Cultural Factors Affecting Business Development

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Cultural Factors Affecting Business Development

TK Maxx Entering Japan
Individual Report

International Management

SZ376U

Introduction

As with most international products and services decisions an organisation can either adapt or standardise their promotional strategy and message. Basic marketing concepts inform businesses that they will sell more of a product if they aim to meet the needs of their target market. In international markets, consideration of the consumers cultural background, buying habits, levels of personal disposable income etc in order to deliver a tailored marketing mix program to suit their needs. This report will consider the Cultural factors affecting transnational business development if TK Maxx was to enter
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4) Leaving each culture alone

According to Ball et al. (1996), doing business with another culture is not an easy task and to be successful, every foreign company should be aware and follow some rules that make their business activity more compatible. They state that there are six rules of thumb for doing business in another culture. Even if these can be important when doing business in the home country, they become more crucial when going abroad.

These rules consists of:

 Being prepared
 Slow down
 Establish trust
 Understand importance of language
 Respect the culture
 Understand components of culture

Figure 3 is a comparison of Japan and the UK using an up to date Hofstede’s model directly from his official website.

Figure 3

Power Distance (PDI)
Japan is a mildly hierarchical society. Japanese are always conscious of their hierarchical position in any social setting and act accordingly. However, it is not as hierarchical as most of the other Asian cultures. Slow decision making process shows that in Japanese society there is no one top person who can take decision, like in more hierarchical societies. Another example of not so high power distance is that Japan has always been a meritocratic society. There is a strong notion in the Japanese education system that everybody is born equal and anyone can get ahead and become anything
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