Organizational Technology Plan – Social Contract and Global Issues

Posted: November 27th, 2013

Organizational Technology Plan – Social Contract and Global Issues

Effects of cultural and language differences on a company’s business operations procedures when expanding globally

Cultural diversity and language differences have become increasingly significant in an effective business management across the organizations operating in both local and international markets. Diversity takes on an increased magnitude as labor force expands to include numerous nationalities. The technology has contributed to easy distribution of goods and services and this is made possible through the understanding of different cultures and languages globally. Economic prosperity is achieved through understanding and embracing cultural differences between labor force and customers in a global economy. Therefore, it is crucial for international auditors to understand the fundamental aspects of different cultures and languages in order to enable the company to create diversification in the global market.

Understanding cultural teachings among the ethnic groups in a company is essential. It is more than a sociological experiment when addressing on this issue. This is because different cultures have certain implications on finance in the operation of the business. If culture is not managed well between the customers and labor force, then it can create a negative impact on the business thus affect severely the bottom-line. It is essential for managers and internal auditors of the company to learn how to manage cultural risk exposures (John, 2006). In addition, auditors should consider different cultures and their languages on the company’s web site thus ensure this language does not affect their business operation.

Language can be a major barrier between individuals from diverse cultures. Potential customers or employees may be ignored because of language barrier. Therefore, language should be carefully taken into consideration because it may affect the operation of the company negatively. Internal auditors should ensure that signs and different written forms of languages are translated in a manner that meets the requirements of the company. Incase they fail to address this issue, the company may end up losing market and sales may decrease dramatically. It is vital for an organization to have multilingual human resource representatives to support the customers and employees incase they need help (John, 2006).

Technology issues that may arise because of trying to expand a business globally

Technology has become widely used in expanding the business globally. It has made business transactions to be carried out easily. Different products and services can be easily accessed through the internet within a short period. However, there are technological issues that may arise because of trying to expand a business globally. One of them is an increased competition in the global market. Technology had led to severe competition as the companies are trying to outdo their entrants thus leading to increased operation costs. The company needs to compete in communication and advertisements using technology in order to enable them stay in the business. This means that the company must cut down their prices in order to maintain and get more customers due to competition.

Secondly, the cost of research may increase as the company tries to do more research on their products using technology thus increasing financial costs. To be successful in the business industry, the company should do more research and carry out product development. This is because of facilitating more sales and distributing their products faster. This may result to companies borrowing money in order to enable them meet their objectives. Globalization and information technology has posed a great impact on the business because it requires the companies to develop brand new products in order to cope with the extensive evolving global market.

Lastly, it may pose a threat to the environment due to pollution cases as technology keeps on advancing. Globalization has never been faster with the onset of technological advancement over the past decade. This is because as the company is advancing technologically, other costs arise such as environmental costs that require the company to set side money to curb those problems. In addition, as the companies try to develop new products, emission from industries increases thus increasing the cost of living for human beings in the surrounding environment. Hence, business companies may be forced to reduce their production in order to meet the emission standards required.




John, R. S. (2006). Auditing cultural diversity: understanding and embracing cultural

differences are essential to survival in a global economy. Retrieved on May 26, 2011 from








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