Global Cultural Diversity Key Concepts of Article on Airbnb Airbnb is a traveling agency that focuses on hosting travelers in private homes as opposed to booking them into hotels. During its inception, this kind of business model was unheard. Many people were skeptical that tourists would choose to stay with strangers as hosts as opposed to staying in hotels. Many of the venture capitalists that were approached by the founders of the business declined to give financial support. They did not see the viability of the idea, but the founders had a vision and, through persistence, turned Airbnb into the multi-billion-dollar company that it is today. The company is successful because it capitalizes on differences in cultural backgrounds and seeks to demonstrate that there is strength in heterogeneity, and the world can be united. In recent times, Airbnb has faced some challenges that threatened their competitive edge. First, there was the increase in stiff competition from other similar business models, and there was the problem of regulatory hurdles. Proposition F, a San Francisco ballot measure, would limit the ability of residents to rent out rooms in their houses to travelers. Through intensive advertising and assurance to the authorities that the hosts would pay taxes as required, the company was able to overcome this hurdle. …show more content…
It is critical to organizations because the employees are from different cultural backgrounds. These distinctions have to be considered when making decisions because they have an impact on formal work relationships and performance. This understanding is more paramount to multinational organizations because they have business operations right at the heart of different cultures in the various countries. The success of global firms depends on how well the management handles the cultural differences and uses them to the advantage of the
With recent economic crisis (2008), people globally tend to spend less of their money on travel. Regarding the hospitality industry, they would rather look for cheaper accommodation or room. With the crisis also affecting companies, business travelers are keener to find cheaper rooms or apartments to limit their changes.by offering cheap rents, AirBnB is offering an alternative solution to people and businesses, and is a good response to the crisis.
In multinational workplaces understanding how important the significance of cultural differences is larger than we might think. Organizations that are diverse have to work together because their functionality impacts the productivity of the workplace. It is vital to have an understanding the different cultures to develop a strong organization. Certain principles will help you acknowledge that different cultures exist within the organization. As a manager, you have to analyze the reasons for the development of the differences and
Prop F targets websites such as Airbnb, which feature rental listings nation and world-wide. The campaign opposing Proposition F has received a whopping $8.4 m in campaign contributions as of October 2, 2015 out of which 96.6 percent was donated by Airbnb. However this ad campaign has made Airbnb come off as a smug and greedy enterprise, playing
Globalization and technological advancement have dictated the need for managers to deal with multiple ethnic groups with different culture in their day to day interactions. According to Kulkarni (2012), cultures play critical roles in individuals, including values, beliefs, humor, worries, fears, hopes, opinions, attachments, and anxieties.
Managers were concerned about knowing and understanding each and every perspective of their employee’s cultures. As they know that without studying or knowing the culture, coordination cannot be built between the employees. It is the existing perspective of managers dealing with cross-cultural management (Sultana, 2013).
Globalization has brought the world closer in communication, economics, politics, and especially business. The Internet and technological improvements have allowed instantaneous communication almost anywhere, and even poor women in India are using Smartphones to manage their banking portfolios. The idea of globalism continues to break down cultural barriers. As this continues it will be essential for organizations to not only understand, but embrace cultural differences and styles (Trebing and Estabrooks, 2005). Clearly, the changing demands of global stakeholders require new ways of approaching divergent customer bases. There are differences in style, skill, education and attitude in every organization now accentuated when we think of the multi-national organization. Correctly managed, this diversity can be a huge bonus to the organization. Organizations are far more effective once they understand and use diversity within their strategic and tactical planning process. Also, the new paradigm for global management includes creating and maintaining a diverse work environment in which cultural diversity is encourage and celebrated, rather than simply acknowledged (We need to identify and understand how our differences impact our relationships with other employees and customers. We also must create and maintain an inclusive work
Airbnb, Inc. operates an online community marketplace for people to list, discover, and book accommodations worldwide via online
Economic development is defined by the ability to succeed internationally. It is important to understand the dynamic role that culture plays in this development as well as in a business setting. This can be done by realizing that every society has its own set of cultural themes or attributes. These themes have a substantial impact on how that culture does business. Upon doing business cross-culturally a strong management structure is essential. Cross-cultural management is the ability to have successful interactions between clients, customers, suppliers, etc. across cultures and around the world. This management style is important to understand because the work behaviors within this style directly affect the organizations’ successful international ventures and projects. This is why understanding organizational culture in Brazil is the main focus of being successful there.
This paper explores how Airbnb started as a company and the challenges that the company faced as it expanded. The paper focuses on how it overcame the forces in the global environment in managing its global customers. Through management, the company has become successful globally.
Understanding cultural variances in the world of business, is extremely crucial in developing valuable relationships in a global market for your company. Effective communication and the ability to understand how to respond in certain situations, can be vital in your company’s success. It is also important to establish your credibility with proactive behavior, openness, research, and showing flexibly (Bovée & Thill, 2016).
Cultural Quotient is the organizational psychology and management theory, and it is all about the continuous learning and aptitude to develop personally through this learning. The differences in the intercultural do remains in the momentous challenge stage in all multinational organizations. Hence to face the challenge there is a need of a new domain of astuteness which immense relevance to the era of escalating globalization and the workplace diverse. For every manager who deals with the employee’s diverse team, competitors, customers and government this cultural quotient acts as an important tool for the successive outcomes (Earley & Ang, 2003). Moreover it will guide the manager in effective management of cross
It is undeniable that competition in the business area is very fierce. People in the business world must find the best way in order to survive. Business, nowadays, expand their business to other countries as globalization on the rise. They need to remain competitive in a global marketplace with well coordinated and tightly controlled worldwide operations. For multinational enterprises (“MNEs”), the corporate culture is one of the core elements bringing success to its businesses. Yet, cross-cultural conflicts also could hinder the MNEs from optimizing its worldwide operations. In this paper, we will discuss how corporate culture influences
Airbnb is substantial group for the general public who needs to discover, book world class lodging and wide on the web or from a PDA or
With the development of multi-sided technology platforms known as the "sharing economy” have enabled people to use under-utilized inventory via fee-based sharing apps. Users of these apps have eagerly embraced these services offered by companies like AirBnb. These services have grown rapidly and seem to be taking over the hotel industries. At the end of the day, convenience is the most important aspect of why these businesses are so successful. They offer a large amount of inventory at the tip of your fingertip in a convenient app. AirBnb appeals to people who like to travel affordably. These travelers like to enjoy new cities and want to spend their money on exploring and experiencing the city and not spend all of their money on hotels. Meanwhile, the hosts are owners or renters who are willing to rent out their places for a fee. Some do it to make more money, others do it because
Managing a diverse workforce assists in creating a vivacious and assorted business team with opportunities and challenges for people of all aptitudes and experiences, besides host country nationals. In addition, by managing a diverse workforce assists in the facilitation of change in a country’s normal operating business practices. According to Hofstede’s dimensions of culture model, one could better understand the challenges faced by multinational managers in regards to human resource management, leadership style, motivational assumptions, decision-making, organizational design, and how culture can affect strategy implementation (Cullen & Parboteeah, 2014, p. 52). Furthermore, one can imagine how important manger actions and behavior are in educating future business leaders on how important it is to have a global mindset (“Social,” 2014). Lastly, although some consider the challenges mentioned obstacles, one could also consider finding opportunities in learning and progressing as a manager by being flexible and knowledgeable about different business possibilities and styles.