David Paez
Analyse how cultural differences affect
international businesses
There are a number of important factors that influence businesses and some of the
ways in which they have an impact. It is worth mentioning that for international
businesses, it is important to make clear assessments about how to change the way
they run the business on these factors is remarkably important. Cultural factors have
a very strong influence on the ways that international businesses operate, including:
Composition of the workforce
The way the workforce is composed will have a big impact on the way that it
operates. The culture, expectations and methods of working are likely to affect the
way that the business operates. International businesses have a certain point of view
about sending workers to a particular country to start trading, according to the
advantages that it brings to the business, or may take the view that they will employ
a local workforce to make sure that they have a better understanding of the local
area and also of the company’s expectations.
Sometimes international businesses may choose, through the existing use of
technology, to have some of their workforce based in one country and some in
another. A good example to support this idea of where this has happened in the past
has been call centres that have been able to operate in India, in collaboration with
call centres run in the UK.
Management style
Management styles in companies in the UK vary extensively. Some businesses
perform a very organised and controlled structure which is best known as an
autocratic management style while other firms prefer going for more discussion and
collaboration. This is known as democratic style. Differences in management style
are very common between businesses in the UK but when it comes to other
countries, cultural factors can affect management styles completely and the impact
of these differences are felt even more strongly.
Contract negotiations
In some countries, corruption is acceptable, while in others it is not even an option.
Negotiating contracts is a key part of a business and this is why being informed of
what is an acceptable business practice in different countries is very important. In the
UK, in 2010, the Bribery Act was passed in order to avoid this practice being used
Analyse how cultural differences affect
international businesses
There are a number of important factors that influence businesses and some of the
ways in which they have an impact. It is worth mentioning that for international
businesses, it is important to make clear assessments about how to change the way
they run the business on these factors is remarkably important. Cultural factors have
a very strong influence on the ways that international businesses operate, including:
Composition of the workforce
The way the workforce is composed will have a big impact on the way that it
operates. The culture, expectations and methods of working are likely to affect the
way that the business operates. International businesses have a certain point of view
about sending workers to a particular country to start trading, according to the
advantages that it brings to the business, or may take the view that they will employ
a local workforce to make sure that they have a better understanding of the local
area and also of the company’s expectations.
Sometimes international businesses may choose, through the existing use of
technology, to have some of their workforce based in one country and some in
another. A good example to support this idea of where this has happened in the past
has been call centres that have been able to operate in India, in collaboration with
call centres run in the UK.
Management style
Management styles in companies in the UK vary extensively. Some businesses
perform a very organised and controlled structure which is best known as an
autocratic management style while other firms prefer going for more discussion and
collaboration. This is known as democratic style. Differences in management style
are very common between businesses in the UK but when it comes to other
countries, cultural factors can affect management styles completely and the impact
of these differences are felt even more strongly.
Contract negotiations
In some countries, corruption is acceptable, while in others it is not even an option.
Negotiating contracts is a key part of a business and this is why being informed of
what is an acceptable business practice in different countries is very important. In the
UK, in 2010, the Bribery Act was passed in order to avoid this practice being used
