Measuring Diversification : A Product and People Allied Approach

‘Stability is built on diversification' – feels organizations and economies stability is totally based on the effectiveness of diversification, because the outlying most objective of the concept called ‘Diversification' is the stability. The 21st century is an era of the globalization of world economy. With the globalization of world business, India has become an appealing market for foreign investors. Hofstede (1993) believes that the spread of businesses onto the global stage brings the issue of national and regional differences to the forefront. "There is something in all countries called 'management', but its meaning differs to a larger or smaller extent from one country to another".It is commonly said that, every manager needs to be aware of three levels of culture that may influence national or international business operations. The major three levels of cultures are national culture, business culture and occupational culture. Under these three heads there are many subcultures. Many countries like India have more than one culture group within the political, business and organizational boundaries. It has been widely accepted that cultural differences greatly affect human thinking and behavior and thus business organizations in which people interact on the basis of shared values. Management is embedded in a wider societal setting, and is heavily influenced by local historical and cultural norms (DiMaggio and Powell, 1983). The way the business would be conducted in Japan would be totally different from how business would be conducted in India