Impact of Regional Culture on International Business: Deloitte Report

This report provides an analysis of the challenges faced by Deloitte Consulting when operating internationally, specifically focusing on the impact of regional cultural issues. The report begins by defining culture and its importance in international business, highlighting the need for organizations to adapt to local customs and practices. It then uses Deloitte Consulting as a case study, examining how the company's expansion into South Africa, the UK, and India is affected by cultural differences. The report explores various cultural factors, including legal and regulatory laws, communication styles, and societal values like egalitarianism and individualism. It emphasizes the importance of understanding these factors to achieve business success, avoid legal issues, and maintain effective human resource management. The conclusion summarizes the key findings, stressing the need for organizations to thoroughly research and address cultural nuances before expanding globally. The report includes references to academic sources and online resources to support its analysis.

International Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Culture is defined as values, belief, policies, practices of organisation. It is very important
for organisation to follow culture while running or operating business in any other place
(Boussebaa, Morgan and Sturdy, 2012). In order to operate business at international level,
organisation has to face various regional culture issues to get success. This report is based on
Deloitte Consulting which was founded in 1845 at United Kingdom. It covers key effects of
regional cultural issues on corporate while operating business at international level.
MAIN BODY
This report is based on Deloitte Consulting which is multinational professional service
network. It is accounting corporation and provide their services in different parts of world. There
are three main practice areas such as human capital, technology and strategy & operations.
Currently, it is running their business in US so if it want to expand market in South Africa, UK
and India then it has to to evaluate culture that can effect their business success. It is important
for Deloitte Consulting to consider different factors when operating business at international
level. The culture of every country differ from each other so accordingly changes should be
made as culture leads to success or failure of business. There are many professional working in
Deloitte Consulting so they need to study about laws and regulation of different countries in
order to provide professional services in effective manner (4 considerations before taking your
business international, 2019). There are many legal and regulatory laws which is required to be
followed by respective business to carry out their services. It is necessary for corporation to
make government and authority to be stable for operating business. In today's era, most of
business are effected due to culture as they does not focus on following and leads to failure. In
order to gain competitive advantage at international market, it is essential to follow each and
every regulations, rules, culture so that goal and objective can be achieved.
In order to perform work at internationally, it is very important for corporation to know
about their culture and beliefs. As culture, tradition of each and every country varies from each
other. Here, Deloitte Consulting established in U.S whose culture is totally different from other
countries where it is providing its services. The regional culture can impact corporate
organisational culture. Before establishing any business in any other countries, it is very
significant to analyse their market, trends, culture and others. This can effect business and its
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success. For example, Deloitte Consulting is operating their business and providing services in
US market. If it want to provide service at South Africa or other country then it has to evaluate
their rules and regulation properly. As US has very strict rules and regulation and respective
organisation is running under those norm. In this case, if South Africa has less strict policies,
regulation and rules then it has to make changes accordingly which increase time and cost. This
is the cultural issues which can be faced by organisation.
According to research it is said that national culture has effect on staff than culture of
organisation. It is very important for HR professional and organisational leader to properly
understand national culture and their values of those countries where business is operating their
activities for ensuring that HR practices are appropriate in those places (Understanding and
Developing Organizational Culture, 2019). This culture issues is increasing day by day which is
creating problem for business to run their functions and activities in effective and efficient
manner. The culture also create legal issues to Deloitte Consulting as it created discrimination on
basis of people by HR professional. Culture helps in creating value for organisation in order to
achieve goal and objectives.
There are various cultural issues found in US such as low context culture, egalitarianism,
individualism and others. Here in context of low context culture, they believe in proper
communication channel where they can exchange data, information and opinions
(CHALLENGES OF DOING BUSINESS IN THE US, 2019). Thus they have effective channel
for sharing information from one to another. Deloitte Consulting also follow such culture within
business where as if it expand business at multinational level such as India, they have does not
follow such type of culture which create issues in expansion of business. The next issue which
can be face by Deloitte Consulting is in terms of equality. As US follows equal rights,
opportunities, social obligations. They treat equal to each and every individual for providing
service. This is main cultural issues which can be faced by Deloitte Consulting while expanding
business at international level because they are many countries where there is no equality among
people. As America has strong egalitarianism so it creates problem for expansion in other
countries. Other issues is related with individualism as US culture believe in performing work
alone and prefer self dependent to carry out task. While conducting business internationally such
issue is common. Deloitte Consulting want to expand in South-Africa, UK and India which all
focus on group-ism. It is cultural issue where they cannot target particular people because of
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lack of individualism. In other countries all are dependent on each other for work performance.
The above mentioned are various types of cultural issues which can be faced by Deloitte
Consulting while operating or conducting business activities at international level. This can
create negative impact in achieving goal and objectives of business. Through cultural issues,
profits cannot be earned by business. Thus, these are effects of regional cultural issues on
organisational culture of company if it conducts business at international level.
CONCLUSION
From the above report, it can be summarised that organisation need to study about culture
and their effect before conducting their business activities globally. This can help them to
achieve their goal and objective in effective and efficient manner.
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REFERENCES
Books and Journals
Boussebaa, M., Morgan, G. and Sturdy, A., 2012. Constructing global firms? National,
transnational and neocolonial effects in international management
consultancies. Organization Studies. 33(4). pp.465-486.
Deresky, H., 2017. International management: Managing across borders and cultures. Pearson
Education India.
Kotton, C. N. and et. al., 2013. Updated international consensus guidelines on the management
of cytomegalovirus in solid-organ transplantation. Transplantation. 96(4). pp.333-360.
Noe, R. A. and et. Al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Online
4 considerations before taking your business international. 2019. [Online]. Available through:
<https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/02/
considerations-for-taking-your-business-global.html>.
Understanding and Developing Organizational Culture. 2019. [Online]. Available through:
<https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/
understandinganddevelopingorganizationalculture.aspx>.
Shape culture. 2019. [Online]. Available through:
<https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2016/impact-of-
culture-on-business-strategy.html>.
CHALLENGES OF DOING BUSINESS IN THE US. 2019. [Online]. Available through:
<https://www.communicaid.com/cross-cultural-training/blog/challenges-of-doing-
business-in-the-us/>.
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