Strategies for Cross-Cultural Success in International Business

This report provides an analysis of international business, focusing on the opportunities and risks associated with cross-cultural environments. It uses Agro Bolivia Ltd. as a case study, examining how the company can effectively manage cultural differences when expanding into new markets. The report discusses strategies for market entry, human resource management, and adapting business models to local cultures. It emphasizes the importance of understanding consumer needs, values, and beliefs in different cultural contexts. The analysis includes recommendations for achieving cross-cultural proficiency, such as implementing differentiation and cost leadership strategies. Ultimately, the report advises companies to conduct thorough research, adapt to local market conditions, and build strong relationships with consumers to ensure long-term success in international business. Desklib offers this report as a valuable resource for students studying international business.

International Business

EXECUTIVE SUMMARY
International business refers to the activities done by business concern structure in order to make
them to capable to grow their dealing in commercial enterprise environment. It is not simple to
grow the business enterprise, there are diverse possibility and challenges that may be faced by
the establishment at the time of elaboration. In this report, a domestic firm is being chosen that
wants to expand the business in international market. The requirements of the market and being
analysed and all the strategies that will help them to attain success are being evaluated.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK...............................................................................................................................................4
Critically evaluate using relevant examples how the potential opportunities and risks of doing
business in such cross-cultural environment can be effectively managed. ...........................4
Critically analyse relevant management responses that should be undertaken by the selected
company to realise the opportunities available in the market selected in relation to cross-
cultural issues.........................................................................................................................7
Suggest practical and justified recommendations about how the company selected can achieve
cross-cultural proficiency which is essential in achieving success in the international market
selected. ................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International business refers to any circumstance in which the manufacturing and supplying of
the products as well as services in around the cross nation boundaries. Globalization is the
change towards a more merged as well as interdependent global economy and makes more
opportunities for the global organisations. Such international business can take place in case of
market areas in which the trade hurdles are lowering and preferences and needs of the
consumers are fluctuating. It is also known in case of manufacturing, in which the firm can get
products and services conveniently from the other nations. Few associates takes the definition of
global business in order to link it purely to the business. Yet, international business might give
support appropriately personally as well as professionally in the area which has moved towards
casual industrial manufacturing. International business concentrates on the top segment of cross
nation boundaries exchange of products, resources as well as goods among two as well as more
than two nations (Ahen, 2021). The following report will cover about the evaluation using
relevant examples how the potential opportunities and risks of doing business in such cross-
cultural environment can be effectively managed. In addition to it, analysis of relevant
management responses that should be undertaken by the selected company to realise the
opportunities available in the market selected in relation to cross-cultural issues will covered in
the report and it will also include about the practical and justified recommendations about how
the company selected can achieve cross-cultural proficiency which is essential in achieving
success in the international market selected.
TASK
Critically evaluate using relevant examples how the potential opportunities and risks of doing
business in such cross-cultural environment can be effectively managed.
Cross culture in the business organisation refers to the firm's attempt to make sure that its
people act effectually with professionals from the different backgrounds (Brandl, and et.al.,
2021). Similarly to the procedural cross cultural, it shows the recognition of regional, ethnic and
national differences in the several ways and methods as well as it wants to connect them. The
potential opportunities as well as probable risk in cross culture business environment are
mentioned below:

Opportunities of doing business in cross cultural environment:
 New Consumer Base – Cross cultural consumers evaluation refers as the effort to
understand to what level the customers of two or more countries are different or similar.
A main opportunity of doing business in cross cultural environment for the firm Agro
Bolivia Ltd, that after conducting the appropriate cross cultural consumer evaluation can
assist them in knowing the needs and wants of that particular goods or services which can
get them more consumer base in different country with having different culture
(Burmester, 2021). Such knowledge of differences and similarities which is there among
the dealing nations is essential to the company in order to make the appropriate strategies
to target the consumers in the particular international market area. The success of the
company in the international market is basically can be influenced by the values, beliefs
and customs.
 Entry new markets – Expansion in to the new markets can lead to the getting more
consumer base with large market area which is beneficial for the long term growth and
success of the company. In context to the Agro Bolivia, management can conduct
appropriate studies of the diversified culture of the area of expansion of the company in
order to understand the need and wants of the consumers in their new market area. By
understanding the cultural requirements of the area of expansion can give firm an edge as
they are getting more consumer base and more market area which is good for the long
term growth as well success of the business.
 It allows in diversifying – By operating business in the local market area which can limit
the probable revenue earnings of the company. One of the drawback firm face when they
work in one market area is the exposure in the different market fluctuations (Evers, and
Andersson, 2021). In context to the Agro Bolivia Ltd, management can take their
business globally which permits them to diversify their markets into the different culture
which can help them in making the profit earning more better. If the domestic market is
declining then company can have the edge as they can easily operate into the cross
culture market areas after conducting appropriate research.
Risk of doing business in cross cultural environment:

 Risk to adopt international business model – Behaviours and attitudes of the
consumers are majorly influenced by the culture of the specific market area. When a firm
expands itself into the new market area, business models need to be altered in order to
reflect preferences of the local consumers, habits and customs. For instance, in context to
the Agro Bolivia Ltd, modification need to be done to the offerings of the company,
prices and marketing (Hilmersson, and et.al., 2021). Moreover, local cultures supports
the business models, international businesses who possess higher risk of failure. The
costs linked with this failure in the global market which can be essential to overcome or
reduce.
 Risk to adapt human resource management in the local markets – Ignorance of the
cultural might threaten a company's capability to retain, attract and leverage its scope of
international talent. In context to the Agro Bolivia Ltd, employ local staff of the country,
company is expanding into so its HR policies required to be adapted to show the profile
of the domestic workers (Zucchella, 2021). Elements which influence workers
motivation, satisfaction of job and organisational commitment in accordance to the cross
culture with essential implications for the appraisal performance.
 Risk to adapt management activities across cultures – Management activities are full
with particular assumptions of the culture. No business theory is actually universal ,
however, the assumption of cultural implicit management activities which are usually
unacknowledged. The ideas are given to the different cultural environment with knowing
of the cultural variations without alteration for cultural areas can risk and might lead to
the losses of the firm Agro Bolivia Ltd.
In order to effectually manage the risk and opportunities In relation to the company Agro
Bolivia Ltd, company can implement differentiation strategy in its expansion strategy in which
the firm will target the new market area with offering new products by conducting appropriate
research on the targetted market by analysing the needs and wants of the consumers there in the
new market area (Huang, Xie, and Wu, 2021). This method is bit risky for the firm but if it is
managed appropriately then company can be more success in its business. In order to overcome
the risk assigned to cross culture environment of the firm Agro Bolivia Ltd, management is
adopting cost leadership method in order to lower their price as accordance to the new market
area which can give them an edge over the competitors in the same market as well as it will help

the firm sustaining in the new market area it can also give them long term success and also
overcome the risk of expanding into the new country.
Critically analyse relevant management responses that should be undertaken by the selected
company to realise the opportunities available in the market selected in relation to cross-
cultural issues.
In accordance to the,Mol and Brandl, 2018, international business marketing can refers to
the tapping into the international market in order to carry on the business. With the aim, there is
requirement of evaluating the wants and desires of the consumers. The economic situation of the
country will be assorted and there is requirement to give suitable in order to attain success in an
effective way (Ioulianou, Leiblein, and Trigeorgis, 2021). In conetxt to the Agro Bolivia Ltd, is
planning to expand their working in the Asia and for the purpose it is crucial to understand that
the cultural needs of the community is assorted. The firm requires to evaluate the needs of the
consumers in social culture over their own needs in order to be more capable to cater their
requirements. It is being evaluated that in the target market the business is permitted to expand
and several options as well as subsidies are being provided to them. There is political aid given
to the firm attempting to enter into the market area. It is essential for the Agro Bolibia Ltd, to
evaluate all the elements which shape their organisation and it will assist them to accomplish
growth. By focusing on their essential opportunities and strength the business firm will be
capable to compete in the international market as well.
In accordance to, Lund, Hansen and Lindgreen, 2019, there are several elements which
have immediate effect on the working of the company in the interaction market. Initially there is
requirement of appropriate study in order to get the top success and growth opportunities for the
firm which can be evaluated. It is known that, the essential hurdles which comes in regards of the
language. This language utilised in international market is assorted and it is the reason the
method of act become issues (Jean, Kim, and Choi, 2021). All the business firm requires
effectual communication in accordance to accomplish objectives and goals of the firm and the
another element is the awareness among people and the qualification of the consumers which has
direct effect on the success of the Agro Bolivia Ltd, so it is also very much crucial to initially
choose the target group of consumers which can be given. It will assist them to achieve the
growth in the appropriate manner. The values and beliefs followed by the people should also be

understood. At the time of selling products in the global markets it is essential to understand
about the need and wants of the consumers. It is crucial to construct bond with consumers
regarding their understanding their values and customs. Giving appropriate value to the
consumer assist the firm to accomplish success in the international market edge over its rivals.
Currently, there will be several business firm which will be giving its agro products in that
market. By giving something different the company Agro Bolivia Ltd, will be capable to
accomplish growth over the rivals.
In accordance to Veronica, Antoniom Shlomo and Victor 2020, All the essential
decisions linked to the scaling are depends on researching about the culture of Asia. The people
living in Asia are like construct better bonds and requires organic agro products for their health.
Consumers their believe in working together in order to accomplish success together. It is
evaluated that, there is requirement to do in depth research in order to take appropriate decisions
linked ot he modification in the goods (Lythreatis, and et.al., 2021). There is requirement of
appropriate communication in accordance to make them capable to tempt more consumers to buy
their goods in that particular market area. The culture of the firm will assist the Agro Bolivia Ltd,
should be researched upon. In addition to it, company will recruit the workers of that particular
country. There is need to learn about the ethics of that area and then give the consumers in
accordance to the same. The culture of firm which will assist Agro Bolivia Ltd, should be
studied . Moreover to this, company will hire workers of that particular country. The firm
reqiores to reoect the needs of the workers and should knows the wants of them in order to make
them feel worthy. In accordance to the Bolwijn, Casella and Zhan 2018. To choose the best
market area in which the firm should scale can be operated by doing the SWOT analysis. It is
understood that Agro Bolivia Ltd, provides quality products to their consumers of the UK. At the
time of tapping into the global market there is requirement to operate on the strengths. The
quality of the products will assist them to tempt more consumers and provide them in
appropriate way. It is mandaory to note that the quality of the products which are offered by the
company will support firm Agro Bolivia Ltd, to attain the targetted consumers. Company is
thinking to target the consumers of all age group for their products. By targeting the suitable
consumers Agro Bolivia Ltd, will be capable to provide their potential consumers.

According to Aagaard and Harrison 2019. There are several methods of tapping into the
global markets. It is mandatory to evaluate all the all the ways of entry in to the new market area
which are capable to select the best one and accomplish success.
Exporting – It is one of the convenient method to enter into the global markets. It is one of the
most common mode of international expansion. In this way business firm directly sell the goods
to the global nations which are most from the home nation. The important benefit of this way is
that it minimises the cost of functioning into the new nation. It is essential for the organisation to
supply the goods in the new nation by a a contractual agreement with the support of a local
supplier (Mariotti, and Marzano, 2021). So, that the goods supply effectually to the global
market area which are directly capable to increase the sale of the company.
Licensing and franchising – It is the way of rapid entry into the international market which
assist the business firm to initiate their functions by providing the firm in that market area.
Company has low price and firm does not posses more risk. The company works on the segment
in the same way it is done in the domestic market so that sales can be increase.
Partnerships and Strategic Alliances- The next method to tapp into the new market area which
is strategic alliance with the domestic partner. The legal agreement among two or more firm
which are included to operate for the specific time period in order accomplish a common goal. It
assist the fitting of both the companies and the partners decisions with each other in oder to make
them capable of accomplishing the common goals. Perks for the domestic company as they are
capable of directly launching their goods in the global markets and do not need to know the
culture of that specific market place.
Suggest practical and justified recommendations about how the company selected can achieve
cross-cultural proficiency which is essential in achieving success in the international
market selected.
The real success of the firm Agro Bolivia Ltd, depends on the hands of the workers so it
is essential to reducing all the risk which might arise at the time with the support of the proper
management. By knowing the workers and giving them appropriate training in order to make the
functions of the firm to successfully function their working (Treviño, and Doh, 2021). As due to
because the workers are satisfied and are able to increase the manufacturing effectively for the
firm which will aid the organisation in accomplishing the objectives and goals that can attain the
needs of the consumers appropriately. There are few recommendations which will assist the

Agro Bolivia Ltd, to accomplish success. The appropriate act which need to be take by the firm
and its management are as follows:
 There is requirement to evaluate the needs and desires of the consu,ers which are there in
the market area. The issue company faces in the global market should be evaluated in
order to make the firm which capable to give the solution. A appropriate research is
essential to accomplish success and growth for the long term (Vrontis, and Christofi,
2021). The firm should focus on trying to understand its consumers of the new market
area and the ethics and beliefs which are being followed by the firm.
 Moreover to it, There is requirement to do appropriate evaluation of the business
environment of the global expansion. The company Agro Bolivia Ltd, should work on the
strengths and weakness of the firm in order to make them supply the best quality goods.
The competitive evaluation will assist the firm Agro Bolivia Ltd, to understand about the
techniques which are implemented by the firm and it will assist them in smooth
functioning of their business.
 It is essential for the firm to understand about the top scaling techniques which is there
for them in order to make the firm attain its goals as well as objectives (Wang, and
Wang, 2021). The business firm should understand about the top possible option of the
expansion which will be more better for the firm. It will assist them to accomplish
success in the market area.
CONCLUSION
From the above report it is concluded that international business plays an essential role in
the growth and success of the business firm. It is understood that there are several fluctuation
taking place in the global business environment. The firm is capable to work in the domestic
market and have accomplished growth and success in order to function in the global markets.
There are specific problems which are being faced by the company which includes cross cultural
management. The following report is based on the literature review on the risk and opportunities
which may be better for the growth and success of the firm. It is essential to understand about the
crucial aspects which will support the firm to expand their organisation. In addition to it,
marketing techniques which can be utilised by the firm is also evaluated and the several options

of the scale there for the firm which is taken. The support of models and theories will assist the
firm to extent their working in the global markets.

REFERENCES
Books and Journals
Ahen, F., 2021. International mega-corruption Inc.: The structural violence against sustainable
development. critical perspectives on international business.
Brandl, K., and et.al., 2021. The impact of multinational enterprises on community informal
institutions and rural poverty. Journal of International Business Studies, pp.1-20.
Burmester, B., 2021. The diplomatic imperative: MNEs as international actors. In A Research
Agenda for International Business and Management. Edward Elgar Publishing.
Evers, N. and Andersson, S., 2021. Predictive and effectual decision-making in high-tech
international new ventures–A matter of sequential ambidexterity. International Business
Review, 30(1), p.101655.
Hilmersson, M., and et.al., 2021. Opportunity novelty, improvisation and network adaptation in
the internationalization of Swedish SMEs. Thunderbird International Business
Review, 63(2), pp.201-215.
Huang, Y., Xie, E. and Wu, Z., 2021. Portfolio characteristics of outward foreign direct
investment and dynamic performance of emerging economy firms: An option portfolio
perspective. International Business Review, 30(4), p.101750.
Ioulianou, S.P., Leiblein, M.J. and Trigeorgis, L., 2021. Multinationality, portfolio
diversification, and asymmetric MNE performance: The moderating role of real options
awareness. Journal of International Business Studies, 52(3), pp.388-408.
Jean, R.J.B., Kim, D. and Choi, K., 2021. Pattern of information technology use and relationship
learning in international customer-supplier relationships. International Business
Review, 30(4), p.101815.
Lythreatis, S., and et.al., 2021. Servant leadership, CSR perceptions, moral meaningfulness and
organizational identification-evidence from the Middle East. International Business
Review, 30(5), p.101772.
Mariotti, S. and Marzano, R., 2021. The effects of competition policy, regulatory quality and
trust on inward FDI in host countries. International Business Review, p.101887.
Treviño, L.J. and Doh, J.P., 2021. Internationalization of the firm: A discourse-based
view. Journal of International Business Studies, 52(7), pp.1375-1393.
Vrontis, D. and Christofi, M., 2021. R&D internationalization and innovation: A systematic
review, integrative framework and future research directions. Journal of Business
Research, 128, pp.812-823.
Wang, N. and Wang, Y., 2021. Does parenting matter in subsidiary innovation in emerging
economies? Exploring the role of parent superior competitiveness in affecting
subsidiary contextual ambidexterity. International Business Review, 30(1), p.101673.
Zucchella, A., 2021. International entrepreneurship and the internationalization phenomenon:
taking stock, looking ahead. International Business Review, 30(2), p.101800.