Extending Business in the Foreign Market: Impact of Cultural Factors

Running Head:EXTENDING BUSINESS IN THE FOREIGN MARKET
EXTENDING BUSINESS IN THE FOREIGN MARKET
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1EXTENDING BUSINESS IN THE FOREIGN MARKET
Executive Summary
Cultural norms and ethos are identified as an important factors that the multinational companies
are taken into consideration during expanding their market in abroad. In this context, this report
discusses about the BeautyPro multinational company of Australia that is expanding its market in
China. The Cultural underpinnings are played a significant role in this regard. As a result of that
the Company faces sever challenges in China. Therefore, the report highlights the important
aspect of cultural factor in making business overseas. In fact, the cultural factors are very
important to influence the decision making process. In a conclusion, it is seen that the report
follows an in-depth analysis with covering the important aspects of culture in business.

2EXTENDING BUSINESS IN THE FOREIGN MARKET
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Current situation analysis................................................................................................................3
Different cultural values and etiquette.........................................................................................3
Different cultural norms in decision making...............................................................................6
Conclusion.......................................................................................................................................8
Recommendation.............................................................................................................................8
Communication............................................................................................................................8
Cultural themes............................................................................................................................9
Reference.......................................................................................................................................10

3EXTENDING BUSINESS IN THE FOREIGN MARKET
Introduction
Cultural underpinnings are considered to be one of the major aspects that the corporate
houses must follow in their market orientated decision making process. The problems are
emerged when a multinational or foreign company enters into a new market with different kind
of customers and cultural base. In this case, the stated BeautyPro Company also faces the same
problem while expanding its business in Chinese market. The BeautyPro Company is an
Australian multinational company distributes organic cosmetics in domestic and overseas
market. However, the Company faces some challenges in the Chinese market with cultural
diversification. In response to this given scenario, the role of this report is to identify the cultural
issues that corporate organisations are facing in their foreign market expansion. It is in fact, can
be argued that the cultural perception guides the customers and the organisation as well to
develop a better market and service facilities. In course of the discussion, the report encapsulates
the literature review on the different cultural values and cultural norms that are responsible to
influence the decision making process in the context of business.
Discussion
Current situation analysis
Different cultural values and etiquette
Cultural values as considered to be an important aspect for doing business in a foreign
country. According to Ahern, Daminelli&Fracassi (2015),it can be argued that it is important to
understand the willingness of the customers whether they are attracted by the product or reluctant
to purchase it. In this regard, the cultural values play a pivotal role to convince the consumers to