Cultural diversity is a source of international competitive advantage. Critically evaluate

Abstract

Most of companies employ people from different culture and want to manage them in order to use in the best way as possible this diversity. The management of this kind of workers must be adapted. To become a real international competitive advantage, cultural diversity in the company has to be seriously managed and thought. It can lead to a great success but also causes the failure of a company unable to manage it. The knowledge of the cultural diversity do that firms obtain a real international competitive advantage. Firms must develop a good understanding of the culture of others countries if they want to be efficient on the market. For instance Americans could lose Japanese clients if they fail to understand that Japanese use a period politeness to signal their intentions, the Europeans could be offended by the Americans with their informality such as standing with their hands in their pockets. To avoid such problems the necessary preparations is to become aware on cultural and language differences.
In this essay, we will show how the culture can be an international competitive advantage for the companies but also what can be the main problems of these phenomena. We will use the example of the company York which uses the cultural diversity in the best way.