How Does a Biotic-Energy Company Entries Thailand Market - Research Paper Example

?Introduction Culture can influence a business in several ways. Culture is one of the most important obstacles that can affect the co-operation between two countries. In the beginning, culture collisions and language problems are not uncommon1. There should be a negotiator who will handle and control these difficulties in order to satisfy the other part. A slight mistake would be difficult to rectify. Mistakes can destroy the entire process of negotiation. Background of the Study It is true that there are several cultural differences between Western and Asian countries. Germany is a western country and Thailand is an Asian country. Major objective of the study is to provide a research paper in order to explain how a German Biotic-Energy company can enter in the Thailand market. The research will focus on the cultural differences in two countries. Finally, the study will recommend the organization how to develop and practice the business strategies in Thai market to achieve a sustainable growth. German Biotic-Energy Company Culture Analysis Germany is one of the developed European countries. Economically it is the third largest country in the world. German Biotic-Energy Company is trying to enter in the Thai market. Therefore, it is important to conduct a culture analysis of the organization in terms of value, language, decision making custom and religion. Decision making of the German organization is slow and detailed process. The organization tries to engage all the internal stakeholders in the decision making process. The organization does not draw significant conclusions based on the unstructured and spontaneous results. The management of the organization gives respect to all of its stakeholders during the decision making process. The organizational business culture is well defined. The company follows strictly observed organizational hierarchy. The organization follows typical German business culture. The employees never integrate personal aspects in their workplace. German Biotic-Energy Company follows a professional organizational structure. In work place the employees try to give value and respect to their sub-ordinates. German people are strongly individualistic. The employees within the Biotic-Energy Company follow through thought process. German is the official language. Therefore, according to their culture and value, they try to share their views and thoughts in German language. German people always respect people of every religion in business or organization. Almost 30% of total population is Christian. Rest of the population follows other religion. German people are very conservative. German Biotic-Energy Company tries to provide value people of all religions and gender. It is important for the organization to analyze the Thai Business culture before entering into the Thai market. Several Cultural aspects in International Business Language, religion, values and decision making custom are the major cultural aspects that can influence or affect an international business. It is true that, the Western countries are diversifying their business in the Asian countries in order to access resources such as labor, land and capital in low cost. These are huge motivating factors for the organizations. But, several cultural differences between two countries can affect the business performance of the German firm in the Thai market. Religion Religious view of majority of the Germans is Christianity. On the other hand, majority of the Thai people believes in Buddhism. Therefore, different religion background can create huge challenge for the business. It is known to all that, religion is a sensitive intangible matter of human beings2. Religion can integrate or separate a group of people. More than 90% of total population practices Buddhism. The Thai people believe in peace and honesty. These people are strong believer of their religion. They follow each and every aspect of their religion in both personal and professional life. According to their religion, simplicity and free of desire will bring Nirvana or Peace in their life. They strongly implement these concepts in organizational value. On other hand, Germans are very much professional and realistic. They believe in self-satisfaction and self-opportunity. Religion has limited influence on these Germans. Therefore, it can be stated that inadequate global business strategy can create several workplace and business conflicts. Language Language is another important cultural aspect that can influence the global business. Thai is the official language of Thailand. On the other hand, German is the official language of Germany. Therefore, it can be stated that language differences can affect the business process of the German Biotic-Energy organization in the Thai market. People always try to share their views, feelings and thoughts in their religion and proficient language with their sub-ordinates. Language differences can create communication gap between the upper level employees and lower level employees. This communication gap can reduce the business productivity. Therefore, it is important for the organizations to maintain the language difference challenges to perform effective business practices in Thai market. Values Values are another important cultural aspect that can be monitored by the business firms in international market. It is true that value of people of two different countries cannot be similar. Thai and German Business values are different from each other. Employees of organizations in Thailand respect and give value to the hierarchical relationships3. They always maintain a distance from the upper organizational level. On the other hand, major of the German organizations follow flatter organizational hierarchy. They always avoid top-down approach as this strategy slow down the decision making business operation process. Without proper understanding of Thai value, it is impossible for the German organization to maintain a good relationship with their employees. Moreover, the organization will find it difficult to improve the self-confidence and motivation level of the employees. Thai people always prefer to do business with people or firm they respect. According to the value and culture, non-verbal communication is more important comparing to the verbal communication. People of Thailand always follow formal communication structure. The employees always give respect to their eldest person. Rank or position in an organization is always respected in Thailand. In Thailand, the relationship develops slowly and steadily. It does not flourish after one meeting. On the other hand, in German organizations the relationship flourishes after one effective business meetings. Thai people always maintain courtesy and respect to the sub ordinates. Decision Making Custom It is another important cultural aspect. Thai employees depend on their superior boss in decision making process. On the other hand, major of the employees take part in the organizational decision making process. This strategy strengthen the decision making process as the management of the organization can choose an effective strategy out of several options. In terms of business meeting, the organization or client of an organization should schedule an appointment before one month. People of Thailand, always try to refer their friends’ or relatives’ name for the purpose of employment. On the other hand, German organizations follow effective and transparent recruitment process. In work place, Germans are more professional and efficient comparing to the Thai employees. An agent or a client should produce a written material of proposal in both English and Thai language during the business meeting process. These are important business culture criterion in Thailand that is very much differentiated from the German business culture. Conclusion Culture is an important aspect that can influence or affect a business environment4. It is true that, cultural differences can hamper or affect a good relationship between two countries. Therefore, it is important for an organization to control the cultural differences before establishing their business in other foreign country. The German Biotic-Energy company can face several cultural problems in Thailand as both the countries have huge cultural different. Language, values, religions, decision making custom and etiquettes of people are different. It is very much difficult for the German organization to maintain the business process without proper understanding of Thai cultural values. Recommendation Following recommendation plans will help the German Biotic-Energy organization to overcome the cultural issues in the Thai business market. It is important for the organization to employ a German manager who knows to read, write and speak both English and Thai language. It is most important thing for the organization. This strategy will help them to understand the value, attitude and behavior of employees. The organization should higher local employees at the managerial level. This strategy will help the organization to maintain effective work culture within the organization5. The top level executives should try to increase the motivation and self-confidence level of the employees. The German Biotic-Energy company should organize an effective induction and training program for new Thai employees. This process will increase skill and knowledge of the employees. On the other hand, effective performance evaluation and compensation strategy will help to increase the motivation level of the employees. These will enhance the organizational culture. Most importantly, this strategy will increase the business productivity of the organization in Thai market. The organization should focus to control several workplace conflicts, such as gender issues, labor issues or compensation issues. Effective management capability and monitoring process will help the German Biotic-Energy company to reduce both external and internal threats. The organization should not make decisions without widespread prior consultation. It will help to meet the decisions with a broad and effective consensus. Works Cited Baum, Tom. Human Resource Management. Stamford: Cengage Learning, 2006. Print. Hattaway, Paul. People of the Buddhist World: A Christian prayer Diary. New Jersey: John Wiley & Sons, 2004. Print. Haynes, John. International Management Issues. London: IGI, 2002. Print. Shaikh, Saleem. Business Environment. New Jersey: Pearson, 2010. Print. Tsai, Hui-Liang. Information Technology and Business Process Reengineering. New York: Greenwood Publishing, 2003. Print. Read More