The Cultural Perspectives of Doing Business in Italy - Term Paper Example

? Analysis of the cultural perspectives of doing business in Italy Analysis of the cultural perspectives of doing business in Italy Introduction Globalization has resulted in increased international trade and business among different countries from different regions. When undertaking international trade and business it is important for an organization to consider various factors such as political climate, economic conditions, market availability and social factors such as culture which may affect an organization while undertaking its business opportunities with another country Becker2004).This paper will analyze the cultural perspective of international trade by using Italy as a case study. It main aim is to point out how business culture in Italy influences an organization such as ours in its international interests in the Italy market. Major Elements and Dimensions of the Business Culture in Italy By venturing into the Italian market, the firm stands to gain a lot in tapping a market that is not dominantly controlled by a specific player in the market. However, it is of importance that the organization understands major elements and dimensions in the business culture of the republic of Italy. By understanding the culture of the people of Italy, the organization will be able to recognize the different aspects of culture in relation to communication, ethics, religion, attitudes and values, education, social organizations and structures among others. One major element of culture that will affect business is religion. It is estimated that up to a huge percentage of the country’s population belong to the Christian religion thus Christianity is a crucial cultural perspective of doing business in Italy. This in fact can be considered the most important cultural perspective the organization should focus on when doing business in Italy. This is so since many Christians from the region usually view people from the western world as not true Christians hence should not do anything to scar the image of Christianity. For instance, the firm’s workers should be careful when interacting with Catholics due to the centuries of suffering Catholics have undergone in the hands of westerners especially those from the protestant Christianity. Another cultural dimension that is likely to affect the organization while doing business in Italy is communication. This will be a major hurdle since most of the company’s employees communicate in English thus very few speak Italian. Others dimension include social organization and structures in Italy. Social organization and structures include factors such as the place of women in the society while education affects issues like the number of learned people in the country. How these Elements and Dimensions are integrated by Local Residents Conducting Business in Italy Christianity as a cultural factor has greatly influenced how local residents of Italy go about their business practices (Kenna & Lacy1995). One will notice that it is highly rare fore on to see Italians conducting in business activities that the religion prohibits. Such issues have greatly affected the food and beverage industry in the country. For instance, it is very hard to find a restaurant or food shop selling snail and other animal products. This is as a result of the fact that the Christianity religion strictly forbids the consumption animal products from animals that are not hoofed. This is to the point where even Italian citizens who do not belong to the Christian faith cannot put up such business ventures since they will result in failure due to lack of market. Cultural factors such social organization and structures in the community have also integrated in the business activities of the people of Italy. For instance, it is rare for women to put up business ventures since their social status is at home where their work is to cook and bare children for their parents. Businesses put up by women in Italy often end up in failure since people pole opt for other business establishment since they regard these business by women as defiance of culture. On the other hand, the cultural perspective of education is integrated in the business activities in Italy in different ways. Firstly one finds that large scale business ventures are rare since they are put up by the few who have a good education while small scale business ventures are largely undertaking the majority who are uneducated. Comparison of both Major Elements and Dimensions with those of the USA Culture and Business Cultural elements and dimension that affect business are very different if not totally opposite when it comes to the United States of America and Italy. it is important for the firm to understand the difference between the cultural dimension and elements of business of the two countries since what the company is accustomed to practicing in the United States of America is not what they will practice as it increases its business ventures in Italy. Firstly, American business is purely based on the dimensions of capitalism where a cultural element of every one for themselves has been developed over the years while in Italy religion plays a major role as a cultural element in business. It referred to as “chasing the American dream”. The reason why this Is different is because in the United States of America there are very many religions hence no one culture affects how business takes place. Another cultural difference between the two countries is with regard to education. In the United States of America the culture of seeking the highest education is common unlike in Italy. This has resulted in many people having the skills to run both huge and small business enterprises thus America is characterized by the presence of both large corporations and business owned and run by American citizens unlike in Italy. Lastly, social organization and classes in the two countries are extremely different since in the United States of America, there is no bias in terms of gender when it comes to economic growth unlike in Italy. Challenges for U.S. Businesses that wish to conduct Business in Italy There are various challenges that business establishments from the United States of America face when conducting business activities in Italy. The religion issue has proved to be a cultural factor that has resulted in difficulty in American business establishment conducting business in Italy through various ways. One way that Christianity is a hurdle for American business in Italy, is the attitude that members of the religion have on westerners especially those from the United States of America. The conception that all Americans are protestants and the fact that they are considered unreal Christians by majority of Italians has resulted in many business organizations having a lot of trouble in conducting business in Italy. For example, it is hard for companies from the United States of America to find employees who are American citizens to go and work at branches in Italy. this is due to the fact that most Americans are afraid of working in Italy due to the hostility that meets protestants. Another way that the Christianity religions hinders American business establishment from doing business in Italy is the fact that there are certain products that cannot be sold in the country as a result of Catholic laws. For example, one will notice than American corporations operating in Italy usually do not serve food such as snails and other animals since they simply will not result in profit due to the fact that most people will not buy them. Finally, another problem that American companies face when conducting business in Italy is the lack of qualified personnel to run branches of their companies in Italy. This is due to the fact that very few people have the educational qualifications needed to fill various posts in the branches. This proves a hard nut to crack since back in the United States of America people also are also afraid of working for their business organizations in Italy. This results in business establishment offering huge financial incentives thus increasing the company’s operation cost. Other challenges that business organization in the United States of America face when it comes to foreign trade with Italy is the different regulation laws that each country uses when it comes to foreign trade. The economic position of the majority of Italian citizens is another hurdle American business establishment face when it comes to conducting business in Italy is the fact that majority of the population in the country live average line hence they are unable to meet the financial requirements for American commodities. For instance, buying fast food from American corporations is considered for the wealthy while back in the United States of America it is meant for those who are not financially stable. Conclusion The cultural perspectives present in individual countries contribute significantly in determining the property of international trade (Mitchell2008). It should be not that it is important for people to maintain and value their culture but at the same time these cultures should not limit the economic prosperity of the respective countries. Italy can gain a lot by interacting with business organizations from the United States of America. Both the Italian government and that of the United States of America should promote programs that will result in tolerance in different cultures. Such programs include sport activities among others. References Becker T (2004). Doing Business in the New Latin America: A Guide to Cultures, Practices, and Opportunities: Greenwood Publishing Group. Print Kenna P & Lacy S (1995). Business Italy: a practical guide to understanding Italian business culture . Michigan University of Michigan. Print Mitchell C (2008). A Short Course in International Business Culture: Building Your International Business through Cultural Awareness: World Trade Press. Print Read More