Cultural Change in International Markets

Competitive pressures caused by globalization, deregulation, and discontinuous

technological changes seem to have forced many organizations into considering radical

change as a way of surviving and growing. A big part of this radical change has to do

with accepting and handling cultural differences among other nations. Organizations

pursue change to enhance their competitive positions and to grow.

Cultural Change

Culture changes over time, despite the fact that one of the more important

attributes of culture is that it is conservative and resistant to change. When marketing a

new innovation to a foreign country, the marketer must possess a thorough knowledge of

that country’s culture in order to be successful there, as new innovations can be fail or

even cause offence if not marketed or designed in a manner appropriate to that particular

culture.

There are six rules of thumb when doing business across cultures:

1. Be prepared. Whether traveling or selling from home, you should never approach

a foreign market with first researching the area. Some of the things to learn

would include social and business etiquette, history, current affairs, the culture’s

values, geography, religion, political structure, and practical matter such as

currency and hours of business.

2. Slow down. In America “Time is money.” Americans always seem to be in a

rush and can seem unfriendly or arrogant. In other countries, patience is the key.

3. Establish trust. Having crisp business relationships will get the salesperson

nowhere. Product quality, pricing, and clear contracts are not as important as the

personal relationship and trust that are developed over time.

4. Understand the language. Languages differ in parts of the world one must have a

vocabulary that is sensitive to nuance and connotation. An interpreter could also

be helpful if needed.

5. Respect the culture. Manner are important. The traveling person is a guest and

must respect the hosts’ rules.

6. Understand components of culture. There are two types: surface culture (fads,

styles, foods, etc.) and deep culture (attitudes, beliefs, values).

Importance of cultural unders...

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...t be aware of this, as there can be serious repercussions

for them and their company if there are adverse reactions to the new innovation

regardless of the fact it may have been accidental.

Knowledge about other cultures and how they affect the way people do business

may show business-people working in a culture different from their own that their

solutions are not always the appropriate ones for a given task. Understanding this is the

first step in learning how to use cultural differences to gain a strategic advantage.

Mishandling or ignoring cultural differences can cause numerous problems, such as lost

sales, the departure of competent employees, and low morale that contributes to low

productivity. How can international businesspeople learn to live with other cultures?

The first step is to realize that there are cultures different from their own. Then they must

go and learn the characteristics of those cultures so that they can adapt to them.

Traveling to this country and staying a while or undergoing an extensive, training

program would be helpful to cover the main characteristics of the culture, including the

language.