This paper explores the impact that cultural diversity is having on large businesses. It contends that the success of large
firms depends upon their acknowledgment of
cultural diversity within their employee and consumer base. It also asserts that
companies must implement human resource management strategies that take this diversity into consideration. The paper looks at some of the challenges companies face when their work force is multicultural and suggests that companies must upgrade and enhance the cross-cultural skills of company executives and managers in order to maintain a competitive advantage. Also examined are various domestic diversity models developed in order to deal with some of the problems associated with cultural diversity and the ways in which they attempt to redress past grievances, cover the weaknesses of domestic diversity differences, and help organizations avert future problems.