International Business Communications

This report evaluates the international cultures within a UK based company known as Oak, Cash and Carry limited which is a grocery based wholesaler who is planning to move their production in the developing country India. It discusses the application of theories of international communication, critical evaluation of cultural sensitivity, analyzing different communication barriers, and providing communication strategies and other suitable recommendations. The report also provides a brief overview of the chosen developing country India.

INTERNATIONAL
BUSINESS
COMMUNICATION
CONTENTS

INTRODUCTION......................................................................................................................1
Brief overview of the chosen developing country “India”.....................................................1
APPLICATION OF THEORIES OF INTERNATIONAL COMMUNICATION....................2
International and Inter-cultural communication.....................................................................2
Hofstede’s cultural dimension theory.....................................................................................2
CRITICAL EVALUATION OF CULTURAL SESITIVITY...................................................4
ANALYZING DIFFERENT COMMUNICATION BARRIERS.............................................5
PROVIDING COMMUNICATION STRATEGIES AND OTHER SUITABLE
RECOMMENDATIONS...........................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Speaking in volume in relation with the international business, it is a systematic
procedure of application of business throughout the borders of the countries at the global
level. It basically focuses on the objective of the firms and resources of the world on the
international business. Companies decides to expand and move their production to another
country for gaining many benefits such as scattering business risks, earning foreign income,
expansion of the current market etc. However, there are many cultural issues and sensitivity
that might arise while doing international business (Lauring, 2015). Considering this, the
current research report deals with evaluating the international cultures within a UK based
company known as Oak, Cash and Carry limited which is a grocery based wholesaler who is
planning to move their production in the developing country India. The report will evaluate
the cultural sensitivity, issues and communication barriers experienced by the foreign
business by applying suitable theories and models. The final part will include
recommendations on communication strategies and overall conclusion.
Brief overview of the chosen developing country “India”
Talking about the developing nation India, it is situated Southern Asia adjoining the
Arabian Sea and the Bay of Bengal. The government is federal republic and the market
economy is the one wherein the prices of the merchandise as well as facilities are identified
by a free price mechanism. The metro cities in this nation is very urbanized and
commercialized which historically has attracted the interest of many international business
because of their scale and size.
Figure 1: Retail market size across India from 2011 to 2020
(Retail market size across India from 2011 to 2020, 2022).
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The above table explains the current retail market of India. The table depicts that it is
being augmenting with each passing year. Addition to this, the retail market of India is
accounted for ten percent of the overall gross domestic product of the country and around
eight percent of the employment. The country is holding a fourth largest position in the retail
space after USA, China and Japan (Singh, 2016). Besides, India is the one of the biggest
democracy of the globe and is an attractive place to make investment. Being the second
populated nation of the globe, it is a country with a strong workforce.
APPLICATION OF THEORIES OF INTERNATIONAL
COMMUNICATION
International and Inter-cultural communication
Because of the progress in the field of communication, technologies and
transformation there has been evolution of the economy of the world. People from varied
countries, languages, backgrounds and cultures are now performing business, communicating
and meeting with each other more than ever before. Since, there has been augmentation in the
activities of the business amid people from varied diverse cultural backgrounds, firms who
are operating at the global level or which are about to expand in the international markets, are
required to pay attention on assortment of factors in order to be effective and successful in the
global markets. In the current case, Oak, Cash and Carry limited is moving their production
in India and the most important element that must be considered by them is culture. For
attaining growth and success in this developing nation, the firm is need to have
comprehension of the manners of cultural differences throughout and within the country that
might impact the functioning of the business (Mead, 2015). Furthermore, they are required to
understand the cultural determinants for international business success. This can be done by
application of Hofstede’s cultural dimension theory on the selected nation, which is done
below.
Hofstede’s cultural dimension theory
A Dutch social psychologist known as Geert Hofstede have founded this cultural
dimension theory which is an important framework for inter-cultural communication. This
model makes use of six crucial elements such as power-distance, individuality, masculinity,
uncertainty avoidance, long term orientation and indulgence. Explanation of these dimensions
in the context of the selected developing nation “India” is being done underneath:
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 Power Distance index – This dimension means the degree of inequality that takes
place in the specified nation or community. It also means the level at which the
society is in a position to accept the distribution of power. Talking in relation with
India, the nation scores quite high in this dimension which indicates that there is an
appreciation of hierarchy along with this, a top down structure is being followed in
the communities and business firms. The employees are mostly dependent on boss for
the direction. In addition to this, there is a recognition of unequal right amid the
power-privileged and those with lesser power. The main power is centralized and
even the attitude plus security towards the managers are formal in nature. The top-
down communication system is being followed by the organizations in India
(Hofstede, 1994).
 Individualism versus Collectivism – This element of the model indicates the extent of
interdependence being maintained by the community between its members. The score
of this dimension of India is intermediate which clearly indicates that it is a
community which involves both the traits of collectivist as well as individualist. The
collectivism signifies that high level of priority is being given to large social
framework wherein people are supposed to perform as per the higher good for the
others. In this condition, the activities of people are impacted by different ideas like
family, their opinions, viewpoints etc. In addition to this, the individualism can be
seen in the Indian community from their dominant religion that is Hinduism.
Figure 2: Hofstede’s cultural dimension theory
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(Hofstede’s Cultural Dimensions Theory, 2021).
 Masculinity versus Femininity – It is being referred as the flow of employment
between the males and females. Since, the score of India on this dimension is quite
high which signifies that it is a masculine community where there is displaying of
visual power and success. The major emphasis is being given on achievements and
women are not given equal opportunities in business (Nicolaidis, 2016).
Figure 3: COUNTRY COMPARISON
(COUNTRY COMPARISON, 2022).
 Uncertainty Avoidance Index – This dimension is related with the degree to which the
members of the society feel threatened by any uncertain condition or event. The core
of India is quite low on this element which means that low preference is being given
on avoiding uncertainty. In this nation, people accept imperfection and have tolerance
for the unexpected situations. Generally, people are not driven by other for
undertaking any actions.
 Long versus short Term Orientation – This element explains the manners in which the
community maintains some connection with their past for dealing with future. This
score of India is intermediate which means that India follows the idea of Karma and
time is not linear. The nation also have a great level of tolerance for religion opinions
from across the globe (Farmer, 2015).
 Indulgence versus restraint – This describes the level to which people make efforts to
control their desires. The score of India is dimension is quite low which means that
India is a culture of restraint and they do not put major emphasis on leisure, control
and time.
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CRITICAL EVALUATION OF CULTURAL SESITIVITY
Since, India is a multicultural as well as multi-religious nation, the western along with
eastern management models will not going to work here in this developing country
successfully without adapting as per the local market. The functioning language in
corporations in India is English nonetheless it is does not assumed to be an effective
communicating. Furthermore, there is a vast differentiation in the communication styles
between India and UK and thus, this might act as a hurdle and leads in failure of the business.
Speaking in relation with the cultural sensitivity, it simply implies understanding and be
aware of the differentiation and similarities existing amid the nations and the manners in
which it will influence the behaviour, learning and values (WHAT ABOUT INDIA? 2022).
Each and every culture in India has varied sub-cultures like racial group, religion and regions.
People with same kind of values, preferences and habits develops the sub-culture. For
example, the ways of greeting is majorly dependent on the social status and age of that person
in India like, if a son is meeting his parents, he greets them by touching their feet.
Nevertheless, while in meetings shaking hands is used for greeting each other. On contrary to
this, Indian people always incline to make their business decisions on the basis of their gut
feeling and trust. High emphasis is being on cultivation of association with the people they
carry out business. Additionally, rushing straight to the business might considered as rude in
India. Other than this, Indians also holds a reputation amongst the international business man
that they always stick to their roles and does not reflect imitative at times when it is required.
This is a stereotype on the basis of cross-cultural comprehension (Bird and Mendenhall,
2016).
ANALYZING DIFFERENT COMMUNICATION BARRIERS
Communication barrier is the hurdle or blockage that comes in between understanding
a particular message (Odin, 2021). Communication barriers lead to misunderstanding or
miscommunication which leads to wrong feedback. Oak Cash and Carry limited is a retail
and wholesale company of United Kingdom. It’s now shifting its business to India which is a
developing country for earning more profits. Due to various cultural diversity and
communication barriers it becomes difficult for the Oak Cash Carry to survive in India.
Types of communication barriers
 Environmental barriers: These barriers are in the surroundings of a included
businesses (Maljich, 2019). The oak cash and carry limited will have to adopt India’s
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environment and it has to face all the environmental barriers like climate changes,
choice of medium, poor lighting etc.
For example: Oak Cash and carry has to use all the technological systems, interiors of
workspace that India is using. They have to face all the communication barriers that India is
facing.
 Semantic barriers: Due to cultural differences in UK and India the Oak Cash and
Carry has to face semantic barriers. Miscommunication will arise due to different
languages (Clarke, 2019).
For example: By selling products in India the company has to convert its language according
to the customer needs for better understanding.
 Cultural barriers: Diversities of cultures made the communication more difficult.
India is a diverse country with diverse cultures. Oak Cash and Carry has to understand
all the cultures of India before producing any products.
For example: Different cultural people have different taste and choices. The Oak Cash and
Carry has to plan and produce products according to the needs of the customers to earn more
profits.
 Psychological barriers: Various psychological barriers like customer’s bad mood,
attitudes, and perceptions are changing every time (KRÖGER, 2020). It becomes
difficult for a company to coordinate with people and cannot pass meaningful
message.
For example: In India the people choices and mood is ever-changing. The Oak Cash and
Carry has to advertise its product in a way that every one pay attention to that products. It has
to communicate its message in a different way for proper communication.
 Physical barriers: This includes all the barriers like time, place, noise etc. Some are
easy to cope up some are difficult. For Oak Cash and Carry has to face these barriers
like loud noises in India, poor network connection, poor technological mediums etc.
For example: India has many communication barriers and it is difficult for the employees of
Oak Cash and Carry to manage their work efficiently. Due to poor mediums of exchange of
communications it may lead to different barriers.
The Oak Cash and Carry has to face all the communication barriers that may arise by
moving its business in India. India has various cultural diversity people. Understanding
there taste and preferences is a tough task. Due to language and climatic differences the Oak
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Cash and Carry has to produce the products accordingly. Through better advertisements and
promotion schemes customers of India can understand the products of this company easily.
There will be no miscommunication.
PROVIDING COMMUNICATION STRATEGIES AND OTHER
SUITABLE RECOMMENDATIONS
Communication strategy is the act or plan that is developed by the business to achieve
communication goals ( Ali ,2021). For proper communication and between the customers and
the organisation the company uses various techniques to achieve this goal.
Various communication strategies are as follows:
 Deciding the target market: The Oak Cash and Carry is dealing in grocery products
it has to identify its selected market in India. The company has to make segments for
different products and for different markets. The Oak Cash Carry has to decide its
communication method to communicate with the target market in India properly.
 Communication objectives: Another strategy of Oak Cash and Carry is to decide its
communication objectives. The objective must be clear and specific, it should be
measurable and realistic (Raible, 2019). The aim of the objective is to convince the
target customers of India to buy the products.
 Formulating the message: The Oak Cash and Carry has to design the message
relating to particular product to sell in India. It has to adopt best communication
method that Indian customer will understand with more ease. The Oak Cash and
Carry has to create a message in which all the details related to product should
contain. It should involve in the message the company values to the target audience of
India.
 Communication tool: The Oak Cash and Carry should adopt that tool that is
acceptable by the Indian market. It should use communication mix methods for its
product message to the target market. The Oak Cash and Carry company will use
various methods of communication like advertising, sales promotions or sponsorships.
India is big country and with huge amount of population. So the Oak Cash and Carry
will use advertising method through which it can communicate the message to mass
population.
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 Setting a budget: Before deciding communication strategy the Oak Cash and Carry
has to plan its budget. In what activity they involve how much budget. Oak Cash and
Carry should plan its budget in a way that it should involve low cost with high profits.
 Deciding the medium: The Oak Cash and Carry has to decide the communication
channels through which it achieves its objectives. In India due to large population and
cultural diversities Oak Cash and Carry should use both the pull and push strategy.
Attracting the customers and passing on the message to buy the products.
 Measuring the results: After doing all the stages Oak Cash and Carry has to measure
its results. All the results should be measured by the company to know whether its
making any success in new market or not.
Oak Cash and Carry has to plan various strategies for moving in India due to entirely
different market and culture. With good communication method and strategy this company
can survive in the market. For successful operation of Oak Cash and Carry it has to defeat all
the barriers in India. Need to plan strategy for effective communication to attract more
buyers.
CONCLUSION
Thus, from the above evaluation, it can be concluded that international business is
very efficacious and can bring numerous benefits to the company expanding in the foreign
nations. However, it is quite necessary to evaluate the cultural differences and sensitivity of
that particular country for effective functioning and operations of the business activities. It
has been found out from the analysis that each and every nation have their own values, belief
system and perspectives and this needs to be adopted while planning to move business in
other countries or regions. This is due to the fact that consumers and people will behave in
the same manner depending upon their religion, language, culture and education.
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REFERENCES
Books and journals
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1).
Farmer, RT., 2015. Corporate culture defines a company and its future. American Journal of
Business, 20(2), pp.7-3.
Hofstede, G., 1994. Culture’s Consequences. Beverly Hills. Sage Publications. California.
Lauring, J., 2015. Intercultural Organizational Communication: The Social Organizing of
Interaction in International Encounters. Journal of Business and Communication, 48(3),
pp.231–55.
Mead, R., 2015. International Management: Cross Cultural Dimensions. 3rded. Cambridge
MA. Blackwell Publishers.
Nicolaidis, C.S., 2016. Cultural Determinants of Corporate Excellence in an Integrated
World Economy: The Impact of National Cultures on Organisational Performance.
Reading.
Singh, Y., 2016. Culture Change in India. Jaipur: Rawat Publication.
Odin, R., 2021. Spaces of Communication. Amsterdam University Press.
Maljichi, D., 2019. BARRIERS OF INTERCULTURAL COMMUNICATION. Vizione, (32).
Clarke, S.K., Jaffe, J. and Mutch, R., 2019. Overcoming communication barriers in refugee
health care. Pediatric Clinics, 66(3), pp.669-686.
KRÖGER, J., 2020. Communication Barriers and Cultural Participation: A Visit to a
Wildlife Park as a Multicodal Accessible Text. Easy Language Research: Text and User
Perspectives. Berlin: Frank & Timme. pp.179-193.
Ali, B.J and et .al., 2021. Business communication strategies: analysis of internal
communication processes. Business Communication Strategies: Analysis of Internal
Communication Processes. Journal of Humanities and Education Development, 3(3),
pp.16-38.
Raible, W., 2019. Variation in Language: How to characterise types of texts and
communication strategies between orality and scripturality. Answers given by Koch
Oesterreicher and by Biber. International Journal of Language and Linguistics. 6(2).
pp.157-174.
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Online references
Hofstede’s Cultural Dimensions Theory. 2021. [Online]. Available through:
<https://www.iedunote.com/hofstedes-cultural-dimensions-theory>. [Accessed on 1st April
2022].
WHAT ABOUT INDIA? 2022. [Online]. Available through: <https://www.hofstede-
insights.com/country/india/>. [Accessed on 1st April 2022].
Retail market size across India from 2011 to 2020. 2022. [Online]. Available through:
<https://www.statista.com/statistics/935872/india-retail-market-size/>. [Accessed on 1st April
2022].
COUNTRY COMPARISON. 2022. [Online]. Available through: <https://www.hofstede-
insights.com/country-comparison/india,the-uk/>. [Accessed on 1st April 2022].
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