Managing Global Cultural Differences Essay Example
Managing Global Cultural Differences Essay Example

Managing Global Cultural Differences Essay Example

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  • Pages: 4 (908 words)
  • Published: November 23, 2021
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International trade has with time increased with many organizations joining the global business. However, increased competition has proved to be a great challenge facing this sector. From the analysis, major competition has resulted due to cultural differences of individuals in various continents. This article gives an understanding of differentiation strategies that can be used by various firms and organizations facing increased global competition. For instance, the strategies discussed in this article consists of relationship marketing and loyalty programs which when applied in the appropriate manner they can help reduce competition (Beck, Chapman & Palmatier, 2015). To understand how these strategies are effective, this review has provided a comprehension to understand this mechanism by considering how cultural differences and developmental human resources alter the effect of this strategies to an ext

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ent of bringing about increased global competition.

On the other hand, this review gives an understanding of where relationship marketing and loyalty programs should be most effective to allow firms fit in the competitive world. The reason I selected this article is to have an understanding of how global business retain, satisfy, and promote customer relationships and communication to see to it that they fit in the world market. Additionally, I desire to know and understand the measures as well as the mitigation strategies that an organization can impose to be able to fit in the competitive world. An organization engaged in global business ought to incorporate strategies dealing with cultural differences that will enable it to fit in the competitive market of global business so as to outdo its competitor and provide a more satisfying exchange between the firm and the buyers. Some cultural differences huma

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resources need to handle with engaged in global business consists:

  • Uncertainty avoidance as a cultural difference

Global business engages people from different countries and continents. Therefore, it is hard to convince a client of the products and services of the business in a long distance.

Therefore, a cultural difference of uncertainty or avoidance has greatly affected business internationally (Christiansen, Turkina & Williams, 2013). For instance, customers with greater uncertainty of their culture tend to resist change since they are aware of the risks associated with it thus a loss to the organization since the customers could not be willing to adapt to the new changes in the sales figures or change in the type of products and services offered.

  • Long-term orientation as a cultural difference in global business

Customers in culture with long-term orientation tend to value perseverance, saving, and adaptation to changes since they are more concerned with the future and focuses their efforts on future-oriented goals. Therefore, it is important for an organization to understand their customers and employees time orientations so as to promote motivation with incentives such as gifts, bonus, and after sale services failure to which a customer is unable to forgive in a case of violation of their orientation.

  • Individualism versus collectivism as a cultural difference in global business

A customer possessing individualism in his/her culture tend to be independent and distant from others, and he/she is concerned with own goals, interests, and needs.

On the other hand, collectivist culture tends to promote harmony and sharing of resources among all members. Therefore, there is a need for an organization to understand their customers and employees

well to promote satisfying exchange program in line with their culture.

  • Power distance as a cultural difference in global business

This dimension as a cultural difference explains that less powerful members of a society expect the distribution of power to take place unequally and vice-versa. For instance, a customer with greater power in the society expects to be treated in line with his/her social class. Therefore, an organization ought to understand their customers’ social class in order to understand the type of products and services to offer.

  • Masculinity–femininity as a cultural difference in global business

Masculinity culture in a society discourages relationship in favor of competition and achievement whereas femininity promotes relationship, cooperation and quality of life in society.

Having a clear understanding of this difference, there is a need for a global business clearly to understand both masculine and feminine cultures of their potential customers so that they can serve them in line with their favors. From the analysis of this article, I have learned that for a business to fit in the global market, it is essential for it to maximize on understanding their customers and employees culture so that the business can treat each client effectively. I have also learned that for a firm to outdo its competitors in the global market, the firm ought to incorporate relationship marketing and loyalty programs as strategies to help reduce competition to maximize on sales.

Conclusion

As depicted in the article, for a business to fit in the global market, there is a need to emulate relationship marketing and loyalty programs to help reduce competition. However, understanding of customers and employees’ cultural

differences will highly promote a global business. From the analysis, major competition has resulted due to cultural differences of individuals in various continents.

References

  • Beck, J. T., Chapman, K., & Palmatier, R. W. (2015). Understanding Relationship Marketing and Loyalty Program Effectiveness in Global Markets. Journal Of International Marketing, 23(3), 1-21.
  • Christiansen, B., Turkina, E., & Williams, N. (2013). Cultural and technological influences on global business. Hershey PA: Business Science Reference
  • Kumar, V.

    (2014). Understanding Cultural Differences in Innovation: A Conceptual Framework and Future Research Directions. Journal Of International Marketing, 22(3), 1-29.

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