Cross Cultural Issues in International Business - Essay Example

Comments (1) Cite this document
Bavarian Motors works (BMW) is a German automobile company founded in 1917, with its headquarters located in Munich. The parent company is Roll-Royce cars, but it produces both cars and motorcycle. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Cross Cultural Issues in International Business
Read TextPreview

Extract of sample "Cross Cultural Issues in International Business"

Download file to see previous pages The parent company is Roll-Royce cars, but it produces both cars and motorcycle. Initially the company engaged in the manufacture of fast cars such as the formula one sports car and later engaged in the production of fancy cars. The production and demand for the BMW cars has been increasing over the last decade as a result of the increasing demand on the fancy cars as a result of the changes in the consumer market. The expansion of the company to Brazil and other country has been affected by the financial crisis witnessed in the 2008, which affected the sales of fancy cars due to decline in revenues and personal wealth. The 2008 was a notable year for the company due to the success achieved in Formula One competition thus, improving the brand visibility (Ferrell and Hartline, 2010). The company targets the high end market associated with quality, style and performance of the product. Internationalization and cultural practices influence the operation of business essentially making them vital in the process of business expansion and acquisition. Different countries have a different approach to issues in business and marketing. The culture of the countries differs significantly especially when interested in venturing into countries in the Latin America. The historical and socio-cultural difference must be factored in during the process, to facilitate the faster understanding of the negotiation, thus, making it possible for a win -win solution. The key to successful communication between different cultures is knowledge. The understanding of the problems affecting cross cultural communication and working towards overcoming the problems will ensure the successful business acquisition and management. BMW Corporate culture BMW culture is based on the principles of offering quality product targeting the high end market segment. The BMW corporate culture involves the use of various approaches in the various approaches in the market. The increase in product range facilitates customer preference and increase brand affinity and affiliations. The company’s corporate structure entails production and performance efficiency while also increasing the quality of the cars produced by the company. The culture encourages customer satisfaction and improved market performance of the cars. The production of high end vehicles facilitates brand loyalty while also encouraging the development of success and understanding of the target market. The production process improvement and welfare of the employees are values included in the corporate culture of BMW. BMW internal environment Product quality One of the company’s core values is quality and is vividly reflected in the products presented by the company in the market. Product quality has led to quality advantages to the company (Beverly and Thomson, 2011). The company has not experienced model recalls as compared to other companies. For example, Toyota has been forced to recall some of the product models due to failure in breaking and acceleration. Such recalls create consumer confidence related problem thereby affecting the sales of the product. The majority of the company’s products have exhibited satisfactory performance in the market leading to the increased consumer confidence. Excellent buying experience The opening of several subsidiaries in countries such as Saudi Arabia, Dubai and other countries has been a plus for the company. The expansion has increased product visibility, as well as provide over 300 state-of-the-art show rooms with trained customer care and sales executive leading to an improved buying experience for the customers (Bowdin, 2010, p. 89). The association of the company with the higher social class led to the development of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Cross Cultural Issues in International Business Essay”, n.d.)
Retrieved from
(Cross Cultural Issues in International Business Essay)
“Cross Cultural Issues in International Business Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
mrazjade added comment 1 year ago
Student rated this paper as
Terrific work done on the "Cross Cultural Issues in International Business". I think it is the best document I have seen so far.

CHECK THESE SAMPLES OF Cross Cultural Issues in International Business

Cross cultural issues in international business

...?Introduction Globalization has made it possible for the international organizations to expand at the global level. With fewer barriers to entry, international firms are entering into new markets and expanding their manufacturing as well as customer base. However, expanding into an international market also poses significant challenges as entering into a new market requires significant strategic insights. Besides evaluating the external environment of the host country, organizations also need to evaluate and manage cross cultural issues also. 2. (Chen,Sun,& McQueen, 2010) Cross culture management is...
12 Pages(3000 words)Essay

Mass Extinction

6 Pages(1500 words)Case Study

Cross-cultural business issues

...? Cross-Cultural Business Issues Affiliation Cross-Cultural Business Issues Several US companies have penetrated china aspart of their globalization strategy. However, there are several cultural issues that can affect marketing strategies of a particular company. The Chinese hand down their savings from generation to another, language barrier, slow response, gender differences, and social relationships. The Chinese make savings for future use, which are also passed over from one generation to another. This tradition of saving for future generations reduces their...
3 Pages(750 words)Coursework

Cross-cultural Issues in International Management

...Cross-cultural Issues in International Management (A report to the CEO) Executive Summary: The report on cross cultural issues that may crop up in our joint venture with the Malaysian Company is presented here in detail. Necessary steps and recommendations are also given. The main areas where problems might come up is the way power is distributed and perceived in both countries. In Malaysia, managers have high unofficial power whereas as this is not the case with the US. Collectivism (tendency to live in groups) is also extremely high in that country whereas people here tend to be highly individualistic. These two factors...
13 Pages(3250 words)Essay

Analysis of Articles about the Effect of the Socioeconomic Roots Has on the Upper Echelon Management

3 Pages(750 words)Essay


.... Lindt & Sprüngli products are distributed by a network of distributors that spans the globe.” (, 2010, para. 2). The top management of the company do not rest on their laurels and would want to expand further in the Far East and Asia. However, a thorough study of possible cross-cultural issues must be undertaken, since European and Asian culture are vastly different. To explain such difference and the probable conflicts that may arise, this paper will assume that the Swiss company intends to put up an expansion business in China, in Far East Asia, a country of great food cuisine. Before the specific...
10 Pages(2500 words)Essay

Cross cultural business issues

...first Cross cultural business issues Introduction Globalization and increasing employment opportunities have lessened the distance between people from different cultures and communities, requiring them to work closely with one another. While this setup has been highly advantageous for business purposes as well as employment, it brings certain hidden challenges that affect the way business and relationships are conducted and established, respectively. This paper evaluates the impact of national cultural differences in management and communication on business performance and management...
4 Pages(1000 words)Essay

Cross cultural issues

.../assets/emerging-trends-in-real-estate-europe-2012.pdf> Anonymous n.d, overcoming Cross-Cultural Challenges, accessed on 4th December 2012 business-issues/understanding-us-business-culture.pdf > Bowie, A. n.d, The Effect of Culture on Business Relationships, [accessed on 4th December 2012] Available through: business/journal/review_08/bowie.pdf> Ghemawat, P and Reiche, S n.d, National Cultural Differences and Multinational Business.Globalization Note Series, accessed on 4th December 2012 cultural-differences-and-multinational-business.pdf> Hamme, J 2010, European Business Culture... a branch in Europe by purchasing an already existing firm in the same line of production. Global Outlook Global trade has tremendously increased in the recent past. This has probed the multinational corporations or individuals who intend to venture into the international trade to learn...
10 Pages(2500 words)Essay


...and understand the cultures of the host nations. The present study has been done in order to analyze the cross cultural and international strategy of Al- Jumeirah. Al- Jumeirah is a UAE based luxury hotel chain. Here the targeted host country has been chosen as China. China has been chosen as it happens to be one of the fastest growing economies in the world since the entry to WTO. Over the course of the study the issues such as factors influencing the entry of Al- Jumeirah in to China; business environment of China; segments to be targeted; demographics ;cultural issues of China has been discussed from...
11 Pages(2750 words)Essay

Cross Cultural Issues in International Business

... «Cross Cultural Issues in International Business» Table of Contents Introduction – Page 3 Problems with Foreign Integration- Page 3 Comparison of the American and European Culture: Page 4 Differences and problems- Page 5 Geert Hofstede’s Dimensions of Culture- Page 7 Solutions- Page 8 Conclusion- Page 10 Appendix: Personal Experience- Page 11 INTRODUCTION The move into the international arena is a strategic decision which is backed by the need to change, an aim to attain a larger market share, increasing the competitive edge of the company, reducing costs for economies of scale, or be the market...
12 Pages(3000 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Cross Cultural Issues in International Business for FREE!

Contact Us