This report will detail cross-cultural issues that may be faced when a firm does business within the borders of the highly populist country. With the emergence of the WTO (World Trade Organization) international trade drastically increased allowing countries to participate in foreign trade in turn raising the GDP (Gross Domestic Profit) and exposing their products to a broader audience. Not only are countries able to trade standard goods and services, they are able to expose specialty and cultural products across the globe giving an insight to daily life’s of it citizens and rich history. Although Trade Agencies such as the WTO have greatly expanded the reach and created a somewhat level playing field they are still facing barriers such as government policies, economic conditions, tax’s/tariffs, and cross cultural issues.…
Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely follow. The most successful of these companies are the ones that acknowledge the cross-cultural differences between Chinese and American lifestyles and find a way to embrace and cooperate with those differences. Those that fail to grasp these important differences often fail.…
One of the most memorable cultural miscalculations in recent memory happened during the first few minutes of President Richard M. Nixon’s visit to Brazil. After landing in Brazil, for whatever reason, Dick decided to express his pleasure with the “A-Okay” hand sign. One can only assume that the leader of the free-world did not intend to “flip-off” or give “the bird” to a friendly nation, but that’s exactly what his gesture meant in Brazil. Perhaps the Brazilian people understood its other meaning in the United States, realizing that Nixon didn’t know better, but it certainly left a negative impression, and it was a BIG deal. (Wade, 2004) Cultural differences need to be considered in international business just the same as politics. In this study, well explore cultural miscalculations made by two international businesses, then we’ll examine one approach toward managing cultural issues in foreign markets, and finally, recommendations for businesses trying to understand cultural differences and avoid mistakes.…
Completing this assignment will enable you to see how the key concepts presented in Lessons 1 through 3—globalization, culture, and political and economic risk—are interconnected. You will be able to evaluate interrelationships among issues related to (i) globalization; (ii) political climate in a company's home country and the host country; (iii) the role of political risk in investment decisions and company operations; (iv) the role of national culture in company operations; and (v) the role of economic environment in creating global companies.…
As companies expand into new markets and globalization becomes more and more a part of world economics, cultural dilemmas are sure to surface. Different cultures have developed different sets of values, laws, regulations, attitudes, and ethics. Communication styles, ways of conducting business, and etiquette can vary drastically from culture to culture. Something as simple as a common hand gesture can have a completely opposite meaning from on nation to another. Due to these cultural differences, organizations must be very careful when expanding their enterprise into new countries.…
Q1. Culture gives meaning to objects and activities, such as food and cooking. How does TT Supermarket give a different meaning to food and cooking, as compared with a more conventional Loblaws Superstore Compared to a more conventional Loblaws Superstore, TT Supermarket provides customers with unique, even entertaining shopping experience. For example, in TT supermarket, there is a wide variety of seafood including different kinds of live fish in the tank. Consumers can pick up what they want easily, which is a kind of adventure and discovery. Besides, TT Supermarket provides free trials customers can try different types of food samples to make decision to purchase. Q2. Looking at the core societal values (CSVs) for Canada and China, how is TT Supermarkets market positioning tapping into differences between the two cultures According to the CSV scoreboard in the textbook, we can see clearly that Canada and China are quite different in three perspectives power distance, individualism and long-term orientation. Take the first difference for example, highly individualistic societies place high value on self-reliance and personal achievement while highly collectivistic societies tend to live in extended families and be very loyal to these groups. So TT Supermarket balance both segmentation when positions its market. For the Asian Canadians, TT Supermarket focuses on family, friendly and honest. For the local Canadians, TT Supermarket focus on personal freedom. Besides, the power distance in China is relatively high compared with that in Canada, so TT Supermarket position its customers not based on the status or class but treat every customer equally. Q3. What role are enculturation and acculturation playing in TT Supermarkets success TT Supermarket not only serves the traditional needs of the rapidly growing Asian Canadian population which is a process of enculturation for Asian Canadian but introduces Asian food to consumers from different background which is a…
This paper is about understanding and achieving cultural balance in society. This paper will evaluate and generate reasons why people may not appreciate the cultural point of views of others. Also, this paper will discuss how to achieve cultural balance in a multinational corporation setting. Lastly, this paper will provide steps that Nestle can take and discuss policies that can be put in place to help the company achieve global success.…
In this paper, I will focus on the cultural issues, which American investors wishing to venture into the Chinese market need to learn. It has been noted that different countries have different cultural backgrounds and organizations need to understand the culture, economy, and politics of a foreign country before venturing into that…
Special Topics in Management – Assignment 2 (Individual) Please read the case study titled: Heineken: what’s the best strategy? Build brands or acquire companies? This case study has been uploaded on moodle. Answer all questions. Question 1: What are the advantages of acquisitions in building global reach? And what are the problems? (200 words) Question 2: Would you recommend following the Heineken strategy or the strategy of its rivals? (200 words) Question 3: You are based in South Africa, and have been assigned to negotiate a business deal with the representatives of a potential distributor for Heineken in China. Since having intercultural skills is critical for a successful international experience, you consider collecting information regarding the local culture before your departure. Prepare a short description of the most striking cultural characteristics involved in communicating with the local people that may affect business interactions in China (600 words) Additional Information for question 3: GlobalEDGE features numerous websites that provide detailed cultural background information for a variety of countries. All of these resources are located under the “Culture” section of the Reference Desk. One of such sources is the Centre for Intercultural Learning. This resource can be also be accessed by using the search phrase “intercultural skills” at http://globalEDGE.msu.edu/ReferenceDesk/. Once on the Centre for Intercultural Learning website, click on “Country Insights” and select “South Africa” from the country list. Cultural information can be obtained by selecting a cultural topic from the drop down menu (Do the same to find information about China). Search Phrase: “Intercultural Skills” Resource Name: Mexico: Centre for Intercultural Learning Website: http://www.dfait-maeci.gc.ca/cfsi-icse/cil-cai/ Assignment Requirements Typing requirements, Times New Roman, 12pt, 1.5 line, Spacing, 2.54 margins all round, fully justified.…
2005 will mark the 100-year anniversary of the first pizzeria in America. Americans eat approximately 100 acres of pizza each day, which is about 350 slices per second. According to an American Dairy Association random sampling survey, pizza is America 's fourth most craved food behind cheese, chocolate, and ice cream. American 's obviously love pizza; we have even designated the month of October as National Pizza Month. But whether you bake your pizza in your kitchen oven, in a wood-burning stove, eat it in a restaurant, or choose delivery, there is no denying this phenomenon has become as American as apple pie.…
Running an international business is different from running a domestic business. International business requires you to recognise and understand the cultural differences between countries. Failing to recognise and understand this difference could possibly lead to many difficulties, or worse still, failure. In this essay, I will be discussing the difficulties that Best Buy Co. Inc. faced, and its eventual failure due to the lack of understanding of the cultural differences in its host country, China.…
Culture affects every aspect of a human life. It is also very important while making a managerial decision. The case presented in chapter 5 proves that being born in the Western or Japanese culture determines a lot our attitude to decision-making with all its consequences.…
Cultural elements within a business affect the way strategy is determined, goals are established and how the organization operates as an entity. Not only are decisions made as a group/community effort, but it is stemmed from cultural beliefs/practice/ways of living, which varies on a global context. In today’s global market place cultural differences across countries have a significant impact on business decision making; this is manifested in or through most functional areas of businesses including marketing, human resources and finance. Each function within a company has its own roles and responsibilities which contribute to the business’ overall success.…
Every nation has different cultures and systems for conducting business. In order for globalization to be successful all cultures have to be incorporated and combined into the business world. There are particular dimensions of culture that can impact globalized business between nations. The main dimensions of culture that can impact globalized business are languages, communication, values, dress code, etiquette, time, education, and politics. Italy is a nation that is centered on family relationships, trust, and socialization. Locals in Italy integrate these elements and dimensions into conducting business. The culture and business in the United States compares to and different from the elements and dimension, along with the integration by locals in Italy. Then the paper will discuss implications for United States businesses that wish to conduct business in this…
There are many frameworks that help characterize the differences between different cultures and the way people communicate across different cultures. In our paper we will focus on the differences between Korean and American cultures and what effect these differences might have on conducting business between both sides. We will concentrate on a failure business case of Wal-Mart entry and withdrawl for the Korean market to explore these differences.…