MAY 22, 2011
In this paper, I will use the two firms. The companies I will discuss are Wal-Mart and Novartis Pharmaceuticals Corporation, facing similar issues in different countries. Then, I will discuss their political, social, legal and ethical differences and their impacts on management decisions which will lead to conclusions, and recommendations that will also be provided.
Identify two firms with similar problems but from different countries. Novartis Pharmaceuticals Corporation is a Swiss based company that was created with the merger of two firms Ciba- Geigy and Sandoz pharmaceuticals. It is the ...view middle of the document...
The UK has a responsible government and they can make rules on any matter so the company has to be unyielding in making rules and regulations in the company. The UK government has the power to make laws on any matter. The US political system displays shortcomings that affect the US based organization like global warming, and this also affects the operations of Wal-Mart. More political issues are faced by the US based organization like Wal-Mart, because the US political system is more liberal than the UK political system (Kilcullen, 2000).
Cultural differences: The UK people have different attitudes about work, efficiency, and business meetings, than that of the US working employees. They both have English as a common language, but both US and UK English language is different in terms of phrases, and unfamiliar meanings. This has effects when employees are sent for the international meetings, and training. The US people will willingly accept the new situations and take risks without any fear, however the UK based firms like Novartis Corporation, employees are cautious. This behavior affects the organization. American employees get frustrated very easily as compared to UK employees. In American based organizations, everyone is willing to participate in the meetings, however in UK business meetings, seniors make the decisions. If any employee does not voice any view, he will not be forced to participate in any decision making. These are all cultural differences that affect the organization's working and processes which affect the profit of the organization (Doke, 2004).
Legal Differences: The UK has taken steps to expand the organization by formulating laws. UK lawmakers do not believe on the virtues of the regulatory competition. They believe that these laws are for social welfare, while the US believes that these laws are not for social welfare. Therefore, Wal-Mart policies are favoring employees, but they are favoring profits more than social welfare, however, Novartis is also favoring profits to some extent, but is more concerned about the welfare of their employees. It also pays $3.3 million for the damages of sex discrimination (Vermeulen, 2003).
Ethical Difference: US organizations are at liberty to adopt the code of ethics, as they have no legal authority to police it so, they can accept it to any extent like Adopt partial, fully or some portion only. The UK has legal authority, so they must adopt each and every code of...