Understanding the Business Environment of the Firm

Ghemawat (2001)’s CAGE Framework

Cultural Differences

Three key points

  • Managers are not necessarily trained to handle the multicultural situations that develop at an unprecedented speed in the 21st century
  • The art of management is traditionally understood as the exercise of power and responsibility, but it is rather the ability to manage cultural differences
  • The question is not only to know how to modulate its own culture and its modes of management to make them acceptable to the culture of the other, but also to know how to benefit from the differences