Cultural Communication: Doing Business in another Country MEMO TO: John Roberts, CEO Intext Computers FROM: Steven Kelly, Marketing Manager DATE: 27 October 2014 SUBJECT: Intext Global Expansion In the current business trends, many organizations opt to expand their market boundaries to other nations as a means of enhancing stability and increasing their profits. Such an approach has contributed significantly towards the success of such organizations globally. With the ongoing global technological developments, the computer industry is still a profitable industry in enhancing technological development. Therefore, increasing computer access to other nations is one way of increasing the technological developments speeds.
Having carried out a proper market research, I have concluded that we need to expand the business to three nations namely, China, India, and South Africa as a means of expanding our market scope, profitability, and brand globally. Intext Computers is a fast growing company in the technology industry, and the introduction of the software products is indeed a big boost to the organization. Blending the hardware and software aspects of computer has increased our sales significantly in the past one year through an increase in customer base.
Such an observation is indeed an indication showing that with proper strategies and effective marketing, Intext Computers could make it big in the global markets. Preliminary Research From the preliminary research on the three nations namely, China, India, and South Africa, it is evident that Intext Computers stands a better chance of success by putting up appropriate and effective measures towards the realization of the company’s goals and objectives. Despite the positive attributes of doing business in another country, there are equally obstacles that limit the success of companies in other nations.
One of the determinant factors towards the success or failure of a business in another country is culture, which refers to the particular beliefs, practices, and behaviors of a particular group of individuals within a particular society that distinguishes them from other societies. China's economy is fast growing, and as such, provides a better market opportunity for market success. Despite the view of culture as an obstacle to successful business in China, on the contrary, culture remains a factor that if used appropriately, could yield sufficient results. Under social customs, China’ culture embeds on building relationships, which usually start with shaking of hands and nodding of head and fostered by status, and such work to benefits a business as good business involves building of strong relationships with customers. Chinese have strong family ties and for business, once you capture a customer, it is easy to get more especially from the strong family ties.
China has a culture of positive attitude in whichever thing one engages in and as such value hard work for realizing success. The positive attitude is beneficial to a business as it ensures that the business remains a success oriented.
Chinese believe in teamwork as one of the workplace norms, which maintain focus towards the achievement of businesses’ success. China appreciates the use of nonverbal means of communication. Because of language differences, nonverbal communication provides an effective means for American business to flourish in China despite the language differences as use of signs remains universal. Culture also has certain disadvantages for foreign businesses in China. Such include giving of gifts as rewards, which a common custom could turn disastrous if a foreigner would fail to implement such.
Additionally, Chinese culture gives precedence to family life, and all employees work as a means of improving the livelihoods of their family members. The American culture on the contrary gives precedence to work and its success than family. Based on such a perspective, it is evidently clear that the difference could pose a great challenge for an American business making entry into Chinese market as the customs differ in what aspect remains most important between family and work. India on its part also has cultural advantages and disadvantages for a foreign-based business making entry into the country.
On the advantages, the nation has strong family beliefs and systems, making family an important institution of operation. Businesswise, such an approach is beneficial to the business as it establishes customer and market base. Indians believe in getting to know a person better before any business transaction occurs. Knowing a customer well is important towards a business' success as it reduces the chances of getting conned by unknown individuals, thereby reducing the instances of loss.
The relationship for effective business in India involves building a professional relationship based on a personal relationship. Previous relationships between India and UK provide an appropriate environment for doing business, especially for an American based company. From the India-UK relationships, Indians have made English one of the commonly used language, making communication between Americans and Indians a smooth aspect. An American company making entry into India, therefore, has no language barriers in making communication easier. India also enjoys a collective approach to business transactions. People remained career focused and did their best in their works.
Such is indeed a success directional aspect to businesses in the country. On a different perspective, certain aspects of culture prove disastrous towards doing business in India. India is majorly of Hindu religion and with their practices, American Christianity practices seem to contradict significantly. Hinduism places a high importance on authority, an aspect that is indeed a new concept to the American practices. Additionally, Indians have a high tolerance to uncertainty, which makes the society run majorly on certain assumptions. With such an aspect, it is obvious that the Indian society gives little adherence to rules and regulations, instead etiquette and norms take precedence, which possess a great challenge for an American company opening business in India. Of all the business environments stated, South Africa provides a very different aspect to an American company venturing in the country.
Africa at large still operates majorly on traditions and cultural settings. However, in the recent past changes have been seen proving that indeed Africa is a good continent for international business. Because South Africa is a British colony, it is obvious that most of its cultures are borrowed from the British culture.
Such include religion, family life, attitude, values, and workplace norm among others. America has a significantly similar culture to that of Britain, and, therefore, South Africa provides for an appropriate environment for American business. On a different perspective, the similarities in culture between America and South Africa, therefore, provide limited challenges to starting a business in the country, and considerably one of the best business destinations for American based nations. Conclusively, business involves both the positive and negative aspects.
From the discussion of the cultural aspect to starting a business in the three different countries for an American company, it is evidently clear that India provides both the greatest benefits and challenges in equal measure. Based on such a perspective, India would be a better business destination for Intext Computers; an American based Technologies Company as it provides the realest environment for conducting business. References Doctoroff, T. (2012). What Chinese want: culture, communism, and China's modern consumer. New York: Palgrave Macmillan. Hosmer, B. C., & Neill, C. M. (2004). Native pathways: American Indian culture and economic development in the twentieth century.
Boulder: University Press of Colorado. Koppelman, K. L. (2011). Understanding human differences: multicultural education for a diverse America (3rd ed. ). Boston, MA: Pearson/Allyn & Bacon. Sletten, E. (1997). Doing business internationally: the resource book to business and social etiquette. Princeton, N.J. : Princeton Training Press.