Cross Cultural Issues in International Business - Essay Example

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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. …
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Cross Cultural Issues in International Business
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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
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