Difference and its impact on transnational businesses
International Business Strategy – Week 2 Briefing Notes The reading is about Cultural difference and its impact on transnational businesses and helping us understand this phenomenon to devise strategies which accommodate this factor while looking at the global picture, either at global expansion or global product launch. First of all we must understand what is Culture and how does it affect on our approach to any given situation and the way we will handle the situation. In simple words, Culture is how we do things, as a nation, as a team, as an organization.
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There is a term which is being often used now a days is that “there is no wrong way of doing thing”. It simply means that there are different ways of dealing with a problem or situation which in fact comes from different cultures. With the current growth in media communication and ease in traveling have helped in converging certain aspects of culture across national boundaries, there are still enormous amount of difference. These differences impact While I do agree with the different level of cultures which are described by the author as Nation, Business, Industry and Organization I would like to add another level which is Religion.
Religion is the way by which a person/nation conducts his/their daily affairs. All the rest four level of cultures are influenced by this. Culture is not a static phenomenon but changes irregularly over time with a change in people’s needs and wants. The most interesting thing I found was the culture analyzing and comparing frameworks described by Hefted, Tramper, Johnson and Schools. The all have explained different influences on organizational culture. For me the most influential actor is the leadership and management style which varies from people to people and play a key role in deciding the culture of the organization.
For example if the leader have a proactive approach towards all issues the team under him will have the same approach and will work accordingly and if a leader have a laid back approach the team around him will approach all situations in the same way. This will develop the culture of that organization which will change with the change of leader or top brass of the organization. The Euro Disney example is good one to understand he sensitivities of the masking of a product to present it as of the same culture which will be seen as an intrusion and bound to attract hostilities.
Anything which fails to gain people’s trust is bound to fail regardless of how good it is. Like in the beginning years of Euro Disney it failed to attract the reasonable amount of French people even though the attractions were named in French. Any product marketed in this fashion will incur losses instead of profit. While in recent years there is a turnaround, one of the main reasons for the turnaround is the renaming of the attractions to their original American names, which is not viewed as intrusion into their culture but as a way to experience a part of another culture.
This is a good example to highlight the importance of customs while doing any business or marketing/launching any product in any respective country. One thing which I am the goals and objectives will be clearly communicated and understood by all working in an organization. The best tool now for that organization is Empowerment. It will bring all to a central platform with a clear vision.