Culture

Question 1

Convergence

Answer 1

The concept of convergence has been applied to nation states as well as to business practices. Those who believe that globalisation is taking place argue that there is evidence that there is evidence that the countries of the world are coming together economically, politically and culturally. In business there is a belief that firms in the same sector in all countries are converging on similar types of technology, strategies, products and forms of business organisation. The primary drivers of convergence are technology transfer and the activities of MNC’s.

Question 2

Implications of convergence for managers (1)

Answer 2

It enables manufacturing and services to take place on a global scale through the creation of global technologies, global practices and global products. This creates economies of scale to reduce costs and, in manufacturing, makes possible the global factory and globally integrated supply chains.

Question 3

Implications of convergence for managers (2)

Answer 3

Managers and other staff of MNC’s can be moved around the firm’s global operations and find themselves instantly at home with the operating systems, structures and language.

Question 4

Implications of convergence for managers (3)

Answer 4

Ideas and techniques developed in one cultural or national setting may be transferred to another and used effectively. Developing nations are able to learn from more advanced countries and benefit from the mistakes of others. Belief in the transferability of techniques had led to management to turn elsewhere for solutions to problems such as organisation structures, new market entry, product and process design, controlling labour and cost reduction.