Global Marketing Strategy And Its Effect On Firm Performance

So far as international business is concerned, the four dimensions of culture form an important facet. Knowledge of the manner in which different features of a business are viewed in different cultures, can help a manager in understanding and sailing successfully across the international business 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.

There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.

Each country is a different market, with its own language, buying habits, ways of living, mores, business methods, marketing traditions, and laws. So instead of trying to organize new agencies with American personnel, most U.S. agencies purchase a majority. However, U.S agencies are not locked into the differences, because through global marketing, all of people’s needs around the world will be same toward U.S products sold abroad. Global consumer culture also depends upon global media to create a sense of global identify and memory without which any cultural identity is incomplete (Smith 1991).

It is critical to organizations because the employees are from different cultural backgrounds. These distinctions have to be considered when making decisions because they have an impact on formal work relationships and performance. This understanding is more paramount to multinational organizations because they have business operations right at the heart of different cultures in the various countries. The success of global firms depends on how well the management handles the cultural differences and uses them to the advantage of the

Culture is one of the terms that have been becoming more familiar in the 21st century among the multinational companies all around the world. The world has been shrunken by the fasting travelling and communicating technologies which has brought down the barriers for the organisations having business in international market. But still then there are few barriers that make the international business critical and hard for everyone to succeed in it. This is due to the factor that the businesses have direct influence over the culture that is followed in the respective country where the business is carried out. So it would be interesting to

     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

· The firm is less stores in countries and cities in the World. In this industry, the competition is very high because both local and foreign competitors in this market while Global Star Enterprises is quite slow to expand its distribution and open more stores in many countries and cities in the World.

This brings us to diversity and communication throughout the world. The social-culture element includes the norms, values, beliefs and behaviors associated with the demographic characteristics of a given area or region. Multinational companies in particular are faced with the challenge of diverse social cultural differences in the countries in which they operate. Social-cultural considerations are subject to change, so domestic firms must be aware of this aspect of the external environment as well as multinational firms. We live in a diverse world where more than ever communication with the world is key to our business and societies success. One should become more familiar with the world that surrounds us, because we do no surround the world. Our global market continues to grow, and we must do everything in our power to keep up.

Venturing into a foreign market for business mainly involves the crossing of borders and cultures of a host country but does the importance of understanding and behaving in accordance with their business cultures truly impact the success of a firm entering the market? International business enters foreign markets to further expand their reach towards the global markets. Naturally, entering a foreign market with different cultures and regulations would necessitate one 's firm to understand the local culture and address any cultural differences. Having a universalist perspective is inappropriate or frown upon as it limits

For the successful business, it is must to be aware of the culture of international country with we are doing business or trading. Cultural difference in business can aid in building international competencies as well as enabling to get a competitive benefit. It is difficult to be aware of every aspect of the other country’s organisational culture.

The process of globalization has important effects on companies' strategies. These effects mostly refer to their marketing strategies that must be adapted to the increasing competition in most industries, and to the challenges of the business environment. In order to improve their position on the market, some of these companies prefer to expand their business on international level. This means they develop global and domestic marketing strategies.

The increasing innovations and creativity in the business pattern, the cross-cultural business operation, and marketing is increasing day by day. Cross cultural business enables different nations to have a better understanding of global business pattern along with their marketing strategies and tactics that help them to achieve their target in the market place. Moreover, cultures of different nations differ from each other that created the urge for organisations especially multinational corporations to study the culture and life style of other nations before expanding or internationalisation their business organisation.

Business operation in the international arena highly depends on the cultures observed and, how well the business incorporates those cultures in its operations. Considerations of the cultures observed in the locality where operations are to be started and the company's culture is needful. Compatibility between these aspects acts as the prospect factor for success. The

International marketing is practiced in all major corporations, there are a large array of advantages companies can benefit from this and very little to lose. By marketing themselves globally, corporations essentially create multiple business opportunities for themselves worldwide when they recognise the opportunities and strive to inform or meet different consumer needs. Several corporations tend to internationalize when the domestic market is not generating lucrative profits for the corporation compared to the domestic market. For example, in 1994, Apple generated an additional amount of $80 million from the foreign market compared to the local market.