Challenges and Cultural Issues in International Business

This report discusses the challenges and cultural issues faced by Deloitte, a multinational company, in running international business. It covers factors such as economical environment, political environment, cultural factors, and competitive environment. The report also highlights the impact of regional cultural issues on the corporate organizational culture of the company.

International
Management-1

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 (Covered in PPT)..................................................................................................................1
Task 2...............................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCE...................................................................................................................................4

INTRODUCTION
The international business defined as trade of goods, services, capital, technology and
knowledge across national border at a global and transactional level which can help to improve
the brand image and increase the performance. The aim of every domestic and regional offices
aims to become international and largest organisation all over the world that can help to increase
productivity. This reports is based on Deloitte that is a global professional service and
consultancy provider organisation. This is operating in UK, Brazil, and Japan. The company
employs more than 312,000 employees across the border and managing all services effectively.
This report covers understanding about effects of regional cultural issues on the corporate
organisation culture of this multinational company.
Task 1 (Covered in PPT)
Task 2
For every business organisation it is important to analysis the situation and make plans
accordingly which can help to deliver the right products and services in changing environment
and maintain higher performance. In case of running international business there is requirement
of global workforce with efficient skills and talent that create values for the purpose of achieving
organisational goals. The management is responsible to analyse performance and deliver the
better services (Kolk, Rivera-Santos and Rufín, 2018). In context to Deloitte company there are
different challenges which can face by organisation while running international or global
business:
Economical Environment: This environment may be different from one country to the
next as it involves industrialized, emerging, or less developed. The economic structure of nation
is defined as free market, mixed market and planned that plays different role in international
business. This can be challenge for Deloitte to focus on free market and centrally planned market
while offering their consulting services. The problem arises while running a business in relation
to country is required to follow internation policies for economic environment which needs to be
implement difficult. Hence, this may affect the business negatively (Abdullah and Lui 2018).
Political Environment: The political environment of internation and global business
refers as relationship between government and business that may create political risk. This can
be challenge for Deloitte to deal with different government of country such as multi-party
1

democracies, dictatorships, one-party states, and constitutional monarchies. This become
difficult for organisation to follow all government regulation and manage the activities in other
country that affected the business negatively (Nguyen and et. al., 2019).
Cultural factor: Culture and values in relation to a business is required to be focus while
running any activities and function in country. This is important for organisation to focus on
culture and values of their country and bring the changes accordingly which can help to manage
the task and changes. Deloitte is multinational country which is operating business in global
workplace such as UK, Brazil, Japan and others by following their culture which become
opportunity for organisation to regulate and expand their business and increase the number of
clients.
Competitive environment: This is another factor which requires to be consider while
managing international business. For running and establishing a global business there is require
to focus on competitor which are available in market and affected the business negatively. In
context to Deloitte company, management is required to analysis the competitors who are
providing similar consulting and advisory services at low fees. This can be challenge for
organisation to managing and operating international business in different country there is need
to analyse the complete and then formulate strategies which can be used to sale their services in
higher range and increase the profitability (Acosta, Crespo and Agudo, 2018).
Therefore, from the above discussion it can be defined as Deloitte can face the challenges
and may create the opportunity for running a business and increase organisational performance.
For overcoming the challenges in global business there is require to have good plans and
strategies which can be used to operate and manage the activities accurately. These are important
factors which are uses by chosen organisation that creates value and supports to achieve the
business goals.
In the global business environment, there are different factors which is required to be
focused while operating the business and managing the activities. The management should focus
on different task and elements that may arises and affected the business. The description of
following factor are as defined that contribute in global economy such as:
Taxation: This can be defined as political factor or main element which widely
contribute in global economy. This is important for organisation while running a business there
should be focus on tax rate of particular country that uses to collect the money and funds which
2

uses to running economy. Deloitte is multinational company that is operating at various country
by following the taxation policy which uses in social work such as road construction, hospitals,
education centre, and others that supports to make strong economy.
Economies of scale: This means people believes that there has been an increase in
minimum efficient scale which is connected with some industries. If MES is rising, a domestic
market can be regarded as to small that satisfy the selling needs of industry and managing the
economy of global environment (Abramov, Istomin and Garcia, 2018).
Growth strategies of multinational companies: This is important factor that should be
consider in making strong a global economy. If growth strategies and regulation of an
organisation which is operating in many countries then it become opportunity to expand business
and increase the organisational performance. For instance, Deloitte is a multinational company
that owns its brand by running business in faster growing economy which fulfil the customer's
requirement and contribute in global economy (Machlis and Tichnell, 2019).
Therefore, above mentioned factors are using by Deloitte company that contribute in
global economy by implementing regulation and managing the task. The management of
organisation follows all taxation policy that are levied in international country, helps to manage
the good performance.
The other part covers some regional cultural issues on corporate organisational culture of
multinational company such as language issue, problem solving, changing government
regulation, changing demand of clients and having a competitor in business environment may
affects the corporate organisation culture that can be reduce by formulating strong policies and
following all business regulation that supports to run a internationally business.
CONCLUSION
From the report it can be concluded that there are many challenge which are facing by
company in operating the business such as economical environment, political environment,
cultural factor, and Competitive environment that might be affect the business negatively.
Moreover, key cultural issues are pertaining in global environment that is required to overcome
by formulating plans and appropriate strategies.
3

REFERENCE
Books and Journal
Morley, M. J. and Heraty, N., 2019. The anatomy of an international research collaboration:
Building cumulative comparative knowledge in human resource management.
Costello, M. J., Horton, T. and Kroh, A., 2018. Sustainable biodiversity databasing:
international, collaborative, dynamic, centralised. Trends in ecology & evolution.
33(11). pp.803-805.
Machlis, G. E. and Tichnell, D. L., 2019. The state of the world's parks: An international
assessment for resource management, policy, and research. Routledge.
Abramov, V. M., Istomin, E. P. and Garcia, J. A., 2018. Innovative geoinformation technologies
within management of natural risks in Venezuela. International Multidisciplinary
Scientific GeoConference: SGEM. 18(2.2). pp.261-267.
Acosta, A. S., Crespo, Á. H. and Agudo, J. C., 2018. Effect of market orientation, network
capability and entrepreneurial orientation on international performance of small and
medium enterprises (SMEs). International Business Review. 27(6). pp.1128-1140.
Nguyen, Q. L. H. T. T., and et. al., 2019. International migration: Major challenges and analysis
of human resource management for supply chains. International Journal of Supply
Chain Management. 8(6). pp.565-577.
Abdullah, S. I. N. W. and Lui, E., 2018. Satisfaction Drivers and Revisit Intention of
International Tourists in Malaysia. Journal of Tourism, Hospitality and Environment
Management. 3(9). pp.1-13.
Kolk, A., Rivera-Santos, M. and Rufín, C., 2018. Multinationals, international business, and
poverty: A cross-disciplinary research overview and conceptual framework. Journal of
International Business Policy. 1(1-2). pp.92-115.
(Costello, Horton and Kroh, 2018) (Morley and Heraty, 2019)
4