Understanding of National Cultures

Why is an understanding of national cultures important in strategic management? 

Strategic management is the planning process through which company leaders formulate strategies in order to accomplish the mission and objectives of a company.  (Kokemuller, N.).

It is imperative to understanding other cultures.  It is also a great method of learning about the cultures, customs and norms of people and here they originated from.

International trade has become increasingly important and knowledge of their cultures is important to environmental scanning.  Key understanding is important to the formulation of strategy.  Many foreign countries dislike foreigners trying to control their country, example in Saudi Arabia, non-Saudi Arabians cannot own land-so they rent.  Also many countries have rules regarding ownership of companies in industries which are deemed important to the welfare of that country (example US defense industry).  Having a clear understanding of different cultures is essentially important in strategy implementation.  Due to cultural differences, managerial styles, and practices by human resources personnel must be personalized to fit specific situations in other countries.  National culture is also important to evaluation and control.