Cross-Cultural Analysis for the Bran Company - Case Study Example

Cross-Cultural Analysis Report Executive summary The recent economic revolution has forced the business magnets to employ new strategies and to search for new markets for their products. This is necessary to introduce a new company image and increase stability to their business venture. Being part of developing the business, it is important to include more experts in the process of analyzing the market. It is therefore necessary to meet the needs of consumers from different countries. According to Douglas and Craig (1997) this will be achieved through the implementation of a stable means for instance through stabilizing the company’s products according to the economic condition. The purpose of writing this report it to analyze the issues that Bran Company may face while venturing into the international market. Bran Company which is located in Australia and whose cultural perspectives used in the company relates to those of Australians plans to venture into the American market. The company deals with the manufacture of food products. I was appointed as a human resource team member in studying the market environment of the target country. The team identified various cultural issues in the other country. Some of these issues include differing social classes, religion, education background, social institutions etc. The team also carried out a market survey in order to establish the culture of people living in the regions where the company is to open up more business stores. It was found out that the American market is comprised of people from different races. Their consumption behavior depends on their social class, family set up and the level of education. Introduction Due to the prevailing market competition, businesses have been forced to expand through merging or through joint ventures. They mingle and associate with other individuals from different countries possessing different cultural backgrounds and language but participate well in business matters. Hofstede (1997) describes that it is important for managers in a particular company to be aware of the culture of that other country before venturing into the market. This is because being unaware about the culture and beliefs of the people in a country results to differences and misunderstandings between the customers and the sellers. It also makes the business environment unstable. To avoid this occurrence, it is necessary to involve intercultural training before planning to venture into the American environment (Aaker and Maheswaran, 1997). In this intercultural training, the participants or the company’s manager are capable of acquiring a clear picture of the culture, values and the customs existing in a given country. The trainees are also capable of learning more through getting some helping tips on how to blend and relate well with the people who they find along their business dealings. This method also helps managers who train to manage certain differences and misunderstanding related to cultural issues. According to Douglas and Craig (1997) this training is however not sufficient to know all the cultural background and the values of the citizens in another country. A trainee therefore has to be perfect in dealing with cultural matters and this has to be appropriately and effectively. After the training, the people studying the market should then be given an opportunity to interact with consumers. This enables then to find out about their tastes and preferences. It also helps the researchers understand their consumption behavior thus enables the company strategize on how to introduce their products (Huff and Alden, 1998). The market study was conducted through visiting various companies in America. The data was collected through carrying out interviews and by the use of questionnaires. In other cases observation was used to analyze the buying behavior of consumers. Munck (2000) describes that after studying the peculiarities in American behavior, nature of buying, customs and the language that is mostly used, some preliminary judgment on their consumption behavior will be attained as this will enable the marketers set the right strategies. The peculiarities should be taken into consideration for making judgments about the culture of the citizens as a whole as consumption behavior depends on various factors. In conducting the study poor judgment was not includes as it may pose some significant problems as the strategies on positioning their product will also be affected. In the intercultural training, the use of false judgment is at times referred as stereotyping. This use of stereotyping tends to damage the attitude of consumers and may affect the company’s reputation. Ueltschy and Krampf (1997) explains that this is because it poses some danger as far as business dealings are concerned and will therefore remain a hindrance to the growth of the company. As participant in carrying out the market research, I made sure that I ignored the stereotyping since it is a negative way of studying citizens and their consumption behavior. To avoid this occurrence, intercultural consultants had to ensure that I was effectively trained and that I had attained intercultural competency. Cultural competency is also important as it is the ability to live across the present culture and the cultural boundaries. Meaning and Nature of Culture Culture can be termed as learned beliefs, attitudes, values, norms and customs possessed by a particular society or a given group of people. Aaker and Maheswaran (1997) argue that the groups of people share these characteristics and transmit them from generation to generation. As change is inevitable, culture changes with time though it may take a long time for people to adapt. A society that develops their culture continuously gets exposed to new experiences and opportunities. The society is therefore not termed as a fixed body of people since members have varying attitudes towards products. More generations are being introduced to the society and at the same time new individuals from other cultures are being assimilated into the societal culture. As a result of the increased mobility of individuals, there has been a consequent flow of information. This flow includes from young generation joining the group where cultures expand, dilute into the group and thus results to change. The changes introduced to a certain culture are however not rapid and not drastic. They reflect changing from old ideas of how people conduct themselves to new methods of conduct. They also include accepting the ground realities which are influenced by environmental or technological innovations. This influence therefore makes cultural changes be gradual. Culture is a flexible concept which can be expanded in order to cover various aggregations. The western culture for example includes all the Americans. It is also important to consider the study of subcultures of the western culture like the American culture or British culture. It also involves linking a group of people or cross-culture group such as the British immigrants. These people can be studied if their size is adequate and if they contribute in influencing the purchasing power of consumers. This is due to the fact that culture is viewed as aggregate of beliefs, attitudes and values possessed by different group of people (Zhang and Gelb, 1996). The culture of these people also shows their values, heritage, arts and behavior. Relying so much on a particular culture can also be harmful as it spreads some irrational and out-of-date attitudes which are considered as custom. The global economic instability has resulted to the increase of multinational business organizations which have diversified their market venture. The move has also provided a lot of job opportunities globally. As a result of this, more people are forced to migrate to countries with better opportunities. Individuals also accommodate themselves with newly generated vacancies from new firms. In this case, a multinational organization is comprised of numerous individuals possessing different cultures. This reason makes it important to understand everyone’s culture and language used by staff members in a multinational organization. Multinational organizations operating in different regions ultimately become multicultural organizations. For new ventures to succeed in the multinational competitive environment, management has to ensure that the firm has attained the intercultural capability. These capabilities have been studies by various experts which involves the use of various strategies. One of the strategy proposed include the fact that for business to position itself in an international market, there has to be a very good knowledge about the region. These particulars are based on the company’s productivity, inputs, atmosphere and the attitude prevailing in the region (Geertz, 1973). As a human resource management team member, I have observed and verified that the situation of operating in the American region is sufficient. This is because the culture used in the region does not have much difference with the Australian culture. One example is when a person has enters a new environment one has a tendency of gathering as much information about the new venture. This will include gathering various tips about how people behave, treat others, dress and communicate in the business environment. These facts are considered to have a perfect association with the people living in the same background. People working in a multicultural business organization should therefore show much interested for instance in wanting to know other people’s cultural facts, values and languages (Ganesh, 1997). Being reluctant to ask questions about others language and culture will be a major challenge for a business to grow. All matters related to working environment have to be shown much interest. This is because it produces a good reputation and respect for the business thus it will be possible to retain customers. The other challenge involved includes working in a cross cultural media. The process takes too much time since there is slow communication process between the staff members and the customers. This commonly occurs in cases where the staff members were not effectively trained about the different culture and concepts of another nation. It is therefore important to spend more time in processing information necessary and make conclusions. Different cultural behaviors are found in a multicultural organization. It is however not advisable to trying to mould people with different cultures since this produces negative results. In a multicultural firm for example, the new culture will be stressful to all. Ganesh (1997) describes that this reduces flexibility and capability of people thus reducing work productivity or few sales. Studies have shown that in order to get away from the tedious stresses existing in multi cultural environment, one should be humorous in nature. The most important qualities needed to survive in this environment include having a good attitude to learn other people’s nature and to be capable of tolerating. In the case of business purpose, moving employees from one state to another seems difficult to adjust. These employees must learn earlier in order to make essential adjustments in the physical and cultural fields. In this case it is important if the employee possess some skills and knowledge to deal with the intercultural differences and misunderstandings available. According to Pan and Schmitt (1996) to achieve this, the best way is to undertake theoretical and practical training on intercultural awareness. The increasing multicultural marketing places tend to confront most marketers. Most firms are currently venturing into the multicultural environment due to the increased globalization of markets and competition. Some of the factors that have promoted the multicultural populations and especially in the domestic market includes; the pattern of migration, the communication media for instance the use of internet and television. These sources have been of help since they have exposed many consumers in the international market. This makes other company’s who are willing to venture into the market got to know about the consumption behaviors of those citizens and their tastes and preferences. Cross cultural dimensions have been known to affect the consumer behavior of most citizens and especially in America. It is for this reason that researchers have formed better methods of providing better managerial skills. These skills are necessary to set up a framework for dealing with the consumer behavior across cultures. Gregory and Munch (1997) show that the framework involves the process of setting dimensions on culture in a way that it becomes easily understood both theoretically and in operation. The framework also provides a better definition of consumer behavior in relation to concepts that may affect the culture of a particular group of people. The weaknesses of cross-cultural analysis are the inability to communicate well with others and to equalize ones culture with that of another nation. The cultural value of an individual is then developed over time according to various factors. Some of these factors include social institutions for example through family background. This is where a family such as a nuclear family may influence members in terms of their consumption behavior. Members of one family may be forced to use a product even after they leave their family as that is what they have been introduced to. It is for this reason that makes firms venturing into a new environment want to study various types of social institutions which include family and organizations. This market study enables marketers be in a position to set up strategies that will make their products be competitive in the market. Other issues faced in the process of developing a cultural environment include the education background of most citizens in the new environment. Samli (1995) shows that in America for example most people in the society are educated and have received quality education. This level of education makes it easier for most businesses to operate in the country. This is because it makes it easier to understand the culture that most people follow and thus the marketers are able to target the educated lot. According to Schmitt and Zhang (1998) the varying social classes found in America will also influences consumer behavior. This includes the kind of race for instance where there are many whites than blacks then the blacks may be influences to purchase products that are mostly used by the whites. It is important for businesses to understand the types of races, ethnic groups and subcultures found in a given society. This will enable marketers to plan different marketing methods for different cultures. According to Macfarlane (2004) religion also affects consumption behavior for instance where most Americans are Catholics thus their belief would make many want to purchase products with the sign of a cross. Their values also will make them attend masses during Sundays and so few of them will purchase goods on this day. In terms of aesthetics, most citizens would prefer the use of popular musicians in promoting certain kind of products. This influences more people to consume as they will like to be associated with the musician. The other issue that the business should look at will include the diet and nutrition that will be preferred by most citizens. According to Levenstein (2003) the recent study conducted suggested that most Americans are so conscious about their body weight and so they prefer foods with less fat. It is therefore important for the company to concentrate more on supplying less fatty products which are on a higher demand. In terms of housing, most people have mortgaged their houses and live in one family dwelling. The types of clothing worn at work are formal clothed unless during weekends where the dressing code tend to change. The country does not have a national dress and so any kind of dressing is appropriate. Apart from the business attire, the rest of the people in America prefer informal wear. These are worn by people of all ages and social class (Levinson and Martin, 1980). During leisure time, most people prefer recreational places for example at the swimming pools or get involved in other leisure activities such as sports. The company should therefore plan methods of targeting the right kind of group for example the right of products to supply that will be useful in enhancing relaxation of body and mind. Peter and Olson (1998) describes that the other issue noted is regarding time where people really value time. They are very keen on how time is managed and so it is important for the firm to concentrate on time management skills which will influence more customers to purchase the company’s products. In case it’s a business appointment, the discussion should not exceed one hour. It is also important to get to the appointment on time as being five minutes later than the agreed time results to cancellation. In addition to spending leisure time at recreational centers, the major mass media of the US people is the television. Lee and Green (1991) shows that this is important to note as the company’s marketers are to use this media in promoting their products. The television is also used by every one in the family and so the promotions are to target all the members of a nuclear family. The researchers also found out that in US advertisers used rhetorical styles, sexual portrayals of women and visual stances. These features were said to persuade people to purchase and especially magazines or newspapers. This shows that caution should be observed while standardizing adverts and other forms of promotions which deal with divergent cultures. Gregory and Munch (1997) describes that in US most advertisements use humor and visual content. People may also be identified by the values they have towards others. Cultural identities can also be identified according to how large the society is and what kinds of powers are present and the social status. One example is the western culture where men in a group are said to have more powers politically as compared to their opposite sex. These groups of men will also be considered powerful and having the best skills to lead in organizations. According to Ember and Melvin (2001) people have also perceived that white are more superior to blacks and that the Christians are more powerful and spiritual than Muslims or Jews. One of the most reported challenge in dealing with cross cultural analysis includes communication. International marketers find it difficult to communicate with other diverse cultures. Advertising is influenced through elements of an originating culture. It is therefore necessary to understand the other countries norms, values and stereotypes before setting up advertising strategies (Luna and Peracchio, 1999). Conclusion Cross cultural analysis is importance as it enables organizations and especially managers in any industry to know how to conduct their businesses. Work force diversity is attained where the employees are trained on how to react in case a client from a different culture, race or nationality. The workers should also be in a position to speak various kinds of languages which will enable effective working with visitors from other nations. There has been significant outcome where members are from the same race and gender. However, various kinds of diversity seem to appear more beneficial to members from one group. It has been shown that race and gender demonstrate both positive and negative outcomes if practiced in every working environment. The demographic attributes leading to discrimination at work place include race, ethnic community, social class and nationality. Cultural identities are brought up by people living together in a social cultural society. Such people are mostly identified with a common trait which may include skin colour, sex or race. The biological identifications include people with the same social class depending with ones spending and social status. Individuals sharing a common cultural identity also share their values, norms, and priorities. 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