Cultural Difference In International Business

Native culture and their significance in international management

Discuss about the Cultural Difference in International Business for Countries.

Globalization and internationalization has become more vital for the world. More and more companies want to involve in its process and look for expanding tier business progressively through enter in the new market. Due to globalization various cultures are involved under the roof. While there is several way to explain the culture, but in the context of international business, what is common and acceptable for the employee who are belonging with the same country, could be different from those who belongs to oversees (Fernandez-Feijoo, Belen, Silvia Romero, and Ruiz, 2014). There can be various issues in the organization; it is the research which has been conducted to find the issue in the context of international business. Recognizing and understanding how culture influence the international business in three core areas such as communication, etiquette and hierarchy of organization can be helpful for the organization and employees to know more about the colleagues and clients from abroad in an environment of globalization. Effective communication is considered as the important part for the business venture but it may lose the importance if the translation and the way of conveying are not understandable for others. English is the major language which is accepted by many international companies. But the more concern about the language is that the message should be conveyed in an efficient manner. Fluent English should be necessary for the international business because it boost globally.

Globalization and various business activities of huge companies connect the culture and nations of world. On the other hand it disposes insightful differences between nationalities and individual on the level of communities and organization. The concept of culture has various meaning but the culture stands for civilization. In addition it is a social phenomenon which is common for people remaining in a social environment. The differences in cultural can be frustrating for the businessman. In the case of ignorance, non-acceptance and braking promising negotiations may be the reason of social blunders for international business. The fundamental dimensions of national cultures are individualism versus collectivism, attitudes towards time and environment, ascribed status versus attained outcomes, attitude towards regulations and principles and holistic perception of the people toward international business which is helpful to differentiate (Crane, Andrew, and Matten, 2016).

Business strategy is most important fundamental for the growth of the business. In the economy of market, make effective business strategy is considered as the success. The strategy of the success contains mainly four elements in the business that is strategic supremacy, domain of activity, functional programs and goals to achieve. Cultural differences are shown in the awareness in the context of desired product appearance and its characteristics (Srinivasan, 2015). For instance, the meaning and the way of talking of color is different in different countries. A similar issues cab happen with the utilization of names of brand and ignorance of articles which may lead to a business in different perception of a product. There are two major components of international management that is international bonding and negotiation relations. However, it carries more difficulty when negotiations came on between legislatures of two various political, cultures, currency system and legal, it may influence on the entire process of negotiations and techniques. It is important for the international business to take consideration about the gender barriers while forming the business strategy. It has been analyzed that the country that follow hierarchal, women get higher respects and positions in the organization (Lattimer, 2011). In the context of some country, women are not so much desirable in the world of business. It has been observed that there are some countries in which men are considered on the basis of priority in comparison of women, these countries are Saudi Arabia, Republic of Korea and Japan, men are the ones who get success sooner, whereas women are cont considered equally to men and seldom succeed in the sphere of commercial.

Creating a business strategy in the management of international

Young digital planet is a company that runs international business since 1990. It is the company that focus on to develop the training and educational system based on the technology of information, business and the institutes of educational. Young digital planet is the leader of global that provides software of interactive foreign language learning. Recently, it produces the projects of successive nature and sustains it leading position in all over the world. It is a worldwide distributor of English for Children, Business English, LEO platform, eduROM and similar application programs compiled to order. It is the business which has been spreader in all over the world and it has partners in France, Norway, Germany, Malaysia, Holland and Great Britain. Organization is continuously widening its business, it come upon many differences in cultural. A brief detailed of several countries cooperating with the organization is shown below. The overview defines to business relations in the term of cultural differences.

People of Asian countries are very prompt; a service provider in negotiation of commercial is a partner, rather than a rival, even if treated with disloyalty. To attain the trust of Asians, the manager of YDP need to cooperate with them and host them I order to create the strong trust and understanding. YDP gives opportunity to Malaysian to understand the project of YDP. There is some mistakes has been concerned in the context of cultural differences between Malaysia and Poland that were found in the programs of computer for children. It introduced a program in which teacher teaches the student with a specific object. Another instance of a cultural difference is that in Malaysia, boys with ruffled hair are not allowed to use multimedia products.

A religion has wider influence on the way of getting decisions by the people of Arabians. Therefore, it should be avoided by new business and existing business to carry negotiations during the month of Ramadan. The technique of negotiations in UAE is based on open door policy which refers to the door of negotiations are open for anybody, even for them who do not involve in the business ever, which significantly even to talks (Stromquist, Nelly and Monkman, 2014). In the order of manufacturing the product for the market of Arabian, company need to analyze first the information about the market. Additionally, it is observed that green colors in the product are prohibited in the UAE which refers to scare meaning for Muslims.

Differences in cultural in the radiance of the experiences of the young digital planet company

The businessman of British, carried up in a culture of monochromatic, is majorly centered on the transactions. The mind thinking of British is autonomously and they are punctual, however reserved. The citizen of British gives lot of importance to their nationality and equality, the multiculturalism of their country. For instance, when YDP develop a program for the children of British with including various pictures, they were reproached by British customers. Another factor is finance in the context of cooperating. Being one of the most expensive countries in the Europe creates it inaccessible in the term of financially (Poulis, Konstantinos, Poulis, and Plakoyiannaki, 2014).

It is important for the manager of the organization to have the knowledge about the culture of organization. It has been analyzed that the job satisfaction level of employee in the comparison of Japan, US is strong (Katan & David, 2014). It is essential for the organization of Japan to ensure their employees that they are working under safer place and use certain motivation techniques to enthusiasm them. The value of cultural understanding in the growth of international companies is shown from the strategies of marketing which are grounded in the cultures of the target market. A company which has weak understanding of the target market can commit with terrible mistakes in growing the strategy of marketing by building advertisements which affront people due to unacceptable culture content (Samaha, Stephen, Joshua, and Palmatier, 2014).

Companies which do not give preference to the culture of targeted region frequently develop marketing strategies which is not able to attract the attention of customers towards the business products. There are various examples of culturally irreconcilable marketing content that is use of symbol of owl in the advertisement in India where it refers to a symbol of bad luck and in the context of Thailand the symbol of animal refers to be lower forms of life.

There are so many issues arise while doing business with other country there are some recommendations has been suggested which should be followed and understood by an  organization before entering into new market. As per Sylwester, (2014), the policy regarding negotiation in South America has certain specific characteristics. It has been analyzed based on negotiators’ experience in Sweden. It is the case which refers the manager at Andritz, have had when they were with business contact in Chile, Uruguay and Brazil. in the country of Brazil it is normal with standing near and it is allowed to each other on the shoulder. But this manner is followed by some people and depends on the mood of them. In actual that person stands closely while conversation is considered as the foreign manner. People of South America are firm to interact with people in comparison of Sweden (Adler, Nancy and Graham, 2017).

When if talk about pricing, culture can affect the negotiation and country do not know that what price is acceptable. In case of country has the high margins related to bargaining, it can be the problematic reason. In the country of South America, the duping of price is acceptable, while if talk about Europe and Chile, it is not considered as the same. In the term of Chile, it would be the bad idea to keep the high rate of products in the beginning because the population of the Chile is not used to do bargaining as Brazil’ people do. Culture of different countries may impact the negotiations in various forms. It has been mentioned by Deresky & Helen, (2017), that issues can be contract and language and that people can have different attitudes and manners what others are used to. Culture is a vital issue throughout the whole process of negotiations and majorly in the beginning. It is hard to change the perception of someone to others which have been made earlier. The process of price negotiation in Brazil is more different in comparison of Sweden. In Brazil, people used to do long discussion and bargaining in the price which is considered as more complex in comparison of Sweden. The margins become larger when it comes in the form of bargaining and that is why it s more time demanding. Due to this process the price of product would be very different at the end in comparison of beginning. It has been analyzed that the price strategy in Chile is different and the margin rate is lower. It is necessary for the new business that going to new market to analyze the environmental analysis of new market and set the targeted market.  Differentiation in culture may hamper the situation of an organization (Moran, Robert , Abramson, and Moran, 2017).

Conclusion

It has been concluded that culture influence the marketing strategy of every country. The research has been reflected that culture is able to influence the process of negotiation and the price negotiation as well. it is important for the company that is going abroad, culture of that organization should be considered as vital issues because it may influence the huge organization in the abroad. The discussion has been made by taking various countries which will be helpful to understand the different concept of different countries in well manner. It has been recommended that before going start up the business in the abroad, one should have the knowledge about the culture and should be good at their native language.

References

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