Culture's Impact on International Business

This assignment examines the significance of culture in international business. It highlights how companies must adapt their strategies, marketing, and operations to align with the cultural nuances of foreign markets. The importance of cultural awareness in building effective relationships and achieving sustainable growth in a globalized world is emphasized.

Running head: International marketing
International marketing

International marketing
The essay talks about the significance of the culture while conducting the business
activities and operations at international level. It explains that how culture affects the
international business. Thus, the company needs to understand the culture of the different
countries to evaluate and measure the marketing strategies and policies of the overseas country.
There are various impacts of the culture on the international business. It affects the
overall activities of the business adversely. In today’s era business activities and operations are
affected by the globalization of the economy. Globalization may be defined as a process where
the social, cultural and economic activities are carried out across national borders. It is the
process which does not bring equal and similar benefits to all the participants. The globalization
focuses and monitors of its actions and attitudes in some division of the economic activity and
some countries and region rather than acting everywhere. The international business across the
world has become easier due to major changes in global politics, technology, educational
opportunities. Thus, if the company operates and executes its business at a global level then
culture affects the business operation of the firm (Samaha, Beck & Palmatier, 2014).
The culture is the sum of habits, beliefs, behaviors, and symbols that are crossed from
generation to generation. Further, religion, communication, and languages are the elements of the
culture which affect the international business. In addition, culture defines is a set of accepted
and common rules and norms shared by the society. But in international business, these norms
and rules could be quite different and difficult for colleague and employee in the overseas
country. The three core areas of international business include communication, organizational
hierarchy, and etiquette. Every organization has its different and distinct culture thus, manager
and employees should understand and evaluate the organizational culture to develop and build
meaningful strategies and policies (Brannen, Piekkari & Tietze, 2014). The effective and unique
organizational culture helps to increase efficiency and effectiveness across the world. It also
helps to overcome on its competitors within the organization. An organization cannot use current
methods and strategies of their own nation while conducting business at international level.
Every region follows different culture, religion, rules, and regulations. When the company starts
its business globally then various challenges and obstacles are faced by the company. It can
affect the entire business operation of the firm. Further, culture can influence the business
activities in different ways. The culture collisions and pricing difficulties arise while conducting
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International marketing
business at international business. There are some recommendations have been given which
should keep in mind before and during conducting at the global level (Ambos & Håkanson,
2014). It is important that the company should inform about the customs and manners of the new
culture before entering in the foreign region. The foreign culture differs from the home country
thus it affects the business co-operation and activities in the foreign country. The organizational
culture is significant and vital for the managers and top management which should be considered
in the process of intrinsic and extrinsic rewards and feedback. The relation between levels of job
satisfaction is the strong and excellent in the UK but it is weak in Japan. In this way, the
international managers and top management will find it hard to motivate and encourage staff and
employees through incentives and rewards. Sometimes, the companies do not understand the
culture of the foreign country thus; the companies are not able to understand the expectations,
needs, and requirements of the customers in overseas. They are not able to gain the competitive
advantages and other benefits in the market (Poulis, Poulis & Plakoyiannaki, 2013). The greater
cross-cultural distance and difference in global companies can have negative and adverse effects
in a foreign country and it hurts the goodwill and reputation of the country. Thus, the company
does not provide satisfaction to the customers in the foreign market. As a result, the company
has to bear ample of loss in the foreign market. Thus, the companies need to understand and
evaluate the cultural values, rules, policies, and methods of a foreign country to operate and
implement business activities effectively and efficiently (Turró, Urbano & Peris-Ortiz, 2014).
In international business, globalization also affects the business activities and cooperation
negatively. Through globalization, the communities are failed to preserve their old custom,
culture, and tradition. Thus, it affects the international business processes and policies
negatively. Further, local industries could not compete and battle with their universal counterpart
across the world. In addition, globalization is responsible to provide good working conditions to
the labors but sometimes it is not able to provide such conditions to the employees thus it affects
the business activities adversely. Thus, the culture plays a significant role while conducting
business cooperation at international level (Turró, Urbano & Peris-Ortiz, 2014). The companies
need to evaluate the different cultural aspects to run the business smoothly at the global level.
They should manage the various cultural differences across the world. The success and growth of
the company depend on the culture, values, and customs of the foreign country. The culture plays
a significant role to understand and measure the preferences, tastes, and requirements of the
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International marketing
customers in the overseas country. It makes easy to adjust its advertising policies, product
development, promotions and location of the local community. The culture also plays a vital role
in personnel management across the world (Sousa & Filipe Lages, 2011). Culture is important to
understand the marketing strategy and policies of the foreign country. Through assessment of the
cultural differences; the company can fulfill the needs and requirements of the customers in the
world. It also helps to gain long-term revenue and profits across the world (Krasnova, Veltri &
Günther, 2012). The cross culture is very consequent for the global business. The firms can build
and develop effective and unique relations by understanding and evaluating the different
countries culture. The company cannot run the business activities in foreign countries without
knowing and understanding the culture of different nations (Akaka, Vargo & Lusch, 2013).
Further, marketing strategies and approaches cannot be done without understanding the culture
of the foreign country.
On the above discussion, it has been analyzed that culture plays an integral role in
international business. The companies must understand and evaluate the cultural differences of
the various countries across the world. In this way, the companies can expand and flourish its
business at international level.
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International marketing
References
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