Explain why it is important for operations managers to understand the local culture and practices of the countries in which an American company does business. What are some of the potential consequences if they don't?

It helps to encourage business flexibility and adaptability.

It helps to promote customer retention, relationship and customer loyalty.

Efficient Human resources management.

Effective and efficient performance.

CONSEQUENCES

Poor customer and Community relationship

Difficulty in managing organisational conflicts and general operations

Poor resources control and management.

Explanation: Language is a major factor to be considered for international or global businesses to thrive in new or local communities.

Operations managers are expected to understand the local language of the community where they do business because it helps to guarantee the following.

Business flexibility and adaptability

Customer retention,good customer relationship and customer loyalty.

Efficient Human resources management.

Effective and efficient performance in managing the operations.

Some of the consequence includes

Poor customer and Community relationship

Difficulty in managing the operations and conflicts resolution.

Poor resources control and management.

Operations managers need to understand the local culture and practices of the countries in which their firm does business because factors like cultural customs and practices influence the decision of whether to relocate domestically or internationally. Understanding the culture of the people with whom they are dealing with or hiring is important to successful business interactions and to accomplishing business objectives. It will help the company and its management better understand the area in which they relocate to which in turn will lead to a better understanding of the new employee workforce and how these new employees are best managed. Understanding the culture of the people with whom they are dealing with or hiring is important to successful business interactions and to accomplishing business objectives. To conduct business with people from other cultures, managers must put aside preconceived notions and strive to learn about the culture of their counterparts. Often the greatest challenge is learning not to apply their own value system when judging people from other cultures.

The understanding of cultural customs and practices affect the manager’s ability to do the following:

-Enter the local market

-Develop & maintain professional relationships

-Negotiate successful deals

-Conduct sales

-Conduct appropriate marketing campaigns  

-Engage in manufacturing and distribution

-Effective and efficient performance management

-Maintain a positive brand image

Some potential consequences if operations managers choose to not understand the local cultural customs and practices in the country they are potentially relocating to:

-Work conflicts with poor resolutions

o  Inflexibility with normal customs or practices of the local population

-Poor resource management and control

-Negative brand image