Understanding diverse cultures and adapting business operations to suit different cultures is vital part of International business expansion. According to David (2009, p. 7), “the failure to understand cultural differences can bear serious consequences”. In addition, knowledge for and appreciation of other cultures is
In order to be a good manager, from the beginning, even though we may already aware about the differences between the traditions, values and norms, we may cope with hardships adapting in an intercultural context. There are many analyses about the relationship between culture and behavior of human available for business purposes and Hofstede 's cultural dimensions theory (1980) is widely applied in the practice of many aspect in nowadays human social life. The Hofstede’s (1980) theory includes four dimensions (Power Distance, Uncertainty Avoidance, Individualism and Masculinity vs Femininity) and later in 1991, the research by Michael Bond and colleagues among students in 23 countries marks the appearance of the fifth dimension: Long-Term Orientation versus Short-Term Orientation. Finally, Minkov 's World Values Survey data led Hofstede to invent the sixth dimension: Indulgence versus
Rubbermaid’s inability to improve its delivery service to Walmart is a little pathetic. Walmart was a serious part of their business and when Walmart started taking their shelf space away they shut done nine facilities and cut 9% of their workforce. Rubbermaid knew that Walmart was a big customer and they should have done everything it took to keep Walmart happy. I think there are two major factors that contributed to or account for this deficiency. First, I blame top management.
The sales volume of Cadbury dropped drastically because the media report that maybe every bar contains worm, it brought big impacts toward customers’ confidence. It would cause troublesome to customers in mentally and physically as there is afraid of consuming the chocolates which have the possibility containing worms. Nevertheless, Cadbury denied that it caused by the retailers’ storage problems rather than the producing
This case shows how unethical Boeing was and will be forever remembered by current and future investors. Many investors and company’s surrounding Boeing were hurt by their unethical actions. Their actions after the release of the $2.6 billion-dollar loss and how they were going to try to further hide it from the public shows what kind of company they are. Boeings previous investors are probably going to spend a little extra on a stock next time they invest and make sure it’s an ethical company after the loss they received from
In 2012, Coach Inc. was awarded with $44 million in a lawsuit against Linda and Courtney Allen who had been illegally selling fake Coach handbags online. Counterfeit is seen as a market failure because it fails to achieve objectives for producers by not gaining the profit that they deserve. But market failures are not only derived from consumers. Producers also contribute to market failures. In this case, Coach has a failure of information.
Business people can run businesses more smoothly with the use of foreign languages and their foreign customers will feel more comfortable. In business administration, not only speaking and listening skills are important but also other skills including reading, writing and negotiating. A foreign language is successful communicator that applies principles of human behavior. It plays a role in assisting customers who face problems in communication, especially in terms of communication with multi-national companies and companies outside a country. Many businesses are looking for people who are fluent in other languages.
For example, Malaysia and Singapore have different markets, different values, attitude and lifestyle. The purchasing behavior occur among the customers which cause by the influenced of their live and work (Larsen as cited in Gunter & Furnham, 1992). Larsen s' study (as cited in Armstrong & Kotler, 2005) stated that the geographical variables are fit by the products, advertising, promotion, and sales which been modified by the companies. There are companies that produce several of products to particular markets by using geographic segmentation. For example, brand like Gillette, Clear and Colgate using different marketing strategy for different cultures in certain country like India, China and Japan.
Furthermore, culture plays a very important role to motivate people but it depends upon the type of culture. There are some positive and negative aspects of a culture, since this influences the international market. The important elements of culture are dialect, religion, values, mentalities, instruction, social association, innovation and material society, law and legislative issues and feel. There are a few components in culture that look changed crosswise over cultures, and numerous change with time as s society develops. The first element is language which is in a close relationship with the culture.
Explosive products began to cause minor injuries on people’s body and they were exposed to fires in their homes and cars when they charged their Galaxy Note 7. Within a short period of time, the process turned into a scandal, and as the problem proved, national airline companies around the world announced that Galaxy Note 7 products would not be taken into the cabin. The Samsung company has started an investigation of Note 7 due to the explosion problem and explained that the explosion was caused by the battery. The aim for newly designed Galaxy Note 7 was to make the product lighter and increase it’s battery capacity as much as possible but this failed. Samsung has blamed the supplier company and announced that it will work with a new supplier.