Compare the Social Political and Business Cultures around the World and How They Relate To Doing Business on a Multinational Level
The social and cultural influences on international marketing are immense. Differences in social conditions, religion and material culture all affect consumers’ perceptions and patterns of buying behavior. As a result, this area is crucial in determining the extent to which consumers across the world are analogous or diverse. It also establishes the likelihood for world branding and homogeny. Cultural differences, and especially language differences, have a significant impact on the way people use a product may, in a market, the product’s brand name and its advertising campaign. Operating effectively, in different countries, requires the recognition that there may be considerable differences, in the different regions. On the other hand, some market analysts argue that there are visible signs that social and cultural differences are becoming less of a barrier that was the previous case. However, it is important not to confuse globalization of brands with the homogenization of cultures. There are a large number of global brands, but even these have to manage cultural differences between and within national boundaries.
Growth and movements, in populations around the world, are significant factors heralding social changes. Eighty per cent of the world’s population lives in developing countries. Nevertheless, even as globe population is mounting dramatically, the population growth patterns are not uniform around the globe. There are also visible movements, in the populations, within countries leading to the creation of massive city areas where customers have a mounting similarity of wants.
The political environment of international marketing includes any national or international political factor that can affect an organization’s operations or its decision-making processes. Organizations have come to recognized politics as the primary factor, in many international business decisions primarily in terms of whether to invest and how to develop markets. Politics intrinsically links to a government’s attitude to business and the freedom within which it allows firms to operate.
Unstable political regimes expose foreign businesses to a variety of risks that they would normally not face in the home market. This often means that the political arena is the most volatile area of international marketing. The tendencies of governments to change regulations can, indeed, have a profound effect on international strategy providing both opportunities and threats.
How Does Culture Affect Marketing?
The impact of market segment strategy is impacts the selling power per every coin consumers spend on marketing. Aiming advertisements at a specific cultural group, for example, at persons of a particular religion, age, income group or gender ensures that selling efforts result in the maximum possible return. For instance, airing television commercials on a dance program popular with youths may make more logic for a bars promotion than advertising through print in a local newspaper that has an elderly readership.
After identifying the cultural groups to target, an organization then conducts research on the behavior, attitudes and buying habits of the group. Customer surveys and feedback cards can help identify which aspects of products and services the target demographic group most enjoys. It is necessary to read magazines that target the cultural group, and visit the Internet they frequent visit to understand their interests.
How does culture affect finance and accounting?
Accounting value dimensions that an organization can use to define a country’s accounting culture include expert skills versus legal control, consistency versus compliance, and privacy versus precision. The original magnitude relates to power and enforcement of accounting at the national level relate to the quantity and revelation of accounting information at the national level. Accounting principles and structures and their connection to humanity values and organization norms reflect the connection between accounting and a particular culture.
Accountants’ assessment systems often bear a close relation to the exclusive humanity values, in each nation. In essence, accounting principles, in turn, influence accounting systems. Therefore, cultural values affect the growth of accounting and fiscal reporting systems of a nation directly.
How Does Culture Affect Leadership Styles
Culture does have a small, but significant impact on the use and effectiveness of leadership styles. It plays an important role in shaping the approved leadership prototype leading to the image of the ideal leader of a particular society. In addition, it plays a significant role in influencing the personality traits and work values of leaders and their subordinates. The cultural values and norms of a society determine the attitudes of leaders and their actual pattern of leadership behaviors including the ways in which leaders and their subordinates relate to one another. Just as cultural values and norms impact the attitudes and behaviors of leaders, they also influence how subordinates perceive and ultimately accept or reject the behaviors and practices of their leaders.
How Does Culture Affect Human Resource
The nature of an organizational structure lends itself to less structured human resource policies than a strict hierarchical structure present in many large corporations. Workers who work in a matrix-structured workplace typically have dual reporting relationships although only one may be the formal supervisor-employee relationship. For example, an accounting manager might supervise an office manager for matters involving accounting, billing and invoicing, but the office manager may also have a direct oversight by the company’s owner on non-finance matters such as recruiting and hiring. Workers may utilize different skill sets in more than one areas of the business, which prioritizes working cross-functionally to achieve the organization’s goals. Implementing HR policies depends on what the organizational structure can support and whether the policies are conducive to the culture or not.
Analyze and Discuss the Complexities of Going International
International business activity is one of the key features in accelerating world economy. The decision to invest international involves the evaluation of entry modes while considering the degree of risk and the sustainability of the business such as political and economic instability, infrastructure weakness, currency instability, corruption, as well as government regulation and monitoring…
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