultures, employment of multicultural workforce, negotiation with the foreign contractors including satisfying stakeholders’ needs in every country of operation. They, therefore, establish, as well as maintain relationships on a day to day basis, which seem to be of different cultures, by their very nature. If barriers to the cross-cultural relationships exist within the multinational enterprises, effectiveness of the multicultural workforce will seem likely to drop because of the obstacles to the realization of tasks. By contrast, cross-cultural interactions that are deemed to be effective may for instance, contribute to learning and creativity of employees. They could also increase the personnel satisfaction level and improve communication (Luo, 2002).

The most crucial thing is, therefore, the understanding of the facilitators of and barriers to effective cross-cultural relationships within the multinational enterprises (Luo, 2002). This paper thereby, fosters such an understanding through a case study analysis of Intel Corporation. Looked at are Intel Corporation’s success stories that cover the firm’s brand, strategy and performance before a change in the management. Also outlined is how the new marketing program manager slowly learns to adjust to the Chinese culture in Intel Corporation and manage according to this culture. The paper identifies several differences between the culture that Tang the new manager of marketing programs is used to and that of Intel Corporation.

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