Discuss ONE risk that a company faces when trying to diversify internationally. Provide examples, and also discuss how this risk can be mitigated Solution One very significant risk that a Company faces when trying to diversify internationally is the cultural risk because there are certain Dominant cultures that express the core values that are shared by a majority of the organization’s members while there are also certain subcultures which could be regarded as the minicultures within an organization, typically defined by department designations and geographical separation. Hence in terms of implications, both these cultures impact the tolerance level of the people belonging to different cultures in a major way. Here, it is a rare ability to bridge such a perception gap which has already been rooted down into the beliefs of the people hailing from different culture. Further, the National culture has all more greater impact than the Organizational culture on the minds of the people. In certain culture, there is a facilitation of commitment to something larger than self-interest that enhances the stability of the social system. However, it may not get along well with that of the other cultures where social commitment does not form an intrinsic part of the culture. This is where the ideologies clashes between the cultures and there arises the challenge of tolerance. Here, if the leaders are not intellectually brilliant, the diversity management issue will fail. Further, when the Company goes international, the diversified team ethical issues are more critical to barriers to change and diversity which also comes in the way of welcoming or accepting another culture in harmony with that of one culture. The gestures and cultural characteristics are one culture may be complete inverse from that of the other, which may again pose as a barrier to tolerate other cultures. Some cultures are liberal while some are way too conservative hence arises the issue of tolerance to other cultures. Hence despite investing in multicultural teams training, some alliances still fail. If the leaders are not intellectually brilliant, they would find it difficult to manage these barriers because their own culture has not taught to see the other cultures in such details hence this intellect needs to be cultivated as well. Usually the Companies fail in persuading and controlling people when the Company diversifies because of the faulty applications of the management theories due to: Therefore, in order to mitigate the same, one needs to understand the behavior of the employees working at some other international location and thereby attempting to create a more efficient organization on the basis of such a study. This strategy could help in applying various scientific theories to study these individuals working in a Corporate set-up in order to optimize the performance of overall human resource even in a culturally diversified set up. Understanding the work culture and the d.

1. Discuss ONE risk that a company faces when trying to diversify internationally. Provide
examples, and also discuss how this risk can be mitigated
Solution
One very significant risk that a Company faces when trying to diversify internationally is the
cultural risk because there are certain Dominant cultures that express the core values that are
shared by a majority of the organization’s members while there are also certain subcultures
which could be regarded as the minicultures within an organization, typically defined by
department designations and geographical separation. Hence in terms of implications, both these
cultures impact the tolerance level of the people belonging to different cultures in a major way.
Here, it is a rare ability to bridge such a perception gap which has already been rooted down into
the beliefs of the people hailing from different culture. Further, the National culture has all more
greater impact than the Organizational culture on the minds of the people. In certain culture,
there is a facilitation of commitment to something larger than self-interest that enhances the
stability of the social system. However, it may not get along well with that of the other cultures
where social commitment does not form an intrinsic part of the culture. This is where the
ideologies clashes between the cultures and there arises the challenge of tolerance. Here, if the
leaders are not intellectually brilliant, the diversity management issue will fail. Further, when the
Company goes international, the diversified team ethical issues are more critical to barriers to
change and diversity which also comes in the way of welcoming or accepting another culture in
harmony with that of one culture. The gestures and cultural characteristics are one culture may
be complete inverse from that of the other, which may again pose as a barrier to tolerate other
cultures. Some cultures are liberal while some are way too conservative hence arises the issue of
tolerance to other cultures. Hence despite investing in multicultural teams training, some
alliances still fail. If the leaders are not intellectually brilliant, they would find it difficult to
manage these barriers because their own culture has not taught to see the other cultures in such
details hence this intellect needs to be cultivated as well.
Usually the Companies fail in persuading and controlling people when the Company diversifies
because of the faulty applications of the management theories due to:
Therefore, in order to mitigate the same, one needs to understand the behavior of the employees
working at some other international location and thereby attempting to create a more efficient
organization on the basis of such a study. This strategy could help in applying various scientific
theories to study these individuals working in a Corporate set-up in order to optimize the

2. performance of overall human resource even in a culturally diversified set up. Understanding the
work culture and the dominance of the Organizational values that may either boost or impede the
growth and productivity of an Organization and in the areas of employee retention or training
and development, skills sets requirements while conducting an effective recruitment process,
these strategies could in a way facilitate the predictability of the events by influencing the
Organizational events.
In this regard there could be an application of two concepts to manage the cultural diversity: a.
Psychometric instruments that could be used to make the cultural diversification more relevant
and b. how it would help in types of risks that might be introduced to the organizational behavior
and business practices in the home country, when teams are culturally or geographically diverse.
Minds play a very important role in controlling our Organizational behavior. It is only when the
mind is healthy, that an individual could be in the position to undertake better decisions which
could be in the advantage of an Organization. A poor health may therefore impact the mind
adversely.
Also, it talks a lot about our mindset revolving around particular sets of ideologies as well that in
turn helps in shaping the Organizational values on the part of the mindset. Some may be
conservative in approach while some open and broad-minded. Diversity-conscious leaders in
Company when formed on the basis of this mindset, becomes an identifying factor for the entire
institution and this is how we can infer that there exists relationships between our minds and how
we interact within Organizations. Accordingly, Psychometric tests is also used by these leaders
as one of the important instruments in managing the diversity. The leaders of the Company also
sort this help to deal with various other aspects of diversity such as gender diversity, age
diversity, etc. These leaders have the competency to value the diversity in Organizational group
dynamics as an internal source of strength since it provides a culture for inclusion of more and
more people from different cultural backgrounds, age, gender, sexual orientation, marriage or
religion belief. They therefore help in optimizing the employees’ potential to the best possible
extent. Further, their competency involves the ability not only to form groups on certain basis but
also to maintain the teams in order to facilitate the team’s performance towards achievement of
the Organizational goals. These leaders assume accountability and undertake various effective
decision-making processes that is essential in order to succeed in managing the team competency
to boost the team’s overall performance. They also seek willing cooperation from their
subordinates owing to their dynamic personality and hence they are charismatic extroverts.