Explore the cultural differences affecting
international businesses.
Tesco.
Culture is an important factor that affects Tesco as well as all international
businesses. Culture involves the set of beliefs, moral values, traditions, language,
and laws (or rules of behavior), which define a nation, a community, or other defined
group of people. Culturally determined characteristics include: the language spoken
at home; religious observances; customs (including marriage customs that often
accompany religious and other beliefs); acceptable gender roles and occupations;
dietary practices; intellectual, artistic, and leisure-time pursuits; and other aspects of
behavior.
Key factors:
● Cultural factors are the lifestyle, custom and values of a group of people.
● It is important for a business to recognise these factors when targeting
markets.
● Without an insight and understanding it is likely that a business will fail to
establish in the market.
● It is key that a business understands what the target market needs.
Businesses must ensure it doesn’t use inappropriate marketing.
Cultural factors
In a business context, culture relates to what behaviour is common and accepted
professionally in one location, compared to another. What may be acceptable
business practice in the UK, may be very different from the approach that is used by
businesses overseas. Therefore, recognising how culture can affect international
business is something that should be understood by Tesco, in order to avoid
misunderstandings between colleagues and clients, and also to make sure that
Tesco is presenting themselves to their new market in the best way they can.
The cultural factors shape who we are as people. It affects how we behave and
what we buy. A good example is how people’s attitude towards diet and health is
changing in the UK. Because of this, UK businesses are seeing some changes.
More people are joining fitness clubs. There is also a massive growth in demand for
organic food.