There are key cultural factors that infuence businesses and some of the ways in which they have an
impact, but for, internatonal businesses, making clear assessments about how to change the way
they work based on these factors is extremely important. Cultural factors have an infuence on key
ways that business operates including:
Contract negotatonn
In some countries, bribery is acceptable and in others it is not. Negotatng contracts is a very
important part of business and, therefore, being aware of what is acceptable business practce in
different countries is very important. In the UK,, in 20,10,, the Bribery cct was passed in order to avoid
this practce being used.
Componiton of the oorfforce
The compositon of the workforce will have a big impact on the way that it operates. The culture,
expectatons and ways of working will affect the way that the business operates. cn internatonal
business may have a view about sending workers to a partcular country to start trading, according
to the values that it holds, or may take the view that they will employ a local workforce to make sure
that they have greater knowledge and understanding of the local area and also of the business
expectatons.
Sometmes internatonal businesses may choose, through the existng use of technology, to have
some of their workforce based in one country and some in another. c common example of where
this has happened in the past has been call centres that have been able to operate in countries such
as India, in collaboraton with call centres run in the UK,.
Management ntyle
Management styles in companies in the UK, vary widely. Some companies operate a very directed
and controlled structure. This is called an autocratc management style. Other opt for much more
consultaton and collaboraton, known as democratc style. Differences in management style are very
common between businesses in the UK, but add in the cultural factors that are present when
working overseas and the impact of these differences can be felt even more strongly.
Worfforce practcen
Workforce practces include the way that businesses operate on a day-t-day basis and the extent t
which they follow different procedure, rules or even the legislaton that operates in the country in
which they are based.
Daily operatng practces in different countries can have a huge impact on the reputaton and ways
of working in that business, for example, health and safety practces are much stricter in some
countries, and therefore there are fewer accidents than there are in others. c business operatng
internatonally may decide that it wishes to adopt health and safety practces that are more
stringent than those in the country in which it is operatng. Management style is affected by
operatng practces, so it may be necessary to have a more direct or autocratc style when working in
some countries as this is the expectaton, for example in China, and a more democratc or
cooperatve style in others, such as Sweden. Other areas of business working practce that also may
be very different are those that relate to the way that pay and working conditons are negotated. In
some countries, such as France and Germany, there are very strong unions in operaton that
negotate pay and terms of employment on behalf of groups of employees. The laws of these
impact, but for, internatonal businesses, making clear assessments about how to change the way
they work based on these factors is extremely important. Cultural factors have an infuence on key
ways that business operates including:
Contract negotatonn
In some countries, bribery is acceptable and in others it is not. Negotatng contracts is a very
important part of business and, therefore, being aware of what is acceptable business practce in
different countries is very important. In the UK,, in 20,10,, the Bribery cct was passed in order to avoid
this practce being used.
Componiton of the oorfforce
The compositon of the workforce will have a big impact on the way that it operates. The culture,
expectatons and ways of working will affect the way that the business operates. cn internatonal
business may have a view about sending workers to a partcular country to start trading, according
to the values that it holds, or may take the view that they will employ a local workforce to make sure
that they have greater knowledge and understanding of the local area and also of the business
expectatons.
Sometmes internatonal businesses may choose, through the existng use of technology, to have
some of their workforce based in one country and some in another. c common example of where
this has happened in the past has been call centres that have been able to operate in countries such
as India, in collaboraton with call centres run in the UK,.
Management ntyle
Management styles in companies in the UK, vary widely. Some companies operate a very directed
and controlled structure. This is called an autocratc management style. Other opt for much more
consultaton and collaboraton, known as democratc style. Differences in management style are very
common between businesses in the UK, but add in the cultural factors that are present when
working overseas and the impact of these differences can be felt even more strongly.
Worfforce practcen
Workforce practces include the way that businesses operate on a day-t-day basis and the extent t
which they follow different procedure, rules or even the legislaton that operates in the country in
which they are based.
Daily operatng practces in different countries can have a huge impact on the reputaton and ways
of working in that business, for example, health and safety practces are much stricter in some
countries, and therefore there are fewer accidents than there are in others. c business operatng
internatonally may decide that it wishes to adopt health and safety practces that are more
stringent than those in the country in which it is operatng. Management style is affected by
operatng practces, so it may be necessary to have a more direct or autocratc style when working in
some countries as this is the expectaton, for example in China, and a more democratc or
cooperatve style in others, such as Sweden. Other areas of business working practce that also may
be very different are those that relate to the way that pay and working conditons are negotated. In
some countries, such as France and Germany, there are very strong unions in operaton that
negotate pay and terms of employment on behalf of groups of employees. The laws of these
