International Management: Regional Culture and Corporate Culture

This report delves into the critical role of culture in international management, emphasizing how regional cultural nuances significantly influence corporate strategies and operations. The introduction establishes international management as a global business practice, highlighting the importance of understanding cultural impacts. The report then examines the impact of regional culture on corporate culture, discussing how differences in values, beliefs, and societal norms affect outcome orientation, people orientation, team orientation, and communication within international businesses. A case study of Tesco's expansion into Japan illustrates the practical consequences of failing to account for cultural differences. Tesco's experience in Japan demonstrates the challenges of adapting to local market preferences, customer expectations, and cultural values, resulting in business setbacks. The report concludes by emphasizing the need for thorough research, cultural sensitivity, and strategic planning in international business ventures to avoid potential pitfalls and ensure success. The references provide a list of academic resources and articles that support the findings of the report.

INTERNATIONAL
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1B.........................................................................................................................................1
Impact of regional culture on the corporate culture.....................................................................1
Example of regional culture affecting corporate culture.............................................................2
Conclusion.......................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
International management is the process of conducting activities for the management of
the business globally to establish the presence internationally (Kourula, Pisani and Kolk,
2017).The companies which operates in different countries use international management in
order to manage them. With the help of this project we will understand the importance of culture
in an international business. It provides the different characteristics of the organizations and
culture which effects the business management. The challenges and the opportunities which arise
due to the expansion and the culture of anew country is being discussed in the project. The
project helps in understanding the factors which contributes the economy globally and the
elaboration of the international business policies. The impact on the regional and corporate
culture is being discussed in the project.
TASK 1B
Impact of regional culture on the corporate culture
Every country has its own culture which differs from other countries, this creates cultural
differences and has an impact on the organizational culture of the corporate companies. The
company has to work with different people with different cultural background in the
organization. The diversity in the employees is created by the diversity in the culture of the
country. Every individual has its own different values and rituals which the person follows
creating a diverse environment amongst the company, this causes the affects in the culture of the
corporate companies. Culture of a company and the culture of the country the operations are
being performed are correlated. The society of each specific culture is different having different
beliefs, morale, habits, values and capabilities which builds the culture of the society. The
structure of the societal practices is determined by the culture. The employees are highly
influenced by these social practices( Vveinhardt and Andriukaitiene, 2017). The impact on the
culture of the company caused by the regional culture are as follows: -
Outcome Orientation :
The individual is highly affected by the society’s culture, this results in the changes in
values and belief of the individuals and ultimately affect their results and achievement. The
coordinative motive of the company is determined by the culture of the company. The variations
in the cultures unables the organization to maintain its goals and aims.
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People Orientation:
The thoughts of the individuals are manipulated by the culture of the organization. The
beliefs, habits and the knowledge which an individual share within the company are the thoughts
of the individual. The difference in the cultures of the individual and the company may lead to
the manipulation of the individual’s thoughts and which results to the change in the behaviour or
attitude of the individual towards that organization (Arditi, Nayak and Damci, 2017).
Team Orientation:
An organization cannot run by a single individual; a team is required for the operation of
the business to be performed. Teamwork is the effort of all the team members together. The
change in the culture of the company the individuals are effected which leads to disturbances in
the team and decreasing the outcome of the team.
Communication:
The language is a crucial part of any culture, different culture have different languages which
sometimes are the reason for miscommunication. The regional culture effects the culture of the
company and the communication in the company (Silveira, 2019).
Example of regional culture affecting corporate culture
Tesco Plc is a retailer of groceries, food products, fashion, and other home product. It is a
multinational company, known for its expansion in the international market very frequently. The
company has expanded itself in 11 countries other than its home country the UK. The success of
this company is been observed in many countries. Whereas the company has also failed in many
countries such as USA and Japan. The company failed to be established in the US and Japan and
had to retreat the business operation from those countries as they were incurring huge losses.
Tesco first started its operations in Japan in the year 2003. The company invested around £139
million in establishing two stores in Japan. The company could not make its position in the
market of Japan but did not lose hope and continued its operations for around 8 years. The
company then retreated from the country as it was incurring major losses every year.
Tesco had to withdraw itself from Japan as it could not trade in high costs and was not
able to fulfil the demands of the customers in Japan. Tesco invested huge lots of money but
could not predict the cultural differences of the country. Japan’s culture is very diverse than that
of the UK, the country has always prioritized local family businesses to enhace the community
and their personal touch. The quality demanded by the Japanese people is very high and a great
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shopping culture is expected from the Japanese customers. Tesco had invested in large stores
which made it hard for the company to interact with the customers more personally. The
Japanese values are very patriotic which makes them attract to the products manufactured in their
own country. The expansion of the western culture has also led the Japanese to try out products
manufactured outside of their country (Becchetti, 2018).
Every company should commence proper research and planning before expanding itself
in a new country. The culture of Japan is very diverse and complicated which made it hard for
Tesco to understand their culture. These cultural differences of the two countries led to the loss
of huge amounts of money to the company. The Japanese preferred small local stores and Tesco
and created huge stores as they do in UK. This could have been avoided as they would have
collaborated with a local brand or hired a local to make them familiarize the culture of the
country.
Conclusion
With the help of this project it is concluded that the regional culture of the country has a
major effect on the organizational culture and the organization. This projects shines light on the
impact of regional culture on the culture of the company.
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REFERENCES
Books and Journals
Arditi, D., Nayak, S. and Damci, A., 2017. Effect of organizational culture on delay in
construction. International journal of project management. 35(2). pp.136-147.
Becchetti, L., 2018. Finance, investment and innovation: a theoretical and empirical comparative
analysis in Japan and the UK. In Finance, Investment and Innovation (pp. 219-274).
Routledge.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive development:
highlights from international business and management research. Current opinion in
environmental sustainability 24. pp.14-18.
Silveira, A.D.M.D., 2019. The employee is always right: Employee satisfaction and corporate
performance in Brazil. Revista de Administração Contemporânea. 23(6). pp.739-764.
Vveinhardt, J. and Andriukaitiene, R., 2017. Management culture as part of organizational
culture in the context of corporate social responsibility implementation. Economics &
sociology. 10(3). pp.294-320.
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