Analysis of the Cultural Differences between Russia and India - Term Paper Example

Analysis of the cultural differences between Russia and India Introduction Culture refers to human social behavior that a group of people can be identified with. Culture varies and it is an equally important aspect of life since it distinguishes a group from another. As a social concept, it defines human behavior among other aspects of social life. Normally, it differs from a region to another as it influences the values that a particular group of people abide by; such will include how people interact, religions, food eaten and other factors. As a current issue, culture is an important consideration for any business organization especially those that are improving their services by getting to new markets. The consumer behaviors together with social classification differ depending on the values of a region thereby compelling such organizations to employ strategic marketing and production features in the new market (Kotler & Kevin, 2010). The discussion bellow analyses the operations of V-mobile, a Russian telecommunication company that seeks to enter the Indian market by acquiring the Indian, Tel-Com (Jex & Britt, 2008). With a population of 1.2 billion people, India is the second most populated country in the world. This makes the country attractive as a potential market for any business idea. The large population is one of the key factors that necessitate the purchase of Tel-Com by the Russian V-Mobile. However, the country has a different cultural setup from Russia. The large market will require the new company to employ specific management policies in order to attain its set objective in terms of profitability. India exhibits a conservative culture characterized with male domination in the social structure. This implies that the company will have to employ tactful operation and develop service packages that target specific parts of the large market. Additionally, the management of the company will have to adopt a different management system in order to achieve an effective organizational management system without necessarily conflicting with the existent culture since such could affect the reputation of the new company. V-Mobile must adopt a unique management structure which fits the new market. Systems theory of management views organization as systems with different components that must work as a unit in order for the organization to achieve profitability (Heizer & Render, 2011). V-Mobile should therefore consider a management theory that will ensure the profitability of the company even as it ventures into a new market. Viewing the newly acquired Tel-Com as part of the system will influence the development of management structures that will sustain dedicated market researches thereby determining new markets within the large India population thereby ensuring that the company does not incur loses. By viewing the mother company as part of the system, V-Mobile should permit Tel-Com to maintain its independent operations since it has a different type of market. This way, V-Mobile permits Tel-Com to carry out its own market research and analysis among other marketing features thereby encouraging its independent operations. This minimizes management interference and conflicts of interests. Furthermore, the new company enjoys being the only one thereby developing and sustaining its own unique market. A socially responsible investment is an important marketing tool that increases a product’s awareness within the target market. Such market moves require a degree of appropriateness in order to achieve relevance in the market within which the company operates. V-Mobile operates in Russia a country with most of its population living in urban centers. Such a population has specific social features thereby influencing the types of social responsive investment endeavors of the company. Together with the strong Russian economy, V-Mobile could engage in the treatments of different lifestyles complications such as cancer, high blood pressure and diabetes among others, which is common in the country. Additionally, the company can provide scholarship to the country’s bright students who would wish to further their studies. However, such acts may not earn the company increased awareness owing to the strong economy and the population’s high purchasing power. The social and cultural structures in India are different thus making the new company to develop specific social investment endeavors in order to increase the company’s awareness and better its reputation. While India has large cities, most of the country’s population lives in rural India. Additionally, the country has a large population of the urban poor. Such information about the country helps the amendment develop appropriate products and target an appropriate population thereby obtaining increased profitability. Additionally, with such vital information, the company will easily develop appropriate social responsive investing thereby achieve success with every marketing endeavor. With a GDP per capita of $ 1,389, most of the country’s population is either poor or middle class. This will influence the company’s pricing policy thereby ensuring that the company does not appear exploitative. The difference in the physical (geographical) and cultural information of the two countries will influence the management structures of the new company. The Russian company must therefore strive to maintain relative operations in order to remain relevant in the Indian market. The company must develop unique social responsive investment with the view of answering some of the social and cultural challenges in the Indian society most of which are unique from those existent in Russia. The company must price its products effectively. The pricing must correspond to the Indian economy and the purchasing power of most of the population. most of the country’s population is either poor or in the middle class, this implies that a product or service that appeal to the market segment is likely to remain profitable. The new company should therefore lower its rates thereby appeal to the specific market. This way, the cumulative profit per year is likely to sustain the company’s operation and profitability. Coming up with an appropriate social responsive endeavors will improve the company’s reputation in the market. Such endeavors must differ from those the company carries out in Russia owing to the structural and cultural differences in new market. Among the most appropriate of such investments will include the provision of scholarship to the country’s poor population in the rural areas, provision of agricultural services for the country’s poor living in the rural areas most of who survive on agriculture and the provision of health services among others (Hill & Jones, 2011). This will require the company to develop an effective management structure, one that recognizes the need for extensive social responsive investment in a particular market. This way, the company will not only remain relevant in the market but also increase its market shares besides developing positive relationship with the government among other stakeholders in the market. Russia has a free market economy with several service providers in the market. The resultant competition therefore maintains the price of the products and services in the market. The developed country has a higher Gross Domestic Product with its population therefore enjoying a higher purchasing power. The mobile equipment manufacturers operate independently but rely on the telecommunication service providers in the marketing and dispensation of their products. Such a market structure differs with the economic culture in India in which the government has a corporation in the telecommunication industry. Such a market structure discourages the operation of other companies in the industry since the government does not outsource for such services from the private sector. The new company must therefore adopt a different marketing process with the view of curbing the monopoly existent in the market. The company must target the neglected niche most of who are the country’s poor. Employee attitudes towards work is an equally important aspect of the management. The management of the organization must ensure that the employees show positive attitudes and love their work in order to achieve the profitability of the company. The unemployment rate is higher in India than it is in Russia coupled with the high population in India; the country has more of its population unemployed. The same applies to the uneducated segment of the population. The two governments have effective policies and legislations that govern the minimum wage as a way of cushioning the country’s workforce from exploitative employers. However, the minimum wage is lower in India than it is in Russia a feature that implies that the cost of labor is cheaper in Indian than in Russia. The company must therefore effective employee management in order to sustain the company’s profitability in the new market (Black, 2003). Payment is an important factor that motivates employees in an organization thereby influencing their attitude towards work. Tel-Com requires eager employees in order to introduce the company into the new market and maintain competiveness against other service providers in the market. The lower labor costs in India make the management of the company cheaper. The company therefore has a competitive advantage since it stands to enjoy cheaper labor costs in Indian. Besides the salary, the management of the company must understand other factors that motivate employees thereby influencing the formation of appropriate management and marketing strategies. Theory X and theory Y are two effective theories that provide managers with an effective understanding of the employees. Theory X suggests that employees are lazy and they avoid work. The theory explains that employees are naturally lazy and will therefore amiss work at any available opportunity. The theory states that the management must therefore employ detailed supervision of the employees in order to maintain their productivity. Theory Y, on the other hand, suggests that employees love their work and will work with minimal supervision. The two contradicting theories provide managers with two possible scenarios that may prevail in an organization. With such understanding, the management must employ an appropriate management structure that will equip the management with the skills to manage the diversities that employees may present. The Russian company seeks to employ an elite group of employees; such employees are happyabout their jobs. They can therefore work under minimal supervision. The Russian company must employ specific employee motivation features in order to guide the company to success. The large market requires effective coverage; the Russian managers must ensure that the company commands a larger share of the market by increasing its coverage in the region. This requires a larger staff size, which may prove equally difficult to manage and motivate (Papa, 2008). Among the staff motivation policies that the company can employ include developing a competitive work environment and providing on job trainings. Additionally, the company should diversify its services in order to increase its market share. Through improving its services, the company employs more employees a feature that sustains the economic growth of the country thereby increasing the purchasing power of the population. This way, the company is likely to increase its profitability as more people afford its diverse services. Additionally, by employing more people in the country, the company increases its reputation and awareness in the region since employment is one of the basic social responsive investment endeavors that every business organization employ. As discussed earlier, the Indian society looks down upon the girl child with the country’s women especially those living in rural areas facing social and cultural challenges. Most of the women are uneducated. Despite the male dominated social structure, India remains home to a third of the world’s women. This implies that the women in the country constitute a large market that can sustain the profitability of any company. This pattern forms a viable social responsive investing. The company can position itself as a strategic employer of the country’s elite women thereby providing motivation to the rest of the women in the society. This will not only elevate the company’s awareness in the market but also improve the living standards of the country’s women. Through effective motivational policies in an organization, the management will improve teamwork within the organization thereby increase the efficiency of the company’s operations. Conclusion The cultural difference in the two countries presents advantages and disadvantages for the company. The two societies have different economic systems as well as different market structures. Additionally, the cultures in the two countries influence the trend in buying products and services in the two countries. This implies that for the company to achieve profitability the management must employ strategic management and marketing that will correspond to the unique features of the two different markets. Culture as a fundamental social aspect has succeeded in influencing the economies of the two countries. The liberal Russian culture provides an equal opportunity to both the girl and boy child. This has succeeded in developing an ideal society in which everyone enjoys equal employment opportunity. This implies that both genders can make their own independent purchasing decisions. This differs with the India cultures in which the most of the women are unemployed and equally uneducated and therefore rely on their husbands. This influences the structure of the market thereby influencing the operations of the company. The Russian V-Mobile must maintain specific types of management in the two markets. After acquiring Tel-Com, the company can choose to either rebrand or retain the current brand depending on the reputation of the company. The management operations of the company will differ owing to the difference in customer tastes in the two countries. The company must develop effective performance evaluation and feedback structures that would allow interactions between the employees and the management in order to guide the operations of the company as per the difference in the two markets. References Black, R. (2003). Organizational Culture: Creating the Influence Needed for Strategic Success, London UK: Sage Publications. Heizer, J., & Render, B. (2011). Principles of Operations Management. Upper Saddle River: Prentice Hall Hill, C. W., & Jones, G. R. (2011). Strategic Management: Palm Beach State College Edition BAS Capstone Course 9th E. Mason, OH: Cengage Learning. Jex, S. & Britt, T. (2008). Organizational Psychology, A Scientist-Practitioner Approach. New York: John Wiley & Sons. Kotler, P. & Kevin, K. (2010). Marketing Management. Upper Saddle River: Pearson Prentice Hall. Papa, M. J. (2008). Organizational Communication Perspectives and Trends (4th Ed.). New York: Sage Publications. Read More