P7-The cultural differences affecting international businesses.
Cultural factors
Coca-Cola and Tesco should consider adopting different languages as they operate
in international markets; to communicate with suppliers, investors, partners, and
consumers, both businesses must use the right language. For instance, Coca-Cola
and Tesco in China, both businesses should be speaking to consumers and their
Government (due to exporting) using native langue to make their communications
understandable, clearer, and effective. In addition to that, adapting international
languages will able Coca-Cola and Tesco to build trust and appreciation of various
perspectives, prevent misunderstandings and most importantly, build teams who’re
made up of employees from extensive geographical locations.
The ethnic make-up of populations, different countries have dissimilar numbers of
ethnic groups which have an influence on Coca-Cola and Tesco’s international
operation. Additionally, the ethnic make-up of a certain country could affect whether
Coca-Cola and Tesco’s product or service will be popular or not and if there’s a high
or low demand. Since there are huge distinctions between countries, both
businesses should respond to their needs and wants. For instance, Tesco should put
more spices in their products which will be sold in India, whilst sell more oriental food
in Malaysia.
According to (O' Brien, 2018), Social structures/classes are divided into
seven segments involving Precariat, Traditional Working Class, Emergent Service
Workers, Technical Middle Class, New Affluent Workers, Established Middle Class
and Elite. Knowing the social structures/classes of different counties that Coca-Cola
and Tesco operate in allows them to understand the right pricing strategies they
should offer, or where partnerships must be made; getting an understanding is also
beneficial to them on improving the specific targeted publicising and advertisements
for their products and services based on the social classes of those countries.
There are several types of religions globally, each religion has certain rules and its
own influence over their worshipers. In some religions such as Buddhism and Islam,
alcohol is not tolerable; therefore, if Tesco is operating in countries who have these
two religions, there’ll be some negative impacts on their sales revenue and
profitability from alcohol.
The values of individuals in various countries influence the way they trade, their
values may come from historical cultures and traditions, and how they’ve been
brought up. According to (WorldAtlas, 2018), there are 20 countries that bribes are
acceptable which includes Pakistan since Tesco is getting their supplies and goods
from this country, bribing them is tolerable and may benefit Tesco’s security and
international trade. Homogenously to Coca-Cola, as they’re operating in almost all
the countries they could also give bribes to help them remain and reduce the barriers
to trade. Nonetheless, If Coca-Cola may wish to bribe in countries like UK and
Europe, it’s considered as illegal and might have consequences as the public
declared that businesses should be treated equally.
, Attitudes to business, If Tesco may wish to expand or if Coca-Cola has
propositions in countries or like Japan and Mexico it would be problematic in terms of
the importance of timing. Regarding time, Japanese are utterly strict when it comes
to punctuality, whilst in Mexico, it’s perfectly allowable to attend business meetings
late. Therefore, Coca-Cola and Tesco should see the difference of the attitude to
business to avoid dissatisfying their potential partners.
Every country has different attitudes to work involving average working hours and
weeks, public holidays, a minimum number of days paid leave. For instance, in
countries like China and South Korean, people are willing to work 24/7, whilst in the
UK there’s a specific number of working hours that businesses need to comply. In
addition, different countries have various public holidays, where people might stay at
home or stay at work for longer hours due to holiday seasons.
Openness to change
Due to changes in trends worldwide, Coca-Cola and Tesco adapted and created
new products to respond to these changes. For instance, Coca-Cola introduced their
vending machine which consumers can purchase their products through swiping
their mobile phones on the scanner. Whilst, Tesco offers their technology products
such as mobile phones, tablets etc. as well as, use scanners and self-checkouts to
satisfy their consumers in Malaysia, India and especially in Europe.
Since these countries are seeking for innovation, Coca-Cola and Tesco must adapt
immediately and use different approaches; this may include faster internet or
broadband to communicate with their consumers online without any interruptions.
M4- Analyse how cultural differences affect international
businesses.
Adapting international languages is significant to international businesses like Coca-
Cola and Tesco as it has both positive and negative impacts. Since Communication
is fundamental in trading and networking, speaking, and understanding different
countries’ native languages will help them to communicate with each other vividly,
understand their ideas and feel connected although they have different backgrounds.
In addition to that, during the frequent commerce and trade, exchanging language is
highly needed, which has a positive effect on international trade and getting partners.
Nonetheless, if international businesses couldn’t adapt to native languages of
different countries, their citizen, potential partners and the probable government may
lose trust and may just full of misunderstandings. Therefore, international businesses
won’t able to get the opportunity on remaining or operating in those countries that
don’t trust them completely.
Since different countries have different ethnic groups, it could be the key reason of
their products not reaching the growth and mature stage in the product lifecycle,
whereafter the introduction stage it may quickly go to the decline phase. This is due
to the different preference of consumers such as in fashion, taste etc. leading to
Cultural factors
Coca-Cola and Tesco should consider adopting different languages as they operate
in international markets; to communicate with suppliers, investors, partners, and
consumers, both businesses must use the right language. For instance, Coca-Cola
and Tesco in China, both businesses should be speaking to consumers and their
Government (due to exporting) using native langue to make their communications
understandable, clearer, and effective. In addition to that, adapting international
languages will able Coca-Cola and Tesco to build trust and appreciation of various
perspectives, prevent misunderstandings and most importantly, build teams who’re
made up of employees from extensive geographical locations.
The ethnic make-up of populations, different countries have dissimilar numbers of
ethnic groups which have an influence on Coca-Cola and Tesco’s international
operation. Additionally, the ethnic make-up of a certain country could affect whether
Coca-Cola and Tesco’s product or service will be popular or not and if there’s a high
or low demand. Since there are huge distinctions between countries, both
businesses should respond to their needs and wants. For instance, Tesco should put
more spices in their products which will be sold in India, whilst sell more oriental food
in Malaysia.
According to (O' Brien, 2018), Social structures/classes are divided into
seven segments involving Precariat, Traditional Working Class, Emergent Service
Workers, Technical Middle Class, New Affluent Workers, Established Middle Class
and Elite. Knowing the social structures/classes of different counties that Coca-Cola
and Tesco operate in allows them to understand the right pricing strategies they
should offer, or where partnerships must be made; getting an understanding is also
beneficial to them on improving the specific targeted publicising and advertisements
for their products and services based on the social classes of those countries.
There are several types of religions globally, each religion has certain rules and its
own influence over their worshipers. In some religions such as Buddhism and Islam,
alcohol is not tolerable; therefore, if Tesco is operating in countries who have these
two religions, there’ll be some negative impacts on their sales revenue and
profitability from alcohol.
The values of individuals in various countries influence the way they trade, their
values may come from historical cultures and traditions, and how they’ve been
brought up. According to (WorldAtlas, 2018), there are 20 countries that bribes are
acceptable which includes Pakistan since Tesco is getting their supplies and goods
from this country, bribing them is tolerable and may benefit Tesco’s security and
international trade. Homogenously to Coca-Cola, as they’re operating in almost all
the countries they could also give bribes to help them remain and reduce the barriers
to trade. Nonetheless, If Coca-Cola may wish to bribe in countries like UK and
Europe, it’s considered as illegal and might have consequences as the public
declared that businesses should be treated equally.
, Attitudes to business, If Tesco may wish to expand or if Coca-Cola has
propositions in countries or like Japan and Mexico it would be problematic in terms of
the importance of timing. Regarding time, Japanese are utterly strict when it comes
to punctuality, whilst in Mexico, it’s perfectly allowable to attend business meetings
late. Therefore, Coca-Cola and Tesco should see the difference of the attitude to
business to avoid dissatisfying their potential partners.
Every country has different attitudes to work involving average working hours and
weeks, public holidays, a minimum number of days paid leave. For instance, in
countries like China and South Korean, people are willing to work 24/7, whilst in the
UK there’s a specific number of working hours that businesses need to comply. In
addition, different countries have various public holidays, where people might stay at
home or stay at work for longer hours due to holiday seasons.
Openness to change
Due to changes in trends worldwide, Coca-Cola and Tesco adapted and created
new products to respond to these changes. For instance, Coca-Cola introduced their
vending machine which consumers can purchase their products through swiping
their mobile phones on the scanner. Whilst, Tesco offers their technology products
such as mobile phones, tablets etc. as well as, use scanners and self-checkouts to
satisfy their consumers in Malaysia, India and especially in Europe.
Since these countries are seeking for innovation, Coca-Cola and Tesco must adapt
immediately and use different approaches; this may include faster internet or
broadband to communicate with their consumers online without any interruptions.
M4- Analyse how cultural differences affect international
businesses.
Adapting international languages is significant to international businesses like Coca-
Cola and Tesco as it has both positive and negative impacts. Since Communication
is fundamental in trading and networking, speaking, and understanding different
countries’ native languages will help them to communicate with each other vividly,
understand their ideas and feel connected although they have different backgrounds.
In addition to that, during the frequent commerce and trade, exchanging language is
highly needed, which has a positive effect on international trade and getting partners.
Nonetheless, if international businesses couldn’t adapt to native languages of
different countries, their citizen, potential partners and the probable government may
lose trust and may just full of misunderstandings. Therefore, international businesses
won’t able to get the opportunity on remaining or operating in those countries that
don’t trust them completely.
Since different countries have different ethnic groups, it could be the key reason of
their products not reaching the growth and mature stage in the product lifecycle,
whereafter the introduction stage it may quickly go to the decline phase. This is due
to the different preference of consumers such as in fashion, taste etc. leading to
