It starts with globalization and strategy. The strategy makes organization to expand and realize the vision and objective of the company. It is facilitated by the spreading philosophy globalization that facilitates trade. Here, Globalization creates a window of opportunity for the company through its strategic initiative to identify new markets and become a multi-national company. An MNC also requires to establish country specific offices, headquarters or manufacturing setup. These offices require people in the localized cultural background (at floor level) and people are hired. Further, the MNC also needs multi domestic strategy for most the overseas locations. So, localization of the company takes place to be competitive in the market. People with diverse culture and background bring in different ideas and it helps in the facilitation of the innovation.
Besides, a strong linkage among the elements make an internal environment that can efficiently assess the changes in the external business environment. It helps in identifying opportunities and threat that can be treated properly.
Therefore, one element, such as globalisation is strongly linked with another element diversified culture of human resource and they all are the part of the system of the organisation that continuously evaluates the business environment and accommodates necessary changes accordingly. It is very important to do so due to the unpredictable and dynamic nature of the business environment.