International Business Communications

This essay discusses the challenges faced by Sony in shifting their headquarters from the UK to Netherlands. It covers topics such as country overview, Hofstede's model, culture sensitivity, importance of networking, and communication barriers experienced by foreign businesses.

International
Business
Communications

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Country Overview........................................................................................................................1
Hofstede's Model.........................................................................................................................2
Culture Sensitivity.......................................................................................................................3
Importance of Networking...........................................................................................................4
Communication Barriers Experienced by Foreign Businesses....................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

INTRODUCTION
International business helps the company to expand their business in global level and
provide many opportunity, but still they have to face many challenges which is related to the
culture differences. Because different culture having the different culture, language policies, taste
and preferences and many others thing which effect their business. Although global business
support the company to attract the new customer, but if in case they also face some drawbacks.
Sometime company face trouble to deal this. In this essay it discuss that Sony company wants to
shift their headquarter UK to Netherlands, so what problem they face for doing this process.
They need to analysis the Netherlands market, so they make their scheme plan to achieve their
target (Anamaria-Mirabela and Monica-Ariana, 2019). If the Sony company are capable to bear
this situation then, They get many opportunities to increase their profit and brand awareness. But
still they want to doing correct research to enter in new country.
MAIN BODY
Country Overview
Netherlands having the sixth- largest economy in the European Union and it is very good
country for doing business, Netherlands is the most fourth competitive nation in 2021 IMD
rankings. Along with it is the best countries in terms of technology and innovation,they provide
excellent infrastructure which include the largest port in Europe, also they provide good
competitive business climate and well- eduction workforce environment. Netherlands capital is
Amsterdam and their geographical size is 41,542 km Sq, it play a important role as a European
hub with the high trade surplus, stable industrial relations and modern unemployment. Along
with this industry focuses on food processing, chemicals and electrical machinery. The
population of the country is 16,900,726 and total EU percent is 3.3%, along with the Gross
Domestic Product of this country is EUR 678.572 Billion and language use in this country is
Dutch (Blewitt, Parsons and Shane, 2018). Although the political system is parliamentary
constitutional monarchy and EU is the member of the country since 1- January-1958, they have
26 seats in the European parliament. The currency use in this country is Euro. The main big
reason to shifting their headquarter United Kingdom to Netherlands is that, they have a strong
bilateral relations between them which is based on historical, cultural and commercial ties.
Although the five big reason the companies should consider to the Netherlands is that, it is new
1

to export companies which is looking for the first European distributor, they have innovative and
creative businesses community which is require new high- quality products Netherlands having
the good logistic and distribution network in Europe.
Hofstede's Model
Hofstede's culture is a theory which is based on dimensions theory and it is a frame work
which is used by the company to understand the different taste and culture of the different
countries across the world and acknowledge the ways, that the Sony company is shift their main
headquarter across different culture (Bolten, 2020). It is a original model which is using for
analysis the examine the result on worldwide survey of the employees values. Along with it is
the process which is utilized by the company to removed between the assorted national and
international culture which helps to measure their impact when shifting their headquarter. This
model is based on five concept which helps to specify the culture which are listed given Power
distance index this index support the Sony company to measure the arrangement power and
abundance between the people in a culture, enterprise or nation. Dimension is affiliated to the
higher and lower level index such as high power distance index are helps to indicated that the
Sony company need to evaluate the culture difference and promote the bureaucracy, that helps to
show the high esteem for rank and control. But if in case the index goes down, so it indicates that
culture support the company structure which helps to features the localized decision- making
obligation, management style and grandness the power of distribution. Masculinity vs.
Femininity it is the process which refers to the issue which is related to group such as difference
in gender male and female belief for the culture of the company. If Sony company wants to shift
their headquarter in Netherlands, so they want to analyse the culture of the Netherlands, for
example if they shifting their main headquarter in Netherlands they have to pay high taxes and
they need to appreciate Dutch language, because they avoid diplomacy and subtle indications.
Along with they are quit Conservative society where do not , so they will precede the different
policies as compared to UK (Hannibal and Knight, 2018). However, Sony company want to
analyse culture exhaustively, so that it can make their strategy plan according to them.
Individualism vs collectivism they consider the degree which helps to integrated societies into
group and try perceived the obligation which is depend on groups. Sony company need to
analysis that what types of factor they want to apply in their country for example they believe in
individualism or collectivism. There are various organisation or company that consider in team
2

work, where the various workers come together and work as a team. Sony company accept that
team work plays a essential role to succeed any target, because respective dealing ideas and
handle the thing and come up with innovative and creative ideas. In this scene workers also take
each other help and share their thought which assist to make a healthy and effective working
environment. However some company are not adapt this culture they consider that, individual
person is sufficient to take determination and they do not consider as team work. Sony company
need to analyse that what factors they adapt. Uncertainty avoidance index it helps to handle and
addressed the unexpected situation which is conferred by workers. This index support the Sony
company to indicates the tolerance level of individual employees in every situation whether it is
comfortable or non comfortable (Pikhart, 2018). The important target of the Sony company is
work on this challenges or situation to reduce for their employees, although they also assure that
it are fit to manage this types of situation. Long- term orientation Sony company wants to focus
on the long- term relationship with their workers typically they need to consider those employees
which are able to doing hard work to living up the exaptations of the company management. But
the country, Sony company need to examine the worker performance and provide a proper
training, so that they are capable to acquiring the batter possibility which support the company to
better their performance and achieve their goal.
Culture Sensitivity
When Sony company shift their main headquarter to Netherlands, so they need to
analysis that market and culture of the country, so that they are not face difficulty to start their
company in different country (Sedej, 2019). Netherlands culture is very different to compare of
other country, then Sony company need to focus that they are work on this before start their
company in Netherlands. Language problem Mostly people are speaking Dutch language in
Netherlands, so Sony company need to assure that they provide proper training to their
employees and they are able to doing proper communication with their new customer without
any problem. Although they doing their advisement in Dutch language. Culture Netherlands
people are not likely to meet new people are reserved, although when they meet they doing
handshake it is very common in Netherlands and they shake hand with everyone individual
including children too. Dutch Demeanour appearances is very important for the Dutch people
and they believe in disciplined conservative and they paying attention in every smallest details.
Along with they believe in high value on cleanliness and neatness. So Sony company ned to
3

focus that are able to maintain discipline and neatness in their working area and give the high
quality products and services to attract the customers. The culture of Netherlands is diverse and
reflecting the regional differences as well as the foreign influences. Along with Netherlands take
the high tax for the companies, the tax treaty is more than eighty countries Sony company need
assure that they indicates all this challenges before entering in this market. Netherlands people
believe that those speaking English is having good standers, so Sony company having a big
opportunities. They having the high stable economy and stable public finance, although they
having the high level of education of resident (Sin and Kim, 2018).
Importance of Networking
Network play a crucial role for the business growth, it helps to expand their business and
improve the performance of the company. Networking is usually involves to meeting the new
people, who share their profession or interest. Although it involves the exchanges of ideas and
information between the individual. Networking is the best way to share their information and
helps the business professional to connect with the other industry members to learn about the
new trends. It is important because it allows the Sony company to find the new opportunities in
the market and increase the chances for business success. Networking helps the Sony company
to provide the new sale technicises which give benefit to the company to promote their brand and
attract the new customer by using digital techniques. Along with it gives the information of their
competitors and advise them to improve their professionally (Yesilbudak and Colak, 2018).
There are some advantage and distances of the networks. Advantage network support the
company to sharing their devices to save their money, by suing networking company can easily
share their information between the users. Although they can use the emails and instant message
app to communicate with the people and they can easily communicate with those people which
are live is different country, security is good, Because users are not able to see the other users
files without their permission. Although company are able to backup their data and files they can
stored their files in files saver. Disadvantage, viruses can be spread to other computer through a
computer, this the biggest problem faced by the company using the networking, hacking is also
the problem, the hacker can hack the company software and copy their essential data. Company
have to face difficulty to manage the large network they have to provide proper training to their
employees to manage this and they usually require employees for mange their work.
4

Communication Barriers Experienced by Foreign Businesses
Sony company have to face problem to built their business in Netherlands, because
mostly people are speak Dutch in this country and they have to face difficulty to communication
with their employees (Stakanova, 2018). Doing business in abroad is a challenging for the most
of companies. Because effective communication with the business associates in other countries.
Communication helps the company to get the knowledge of the culture and mannerism for the
other party, without communication Sony company are not bale to understanding the taste and
references of the customers and they crate miscommunication. Because of this they missed
opportunities, language barrier is the biggest barrier for the company learning the language is
Mandatary for the doping effective communication. Body language is also important to doing
communication and Dutch people are more concern for this, they believe that body language
play a crucial role to doing effective communication. Although Sony company have to managing
the global terms otherwise they face difficulty to start their business in Netherlands, because
Dutch people are more concern for the discipline and they want to maintain rule and regulation
effectively (White-Jones, 2022).
While setting the business in the international market Sony have to consider various methods of
communication through which it will become easy for the company. Firstly, company should
have complete understanding about the language of the Netherlands. As it is only medium
through company can convey their message to the customers, if the management will not
consider the implementation of the regional language of the country in their work environment
then it could be difficult for the company to achieve the desire success. Next, focus should on
giving complete respect to the culture and values which are followed by the people, this will help
the company to get the efficient employees or staff for the functioning of the management. The
process of establishing the business of Sony in Netherlands can work effectively only when
company will start focusing on building the multinational work environment. It will helps in
ensuring the good relation among the employees due to proper way of communication with each
other (Takino, 2020). To understand the requirements of the employees in the company,
authority should focus on conducting the meetings on the regular basis. Through a proper
conversation can occur between the employers and employees, which will help in identifying the
desired changes in the business operation according to the trends which are prevailing in the
external environment of Netherlands. To increase the retention of the customers for the longer
5

period of the time, Sony should concentrate on contacting their customers in their local language.
It is necessary in various ways, like it will support in better examination of the needs and
demands of the customers in Netherlands. Implementation of innovative technology in the
company will help in holding the market share and opportunity through which Sony can get the
competitive advantage in the international market (Wettstein, 2018). Not only this, company
have to focus on various other external factors which may affect the decision of the company
regarding the new set up of business in Netherlands. To handle such situation company have to
fulfil all the given guidelines and rules which are stated by the local authority of the country.
6

Conclusion
The above given essay is a detailed discussion about the planning of Sony to start their
new company in Netherlands. For this different types theories such as Hofstede has been
considered that will support in the effective working of the company in the given market. Along
with this, examination of the cultural sensitivity and how it can impact the functioning of the
business. Sony may find several barriers in order to establish a good communication with the
employees and customers in Netherlands and to solve such problems, this essay also include a
recommendation and methods through which company is able to work efficiently. It is essential
for Sony to involve and focus on all these factors which are discussed above for the optimum
working of the new business which is going to establish in the overseas market.
7

References
Books and Journals
Anamaria-Mirabela, P.O.P. and Monica-Ariana, S.I.M., 2019. LANGUAGE BARRIERS IN
MULTINATIONAL COMPANIES. Annals of the University of Oradea,
Economic Science Series, 28(1).
Blewitt, J.M., Parsons, A. and Shane, J.M., 2018. Service learning as a high-impact practice:
Integrating business communication skills to benefit others. Journal of Education
for Business, 93(8), pp.412-419.
Bolten, J., 2020. Intercultural business communication: An interactive approach. In Exploring
the rhetoric of international professional communication (pp. 139-155). Routledge.
Hannibal, M. and Knight, G., 2018. Additive manufacturing and the global factory: Disruptive
technologies and the location of international business. International Business
Review, 27(6), pp.1116-1127.
Pikhart, M., 2018, August. Technology enhanced learning experience in intercultural business
communication course: a case study. In International Symposium on Emerging
Technologies for Education (pp. 41-45). Springer, Cham.
Sedej, T., 2019. The role of video marketing in the modern business environment: A view of
top management of SMEs. Journal for International Business and Entrepreneurship
Development, 12(1), pp.37-48.
Sin, S.C.J. and Kim, K.S., 2018. How are we the same or different: information needs and
barriers of domestic and international students. The Journal of Academic
Librarianship, 44(6), pp.712-723.
Stakanova, E., 2018. Breaking down barriers to effective EFL communication: A look at sense-
making techniques. International Journal of Cognitive Research in Science,
Engineering and Education, 6(3), p.29.
Takino, M., 2020. Power in international business communication and linguistic competence:
Analyzing the experiences of nonnative business people who use English as a
business lingua franca (BELF). International Journal of Business
Communication, 57(4), pp.517-544.
Wettstein, F., 2018. Human rights, emerging markets, and international business.
8

White-Jones, A., 2022. Value in the International Space: Examining the Challenges and
Barriers on Research Administration International Research Teams. Journal of
Research Administration, 53(1).
Yesilbudak, M. and Colak, I., 2018, December. Main Barriers and solution proposals for
communication networks and information security in smart grids. In 2018
International Conference on Smart Grid (icSmartGrid) (pp. 58-63). IEEE.
9