Understanding National Culture And How Relevant Is Important Essay

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.

Given this, the main target of this essay is to analyse the main approaches to understanding national culture and how relevant is such an understanding to an internationalising firm.

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

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 set of norms, behaviors, beliefs and customs that exist within the population of a sovereign nation. International companies develop management and other practices in accordance with the national culture they are operating in”

Culture in its many forms and approaches is a very popular subject researched by many authors. The definition of culture from Geert Hofstede, the most cited social scientist according to Powell (2006) comes as "the collective programming of the mind that distinguishes the members of one group or category of humans from another". (1982) He mentions that these differences exist in nations, geographic regions, generations, genders, social classes and many more. As Hofstede simply puts it, "the unwritten rules of

Using appropriate theories critically analyse the role of culture in International Business. Support your answer by quoting relevant examples from the case study.

The escalation of globalization in recent times has brought a phenomenal change in the market and business. The argument that arises is how and where the firm should enter the comprehensive arcade. The research into international business has become an active area of study over the last four decades and is likely to become even more so, as the procedure of economic globalization accelerates into the future. The most fascinating and current are the issues relating to national culture and its outcomes on business process (Venaik and Brewer, 2008).

Interest in the business culture of the world originated over 20 years ago, but that does not mean that it did not exist before. The formation of the culture of any country is influenced by many factors, such as historical events, life, education of parents, lifestyle, ethnicity, tradition and religion. Even the language in which to communicate in the country, has a very important role. It was he who determines the structure of thinking people belonging to the same society. This leads to the fact that people who speak different native languages under the influence of more and different cultural values, often do not understand each other. Many of these factors that people face every day and do not pay attention to them, have a strong impact on them, resulting in the formation in a certain society, its concepts, habits and norms. Different geographical locations and climatic zones as well leave their imprint on the development and formation of different national cultures.

When one talks about culture, we think of something that we actually cannot see, the environment which surrounds us in particular organizations, behavior of the people in organizations, the rites and rituals of the companies, the climate of the companies, and so on. These are all manifestations of the culture, but none is the culture at the level where culture matters. A better way to think about culture is to realize that culture exists at different “levels” where it helps to determine strategy, goals, and models of operating.

Cultural differences play an important role in intercultural communication. The statement that effective business depends on knowledge of mentality is broadly discussed not only by sociologists but also by economists and international companies’ managers. Corporate culture became a term widely used to describe the way of particular company employees’ behavior at a workplace. Also, this term is used by human resources managers to name a set of behavior rules, which they hope to introduce to the companies. Promoting a corporate culture is an effective way to create a strong organization. It can be done through enhancing the sense of community within the company. And a sense of community is a sense of shared identity. Therefore, the question of national identity needs a thorough analysis as it is a key issue to gain success in a globalized world.

Culture is described as a set of shared attitudes, values, goals, and practices that set apart itself from the others. When a company establishes a business in another country, they must keep in mind the different cultures. There might be a difference in communication, religion, ethics, and values that a company shall adapt too in order to be successful. If the local culture is ignored, it could result in an unsuccessful business, protests, or boycott of the company’s goods and services. Companies that are interested growing internationally have to spend the time and money researching and gathering data about the different cultures before establishing their business. Not only does the company have the responsibility of having to respect the different cultures but also their own when conducting business internationally. One of the biggest struggles of

Understanding different cultures is an important aspect for managers to grasp. The way one represents them, can have everlasting impacts on how a company is perceived. For this reason, it is important to understand the demographic of people you are trying to reach, and take the necessary precautions to not offend the culture of others. As mentioned by NACHC (2008) culture can be defined as different social practices, forms of expression, and different values. The impression that one receives from individuals of a culture, may influence the way they are seen by members of a different culture.