Culture of International Business - Essay Example

Throughout the world, a single ‘culture of international business’ is emerging, characterised by a shared set of values, and a shared set of behavioural expectations on the part of both the organisations and the people involved. International business is expanding at a phenomenal rate. This is because the different business operations are now being held in real time. The usage of high-tech computers and technology has made things easier for the business regimes and has thus benefited the international business in a number of different ways. It is a fact worldwide that business concerns are expanding at a cut throat pace due to the options available for the sake of the organisations which are spread far and wide. The culture of international business is thus getting propagated in a number of different ways and there is absolutely no denying this very ideology. The business fraternity is thus understanding the pertinent role of the organisations and how these organisations are bringing about measures and enacting policies which look after the long term interests of the stakeholders, the customers as well as the employees who work their heart out for the sake of these organisations. What is missing however seems to be a link that essentially connects each and every item together (Dunning 1999). This would knit the unsown pieces in a good enough way. This paper discusses the intricate details related with the cultures spread amongst the international business domains and how the same are changing the values within the organisations on a consistent basis. From a truly business standpoint, conducting international business does have its share of benefits for the different organisations. This is because the target markets are exponentially increased and hence the scope of the business gets an even better shape. The profits start coming in when the target markets are doubled or even tripled at times. However what interests a student of business is the fact that the international business can have a number of downsides as well. There could be local level problems within the domains of the international business. The domestic pressures in the form of political tension and economic disruptions are some of the salient aspects which could mar the very basis of international business within a country. In fact this could easily divulge into a region as well. One can quote the example of Asian countries which are deemed as very viable for outsourcing but the wars in Iraq and Afghanistan have meant that the instability regimes have crept in within India, Pakistan and Sri Lanka – some of the most attractive markets for outsourcing businesses. Therefore what the international business domains need to do is to understand the pertinent culture before entering into a particular region. It needs to study the local level problems as well as the threats which could affect the business in a negative way. A clear cut SWOT analysis is therefore the desired way to go about doing things. But then again cases of terrorism have come about in different countries of the world and these could not be estimated by any business in the time and age of today. One needs to remain on his feet as far as making such decisions is concerned. The international business discussions center on the premise of extracting the best possible profits, though the manner in which these profits come about is another subject altogether. The cultural aspects related with ethical values and moral systems need to be comprehended before any business could decide to move out of its base country. This is important because the cultural tangents of different nations are varied and need to be studied ahead of the business’ moving out from its national headquarters (Kline 2005). Enticing business ranks is easy but letting the business survive in the wake of adversarial times is a difficult job and the top management of any organisation needs to decipher this ideology before it decides to go the global way. The route is filled with speculations but then again a business should be confident about its operations on a global level to make it a success in the long run. This will ultimately decide the course of action as far as the understanding of international business is concerned. It will also decide as to how long the business could actually do well within the offshore locations. There is a complete ideology behind such manifestations when it comes to conducting business ethically and with minimal of losses. The top management needs to understand what might take place once such issues crop up on a consistent basis. The values shared by different business settings on a global level are an interesting debate within this subject of study. This is because the business values seem to derive from the cultural representations of the state level implications. What this means is the fact that business undertakings are hugely dependent on the way the local culture of the country makes a link with the masses, their feelings and their eventual behaviors. The products/services offered by the business ranks are deemed of secondary importance because the first task of marketing within such countries is to gain the attention of the target audiences. If these people are not made aware of the presence of the products/services coming from the umbrella of the organisation itself, it would be very difficult to ask of them to go to a retail outlet and buy the brand that this organisation is manufacturing. Hence a step by step sequence seems to be the correct logical pattern as far as making people aware of the products/services is related (Roth 1999). This will facilitate the working basis of the people with respect to their cultural boundaries and the eventual scope of their undertakings, which are more or less related with the acquiring of the organisation’s products/services. There is a very important need to discern the exact basis of development within a new country and this can only happen when the organisation is bent upon telling the people that it exists within their country, appreciates the people in general as well as their cultural manifestations and thus trying its best to sell the products/services under its organisational umbrella, for the very betterment of its target markets. The link between the organisation and the people needs to be analyzed in a proper manner so that there are no loopholes within such a relationship. This is of paramount importance for the sake of the business because on an international level it decides the actual basis of this link. It also gives the people an insight into how this organisation is meeting their needs on a consistent basis by manufacturing and making available the products/services. There is a very vital link between the people and the international business realms because both of these tangents look to make one and all understand the intricacies behind marketing through the assistance of propagation of cultural values and shared beliefs. Such hierarchical settings are important in the current times to find out about the strengths of the business as well as the weaknesses which exist within the domains of the international business concerns. These problems could be tweaked in a proper way to look after the needs and requirements of the target market as well as to address the peculiar details related with their consumption and spending patterns of products/services. In essence, the need is chalked out and hence a plan is drafted by the organisation so that international business concerns could reach out to the masses and in return earn quite a fair share on their investments. The long term commitment towards building the international business undertakings is there to witness by everyone. The behaviour of the customers is a quintessential feature amongst the international business studies. This is because if the organisations have no know-how of their customers, then it becomes very difficult to tackle the aspect of meeting their due needs and requirements. There must be an adequate emphasis on the perspective of meeting the needs of the customers and checking upon their behaviours is also a very significant factor within the whole context of understanding the international business realms. This will essentially aim to solve quite a few issues related with the proper conduct of the international business domains as well as aim to build a bridge between the publics and the organisation which is bent upon extracting the maximum possible benefits from a certain country, however doing so not at the expense of its ethical values and moral systems. The behaviours of the customers as well as the organisation is playing an important role since their interaction with regards to the products/services offered for public consumption would actually put into good effect the basis of having this international business in the first place. If the customers feel that the organisation is not quite living up to the expectations of its people, then the different products/services under its umbrella of deliverables start getting boycotted in an indirect manner. There are fewer sales and hence the profit levels start to dip which the supply and distribution channels of the organisation start estimating in a very quick manner. Therefore there is a dire need to predict what the behavioural response of the customers would be in the event of a product that is going to be introduced within a certain country. This will eventually decide the course of action for its revenues or the losses which will be incurred within the same domains (Buchan 2005). The behavioural expectations of the organisation take into account the ethical undertakings as well as truthful communication mechanisms employed by it. If the business is based elsewhere, it would be of fundamental significance to bring this under a good measure of authenticity so that there is absolutely no one who gets blamed at the end of the day. Being true to the cause of serving the customers and the public at large always pays dividends in the end, and the international business concerns understand this philosophy more than anyone else. However there are minor hiccups here and there which suggest for the anomalies which are present within the different organisations that are carrying out business undertakings in different countries of the world. It is difficult managing business operations on a global level and the international business regimes must be given credit where it is due. In essence, all out efforts need to be made by the organisations to remain on board with their customers as well as stakeholders to have it ethically clean on a consistent and proactive basis. A culture of international business brings customers on a single platform, as far as an organisation’s aims and objectives are concerned. An international business would absolutely acknowledge the tenacity it has for attracting a new range of customers and it is generally believed that organisations are looking out for new and novel ways to entice customers far and wide. In this quest, they are always open to ideas and fresh innovations within their target market studies. However when they have narrowed down their approach to attract new individuals within their product’s scope, they would have to rake in the required financial muscle which will eventually reach these customers on a consistent basis within the future. The organisations must be ready to go the extra mile for their customers and this can only be done when the different processes and undertakings on the part of the international business concerns look at building the long term relationships and not just fixing the short term incentive drives. This will take into good measure the role of the third party vendors, the channel members as well as the distributors and suppliers who have got a huge role in discerning the exact mechanism behind a customer-organisation link (Turner 2003). The channel members must be given the incentives and the resources that they require so that there are no problems as such when it comes to gaining an understanding of their desires to reach out to the masses. This is deemed as important because the channel members decide the actual course of action in the long run scheme of things. Proper attention and care should be given to the needs and wishes of the channel members at all levels so that they could remain loyal with the organisation and go the extra step ahead for the sake of the international business processes and undertakings. However this could prove to be a point of immense frailty as well if the channel members start taking the organisation for granted. The ethical measures however demand the exact opposite of what could take place when an organisation is on the receiving end of such a relationship (Maddox 1993). Perhaps it would be about time to let the channel members know where they are going wrong and sending a soft warning always helps under such situations. The cultural values similarly must be discernible in such a way that the organisation gives it respect and dignity. There must not be any kind of let up within such discussions as target audiences and even the secondary market domains are very wary of what is being offered to them by the international business domains, on a regular basis. Proper accountability would help the organisation on a broader level since it must remain on board as per its actions, behaviours and undertakings on a very consistent footing. This will help in its eventual public relation building exercise with the masses as well as have a good say within their opinion spreading circles. A positive opinion always helps in the long run. In the end, it would be appropriate to suggest here that international business is filled with risks but only those businesses become successful which plan ahead of time. There are risks in nearly every business entity and setting but the most important thing is to have a proper plan in place so that shortcomings could be removed from the methodology thus adopted. The cultural models of the place where the international business has set its feet firmly need to be understood by these organisations if they want to be successful in the long run. If the people are not contented with the undertakings of the business, then there is enough evidence that the business would fail sooner rather than later (Kogut 1998). Such processes demand a lot of time and research by the international business concerns and it is always advisable to have these studies done on the location and with the assistance of the people who matter the most – the general public for whom the organisation has decided to go the global way. The people demand respect from these organisations and in return are willing to be the customers for their products/services. They also require that their needs are met in a proper manner by these products/services so that they could come back and forth towards the retail outlets of the organisation or business. All said and done, international business is deemed as a success in the time and age of today if cultural manifestations and behavioural implications are understood ahead of the organisation’s eventual entry into the said country or region. References Buchan, N. (2005). Culture and International Business: Recent Advances and Their Implications for Future Research. Journal of International Business Studies, Vol. 36 Dunning, J. (1999). Governments, Globalization, and International Business. Oxford University Press Kline, J. (2005). Ethics for International Business: Decision Making in a Global Political Economy. Routledge Kogut, B. (1998). International Business: The New Bottom Line. Foreign Policy, Spring Maddox, R. (1993). Cross-Cultural Problems in International Business: The Role of the Cultural Integration Function. Quorum Books Roth, K. (1999). A Framework for Culture Assessment. Journal of International Business Studies, Vol. 30 Turner, C. (2003). International Business: Themes and Issues in the Modern Global Economy. Routledge Word Count: 2,531 Read More