International Business Major -

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction..............................................................................................................................3
1.1. Background Overview......................................................................................................3
1.2. Research Aims and Objectives.........................................................................................5
1.3. Key Research Questions...................................................................................................5
1.4. Problem Statement............................................................................................................6
1.5. Rationale for the Study.....................................................................................................6
2. Chapter 2 - Review of Literature..............................................................................................8
Gaps in the Review of Literature...............................................................................................15
3. Chapter 3 – Research Methods...............................................................................................16
2.1 Research Philosophy............................................................................................................16
3.2. Research Design.................................................................................................................17
Data Collection and Analysis....................................................................................................17
Sampling Technique..................................................................................................................18
Sample Population.....................................................................................................................18
Ethical Considerations...............................................................................................................18
Research Project Limitations.....................................................................................................19
Outcome or Purpose of the Study..............................................................................................19
Chapter 4 – Discussion and Analysis............................................................................................19
Analysis.....................................................................................................................................25

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Cultural Aspects of Gucci as an Organization...........................................................................25
Positive and Negative Impact of Cultural Imperialism.............................................................26
Strategies that can be adopted by Gucci for Improving Cultural Imperialism..........................28
Understanding how Cultural Values of a Different Country impact Business Operations.......29
Chapter 5 – Conclusion and Recommendations............................................................................31
References......................................................................................................................................36

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1. Introduction
The impact that cultural factors has on the nature, scope, development and expansion of
an international business, is quite extensive. Culture has an impact on the manner by which the
employees ought to be managed, based on priorities and values. Culture also has an impact on
various functional areas of a business such as marketing and sales, as well as distribution. It can
affect the decision of a company to grow and to expand to foreign shores. This assignment
investigates the impact that cultural imperialism has on international business with special
reference to Gucci. The research aims, objectives and key research questions are stated, the
rationale for conducting the investigation is given, followed by an in-depth review of relevant
literature on the subject matter the research methods are stated followed by findings, discussion
and analysis. The project concludes with a list of recommendations that ought to be taken into
consideration by any international business to better deal with the impact that cultural
imperialism has on its growth and expansion.
1.1. Background Overview
There are a number of effective ways by which culture can impact the running of a
business. To begin with, the pace of a business is determined by the type of culture that is
followed by the business enterprise for the implementation of its projects. A high strung and high
energy culture characterized by plenty of vivacity will result in a business being very fast paced.
Such a business will focus only on continued growth and development and it will focus on
bringing about this development at a very quick pace. Based on the nature of a business, the
culture and the pace at which the business operates can also turn out to be quite flexible and
relaxed.

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Business protocol is also influenced or dictated to by the culture of the organization.
Culture dictates how it is that the employees of the firm are going to meet and greet one another
and work with one another. Business protocol lays out all the do’s and the don’ts that are
associated with a particular business enterprise. Business protocol establishes with clarity the
type of norms or standards that employees have to adhere to when they perform business
operations, when they engage with one another and when they engage with the clients of the
organization. As such, the culture of the business enterprise is seen to exercise a specific role
when it comes to determining standards and ways by which client negotiation is to be carried
out. Decision making and the management of employees as well as projects are determined by
the culture of the business as well. The type of cultural practices that are imbibed and undertaken
by the business will determine how quickly it is that decisions are taken for the growth or
promotion of the business, and the manner by which the operations of the business are performed
be it marketing and sales or the distribution of resources, are influenced by the culture of the
business too. An aggressive and exclusive culture will affect or limit the way a business conducts
its operations. A business enterprise that is characterized by an inclusive and progressive culture
will hire a diverse group of employees, who in turn will take innovative decisions for the
successful growth of the business, and who will strive to ensure that the business is able to
establish the competitive advantage that it needs to be ahead of its rivals in the market and the
industry in which it operates.
Cultural imperialism is a term which is also referred to by the term cultural colonialism.
It refers to the dominating influence of cultural relationships within the four walls of a business
organization, as a consequence of which the values, practices as well as meaning of a particularly
powerful foreign culture is imposed on one or more than one native culture. Cultural imperialism

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is seen to be largely prevalent in the world of business. Foreign cultures associated with the
founding and establishment of prominent business houses tend to impose their cultural values
and ideals onto the people who are working for their enterprise (Bauer and Matzler 2014). The
cultural values of the business enterprise are equivalent to the values that are unique or exclusive
to the specific ethnic culture of the business owners or directors. All the people who are working
for the organization have to conform to such values and ideals, even if they happen to come from
different cultural backgrounds and identify with different sets of beliefs and practices. The
practice of cultural imperialism in the world of business implies that the specific culture of the
business owner, namely the ethnic or religious culture which the business owner identifies with
or relates to, becomes all pervasive. The influence of this culture can be felt in all aspects of the
running of the business and especially on the workers or employees who keep the business
running (Bauer and Matzler 2014).
1.2. Research Aims and Objectives
Some of the primary aims and objectives of this research are as follows –
 To determine the cultural values of the Gucci Company
 To analyze the effects of cultural values on the running of an international business
 To provide effective recommendations using which cultural imperialism can be
maintained and analyzed in a positive way by the company
1.3. Key Research Questions
The important questions which this research seeks to find answers to are as follows –
RQ 1 – What are the cultural aspects of a company like Gucci?

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RQ 2 – What are the negative and positive impacts of cultural imperialism on the company?
RQ 3 – What are the strategies that can be adopted by the company for improving cultural
imperialism?
RQ 4 – How do cultural values from other countries impact or affect the operations of the
company?
1.4. Problem Statement
There are problems or issues that are being experienced with respect to the demand for
services and products and also in the manner by which communication is being carried out with
the customers of the company, due to cultural imperialism.
1.5. Rationale for the Study
Gucci has been facing a number of problems in the handling of its business operations
because of the cultural values that are unique or exclusive to the country of China. Gucci is a
company that is headquartered in the city of Florence, in Italy, and as such it is Italian culture
which dominates the business practices of this enterprise. Chinese cultural values are drastically
different from the cultural values of an international firm. The global revenue that was earned by
the Gucci Company in 2018 was massive, and 57 % of this revenue was earned from the sale of
leather goods (Halzack 2015). As such, the company earned 8.3 billion Euros in terms of revenue
in the year of 2018, which was a sharp fall from the 212 billion euros that it had earned in the
year of 2013. This fall in revenue can be accounted for by virtue of the fact that the company has
been faced with several issues and problems brought on by cultural imperialism.

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