Managing Cross Culture in International Business

This report discusses the challenges and strategies of managing cross culture in international business, specifically in the context of Hertfordshire Business School entering the Chilean education market. It analyzes the issues faced by the school, conducts a PEST analysis, explores the cultural differences between UK and Chile, and develops a marketing plan using the Ansoff Matrix and Marketing Mix. The report concludes that the school has the opportunity to enter the Chilean market and provides recommendations for success.

Managing Cross Culture

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Contents
Introduction...........................................................................................................................................2
Finding Analysis....................................................................................................................................2
Issues Face by the Hertfordshire Business School.............................................................................2
PEST Analysis.......................................................................................................................................3
SWOT analysis......................................................................................................................................5
Cultural differences between UK and Chile..........................................................................................6
Power Distance..................................................................................................................................6
Individualism.....................................................................................................................................6
Masculinity........................................................................................................................................7
Uncertainty Avoidance......................................................................................................................7
Long Term Orientation......................................................................................................................7
Indulgence.........................................................................................................................................7
Marketing Plan......................................................................................................................................8
Ansoff Matrix....................................................................................................................................8
Marketing Mix...................................................................................................................................9
Conclusion.......................................................................................................................................11
References.......................................................................................................................................12
Appendix.............................................................................................................................................15

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Introduction
Cross culture marketing is the strategic process of marketing among consumers whose culture
is different from the other country culture. In this process, the company enter the new market
due to which culture of the existing market is change with new market. Threat and
opportunity arises while the countries become more diverse (Baker, 2016). This report is
based on marketing plan for university. In this report, the discussion is made on the
Hertfordshire Business School. Hertfordshire Business School wants to enter the Chile to
provide the services at the large area. Hertfordshire Business School has to develop the
strategies in order to enter the market of Chile.
In this report, the analysis has been done to analyse the issues which will face by the
company at the time of entering the Chile. Later on, PEST Analysis will be done to identify
the strength, weakness, threat and opportunities. In the last, the marketing plan is developed
for the university so that it can enter the market as per the requirement.
Finding Analysis
Issues Face by the Hertfordshire Business School
Funding
Funding is essential aspects of higher education because it’s directly related to the
strengthening of institutions. It is observed that the universities require the higher budget for
free cost of tuitions for the poor children. The government provides the funds to Chilean
universities in order to reduce the cost of tuition fees. The government provides the
scholarships to cover the first part of universities and the remaining will adjust with the lower
degree of loans with the lower rate of interest (Trading economics, 2018).

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Institutional Framework
The higher education system needs to be following the institutional framework. Institutional
framework states that the main objective of the universities has to deliver the services of
teaching instead of earning profit. The sub-secretary of education and Superintendence
should stop the institutions to earn the profit (Sanchez, 2013).
Demand for Public education
It has been seen that the ministry of education states that the universities has the
responsibility to provide the quality of education. The universities have to provide the
education free of cost but it is founded that the universities have high fees with the tax money
which cannot be afford by everyone. Only prosperous people will send their children to
higher quality private schools and universities. The Universities are not funded well by the
government due to which they have to charge the high amount (Fine, 2017).
PEST Analysis
Political
 Only nation in Latin America in terms
of lowest political risk.
 Taxes in Chile are lowest as compare
to the others countries as the
corporate tax is 17% (Export. Gov,
2018).
 Foreign secretary Johnson and
Economic
 Chile is the fastest growing
economies.
 Open market economy with the solid
macroeconomic stability due to which
the poverty is reduced between 2000
and 2015 with the percentage of 26 to
7.9.

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Foreign Minister Ampuero shows
their interest in developing the
education system.
 Current president boost the growth
and promote the investment.
 Chile has the highest GDP in the
region US$24, 540 in 2017.
 Growth rate of the country reflects the
rise in consumption, higher wage rate,
lower interest rate and private sector
confidence.
 At present, it is founded that the GDP
rate is goes up to 4% by 2018-19 but
it seems to downfall to 3% in 2020.
Social
 70% of population of Chile is
working.
 Gradually rise in real wages have
sustained in private consumption
 40% of children in the age of 18-24
years old are enrolled for the high
education.
 The age of 22 years old students go
abroad with the purpose of learning
English.
 Demand of English professors is high.
 Rise in purchasing power encourage
the Chilean to invest more in
education.
 There are fewer students who learn
Technology
 The IT market of Chile is most
developed market in Latin America.
 IT sector of Chile is growing with the
annual growth rate of 11% (Figueroa,
2016).
 Due to high technology growth, the
universities use the digital media
instead of professors.

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the English.
SWOT analysis
Strength
 The university has highly qualified
professors of English
 Quality of services
 Highly facilitated as per the
requirements of teaching (Mind
Tools, 2018a)
Weaknesses
 Less Capital
 Low marks of children
 Less use of digital media
Opportunities
 Demand of English professors is high
 Rise in purchasing power of
consumer is favourable factor for the
university so that the parents will
send their children for higher
education
 Hertfordshire Business School can
invest in high technology and teach
the student through digital media in
long distance relationship
Threat
 Currently, GDP rate is goes up and it
is estimated that it goes down to 3%
in the near future which decrease the
purchasing power of consumer
(Shabanova, Ismagilova, Salimov,
and Akhmadeev, 2015).
 Demand of professors is getting low
due to high digital media
 Competition is also high which is
another factor of threat for the

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 Rise in consumption increase the
private-sector confidence.
Hertfordshire Business School
Cultural differences between UK and Chile
(Source: Hofstede insights, 2018)
Power Distance
Power distance refers the inequality in the country. The percentage of Chile of power
distance is high which indicates that the large number of people accept that the inequality. In
UK, the percentage of Power distance is low which reflects that the members face the low
inequality.
Individualism
Individualism defines that the degree of interdependence a society maintain among its
members. The Chile has low percentage which states that the large numbers of people have
the autonomy to move forward. UK has low percentage as compare to the Chile which
reflects that the less number of people have low autonomy in order to move forward for the
higher positions. It is a favourable factor for the school in order to enter the UK education
industry (PWC, 2018).

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Masculinity
Masculinity refers that the society is highly competitive, achievement and success and
Feminist society states that the caring nature of the society for each other. Chile is a feminist
society where the people believe in caring to each other. UK society is a masculinity society
which is also a favourable factor for the School because it can enter the market with the less
competition behaviour of the others.
Uncertainty Avoidance
Uncertainty Avoidance refers the comfortably with the unconditional situation. It has been
evaluated that the Chile has low score in this factor which reflects that the society does not
believes in avoidance of rules and regulations. It is negative factor for the school because it is
difficult to follow to every rules and regulation (Hofstede Insights, 2019).
Long Term Orientation
Chile has the normative culture where the people have absolute truth. The people of Chile
believes in saving for future and the people of UK also have same believes regarding the
saving. It has been evaluated that this factors is negative for the school in order to enter the
Chile industry because people consume less and save more in education of the children.
Indulgence
Indulgence refers that the people try to control their emotions and desires. The high score of
indulgence in Chile states that the people enjoy their life as they wants to spend the money
according to their wish. It is beneficial factor for the school because it arise a chance of
spending money in education for their children.

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Marketing Plan
The school has to prepare the marketing plan in order to enter the education industry of Chile.
The school has to adopt the Ansoff Matrix, and Marketing Mix strategy.
Ansoff Matrix
(Source: Mind Tools, 2018b)
Marketing development
Market development strategy defines the exiting services in the new market in order to
expand the business. It has been seen that the school has to adopt this strategy so that it can
grab the large market share in educational industry with their strength. The school has to use
the same techniques to deliver the services as per the culture of Chile (Chiang, Chen, and Ho,
2016).
Marketing penetration
Market penetration strategy defines that the existing product in the existing market. As above
discussed, it is observed that the HBS have highly qualified employees and especially for
English subject. The HBS has to deliver the quality of services in the Chile education
industry so that it can easily grab the high market share by using the digital media to cover
the long distance (Gurcaylilar-Yenidogan, and Aksoy, 2018).

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Diversification
Diversification strategy defines the new products in the new market. It is observed that the
school has to enter the market by using the advance technology which is highly used in Chile.
This strategy helps the school to attract the large number of parents to spend the large amount
in the education of their children. The school also uses the recording lectures in the form of
CD in order to deliver the services to the students (McDONALD, 2016).
Product Development
Product development strategy defines the new product in the existing market. It has been seen
that the school has the opportunity to deliver the quality of services to the Chile student from
the long distance. As discussed above, the school can use this strategy to deliver the quality
of services to the students through the smart classes. Smart class is an appropriate method for
the school to teach the student from the long distance.
Marketing Mix
(Source: Marketing mix, 2018)
Product Strategy
It has been seen that the HBS has to analyse their target then it has develop the service
strategy. The service strategy of the school should be different from the others so that the

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company can take the advantage of competition. The school has to provide the high class of
English to the student of Chile (Marketing mix, 2018).
Promotion Strategy
While expanding the operation, the school has to use the promotion strategy to promote their
services in Chile. It can use the modern method of advertisement due to advance technology
in Chile. The company can promote the services to aware the parents for their services in the
market (Stead, and Hastings, 2018).
Place Strategy
While entering the market, it is the responsibility of the school to analyse the appropriate
place to open the school. Place should be in the city at the safe place market so that student
can easily come for study.
Price Strategy
From the above analysis, it has been founded that the parent of children wants to send their
children in high school but ever parent cannot afford their fees. The school has to offers the
scholarship to the children and use the other to system to reduce the cost of tuition fees
(Stead, and Hastings, 2018)
.
Process Strategy
The system and process affects the execution of the services so the school has to make sure
their process. The school has to adopt that process due to which the students gain the
knowledge. It is also necessary to make sure that the school use the appropriate process in
order to provide the quality of services.

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People Strategy
As above discuss that the students of Chile go abroad to learn the English and it is also
observed that the English professors are the strength of the school. While entering the market,
the school has to also appoint the best English professor in order to attract the student.
Physical Environment Strategy
It is necessary to adopt this strategy to show the evidence to provide the services. As
discussed, the school has to set their lower prices which can be afforded by the people. But
the school has to maintain the records of the cost of tuition fee as evidence. This strategy also
states the infrastructure use by the companies. The school has to adopt the smart classes so
that the large number of students studies from the long distances as well (Datta, Ailawadi,
and van Heerde, 2017).
Conclusion
From the above analysis, it has been concluded that the Hertfordshire Business School has
the benefit to enter the Chile education market. It has been seen that the higher school faced
the issues in Chile such as Institutional framework, funding and demand of public plan. The
qualities and services of the school can adjust in these issues. As per the analysis of Chile
environment, it is observed that the country has high growth rate of economy which is an
opportunity for the school. It has been founded there is high technology in Chile due to which
the school can teach the student from long distance. The main strength of the company is
English professor which helps to gran the market because in Chile there is less number of
professors of English language. As per the above discussion, the marketing plan is prepared
with the Ansoff Matrix and marketing mix. These strategies are beneficial for the school in
order to achieve the success in the future by entering the Chile market.

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References
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https://www.hofstede-insights.com/country-comparison/chile,the-uk/ [Accessed 8/1/19].

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Live Plan. (2018) What Is a SWOT Analysis, and How to Do It Right (With Examples).
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https://marketingmix.co.uk/ [Accessed 8/1/19].

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McDONALD, M. (2016) Strategic marketing planning: theory and practice. In The marketing
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Appendix
(Source: Live Plan, 2018)
(Source: Trading economics, 2018)

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