The world is made of nations and people who share different values, customs, languages and geographic territories. These diversities, also known as culture, have proven to be the norm that binds or separates them. Carlson and Blodgett (1997) explain culture as different ways, sets of manners and customs that are unique to a society or a group of people. Cultural issues encompass the elements of norms, traditions, materialistic and spiritual of a group of people (Czinkota & Ronkainen, 2013). Understanding culture is possible only through human activities and how they act as individuals or members of a group (Coulter, 2010). As businesses enter international market, cultural diversity plays a major role in formulating international marketing strategies. They need to consider differences in national cultures, subcultures and how individuals in such cultures interact with each other and outsiders. This is due to the fact that culture is the main factor that contribute to today’s major conflict aside of material resources and negotiable interests (Avruch, 2002). The diverse cultures tendencies always give rise to ethical issues as one cultural belief may not be the norm or acceptable behaviors for another. The failure to take cultural differences between countries into account has been the cause of many business failures (Ricks, 1993). The purpose of this paper is to showcase instances where cultural issues that were misunderstood proved to be blunders for
International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.
America is greatly influenced and enhanced by the many versatile cultures which inhabit it. Cultural diversity has added to our economy in such a way that it brings innovated ideas and contact structures throughout the world. International cuisines have come to America through subcultures, have expanded the food industry, and have allowed English Americans to try new foods and flavors. Immigrants have brought with them religious values that greatly differ and vary from those at which were natural in the main stream American culture. The educational development through foreign nationals has led America, as a nation, to excel and be deemed one of the most intelligent nations in the world! Consequently, the subcultures have kept our
Since people and customers to be specific come from different cultural backgrounds, considering and understanding the cultural background and practices of every market niche. In ensuring that the organizational activities do not conflict with the cultures of clients and that they suit the needs of the cultures, the following would be done by the organization;
1. Should he pay the “commission” and, if so, to whom? Explain your reasoning. If he pays, how should he handle the situation with the sales manager and the vice president of sales? In your answer, include a discussion of the arguments in favor of paying and the arguments in favor of not paying.
Cultural differences between nations often require a company to have multiple marketing strategies. What may be acceptable in on country may not be acceptable in another country. The cultural differences require companies to develop marketing plans that are suitable for each individual culture. Not being aware of and understanding the cultural differences can create costly and embarrassing errors that may actually offend those in other countries. Cultural differences can affect the colors of products, the graphics used on packaging, and how the product is communicated to the foreign target market.
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
Task 2c: Evaluate the impact of cultural differences on international business performance in the international market D2
Global markets vary about their level of development. Also, the kind of products sold in each of these markets will differ depending on the degree of development. Language and cultural affinity are vital in global markets. Culture comprises everything from the way of thinking and doing business to the consumption arrangements of the people. Therefore, understanding the culture is essential as it accords clues on how to do business in such nations. In some countries, there exists a natural hostility to foreigners as well as foreign business. Also, culture commands the approach to dealing. For instance, in the United States as well as Western nations, they are approaching in communicating their lack of ability to accept the products, whereas, in the eastern nations, they are more circumspect (Havaldar, 2014). Aspects including punctuality, the procedures as well as civilities in carrying out business, the negotiation course, and even dressing differ from culture to culture, and these aspects should be understood to succeed in such a setting. One different between the western and eastern nations is that the countries of the east tend to be punctual an aspect that can be
Introduction: There are around 196 countries in the world and the cultures and values differ between the different countries. There are still similarities in some of the culture traits. In today’s world people are more willing to engage in global business and for this reason they need to be able to adapt to the different cultures. As the cultures vary from country to country, people around the world may face many difficulties during their communication. Many businesses have failed due to the fact that they failed to fully assess the market they were entering in. The paper will portray three different approaches that will aid in understanding cultural differences that can be utilized as effective tools in conducting global business. These approaches are known as the context approach, the cluster approach and the dimension approach.
Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place
Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum
In international business the topics of diversity and culture is one the most important strategy that needs be address. Making the decision to outsource for profit gain will not necessarily happen if preparation of cultural change is not in place first. What is values and a norms in a company’s country may be offensive to other social groups of people. For example, in Germany lack of attention to diversity and culture had a serious impacts on Walmart’s position. It build frustrations to both the employees and customers that played a major role in the downfall of Walmart in Germany.
When a business decides to venture internationally into different countries with its products, services, and operations, it is very important that the company gains an understanding of how the culture of the different societies affects the values found in those societies. Geert Hofstede conducted one of the most famous and most used studies on how culture relates to values. Hofstede study enabled him to compare dimensions of culture across 40 countries. He originally isolated four dimensions of what he claimed summarized different cultures — power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininity (Hill, 2013, p.110). To cover aspects of values not discussed in the original paradigm Hofstede has since added two more dimensions — Confucianism or long-term orientation and indulgence versus self-restraint (Hofstede, n.d.). Because of the way Hofstede’s cultural dimensions are given an index score from 0-100, it is easy for a company to get a general comparison between the cultures they are expanding into and the culture they are already in.
A society 's social structure refers to its basic social organization. Two dimensions stand out when explaining differences between cultures. The first is the degree to which the basic unit of social organization is the individual, as opposed to
“It’s a small world,” is an expression that has been used for a long time to describe how connected the people of the world can be in spite of the vast geographical distance that might exist. This sense of connection is due, in part, to the actions that exist in the business sector and the globalization of business and industry. As organizations strive to remain competitive, many recognize the necessity of global outreach in order to sustain a strong presence throughout the world. There are many opportunities and challenges facing businesses with an eye toward global outreach.