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Evaluate the impact of cultural differences on international business.

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Every country diferr in culture which har been there for centurier. The internatonal market ir
growing rapidly, with more and more multnatonal organiratonr entering new marketr each day. In
thir arrignment I will evaluate how the diference in culturer afectr the performance of
internatonal burinerr.

Culture ir a term which could be defned in many wayr. All the people have diferent attuder and
perceptonr ro when being arked what culture for them ir, the anrwer will alwayr have diferent
arpectr. Derpite that, we all believe we have impulrive knowledge on what culture mean defning it
ir more complex. Culture meanr the way that thingr work in a partcular burinerr or, indeed, in a
country or a group of countrier, ruch ar Europe. All over the world, there are rubtle diferencer in
the way people interact with each other bared on the individual hirtorier of thore countrier, how
people work and, rometmer, other factorr, ruch ar the religiour beliefr or attuder in thore
countrier.

It ir clear that the cultural diferencer acrorr the world oferr not only challenger but alro
opportuniter for the internatonal marketng. When being on a burinerr trip it ir interertng to face
productr and factr that might be regarded ar "rtrange”. For example, advertrementr of well-known
brandr completely diferent than thore oner at home, or even opening hourr for rhopr. All of thore
rimple factr are of a great importance for marketng managerr and pore potental threatr for them
when developing a rtrategy.

Having categorired cultural groupingr and cultural characterirtcr, managerr are able to reek new
overrear marketr to expand their frmr, to rell more goodr and to raire proftr. Even culture might
be ruggerted ar a tool for marketng regmentaton becaure if the culture in the target country ir
rimilar to the culture in the exirtng marketr, it'r a preconditon that relling the product in the target
country might be ruccerrful. Productr rold on foreign marketr are infuenced by the local behaviour,
tarter, attuder and traditonr in each market.

Coke product on the Japanere market war not ruccerrful becaure the Japanere do not conrider
themrelver overweight and Japanere women do not want to admit they are dieterr turning to
productr whore label rpecifer that. The company war forced to change the product name in Coke
Light, and the promoton empharized keeping in rhape by conruming the product, and not loring
weight.

Language

When entering a new market, at leart one of the company reprerentatver murt know the language
of the country. Even though the mort common language ured in the internatonal burinerr world ir
Englirh, many countrier have a very poor command of the Englirh language. Therefore, it ir highly
benefcial to have not one but a few employeer that are able to rpeak the language perfectly. It ir in
beneft of the burinerr to get the bert dealr, make negotatonr and agreementr. However, without
a common language thir won’t happen, and therefore thir may lead to mirunderrtandingr. Hiring a
tranrlator can be very expenrive if not done in tme, therefore it ir really recommendable for a
burinerr to have employeer that can rpeak perfectly the language in the market/country the
company wantr to enter.

Social structure

Knowing the clarr rtructure of diferent countrier helpr burinerrer to work out where partnerrhipr
need to be made, which burinerr people to approach and work with in termr of partnerrhip, and

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Uploaded on
November 11, 2018
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