P & P, a multinational sweets and dry food chain, wants to enter the Gulf market. Given the nature of global environment, what are the cultural issues which the management is likely to face? Discuss.

P&P as a multinational company may face a number of different cultural issues as it moves forward to Gulf market for business expansion. Many of these problems are internal business culture but some may be of an external nature also as discussed below: Diversity - One of the main cultural challenges faced by multinational companies is the diversity of cultural perspectives found within the organization. This can cause problems in terms of management and policy development, because it makes it difficult for the organization to make company-wide policy decisions without having to take into consideration the variety of cultural viewpoints represented within the organization itself. Organizational culture - Along the same lines as an overabundance of diversity, multinational companies also face the difficult task of developing a unified organizational culture from within. Because of the different cultural perspectives represented within the organization as a whole, company leaders generally face the difficult task of having to create a workplace culture to which all employees can adhere. Gulf Countries specify that major share (more than 51%) must be with locals, meaning the control of the company and internal organizational culture will be dominated as per Gulf countries values. Human Resources - Multinational companies face problems when it comes to human resources operations. Finding employees at home who are qualified or willing to step in and fill such positions in a context outside of their home country may also prove problematic. Some employees may simply not want to serve in certain parts of the world. Expatriates are considered productive employees however with increased emphasis for employment to local people, P&P management has to find a fine balance in recruiting manpower. Sales - Companies run the risk of developing products and strategies that run contrary to the cultural norms of the people to which they are attempting to market the products. For example, P&P is a food chain offering sweet, it must comply Halal Certification for its food products to be compatible with local markets. Communication and Cultural Norms - Another significant issue faced by multinational companies is how business is conducted across international lines. Differences in communication for instance, make it essential to understand cultural norms in the countries in which these companies operate. For example, one must comply with Islamic way of dressing, covering full body, and one should not eat and drink during Ramadan. One must show utmost respect to Islamic traditions in Gulf countries. Etiquette and Customs - Multinational companies also have to position representatives and leaders who know how to avoid violating or ignoring cultural practices and customs in business meetings. For example, shaking hand with women is not common in Gulf countries and talking about Liquor is considered bad in Gulf countries.