Cultural Barriers in International Business

The assignment provided is a detailed analysis of cultural barriers in international business. It emphasizes the significance of understanding and adapting to local cultures when conducting business across borders. The document draws on real-life examples from Romania, Germany, Nepal, South Africa, and the UK to illustrate how cultural differences can affect business success. It also highlights the importance of cultural awareness, sensitivity, and competence for businesses seeking to succeed in diverse markets.

RESEARCH
PROJECT

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of Research...........................................................................................................1
1.2 Background of research.........................................................................................................1
1.3 Rationale of research.............................................................................................................1
1.4 Research Aim........................................................................................................................2
1.5 Research Objectives..............................................................................................................2
1.6 Research Questions...............................................................................................................2
What is impact of culture on business?.......................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
2.1 Impact of culture on businesses............................................................................................3
2.2 Impact of cultural sensitivity on Romanian business which will be shifting to UK.............3
2.3 Different ways through which cultural differences can be reduced in an organisation........4
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................5
3.1 Type of Investigation............................................................................................................5
3.2 Research techniques..............................................................................................................5
3.3 Data collection......................................................................................................................5
3.4 Analytical technique..............................................................................................................6
TIMELINE OF RESEARCH ACTIVITIES....................................................................................6
REFERENCES................................................................................................................................9

TITLE: Cultural sensitivity impacts Romanian business trying to establish in UK.
CHAPTER 1: INTRODUCTION
1.1 Overview of Research
Culture refers to customs, social behaviour and ideas of specific society and people. It
can be explained as all ways of life, behaviour, beliefs of people which are passed from
generation to the generation. It is norms as well as social behaviour that found in the human
societies. The culture is different from place to place or country to country. The culture
differences from country to country influence the business activities (Abdullah and Abdul Aziz,
2013). Before conducting the business in another country, it is necessary that company should
determine the culture of other country and conduct its business operations otherwise, it will
develop negative impact on the operations and activities of firm. This present research take in to
consideration on Cultural sensitivity impacts Romanian business trying to establish in UK.
Under this, culture of Romania is different from the culture of United Kingdom. Both countries
has different way to conducting their business.
1.2 Background of research
Culture sensitivity refers to awareness, acceptance and knowledge of the other cultures. It
is being to be aware that the similarities and differences among people with are exist without
assigning them value. The culture sensitivity permits effectively to function in the other countries
and give the value and respect to the other culture. It will helps in minimize the cultural barriers
among different countries and professionals (Capatîna and Schin, 2013). European Drinks &
Foods is largest food company in Romania and it provides European Drinks, Rieni Drinks,
European Foods, Scandic Distilleries and also specialised in producing the drink and food
products. Romania wants to expand its business in United Kingdom country. But the culture of
both countries are different from the each other and it can develop impact on Romanian business
that is trying to establish in UK. Culture of Romania is product of its geography and also distinct
the historical evaluation. On the other hand, culture of United Kingdom is influenced through its
history as developed country, great power and liberal democracy.
1.3 Rationale of research
It is set of reasons which are offered through an investigator for conduct more research in
specific research area. This research is taken into consideration based on impact of culture on
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Romanian business trying to establish in UK. As European Drinks & Foods is food produce
organisation in Romania but it wants to expand its business or target the new market in the
United Kingdom. From this research, investigator can know about the differences in culture of
Romania and United Kingdom. Whereas, on the other hand, researcher can optimise the
knowledge of determined objectives and research in their future investigation and carrier purpose
(Dalton and Druker, 2012).
1.4 Research Aim
The aim of this research is “To identify the impact of culture on Romanian business
trying to establish in UK. A case study on European Drinks & Foods”.
1.5 Research Objectives
 To analyse the impact of culture on businesses.
 To examine the impact of cultural sensitivity on Romanian business which will be
shifting to UK.
 To identify the ways through which cultural differences can be reduced in an
organisation.
1.6 Research Questions
 What is impact of culture on business?
 What is impact of cultural sensitivity on Romanian business which will be shifting to
UK?
 What are different ways through which cultural differences can be reduced in an
organisation?
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CHAPTER 2: LITERATURE REVIEW
Literature review is scholarly paper that consists existing knowledge consisting
substantive findings and also theoretical contributions to specific topic. It is an evaluation
information report related to the chosen research area. It provides theoretical base for an
investigation and helps to identify nature of investigation. Under this, view points and opinions
of authors are considered. Different sources of collection of secondary data consists books,
journals, articles, magazines etc.
2.1 Impact of culture on businesses
On the basis of view point of Budrina, 2011 it has been stated that Culture refers to
knowledge and characteristics of specific group group of people that explained through
everything from religion, social habits, language, arts etc. These all are different from one
country to another so these can be big impact on operations and activities of firm. Advancement
in technology, standardization, labour cost, distribution methods, trade agreements, operational
and managerial innovations have provided way to globalisation wave in past decade. Firm go
global by inorganic and organic expansion. Those firms which want to go globally are monitored
through their stakeholders as well as expert vies on the future positions. In context to this,
different challenging conditions for the international organisations is language. So, it is a
responsibility of the management to understand culture differences in addition to develop
effective strategies which are properly acceptable in various cultures. Culture of host country
more impact on performance of company that engage in global business. It is necessary that
before conducting business in another country, firm should be aware about the culture of that
country.
Under this, there are some negative and positive impact of culture on business:
Positive impact of culture
 The culture develops the positive impact on business by enhanced morale of staff
members and develop positive environment of workplace.
 It is helpful in make improvement in performance level of an individual as well as
productivity of business.
 If the culture of an organisation will be positive or better then chance of employees
absenteeism will be reduced.
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 In this, employees will give more contribution towards idea and also support an
innovation.
Negative impact of culture
 If the culture of an organisation will not be better then it will be a main reason of poor
internal communication.
 It will develop negative impact on profit of business.
 The poor organisation culture develop hypertension, mismanagement, low employee
engagement etc.
2.2 Impact of cultural sensitivity on Romanian business which will be shifting to UK
As per opinion of ZAJAC, 2015, it has been stated that Cultural sensitivity allows the
company to understand the culture of other country which someone is not aware of. It plays a
necessary role on personal level. Under this, firms courting the staff members from country with
the other social beliefs or norms that would do well respect to those beliefs. Most of the business
organization face the complexities to sell their goods in the other countries that based on fail to
understand culture. Romanian culture is somewhere equivalent to the UK culture. Hierarchy is
strictly follow as important decision are taken by the top management of the companies but in
UK hierarchy is decided according to the person's experience. Though Romanian are tough in
negotiation and try to take the benefits of the foreigner. But they are friendly in nature and
always try to initiate the conversation. Under this, European Drinks & Foods provides the food
and drink products in Romania but it want to target the new market and that is United Kingdom.
The business culture of both countries are different such as working environment, language etc.
Cultural sensitivity is less in context of this as both the countries are same in working
environment or hierarchy. But the main hindrance could be the language as most of the
Romanian speaks Romanian and UK speaks English. Though language will not be a problem as
they are not proficient in English but can speak intermediate. So, the impact of cultural diversity
would be less for European Drinks & Food company of Romania. It can achieve their vision if
they remain focused on their business while adjusting with the environment of UK.
Under this, the culture of both countries are different from the each other in context to
working culture, language, environment etc. So, Romanian business can find some complexities
in order to shifting its business in United Kingdom country. It will develop the negative impact
on the Romanian business.
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2.3 Different ways through which cultural differences can be reduced in an organisation
According to view point of Whitmore, 2016, it has been stated that cultural differences
are different practices, behaviours, expressions and beliefs which included unique to the
members of particular race, national origin and ethnicity. There are various ways by which the
cultural differences can be reduced given below:
Learn about culture of client- Under this, it is necessary for European Drinks & Food to
conduct the research to know about the other culture to feel the people more comfortable. Firm
should learn about things which consumers like such as business practices, customs, food etc.
Learn some key phrases- Clear communication is necessary for the effective listening
and it is essential for all staff members of European Drinks & Food to understand about needs
and wants of consumers. If this company will conduct its business in United Kingdom then it
should be aware about the requirement of consumers of UK. Through this the culture differences
can be reduced among Romania and United Kingdom.
Promote appreciation of cultural differences- Set aside special day where some of the
staff members share aspect of their culture of consumers with everyone. European Drinks &
Food company should provide its staff members to “Lunch-and Learn” presenting the featuring
of ceremonies, foods and some of the other cultural aspects. It will help in provide the better
opportunities to employees of European Drinks & Food of Romania to learn as well as
appreciate about the culture of United Kingdom. With the help of this culture differences will not
reduced.
It is necessary to reduce the cultural differences for better productivity of business. With
the help of using these different ways, company can overcome from the arisen cultural issues.
With the help of minimizing differences, the relationship among Romania and United Kingdom
will be improved and Romanian business can not face any issue at the time of conducting its
business in UK.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology refers to the particular techniques which used to determine, process,
analyse and choose information about topic. In an investigation, it allows researcher to examine
overall reliability as well as validity of study (Hechavarría, 2016). Methodology may consist
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surveys, publication research, interviews and some of the other techniques of investigation and
can consists historical and present information.
3.1 Type of Investigation
A strategy used to implement the plans is called research method. The process or the way
to collect data and information for the purpose of making decision of the business, is research
method. There are two different types of research methods mentioned as below:
Qualitative research is based on theoretical data. It is a scientific method to gather non-
numerical data. This sort of research is time consuming because it requires collecting data by
interacting with the people over a long periods of time. On the other hand, Quantitative
research's objective is to develop mathematical models, theories and hypothesis. It is totally
based on numerical data from such as statistics, percentages etc. This present research is based
on qualitative method because it provides the theoretical conformation about specific research
area.
3.2 Research techniques
It refers to process used to gather data or information for an aim of making the better
business decisions. It is systematic plan for conducting an investigation and collect the data from
different sources (IACOB and DUMITRESCU, 2012). The different research techniques are
interviews, surveys, observation etc. by consist historical as well as current data or information.
Under this, questionnaire technique is used through researcher by preparing different questions
related to specific research topic. It is an effective way to collect information from respondents
and also a time or cost saving method.
3.3 Data collection
Gathering and measuring information on variables of interest is called the process of data
collection. Data can be collected through interviews, questionnaires and surveys, observation,
oral history and case study, documents and records. Different methods of data collection are
given below:
Primary data is that data which is fresh and not used before. Primary data is collected in
number of ways through survey, observation and experiments and not subjected to any
processing or manipulation. Primary data is quite expensive and time consuming because it is
natural data. On the other hand, Secondary Data is already collected and used data. This is
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already used or analysed by someone else. It is collect through books, magazines, newspaper,
trade journals and various published and unpublished data, government departments and
organisational records that was already collected for other research purpose (Wang and et. al.,
2018).
3.4 Analytical technique
These are methods or procedures to analyse some issue, facts, data etc. With the help of
using the analytical techniques, researcher will analyse the collect data as well as information to
get better outcomes. Analytical techniques refers to methods for analyse the fact, issues and
status in context to forecast the potential outcomes at the time of factoring in variable of project.
Under this present report, investigator use the graphical representation of gathered data and
interpret them for the better analysis.
TIMELINE OF RESEARCH ACTIVITIES
Timeline refers to visual representation of sequence of events mainly historical events.
Timeline shows the list of activities in a sequential manner. Under this, researcher develops a
Gantt chart i.e. a graphical representation of activities. Under this, activities are given on the
basis of specific time period (URECHE, 2015). It is a responsibility of an investigator to focus
on completing activities on the basis of given period of time. It is helpful in providing graphical
illustration of schedule that aids in plan, coordination and also track the particular tasks in
project. It is visual view of the different tasks or activities scheduled over the time. These are
used for the projects planning of all types and an effective method of showing the scheduled
work to complete within the particular time period. Gantt chart is useful for the scheduling as
well as planning the schedule. Under this mentioned graph, there are different activities that are
mentioned for an instance aims and objectives of research, literature review, data collection,
interpretation of data, conclusion and recommendation etc. The time period of these activities are
given. It is necessary for an investigator to finish these activities with in a particular period of
time in order to carry out certain outcomes.
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REFERENCES
Books & Journals
Abdullah, Z. and Abdul Aziz, Y., 2013. Institutionalizing corporate social responsibility: effects
on corporate reputation, culture, and legitimacy in Malaysia. Social Responsibility
Journal. 9(3). pp.344-361.
Capatîna, A. and Schin, G., 2013. Minding the Cultural Gaps between Different Countries-A
Real Challenge for the International Managers. Revista de Management Comparat
International. 14(5). p.704.
Dalton, K. and Druker, J., 2012. Transferring HR concepts and practices within multi-national
corporations in Romania: The management experience. European Management Journal.
30(6). pp.588-602.
Hechavarría, D. M., 2016. The impact of culture on national prevalence rates of social and
commercial entrepreneurship. International entrepreneurship and management journal.
12(4). pp.1025-1052.
IACOB, D. and DUMITRESCU, V. M., 2012. Cultural awareness, sensitivity and competence:
Basic requirements for business success in Nepal and South Africa.
URECHE, A. M., 2015. Business Negotiations between Romanians and Germans-a Cross-
cultural Perspective. Dialogos. 16. (31). p.7.
Wang, W. and et. al., 2018. UK consumers' perceived risk of buying products from emerging
economies: A moderated mediation model. Journal of Consumer Behaviour. 17(3).
pp.326-339.
Online
Budrina , I., 2011. Doing business in Romania: main cultural values. [Online]. Available
through: <https://www.romania-insider.com/doing-business-in-romania-main-cultural-
values/>.
Whitmore, J., 2016. 5 Ways to Overcome Cultural Barriers at Work. [Online]. Available through
: <https://www.entrepreneur.com/article/276998>.
ZAJAC, M., 2015. The Impact of Culture on Business Success? [Online]. Available through:
<https://lumesse.com/blog/impact-culture-business-success>.
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