Overview
Transnational companies have a responsibility to adapt their corporate culture as well as their services to countries they operate within. To function worldwide a strategic approach has to be taken to expand the geographical presence of the business while maintaining the trust of the clients and providing high quality services. In some cases, having offices in various markets is necessary because it provides more trust from potential customers towards the company.
An individual approach is applied by a company that provides financial services to handle communication with people, depending on their culture. They choose frequency of calls and letters depending on the country and the way that has been the most efficient in the region based on their previous practice. One such organisation services has recently expanded to the United Arab Emirates in order to enhance the communication flow between the company and its clients. As the United Arab Emirates has a collectivistic culture, loyalty is crucial when sustaining the relationship.
However, there are many differences when it comes to culture diversity between countries. The United Arab Emirates is a great example. Since the country is a Muslim country, they also include their sharia law along with their regular laws. This has a great influence in the business industry. In the United Arab Emirates, it is prohibited for woman to wear clothes that would expose too much flesh. While the country where the company is located, it is inhibitive for woman to wear whatever they want, as long as it aligns with their formal dress code. When a woman bares too much flesh it can result in imprisonment followed by deportation, in worst case scenario. In United Arab Emirates business industry, sa hierarchical order is being accepted, with no further justification. All employees usually follow what their manager or director tells them to do, since the country high on power distance. The company on the other hand is low on power distance. They are more decentralized, and the manager count on the experience of their team members. There is mostly an informal attitude towards employer and employee.
Hofestede Dimsions:
https://tcps.institute/cultural_bridges_tool.html
Outcome
This case was about the diversity between cultures in the Netherlands and the United Arab Emirates, a country that is more focused on religion than regular laws. From the interview taken from the Dutch company, the diversity in cultures in the Netherlands aren’t that diverse. However, when it comes to a country that is more focused on religion, there is huge difference. The Netherlands is a country that isn’t big on power distance or masculinity. While the United Arab Emirates strive for power distance and are low on individualism.
Authors
Anastasiia Loniushkina: Block 2, Semester 1, 2020/2021
(LinkedIn)
Simran Singh: Block 2, Semester 1, 2020/2021
(LinkedIn)
Klaudio Liro: Block 2, Semester 1, 2020/2021
(LinkedIn)
Mikita Salmanovich: Block 2, Semester 1, 2020/2021
(LinkedIn)