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Cultural Diversity as a Source of Competitive Advantage

Employing team members from around the world for a single, collective effort may allow organizations to achieve cost savings and maximize the impact of human resources. This implies that a manager's ability and skill to create and manage multinational teams is a significant factor in enabling an organization to realize its goals and visions.

What evidence is there to suggest that cultural diversity in a company can be a source of competitive advantage? How can this potential be realized in practice and what are the main difficulties involved? Finally, how do you interpret the concepts of e-ethical leadership and practice in light of what you know about cross-cultural management, and how can these concepts by effectively applied to cross-cultural teams?

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Cross Culture Diversity


There are various evidences like Intel that reflects the implications of using cultural diversity of workforce within the organization as a source of competitive advantage in terms of creative advantage, innovation, reducing cost, and increasing sales and profits (DuBrin, 2008). The culture workforce diversity plays an important role in creating and ensuring the success of Intel in international business. The team combination of skills and talent by Intel management from different backgrounds, areas of expertise, geographies, culture, and previous work experience has resulted in the achievement of competitive business advantage, an unparalleled reduction in outings, innovative benefits , and zero percent undesired turnover rates since 2001 (Intel, 2010).

Similarly, the culture workforce diversity helps to achieve the vision and social responsibility goals of Coca Cola (Coca Cola, 2010). In Coca Cola, the culture diversity helps to increase creativity, flexibility, problem solving skills, and understanding of political, social, legal, economic, and culture environment. The management of Coca Cola works to create a cross culture environment in workforce that ...

Solution Summary

The solution discusses cultural diversity as a source of competitive advantage.