Business and culture

As globalization continues to thrive trade liberalization has led to the emergence of many businesses across the globe. There are many cultures in the world and the international businesses ought to have a good understanding of them if they are to be successful in the global market place (Kotter J. and Heskett J, 1992) Culture ethnocentrism is the tendency of some people considering their culture superior to others. It also entails the belief that ones culture will suffice in other areas. Companies ought to be very careful to avoid this as it can result to loss of their effectiveness. It can make them ignore the most important aspects of people in areas they have established themselves. It creates conflicts to people around and those inside the organization. It can affect the leadership of the company resulting to confusion and strikes all of which are not beneficial to the company. To overcome ethnocentrism companies should appreciate the fact that there are diverse cultures and acknowledge that they are all distinct. This way they will be able to interact with the locals without conflicts. The management should be very careful in avoiding assumptions and judgments. They should monitor the situation on the ground without making assumptions based on prejudices. Prior understanding of the locals will be crucial in reducing ethnocentrism. Empathy and group cohesiveness would also help overcome ethnocentrism in companies Altitudes, values, customs and beliefs shape peoples culture. Through communication from the family settings and other socialization agents people internalize ways of doing things. Their perception towards life is modified to match their culture. Values, customs and beliefs of a specific culture are taught to all generations. People of same culture believe in what they are taught without question. Institutions set up in society ensure that culture is perpetuated Global companies should put in place effective strategies that will enable them adapt well to the local culture. First, they should conduct a research to acquire some awareness with the local culture. All their undertakings should not provoke or work against the locals culture they should not interfere negatively with the local peoples lifestyles or political ideologies (Butler N, 2000)