Cross cultural management Essay Example | Topics and Well Written Essays - 2000 words - 2

Cross cultural management - Essay ExampleTesco plans to penetrate the Indian marketplace through Tatas Trent Hypermarket Limited. To understand possibility of success of the joint venture, the paper will provide analysis of national and organizational culture in India and make use of of goods and services international joint venture theory and Trompenaars model of differences in culture.Foreign investment is one way that multinational companies expand their operations with figure of maximizing profits. While some bewilder succeeded in raising their profit margins, some multinational companies have failight-emitting diode to realize that cause and considered withdrawal. Multinational companies also use foreign investment as an opportunity to popularize and familiarize their products in the rich global market (Hatten 2012, pg. 27). To enter a foreign market, multinational companies have employed various strategies that include foreign direct investment, acquisition of foreign-base d business and partnership.Cultural barriers and differences between the home and foreign market constitute one of the great challenges faced by most multinational companies seeking to invest in the countries. Harmonizing, adapting home, and foreign culture have proved a hurdle to some companies, which has led to poor performances in the target markets. Tesco is one of the multinational companies that currently target the Indian market. In fact, Tesco has succeeded through all the processes and is ready to begin its operations in the Indian market. Tesco is the first multi-brand handler to succeed in penetrating the Indian market. This has been due to the recent review in Indian foreign investment truth that barred multi-brand companies from sourcing supplies from their foreign-based markets, but instead collaborates with Indian local manufacturers to supply goods. The review of the law now allows liberal ground for foreign multi-brand handlers to source supplies from their