The Importance of Intercultural Management in Business Expansion

This report delves into the critical role of intercultural management in the context of international business. It emphasizes the need for companies to understand and adapt to diverse cultural landscapes to achieve global expansion and market success. The report reviews literature on the topic, highlighting key considerations such as cultural differences, customer satisfaction, leadership styles, market analysis, and the importance of research and development in tailoring products and services to specific cultural contexts. It also touches upon the significance of employee training, technology adoption, and ethical considerations in cross-cultural business environments. The report draws upon various academic sources to illustrate how companies can navigate cultural complexities, foster effective communication, and build strong relationships with stakeholders across different countries. Ultimately, the report underscores the necessity of intercultural competence for businesses aiming to thrive in the global marketplace.

INTERCULTURAL
MANAGEMENT IN
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals.....................................................................................................................7

INTRODUCTION
Inter-culture management is really important for businesses who are dealing there
products across borders because the culture differs from place to place. The company's who want
to sell there products worldwide and expand there businesses need to understand the different
cultures of different countries because that will help the company to grow to the full growth. The
company's which are getting across countries must change, invent and innovate their products
according to the surrounding culture. There can be a great lose if the company's do not get the
change because if they are going across boarder then by must know the culture because the
products should be liked by the customers of that place. The focus of the company's is on the
customer satisfaction and making the customers fulfill there wants and needs.
LITERATURE REVIEW
As per the view of (Beeler and et.al., 2017) there are a lot of company's which want to
become international because that can make the company's capture a larger market because in
some countries they might not be doing so well but if they target some other country they can do
extremely well. The company's who want to go international or want to globalize there products
must understand the importance of the fact that the culture plays an important role in doing so.
The company's who understand the difference of culture will do really well in the market
globally and will make a lot of sales. Company's who are going global have to change the
products services and innovate their product so that the other country's customers find it easier to
accept the product. Innovation and invention according to the culture of the other country will
make the products of the product increase and develop an international market. A company
which is getting international will have to satisfy the customers within there original country and
the countries they are going to target (Benčiková, Malá and Ďaďo, 2019). The company's which
want to get international must understand the culture by finding out more about the other
countries and analysis there market growth in the country. The internal and external factors of
the country and factors which can affect the company in a positive and negative aspects is
supposed to be understood by the company and that is very important. Planning has to be done
by the company properly and the steps and measure they need to take after getting in the country.
Culture of a country does not allow the people to work for more than particular hours, or they
want breaks and offs for the festival or there beliefs can also play a major role in the countries
and the company who does not understand that factor will not be able to grow in the other

countries. There are a lot of beliefs and culture differences between all the countries and
understanding them will help the company to make a lot of decision and planning accordingly if
they want to expand themselves in the other countries (Presbitero and Attar, 2018).
In accordance with (Grobelna, 2015) the company's leadership in the original country is
good but it does not mean that they will be able to have that kind of command in the other
country's because people differ from place to place and understanding that aspect is also very
important. Leadership plays a major role for making the company run in the other countries
because only a leader will be able to motivate and make the employees work hard and put there
entire focus in the company's grow if they have just started there work in the particular country.
For example Tesco, United Kingdom's company wants to expand itself in India so there will be a
lot of culture difference between the two countries and the company will have to first understand
that factor and only then they will be able to grow themselves in the country (Tuleja, 2016).
India's culture is way different from the culture in UK and the employees who will be hired in
India will have a different way of working and there working hours can be different. Indian's
need a strong leader for making the employees work and the company will have to get leaders
from their own country or find strong leaders so that the employees team can be managed well in
India. Experience also plays a very important role in making a company international because
the experience will make the company aware of the study and the measure they need to take step
by step and it will be way easier for the company to expand itself (Pikhart, 2017). Experience
gets in knowledge and agility in the company and the company will be able to understand the
culture very easily. There will be a different stakeholders in different countries and
understanding them is also like understanding the culture difference and the company who
understands there stakeholders properly they will be able to grow better in the market of the
international company's.
In view of (Forrester and et.al., 2017) research and development departments have to
really understand the cultures properly because it is them who will make the changes in the
product which are required according to the culture of the different countries. The department
must make sure that the survey on the country has been done properly so that the country can
understand the needs of the customers in the particular country and if they are successful in
understanding the needs then they will be able to make a better impact on the country (Vargas-
Hernández, 2018). The demand of the product can get increased in the other countries if the

company finds out the culture because the culture change can lead to satisfying the customers
accordingly. Culture can also help the company to know if the market can be captured through
which modes in the particular country. Promotions of the product plays a very important role and
the company's must understand that. Most of the countries preferring online products because of
the change in the culture and the people wanting to shop by sitting at home (Tran, 2016).
Understanding the culture of the country can also lead to problem solving in the future because
the company will be able to understand the culture and the people who are working under the
company or the services which are being provided to the customers. There are a lot of problems
which are faced by the people who are trying to settle in other countries and the problems can
only get solved when there is an understanding of the culture in the company. There is a lot of
discrimination which can be seen in gender, race, religion in few of the country's so the company
will have to understand that too and make the employees and the customers aware that the
company does not follow that, and they will be treating everyone equally and the company
should have to make sure that no one in the company is doing that to anyone.
In opinion of (Lockwood, 2015) employees who are working for the company in different
countries must not be educated and the use of technology can be a task for the company so
training and developing the employees is also a requirement which the company needs to over
come. There are lot of methods and planning of the company which will not work in the other
countries and the company will have to understand the other culture so that they can plan
accordingly. The vision and mission might change because of the change in place and the
company will have to change them according to the people around. The company's who are
dealing with different the customers all around the world have to be very careful with the
products they are comping out with because they can be acceptable in few countries but it might
not be acceptable in the other countries (Kumar and Steinmann, 2015). Feedback's from the
customers from all around the world is very important because the company must know what
they liked about the company's product and what they did not like so that the company can get
the changes in the products according to the culture of the place and that is just another way of
understanding the different cultures. There are countries who are not in favor of online products
and prefer to go out shopping because they have trust issues and there culture is not online
friendly in the present so the country will have to understand that fact and the country will have
to make the changes accordingly which is making retailer stores or buildings of their own in

those countries so that they can reach out to the people and gain the trust and make the customers
get to purchasing online products (Barmeyer and Franklin, 2016).
CONCLUSION
According to the report it is very important for the companies to understand the culture of
the other countries because if the company's want to grow internationally then they will have to
make the changes in their product according to the culture of the other countries. The company
will be able to grow internationally when they understand the wants and needs of the customers
which is because of the culture of the country then the company will be able to target the
customers accordingly. Understanding the culture from country to country can make the
companies grow very fast internationally.

REFERENCES
Books and Journals
Barmeyer, C. and Franklin, P. eds., 2016. Intercultural management: a case-based approach to
achieving complementarity and synergy. Macmillan International Higher Education.
Beeler, B and et.al., 2017. Special issue on language in global management and business.
Benčiková, D., Malá, D. and Ďaďo, J., 2019. Intercultural competences in slovak business
environment. Economics and Management.
Forrester, P and et.al., 2017. Innovative Business Projects as an Enabler to Enhance Intercultural
and Management Skills of Students.
Grobelna, A., 2015. Intercultural challenges facing the hospitality industry. Implications for
education and hospitality management. Journal of Intercultural Management. 7(3).
pp.101-117.
Kumar, B.N. and Steinmann, H. eds., 2015. Ethics in international management (Vol. 84).
Walter de Gruyter GmbH & Co KG.
Lockwood, J., 2015. Virtual team management: what is causing communication
breakdown?. Language and intercultural communication. 15(1). pp.125-140.
Pikhart, M., 2017. Managerial communication and its changes in the global intercultural
business world. In SHS Web of Conferences (Vol. 37, p. 01013). EDP Sciences.
Presbitero, A. and Attar, H., 2018. Intercultural communication effectiveness, cultural
intelligence and knowledge sharing: Extending anxiety-uncertainty management
theory. International Journal of Intercultural Relations. 67. pp.35-43.
Tran, B., 2016. Communication (intercultural and multicultural) at play for cross cultural
management within multinational corporations (MNCs). In Handbook of research on
impacts of international business and political affairs on the global economy (pp. 62-
92). IGI Global.
Tuleja, E., 2016. Intercultural Communication for Global Business: How leaders communicate
for success. Routledge.
Vargas-Hernández, J.G., 2018. Intercultural Business Management Development and Education
Programs in Business Schools. European Journal of Multidisciplinary Studies. 3(1).
pp.105-121.