Global Marketing: a Decision-Oriented Approach - Article Example

International Management Section Question Doing business in a foreign culture requires additional financial resources spent on training, language courses and adoption of business practices to a new environment. People have come to understand that culture is shared, no matter how it is defined. A key issue in discussing culture is then how deep-seated it is. The degree to which a culture is conscious and open rather than non-conscious and covered has implications for how easily a culture can be studied and, in a business management context, be managed. Companies have to adopt their traditions and values to new cultural environment and change established views and duties. For instance, even Scandinavian live in very egalitarian countries, where there is equality among sexes, among professions, among generations - among anything. The societal norm in the Scandinavian type of culture is that inequality in society should be minimized. There are no generally recognized social classes; one even has 'to work hard to "spot the differences'" among people there. There are also smaller generation gaps. Kinship is relatively weak and parents put less value on children's obedience. However, there is not only a feeling of egalitarianism in Scandinavia (Hollensen 23). The second problem of doing business internationally is language differences. Language is closely related to culture. It may even be referred to as a 'mirror of culture'. Language consists of arbitrary symbols with meanings that, like other cultural manifestations, must be learned and that, when following certain rules, can convey complex messages. Language does not only mean words that can be spoken; there are also nonverbal aspects of language. Messages are conveyed by words used, by how the words are spoken (for example, tone of voice), and through nonverbal means such as gestures, body position and eye contact. In fact, it has been suggested that only about 30 per cent of communication between people in the same speech community is verbal in nature. Nonverbal aspects of language also display a certain arbitrariness. For Europeans and Americans doing business in Asian countries it requires additional costs spent on language training and interpreting services. The main problem is that it is difficult for both Europeans to master Chinese or Japanese, and to Asians to master European languages. The company will have to spend additional resources on translators and interpreters. Language is a patterned unity greater than any of the individuals who participate in it. At the same time, language is one of the most intimate and significant constitutive features of human beings (Kotler and Armstrong 65). Religion can become a problem if Europeans and Americans enter Asian countries. They will have to meet cultural traditions and holidays which differ greatly form their own. To gain access to this divine reality there are many rules to follow for a Muslim. Religion becomes part of a Muslim's daily life, and a visitor to the Arab world who shows respect for the Islamic religion will gain a favorable reception almost everywhere (Hollensen 29). This means, among other things, refraining from drinking alcohol at social events and not exposing any kind of images, such as religious symbols, statues and so on. This also means that the visitor, whether a businessman or not, encounters a male-dominated society. Women are usually not part of the entertainment scene in the Muslim Arab world. They carry on with their own social lives, and they are not involved in business with foreigners (Kotler and Armstrong 65). Question 2 I agree with the theory that "the study of global business is relevant if you work or plan to work in a large multinational company, but it has little or no significance for individuals who work in smaller national firms". As a rule, domestic strategic planning will not succeed if a process is followed that requires accomplishing all of the theoretical steps in the international strategic planning model. Unique cultural values and traditions of domestic businesses influence its structure and communication patterns within the organization. The ultimate end product will vary from jurisdiction to jurisdiction. The important result for strategic planning is the degree it focuses the organization on what is important, orients the organization to identification of strategic issues, and develops the internal process where strategies and priorities are established. It is useless to study global business for individuals who work in a small national company because they cannot introduce and implements global strategies and communication patterns into practice. International and national management are based on similar concepts but they differ in implementation and communication patterns. Every company is a part of the external environment and it is important to take into account cultural and social changes, but it is a waste of time to study global business problems if the company operates on the national scale only. The strategies and action plans are still being developed, and whether implementation will be successful remains to be seen. The participatory approach actually focused the community on what the agenda for the future should be. Local leaders believe this approach will ultimately allow the community to accomplish the most important things (Kotler and Keller 92). National culture is manifest in a total pattern of lifestyles in a particular society. Corporate activity and national culture are closely intertwined, so that national cultural activity and understanding are essential to corporate activity, whether international or not. Thus, global business concentrates on cultural differences and diversity issues while the national company does not have to resolve cultural conflicts and problems. The culture of a nation where a company is operating will affect and have different consequences on many business variables, different from nation to nation. It is not hard to believe, for instance, that the configuration of the organization, work structuring and coordination and the career system will be typically different from nation to nation. This culture proper is transferred from generation to generation through education and early life experience. These values have grown into societal norms. Such norms are very difficult to separate from more basic cultural values. Societal norms, values and assumptions about life lead to behavior and determine to a large extent the political, economic and organizational solutions which are feasible within that particular national culture. As mentioned several times, such behavior and solutions are not included themselves in culture in this study, but understood as cultural manifestations (Perreault et al 76). Section 2 Question 1. The article suggests that the new legislations and rules will simply the process for market entry for an international company. Where guidelines are clear, there is no excuse for illegal practices. Business, must comply with the true spirit of the law. Government, the courts, and enforcement agencies must share equal responsibility to provide the legal climate within which economic efficiency is rewarded, competition and the competitive system are strengthened, and market forces are permitted to operate with a minimum of official intervention. The rewards of successful competition should serve as incentives for effective marketing action, whereas monopolistic market power, which is undesirable, should be curbed (Perreault et al 79). But marketers have concern regarding the enforcement of antitrust legislation. The businessman often finds himself in a dilemma: everyone who is in business, however conscientious, lives in constant danger of breaking the law. Law enforcement sometimes occurs on political rather than on economic grounds. Statutes are muddy and have varying interpretations. Protection sometimes is given to small, inefficient operators, thereby lessening competition although maintaining competitors. Efficient competitors are sometimes penalized, and large-scale enterprise is often perceived as noncompetitive. This orientation to potential markets, future competition, and anticipated developments results in nebulous guides at best. Marketing management must, therefore, develop concepts, techniques, and data that will show the changing dimensions of future markets. As conglomerate companies emerge, this task becomes increasingly difficult (Perreault et al 76). Thus, the main threat for local companies is increased competition and more power given to MNCs. Local managers should take into account the fact that corporations are now becoming part of the total administrative system involving the military and the state, and large companies can no longer be totally private. They are in the government sector. Even at local levels, the government influences expenditures on housing, aircraft, machinery, education, and electronics, as well as the products generated through such activities as urban renewal, air- and water-pollution programs, transportation, and recreation facilities. Government assistance to marketing is available in a multiplicity of statistical studies. Government agencies (including the Federal Trade Commission and the Department of Justice) and legal constraints set the tone for competitive actions. Works Cited 1. Hollensen, S. Global Marketing: A Decision-Oriented Approach. Financial Times/ Prentice Hall; 4 edition, 2007. 2. Kotler, Ph., Armstrong, G. Principles of Marketing. Prentice Hall; 11th edition, 2005. 3. Kotler, Ph, Keller, K. Marketing Management. Prentice Hall, 2005. 4. Perreault, W.D., Cannon, J.P., McCarthy, E.J. Marketing: Principles and Perspectives. McGraw-Hill/Irwin; 4 edition, 2003. Read More