Global Marketing Assignment: Impact of Cultural Norms on International Business Management
The Questions to be answered in this global marketing assignment are:
Question 1: What are two (2) examples of the means of internationalisation?
Question 2: In a Western cultural context, describe the essential individual characteristics or professional traits expected from managers? Provide at least five (5) examples in your response.
Question 3: Multi-national enterprises (MNEs) have been criticised for having a “cash-cow” perspective of their host country’s resources. Explain why this may be the case and provide examples in your response.
Question 4: As part of cultural leadership, there are four (4) important culture-based norms and beliefs which need to be considered. Explain each type of culture-based norms and beliefs and provide appropriate examples in your response.
Question 5: When engaging in cross-cultural communication, there are six (6) fundamental patterns of culture differences. Explain five (5) of them and provide appropriate examples in your response.
The global marketing assignmentwill provide information on the impact of internationalization of business. The assignment will describe the essential characteristics of managers to handle cultural and social problems. The assignment will identify the issues of international business management based on different cultural beliefs and norms. Also, it will identify possible solutions to mitigate issues. Finally, the assignment will describe the fundamental patterns of cultural differences in the context of the internationalization of business.
Internationalization is the process of developing products to meet the requirements of international customers and business. It is the process of designing the product in such a way that an organization can easily modify their products to achieve their business key goal. The internationalization of business means the organization takes effective and profitable steps to increase market share outside of their own country. Internationalization of the business means producing a product that becomes acceptable by other country (Understanding Internationalization. 2020). The organization should evaluate the market of each country using the proper metrics such as taxation issues on the target country, certification and licensing of the business, the demand of the particular organization’s product, and local laws and regulation of the government. The organization should conduct a PEST analysisto identify the political, social, economic and technological effect on the business. After that, the business should conduct SWOT and analysis of the market of each country to identify the advantages and disadvantages of international settings in each country (Walsh, 2020). The organization should evaluate the competitor’s market and its position in each country. Moreover, the organization should analyze demographic, geographical, behavioral, and psychographic context of the people in other countries.
As an example of the internationalization of business such as, Apple company uses globalization strategy, the company focuses on the market-specific requirements of the products such as power cables of their iPhone, and Ipads, design in such a way that manage the different voltages of electric supply varying in different countries. Several fashion industries internationalize their business by taking attention to the franchising of the business. The fashion company opens its retail store in different countries. The company develops its products based on the demographic, geographical, behavioral, and psychographic perspective of customers in each country.
2. Essential professional traits of managers in a western culture
Any organization needs to focus on the skill and professional traits of the manger to represent their business in a global region. The organization faces several cultural and social problems during the international business setup. Following the essential professional character of the manger to maintain the western culture:
Experience of Western culture skill:
International business managers need to go beyond their own cultural and social perspectives. The international manager should learn how to forward the business operation in the different cultural and social contexts of each country (Panina & Lane, 2018). As an example, if the manager easily adapts western cultural techniques and their languages. It will help in getting several opportunities for business. Otherwise, it reduces opportunities for business in the global market.
Sensitive towards the cultural diversity and Humility skill:
The international business manager should have an interest in adapting the living culture, food choices and other habits to match the routines of each country. The manager should focus on the people how they maintain their culture with respect to the business, it will implicate humility. This professional trait of the manager requires the ability of good listening power and willingness with the proper business intention. As an example, if the manager builds a belief among them that country's local cultural beliefs can resolve any business problems then it brings more opportunities for business.
The world is constantly changing their perspective and beliefs. One international business manager must adapt to these changes (Panina & Lane, 2018). As an example, if the manager have the curiosity to learn the new changes to keep up with the world business market. It helps to maintain updated information about the business market among employees.
Honesty and Global strategic thinking skill:
Honesty is an important word in the world of business. An international business manager needs to design proper ethics, rules, and regulation in personal life and global business as well. If a manager is unable to deliver the business promises then it can hamper the reputation of the business.The manager should have the ability to develop a strategic decision for business concerning the global business. As an example, if the manager has good understanding ability of the rules and regulations of the global market then it helps to operate their business successfully.
Well communication ability and Good negotiating skill:
It is a profitable professional trait for the international manager if they can communicate in more than one language. Good communication power is a powerful professional character. To operate the business based on ethics, the good negotiating skill of the manager would help in operating the business nationally and internationally. As an example, If the international manager can interact with other countries' business professionals in their native language. It will help in bringing extra benefits for business.
3. Cash-cow perspective of the international business
The cash-cow is one of the properties of the BCG matrix. Cash-cow is the business process where the company provides a one-time investment. It will produce cash flow for a lifetime. Some international organizations have maintained the cash-cow perspective to operate their business within host countries. It will then produce steady cash flow from the business that will further use to increase its market share. The organization first identifies the market in other countries to expand their business internationally (International Markets: Stars, Cash Cows, Question Marks and Dogs. 2020). They conduct researches on the international market to identify advantages and disadvantages according to their business. This research stage helps in evaluating the international market according to the requirements. This stage helps to develop strategic decisions to operate the business on the international market. After that, the company focuses on the market validation stage. In this stage, the company establishes the distribution channel and sales channel to actively operate the sales of their product on the international market. To validate the market of the business, the international organization focuses on the global marketing strategy that helps in keeping promises towards their host countries.
Finally, the organization focuses on the market penetration stage from the perspective of the Cash-cow property of the BCG Matrix. In this stage, the company involves in successfully selling their products on the international market. The international organization then sells their existing products to the international market to obtain the highest market share (International Markets: Stars, Cash Cows, Question Marks and Dogs. 2020). This stage involves persuading new customers for their organization. The international company using several methods such as competitive pricing strategy, reward system, strong business communication to attract more customers. In respect of the Cash-cow perspective, the international company invests a little amount of capital and develops new strategies to increase the sales of their product. It brings steady cash flow from the market of the host countries.As an example, Apple is an international company that develops its Mac Book Product. This product has a profitable market share and it produces steady revenue for the company.
It is the example of the Cash Cow for the Apple Company.
4. Culture based norms and beliefs
In the respect of the cultural leadership, following are the important culture based beliefs and norms that need to be considered during the expansion of the business internationally.
Maintain diversity within the organisation:
According to the respect of the international business, the company hires employees from different cultural backgrounds in the respect of religion and race. Leaders need to encourage cultural diversity within the organization. It brings more opportunities for business in other countries. If the company recruits local people as its employees then it increases the company’s worth in front of its international partners. Cultural diversity brings innovation and creativity among the team members of the organization (Clarke, 2020). It increases the productivity of the organization and raises corporate reputation on the international market. As an example, the Marks & Spencers encourage the human resource management team to recruit people from different cultural aspect to increase cultural diversity within organisation.
Provides importance to the values:
The leaders must provide value to other cultural beliefs and norms. Inan international organization, there have employees from different countries having different cultural beliefs and norms. People tend to judge other country’s cultural beliefs and norms. It creates a negative impact on the business image. It creates a situation of conflicts and misunderstandings among employees. The leader needs to manage this situation by appreciating different cultural beliefs and norms among employees (Culture, Values and the Impact at Work. 2020). It helps employees to work effectively with other country’s employees. As an example, an international organisation arrange different cultural programme according to the presence of different cultural employees within the organisation and provides occasional wise special facility.
Building an understanding environment among employees from different countries:
The leaders need to create a successful understanding environment among employees. It is the responsibility of the leader to build an effective understanding environment with the employees from different countries. It helps in developing the stage of commitment and trust level. Leaders must involve employees in intercultural communication to understand the verbal and non-verbal communication styles of the different countries (Culture, Values and the Impact at Work. 2020). It builds a cultural understanding level among employees that helps in understanding other cultural beliefs and norms. As an example: international organisation like marks & spencers, Apple arranged interpreter for different cultural employees during business meetings, seminars, etc.
Provides value to individual and group as well:
International leaders must adopt other cultural beliefs and norms that help to fit in the group work (Culture, Values and the Impact at Work. 2020). There is no need to change one's own cultural beliefs and norms. International businesses must keep learning new things that help in collecting more business opportunities. It increases collaboration among employees from different countries.As an example: Deloitte the international company provides training facility for the employee where they can learn different cultural beliefs and norms and their communication language.
5. Cultural differences patterns
Based on cross-cultural communication with the international organization there are six different patterns of cultural differences. The assignment describes five different patterns of cultural differences such as:
Different communication languages and styles:
According to international business, they recruit employees from different countries having different communication styles and languages. Some phrases and words are different in different communication language (Weber, 2019). It creates a cultural misunderstanding situation among employees. As an example, the communication style of the Europeans and American employees is different from each other in respect of the uses of phrases and words. Different attitudes of people towards conflict: Some people from a specific culture find positive things in conflict. On the other hand, other people want to avoid conflict situations. In respect of the international business, it has also happened within the organization (Weber, 2019). As an example, in the European culture, conflict is not a desirable situation within the organization but they encourage them to deal with the conflicts to solve the problem.
Different approaches to effectively complete organizational tasks:
In an international organization, there is a lot of employee from different cultures who come to work from different countries. There are different ways to complete tasks which are differing from one culture to another (AMPU Guide: Common Cross-cultural Communication Challenges. 2020). Some are the examples of it such as a different way to access information and resources, different ideas and time management processes, different judgments in the respect of the reward after completing the task. As an example, Europeans and Americans want to focus on the task that is in hand immediately.
Different styles of decision making:
The decision-making style also varied from one culture to another culture. In an international organization, it is a vital point during the decision-making process to achieve the business key goal (AMPU Guide: Common Cross-cultural Communication Challenges. 2020). As an example, a southern European country’s employee wants to place their values during the decision-making process in the organization.
Different approaches of different cultural people towards learning or knowing new things:
It is a notable difference in the international business that the way of different cultural employees to know and learn about the new things. For example, European cultural employees want to collect information by continuously measuring new things that provide more valuable business information to learn about the new concept.
After analyze the impact of the internationalization of the business, it concluded that proper global marketing strategy, effective management style and cultural leadership style is required to operate the business successfully in the global market. It also identified that the international company should also focus on the different cultural differences patterns.
AMPU Guide: Common Cross-cultural Communication Challenges. (2020).
Retrieved 12 May 2020, from https://www.pbs.org/ampu/crosscult.html
Clarke, L. (2020). 8 Amazing Benefits of Cultural Diversity in the Workplace. Retrieved 12 May 2020, from https://inside.6q.io/benefits-of-cultural-diversity-in-the-workplace/
Culture, Values and the Impact at Work. (2020). Retrieved 12 May 2020, from https://diversityjournal.com/9823-culture-values-and-the-impact-at-work/
International Markets: Stars, Cash Cows, Question Marks and Dogs. (2020). Global marketing assignmentRetrieved 12 May 2020, from https://globalvis.com/2009/06/international-markets-stars-cash-cows-question-marks-and-dogs/
Panina, D., & Lane, K. (2018). Developing Future Global Business Leaders Through International Experiences: An Assessment of Study-Abroad Outcomes. In Handbook of Research on Cross-Cultural Business Education (pp. 89-114). IGI Global.https://www.igi-global.com/chapter/developing-future-global-business-leaders-through-international-experiences/205946 Understanding Internationalization. (2020). Retrieved 12 May 2020, from https://www.investopedia.com/terms/i/internationalization.asp
Walsh, M. (2020). 8 Steps to Internationalise Your Business. Retrieved 12 May 2020, from https://www.altusfinancial.com.au/blog/8-steps-to-internationalise-your-business
Weber, E. A. (2019). Heritage Interpretation as Tool in Cross-Cultural Communication: hallenges and Solutions in the Work of Guides-Interpreters. Humanities &Social Sciences, 11(7), 1161-1169.http://submissions.journal.sfu-kras.ru/index.php/humanities/article/view/6530