Cross Culture Affects The Global Fast Foods Commerce Essay Example

deals with how well individuals can tolerate ambiguity. In cultures with high uncertainty avoidance, people tend to be rigid and dogmatic. They feel threatened by unknown situations and see life as filled with risks that need to be mitigated in order to reduce stress. These cultures rely on mechanisms like regulations, imposts laws and faith for security.

Due to globalization, there has been an increase in transnational fast food brands establishing themselves in Mauritius. This trend began around 30 years ago when KFC first entered the market. Since then,various popular fast food brands have made their presence felt in the country.The rise of fast food in the market is also attributed to the opening of retail stores such as Bagatelle and Cascavelle.

Given Mauritius' diverse cultural groups and food culture,it raises questions about how these companies are able to gain market share and adapt to Mauritian culture

1.3 The industry standby

This study will concentrate on the Fast Food industry and specifically investigate multinational brands such as KFC, McDonald's, and Nando's. By analyzing these brands, we can observe how they are adapting American and Portuguese food cultures to align with our renowned Mauritian cuisine, which includes dishes like Bryani, Dal puri, Gateaux Piment, Mine Bouille, and other typical Mauritian foods.

1.4 Aim of research

The aim of this research is to explore how multinational companies address cross-cultural barriers and overcome them.

1.5 Objective of Research

The objectives of this research include identifying existing cross-cultural barriers in the Mauritanian Market and the fast food sector, analyzing how these barriers impact the marketing strategies of fast food companies, examining the influence of cross-cultural factors on brand equity for these multinational companies, and

evaluating challenges faced by fast food multinational companies due to anxiety and uncertainty avoidance theory in the market.

To measure the level of acceptance these multinational companies have in Mauritian culture, this research focuses on structure and hypotheses. Companies expanding globally often face difficulties in cross-cultural communication. Erez (1992) argues that effective communication is crucial for collaboration within an organization as stated by Bennis and Nanus (1985).The text suggests several hypotheses related to cross-cultural barriers and their impact on fast food multinational marketing strategies. Hypothesis 1 proposes that these barriers do not affect the strategies, while an alternative hypothesis (H1) suggests they do have an impact. Additionally, a study by Steenkamp et al.(2003) found a positive correlation between perceived brand "globalness" and perceived quality and prestige.

Another hypothesis, HYPOTHESIS 2, explores the effect of cross-cultural barriers on brand equity in fast food multinational marketing schemes. It posits that these barriers do not affect brand equity (H3), but they do impact it (H4). Furthermore, Hofstede's theory emphasizes that uncertainty avoidance should not be confused with risk avoidance; its aim is to reduce ambiguity rather than solely reducing risks.

One of the hypotheses from this study examines this concept further as HYPOTHESIS 3 explores whether anxiety and uncertainty avoidance theories influence the presence of Fast Food Multinationals in the Market (H5). Levitt (1983, p.87) discusses the impact of anxiousness and uncertainness on Fast Food Multinationals in the market (H6).

Levitt argues that well-managed companies have shifted their focus from custom-made products to globally standardized products that are advanced, functional, reliable, and affordable. This point will be examined in HYPOTHESIS 4: Mauritian has adopted these Multinational Fast Foods (H7), but also Mauritian

has not adopted these Multinational Fast Foods (H8).The study is structured into several chapters. Chapter 1, the Introduction, provides background information on the research and outlines its purpose and aims. It also gives an overview of how the survey was constructed. Chapter 2, the Literature Review, presents a comprehensive history of relevant topics related to cross-cultural barriers and theories and principles related to multinational fast food companies. It focuses on Individualism versus Collectivism and uncertainty avoidance in relation to Hofstede's cultural model. Chapter 3, the Situation Analysis, provides an overview of the challenges faced by Mauritian Fast Food Multinationals when entering the market. Chapter 4, Methodology, outlines the methods and procedures used to analyze and prepare the gathered information for this study. It also discusses any limitations or problems encountered during the research process. Chapter 5, Analysis & Findings, presents an analysis of the collected data along with a discussion of the findings. Finally,
Chapter 6, Recommendations & Conclusion offers recommendations for smoother adaptation of Fast Food Multinationals considering cross-cultural issues.

Chapter 2 - Literature Review

Food has always been integral to human lives, communities, communication,and culture since ancient times (Huddleston et al.,2009;DeJesusand Tian,
2004). The food market has served as a unifying force that brings people together whether it be through traditional marketplaces or modern supermarkets or restaurantsCulture has a significant impact on consumer behavior, as it encompasses a set of values that dictate daily actions, including purchasing and consumption. These cultural values differ across countries, as determined by Hofstede's four dimensions of national character. With the rise of international business, there is an increasing need to understand consumer behavior from a cross-cultural perspective. As markets become more

globalized, marketing research has also become more international in nature.

Consumers today have greater knowledge about various competing offerings and effective communication is crucial for companies to meet diverse consumer needs globally. According to Edmondson (2000), approximately two-thirds of industries are currently operating or in the process of operating globally. McDonald's, for instance, generates over 62% of its revenue outside the United States.

To be successful across different cultures and cater to local tastes and needs, companies must adapt and adjust their marketing mix factors accordingly. This includes addressing consumers' diverse demands. The increasing internationalization of tastes and buying patterns has made it feasible for both global and regional brands to thrive.The fast food industry originated in the United States in the mid-1950s and has since expanded globally, impacting food culture (Jones et al., 2002, p.41). According to Schlosser (2001), the revolution of fast food has had extensive effects in America, transforming diets and influencing landscapes, economies, workforces, and popular culture. It can also be seen as a symbol of globalization and post-modern society with its widespread allure. McDonald's claims that they serve 45 million customers daily across 121 countries in their 30,000 restaurants (Jones et al., 2002, p.41). Fast food includes easily produced items like burgers, pizzas, chicken, and sandwiches made using assembly-line techniques (Bender and Bender, 1995). The popularity of fast food in India increased when multinational chains adapted menus to accommodate vegetarian options while excluding beef and pork entirely (Goyal and Singh., 2007). Various factors such as social class, gender age culture race religion influence food consumption behavior (Carmouche and Kelly.,1995).Food plays a significant role in shaping tourists' attitudes, decisions, and behavior when choosing

a specific destination (Henderson.,2009 Hjalanger and Corigliano.,2000). Religion also has a significant influence on consumer attitudes and behavior, particularly concerning food choices and eating habits (Bonne and Verbeke, 2008b). Faith affects various societies in determining what foods can be consumed, who prepares and cooks these foods, as well as the timing and manner of eating. However, different religions have their own rules and guidelines regarding food consumption. It is important to note that within each religious group, some individuals strictly adhere to these regulations while others follow them with flexibility or disregard them altogether. Therefore, understanding the relationship between religion and food behavior requires acknowledging the diversity present both within and among different religious groups. For example, KFC restaurants in France are all certified Halal, whereas select locations in Britain offer Halal options as a trial basis. Shifting focus towards culture and cross-cultural interactions, culture encompasses symbols, stories, communication methods used by people to convey their history and values. It includes learned behaviors, thinking patterns, attitudes as well as material objects.Culture can be defined as the shared mindset that differentiates one group from another (Hofstede 1980). The attitudes and actions of individuals are influenced by the norms, beliefs, and values present in their cultural surroundings (Triandis, 1989). These cultural values not only shape behaviors but also impact how individuals perceive themselves and their social environment (Triandis, 1989).

The GLOBE research project has provided valuable insights into culture by measuring participants' values and their perceptions of how people within their culture handle common challenges (House et al., 2004).

To promote cross-cultural understanding, Okazaki et al. (2011) define global consumer culture positioning as associating a brand with universally recognized

symbols that represent emerging global consumer cultures.

McDonald's serves as an exemplary success story in this realm. Simon and Dolan (1997) found that bundle offers such as burger-fries-drink combos have achieved success both in the USA and Germany.

On the other hand, local consumer civilization positioning involves aligning a brand with local cultural meanings that reflect the norms and identities of the local culture. It can also depict the brand as being consumed by locals within the national culture or even produced locally for them.

An example would be McDonald's advertisements for chicken teriyaki in Japan.Foreign consumer civilization positioning presents a brand as representing a specific foreign consumer culture. An example of how cultural values can affect communication is seen in KFC's slogan "Finger-lickin' good." The translation of this slogan to "Eat your fingers off" in China demonstrates how cultural differences can lead to misinterpretation and misunderstanding. Cultural values not only influence behavior but also shape perceptions of oneself and the social environment, causing anxiety and uncertainty in intercultural communication. Culture is viewed as a shared way of life, developed and passed down through generations by a group of people, including beliefs, values, language, politics, and tools. These characteristics are socially constructed by the members within the group and historically transmitted. Intercultural communication involves exchanging information between groups with different cultures within a context that combines different systems, requiring efforts from both parties to increase understanding and reduce uncertainties about each other's future behavior.Understanding cultural variability is crucial in effectively comprehending intercultural communication. Many studies have examined cultural variability, including aspects such as power distribution (power distance), uncertainty avoidance, gender roles, face negotiation, individualism-collectivism, and more. According to

Mazneski (1994), being aware of different cultures helps in successfully accomplishing specific tasks. Berthon (1993) views culture as the outcome of human actions and explores the connection between mental programming and resulting behavior. This exploration leads to various facets of cross-cultural interactions like attitudes, communication, conflict, dialogue, performance, and rewards that shed light on ethical concerns and their evaluation. Chemical bond and Forgas (1984) assert that diverse perceptions, attitudes, and biases in different cultures ultimately shape global ethical standards. McFarlin and Sweeney (1998) highlight the importance of communicating one's emotions or reactions when interpreting another person's behavior to evaluate performance and preference for expanding ethical foundations.According to Ambos and Schlegelmilch (2008), certain organizations may be preferred by a particular culture over others, and these cultural differences can ultimately impact company performance. International marketers have long recognized the importance of adapting products and services to meet the varying demands and preferences of consumers in different countries (Cateora and Graham 2002). An example of a company that has embraced this concept on a global scale is McDonald's, who even made changes to their menu in India to cater to local tastes. When McDonald's entered the Indian market in 1996, they respected local customs by excluding beef from their menu. Instead, they introduced the Maharaja Mac, which was made with mutton on a sesame-seed roll. The objective of marketing management is to create a positive perception among consumers in each location, even if it means adjusting the overall brand image of the company. Cultural values play a significant role in shaping menu offerings within the fast-food industry; for example, McDonald's offers Teriyaki McBurgers in Japan and maintains both

kosher and non-kosher restaurants in Israel. Additionally, advertising materials, signage, and in-store elements should be presented in the local language.In addition, restaurant design often includes elements from the local culture, while global brand icons can adapt to local characteristics. For example, a Starbucks in Shanghai might have a facade inspired by the Ming Dynasty, and Chinese KFC restaurants may feature life-size models of Colonel Sanders at their entrances. These models showcase an Asian version of Colonel Sanders with a slightly overweight appearance resembling Buddha. This strategy of localization has been essential to McDonald's success on a global scale, as noted by former CEO Jack Greenberg (Foreign Policy 2001). However, some analysts warn that decentralization has become so widespread that it threatens the brand's core values of service, quality, and cleanliness (The Economist 2001).

When it comes to overcoming cross-cultural barriers (2.3), various scholars agree that culture is influenced by factors such as language, economy, religion, policies, social institutions, social class, values, status attitudes, manners customs material possessions aesthetics education. These factors subsequently affect managerial values. Research conducted by Witkowski and Wolfinbarger in 2002 discovered that different aspects of service quality - reliability empathy responsiveness assurance tangibles overall perception - vary across cultures and service settings.Language is a powerful force within a culture, playing a crucial role in maintaining national or cultural identity (2.3.1). According to Victor (1992), there are over 2,796 languages spoken worldwide. Rubin (1992) defines language as a system of characters and rules that govern their use in relation to each other. Nanda and Warms (1998) go further, describing language as more than just reflecting culture; it is the means by which individuals navigate

their physical and social surroundings. Dawson (1967) asserts that language forms the foundation of culture, inseparable from one another. Edwards (1985) explains how language holds significance in cultural and nationalist sentiment due to its power and visible symbolism, such as the enforcement of Mauritanian Creoles in schools by the Mauritanian government. Bolch (1996) emphasizes that effective cross-cultural business requires foreign-language proficiency, highlighting how English-speaking business people may possess cultural awareness but lack the necessary language skills for optimal performance. The importance of intercultural communication has been underscored by anthropologists and linguists like Hall and Lado who have worked to establish connections between language, culture, and communication efforts(Kramsch, 2001).

2.3.2 Norms, Roles, Beliefs and Values

Norms are rules that define acceptable behavior in a culture (Tubbs and Moss, 1994). They apply to various societal situations such as greetings, requests, and emotions. Roles also contribute to cultural differences by having specific norms for certain groups. Culture encompasses people's norms, values, customs, religious beliefs, emotional expressions, mental processes, physical attributes within individuals and society. It influences thoughts, clothing choices, speech patterns, beliefs etc. Higher education exposes individuals to diverse cultures making them less bound by local norms but rather global consumers (Keillor et al., 2001). Cultural syndromes help individuals organize their environment by focusing on patterns or themes in subjective elements like values and beliefs (Triandis ,1994a). Cultural values are associated with attitudes which create a hierarchical structure of value-attitude-behavior according to Homer and Kahle (1988). The orientation towards status is another aspect of culture impacting human behavior.Trompanaars & Hampdon-Turner (1997) discuss the evaluation of individuals in society, identifying two orientations: "Achievement," based on performance and accomplishments, and "Ascription,"

based on identity. High-context communication and low-context communication (Richardson and Smith, 2007) are significant concepts in cross-cultural research as they reflect cultural preferences for certain types of messages. These concepts also address challenges in cross-cultural management regarding management style and staff behavior. According to Richardson and Smith (2007), cultures cannot be easily categorized as purely high or low context, but rather lean towards one end of the continuum or the other. In a high-context culture, indirect means of sharing information and interpersonal relationships play a crucial role. Conversely, in a low-context culture, individuals prioritize individualization with minimal interpersonal involvement. The contrast between high context communication (indirectness) and low context communication (direct exchange of information) has been discussed by Kim et al. (1998) and Richardson & Smith (2007).In a low-context culture, individuals from other cultures can easily understand the communication patterns. Conversely, in a high-context culture, individuals from low-context cultures may struggle to comprehend the intricacies of high-context communication (Holden, 2002). High-context communication is efficient and satisfying but requires more time for scheduling. On the other hand, low-context messages are less reliant on specific context. Trust relies on explicit communication in low-context cultures and participants' backgrounds and values have lesser influence on making deals. In high context civilizations, most of the information in communication resides within individuals and only a small portion is expressed explicitly. In contrast, in low context civilizations, most of the information is conveyed through explicit codification.

Cultural dimensions such as uncertainty avoidance, high-low context orientation, field dependence-independence, and analytic-holistic thinking all have the potential to impact a leader's search. The Hofstede cultural dimension framework encompasses dimensions that address how members of cultures react

to others' actions and interactions while developing relationships with them. This framework includes dimensions related to identifying in- versus out-groups and corresponding expectations, preferences for individualistic tendencies versus group consensus, and behaviors influenced by these preferences.The text discusses dimensions related to maintaining the status quo based on beliefs and values surrounding power relations. It explores cultural dimensions that involve regulations, people's reactions to power, and their perception, acceptance, and attachment to unevenly distributed power (Hofstede, 1980). While Hofstede's categorization may be less relevant in culture-specific studies on consumer behavior and other micro phenomena (Yau et al., 1999), his work is still heavily relied upon due to its broad applicability across different cultures and intuitive appeal.

While the first four topics focus on direct social interactions, the following topics address differences in cultural orientations towards rules, time perception, and nature. The dimensions regarding a culture's orientation to rules encompass attitudes and preferences towards ambiguity, regulations guiding actions, and the overall amount of rules governing behavior in society (Hofstede, 1980).

Different national cultures have varying preferences regarding time perception and how it influences behavior. Clip orientation refers to explaining members' perceptions of time in relation to rewards, their views on time itself, and whether they pay attention to it (Hofstede, 2001; Hall & Hall, 1990).The following is a concise summary of the six dimensions of national cultures (Hofstede, 2001; Hofstede et al., 2010).

1. Power distance: This dimension examines the acceptance of unequal power distribution in institutions and organizations. It is evident through behavioral values displayed by individuals in positions of power and their subordinates who expect them to demonstrate their status and authority.

2. Uncertainty avoidance: This dimension evaluates

the level of comfort individuals have in ambiguous or uncertain situations, as well as their inclination to avoid such circumstances. It reflects the extent to which people feel threatened by undefined or unsure situations. Societies with high uncertainty avoidance emphasize stable career paths, establish rules and procedures, but may also exhibit higher levels of anxiety and aggressiveness.