Intext Global Expansion - Research Paper Example

 Intext Global Expansion In the current business trends, many organizations opt to expand their market boundaries to other nations as a means of enhancing stability and increasing their profits. Such an approach has contributed significantly towards the success of such organizations globally. With the ongoing global technological developments, the computer industry is still a profitable industry in enhancing technological development. Therefore, increasing computer access to other nations is one way of increasing the technological developments speeds. Having carried out a proper market research, I have concluded that we need to expand the business to three nations namely, China, India, and South Africa as a means of expanding our market scope, profitability, and brand globally. Intext Computers is a fast growing company in the technology industry, and the introduction of the software products is indeed a big boost to the organization. Blending the hardware and software aspects of computer has increased our sales significantly in the past one year through an increase in customer base. Such an observation is indeed an indication showing that with proper strategies and effective marketing, Intext Computers could make it big in the global markets. Preliminary Research From the preliminary research on the three nations namely, China, India, and South Africa, it is evident that Intext Computers stands a better chance of success by putting up appropriate and effective measures towards the realization of the company’s goals and objectives. Despite the positive attributes of doing business in another country, there are equally obstacles that limit the success of companies in other nations. One of the determinant factors towards the success or failure of a business in another country is culture, which refers to the particular beliefs, practices, and behaviors of a particular group of individuals within a particular society that distinguishes them from other societies1. China's economy is fast growing, and as such, provides a better market opportunity for market success. Despite the view of culture as an obstacle to successful business in China, on the contrary, culture remains a factor that if used appropriately, could yield sufficient results. Under social customs, China’ culture embeds on building relationships, which usually start with shaking of hands and nodding of head and fostered by status, and such work to benefits a business as good business involves building of strong relationships with customers2. Chinese have strong family ties and for business, once you capture a customer, it is easy to get more especially from the strong family ties. China has a culture of positive attitude in whichever thing one engages in and as such value hard work for realizing success. The positive attitude is beneficial to a business as it ensures that the business remains a success oriented. Chinese believe in teamwork as one of the workplace norms, which maintain focus towards the achievement of businesses’ success3. China appreciates the use of nonverbal means of communication. Because of language differences, nonverbal communication provides an effective means for American business to flourish in China despite the language differences as use of signs remains universal. Culture also has certain disadvantages for foreign businesses in China. Such include giving of gifts as rewards, which a common custom could turn disastrous if a foreigner would fail to implement such4. Additionally, Chinese culture gives precedence to family life, and all employees work as a means of improving the livelihoods of their family members. The American culture on the contrary gives precedence to work and its success than family. Based on such a perspective, it is evidently clear that the difference could pose a great challenge for an American business making entry into Chinese market as the customs differ in what aspect remains most important between family and work. India on its part also has cultural advantages and disadvantages for a foreign-based business making entry into the country. On the advantages, the nation has strong family beliefs and systems, making family an important institution of operation. Businesswise, such an approach is beneficial to the business as it establishes customer and market base. Indians believe in getting to know a person better before any business transaction occurs. Knowing a customer well is important towards a business' success as it reduces the chances of getting conned by unknown individuals, thereby reducing the instances of loss5. The relationship for effective business in India involves building a professional relationship based on a personal relationship6. Previous relationships between India and UK provide an appropriate environment for doing business, especially for an American based company. From the India-UK relationships, Indians have made English one of the commonly used language, making communication between Americans and Indians a smooth aspect7. An American company making entry into India, therefore, has no language barriers in making communication easier. India also enjoys a collective approach to business transactions. People remained career focused and did their best in their works. Such is indeed a success directional aspect to businesses in the country. On a different perspective, certain aspects of culture prove disastrous towards doing business in India. India is majorly of Hindu religion and with their practices, American Christianity practices seem to contradict significantly. Hinduism places a high importance on authority, an aspect that is indeed a new concept to the American practices. Additionally, Indians have a high tolerance to uncertainty, which makes the society run majorly on certain assumptions8. With such an aspect, it is obvious that the Indian society gives little adherence to rules and regulations, instead etiquette and norms take precedence, which possess a great challenge for an American company opening business in India. Of all the business environments stated, South Africa provides a very different aspect to an American company venturing in the country. Africa at large still operates majorly on traditions and cultural settings. However, in the recent past changes have been seen proving that indeed Africa is a good continent for international business. Because South Africa is a British colony, it is obvious that most of its cultures are borrowed from the British culture. Such include religion, family life, attitude, values, and workplace norm among others9. America has a significantly similar culture to that of Britain, and, therefore, South Africa provides for an appropriate environment for American business. On a different perspective, the similarities in culture between America and South Africa, therefore, provide limited challenges to starting a business in the country, and considerably one of the best business destinations for American based nations. Conclusively, business involves both the positive and negative aspects. From the discussion of the cultural aspect to starting a business in the three different countries for an American company, it is evidently clear that India provides both the greatest benefits and challenges in equal measure. Based on such a perspective, India would be a better business destination for Intext Computers; an American based Technologies Company as it provides the realest environment for conducting business. COUNTRY ANALYSIS (India) With the current trends of globalization, it is substantively clear that indeed many businesses are coming up in different regions of the world. Business expansion into other nations usually faces numerous challenges in equal measure to the benefits associated with it. One of the greatest contributing factors to the obstacles of doing businesses in other nations is the difference in culture and other diverse aspects, which differ from one society and community to another. Expanding into other nations is usually an aspect of substantive importance especially in its benefits to businesses as it involves an expanded market, which attributes greater profits and success of the country10. In the current scenario, Intext Computers, a US based technology company, is a fast growing company in the technology industry, and the introduction of the software products is indeed a big boost to the organization. Blending the hardware and software aspects of computer has increased our sales significantly in the past one year through an increase in customer base. Such an observation is indeed an indication showing that with proper strategies and effective marketing, Intext Computers could make it big in the global markets. Technology is currently one of the fastest growing industries in the world today, and as such, it experiences substantive popularity among many, and, therefore, proves to be one of the best industries for expansion. Based on such a perspective, this paper discusses the various cultural communication aspects as pertaining to Intext computers making entry into India. Doing business in India for new business entrants can be a bewildering experience. Such is because India has different business customs, bureaucracy, and diverse culture, an aspect that would make an American business experience significant challenges while doing business in India. According to sociologists, classifications of cultures and countries are made into two broad perspectives; those of low context and those of high context11. Low context societies are those with which communication remains very direct. High context societies on the other perspective include the highly diverse societies with which, communication remains diverse depending on the different societies and cultural affiliations. India is indeed a richly diverse society and as such, it is indeed a difficult aspect to impart generic conclusions on matters pertaining to businesses. Regionalism, religion, language, and caste and indeed some of the aspects that one needs to put into perspective before establishing a business in India. India on its part also has cultural advantages and disadvantages for a foreign-based business making entry into the country. Based on such an aspect of challenges and benefits in equal measures makes India the best destination of study for a destination for an expanding business. This paper, therefore, discusses the aspect of doing business in India for Intext computers; a US based technological company in the prospects of Social customs, which include etiquette, introductions and greetings, language, visuals, and symbols. Others include family life, attitudes, religions, workplace norms, which also includes approaches to communication, leadership, and teamwork. Education, values, nonverbal, and verbal communication also remain critical to the study of cultural communication. Social customs Social customs entail a wide perspective of study, which include greetings, meetings, negotiations, and building relationships. Meeting and greeting is an integral part of doing business in India as the manner in which one approaches the customers determines whether the customers will become part of the business as consumers of the products in which the business deals12. Indians believe in getting to know a person better before any business transaction occurs. Knowing a customer well is important towards a business' success as it reduces the chances of being conned by unknown individuals, thereby reducing the instances of loss . As such, greeting is core towards establishing better relations between individual and equally a means through which a business gets to know its customers better13. Based on such a perspective, Intext computers must align appropriately towards establishing better relations, especially in the greeting aspect. A good business relation in India involves the demonstration of strong business acumen, and at a personal level, which involves relating to the partner and exhibiting the positive traits of trustworthiness and honor14. Other aspects pertaining to social customs are on negotiations. Effective negotiations remain critical towards establishing a strong business partnership. Indians believe in prior arrangements with punctuality becoming an aspect of significance. In addition to punctuality, flexibility remains critical, as Indians believe that in instances involving business transactions, numerous changes are possible in various aspects pertaining to negotiations. Ideally, Americans believe that business should be given priority to other matters, which is significantly in contrast to the customs of Indians that state that changes to schedules remains common in all aspects regardless of the situations involved. In instances in which negotiations go wrong, there should never exhibit frustrations or anger as Indians believe mostly that business never depend solely on statistics, empirical data and exciting PowerPoint presentations, instead, they believe in the use of use intuition, feeling and faith to guide them. As such patience remains critical towards ensuring that. There are various factors or issues that affect the performance of an organization, and these are with inclusion of the management, the leadership approaches that are used and more importantly the cultural expectations of societies surrounding the organization. Due to globalization and need for international trade, organizations are observed to be investing in outside countries. It requires these organizations to have a wide understanding o various aspects regarding the operational strategies and cultural expectations of members of the society in the respective countries. In the contemporary business world, business firms that are investing across different countries have been successful due to the advancement in technological development and use of appropriate business measures. Information Technology Industry has been growing over years due to the innovations and discoveries that are made in the sector. The choice of China, India and South Africa as countries where Intext Computers, which is a United States’ based Technology Company, can expand its reaches to be arrived after consideration of the economic growth rates in the respective countries15. Since Intext Computers is perceived to be a fast expanding organization in the technology industry, establishment of various branches in China, India or South Africa is a positive measure of improving the performance of the company. This is because the businesses in these countries are favorable due to several factors, which upon comprehensive analysis and investigation by the managers of the company will help in final decision making for the best country to invest in. The company is evident to be at a better position of excelling in the technological competitive world in any of the countries, and this is possible if the firm realizes and integrates appropriate and effective measures towards recognition of the firm’s goals and objectives. The culture of a country is one of the fundamental factors that greatly determine the success or failure of an organization in a country. Culture integrates various elements, which are with inclusion of the specific beliefs, practices and behavioral traits of specific groups of individuals within a particular society that differentiates the group from others. Considering China’s culture as one of the options where Intext Computers can establish its businesses, the country’s business norms are based on establishment of relationships. For instance, the approach that they use in shaking hands and nodding their heads while exchanging greetings is one aspect of the culture that positively helps in establishment of good business reputation between the organization and the public. The Chinese have powerful and reliable family ties that are significant in creation of good relationships between the families and the business. The performance of the organization is consequently elevated if the family life of the Chinese is compatible with the businesses. Chinese people are very welcoming to strangers, and this is supported by the fact that they treat visitors as special guest, after realization of the intentions of the visitors. The respect that is accorded to visitors depends on the age, gender and social class of the visitor. For instance, a young investor may be treated with respect due to the mission of the investor in China and the benefits that the Chinese are to cultivate from the investments. The use of gestures is common among the Chinese, and nodding is a common sign of showing acceptance depending on the age of persons to which one is communicating. This implies that nonverbal communication is accepted in the country, and this has greatly helped in boasting the business activities due to the language barriers. Establishment of Intext Computers in the country will be favorable due to the reduction of language barrier as Americans can easily communicate with the Chinese through gestures. In the modern business world, women are not only getting involved in minor businesses within their marketplaces, but also in the international world. Being one of the most growing countries in terms of technological developments, China will act as a good region for investment for Intext Companies. The class structure of Chinese is organized depending on the position of individuals economically and politically. There are minority groups which are characterized with low economic status, poor educational backgrounds and poor political and security systems. The religion of Chinese greatly influences their business performance, and there are some religious practices that are followed by the Chinese culture, and to which failure to adhere to them causes problems to the respective individuals. The success in Chinese businesses is achieved due to the teamwork belief that they integrate as one of the workplace norms. However, there is a challenge in the culture of Chinese, which negatively affects the performance of foreign businesses in the country. For instance, it is considered as a bad practice for a stranger to decline a gift from an old Chinese. However, the culture cannot be a hindering factor for Intext Companies entry to the Chinese markets because China and U.S. have been trading together for several decades. Reflecting on India, the country has been viewed as an outsourcing destination where companies from the West invest due to the reduced operational costs in the country. It is recognized as one of the largest potential market for goods and services across the world not only due to its increased population, but also because of the increment in the trained and skilled graduates in the country16. There is an increase in the number of middle class in the country, and this presents a better foundation for markets of various goods and services that have not been available or produced in the country. The infrastructure development and technological advancement in India have been lacking for the last several decades, and establishment of the Intext Computers in the country will help in improvement of the country’s technological markets and also the company’s operations17. Considering the business culture of India, the country has strong and powerful beliefs and systems, and this helps in making the family important institutions of operations. The closeness of families helps in improving the performances of businesses because a reliable market base is established. The fact that the Indians prefer investigating the characters of new business people and investors before engaging in business transactions suffices to show that they have a unique way of conducting businesses; trust no one. To the Indians, understanding the customer is very essential to the success of business organizations because it reduces the chances of theft and related businesses irregularities. Professional relationship in India is valued more than personal relationship, and this professionalism helps in improvement of the business activities in the country. This confirms the fact that most people in India are career focused, and this can be transmitted to business sector in the country. The religion that is most common in India is Hinduism. Religion can be considered as a hindering factor for U.S. business entry in the country because most of the Americans have adapted the Christianity religion. It has been confirmed that the Hinduism places a high importance on authority, which is perceived as a new concept to the Americans. The Indians offers less adherence to rules and regulations, but etiquette and norms take precedence. This presents an immense challenge for the American company to launch business in India. South African business environment is totally different from that of the Chinese and Indian. This is because the South Africans still operate under the traditions and cultural settings, but the country is considered to be the most improved African country in the business and economic sectors. The country adapts the cultures and norms of the British who were the country’s colony. Some of these cultures that the South Africans have adapted are with inclusion of the Christianity religion, family life, attitudes, values and workplace ethics and morals among others. It can be argued that Intext Computers can establish its business in the country because the cultures of the Americans are almost similar to those of the British. This implies that the business environment that is created in South Africa is appropriate for the company, and the argument that the country is a developing country signifies that there are less technological developments and innovations in the country. The choice of India has been arrived at because of the environment that is established in the country regarding businesses. The population in the country is high, an indication that the sale of the products and services in the country will be relatively high. The issues that are predicted to be negative to the operations of businesses in other countries such as China are easily addressed in India. There are various social issues that are presented in the country and its social issues. The country is evident to be played a great role in helping the citizens’ clean water, and this is a sign of adherence to corporate social responsibility principles. These actions are signs of initiatives and commitment of helping India attain better and conducive environment not only for business but also for enhancement of productivity and better living standards of the Indians. Considering the element of boycotts, the organizations need to invite various groups that are active and influential in the country to convince them and show them the need of working together towards attainment of the social, political and economic needs of the country. It is; however, unreasonable for any organization to completely reveal the policies and operational secrets to the public or the government in attempt of obeying the government’s trade laws. The company needs to address the issues that directly affect their performances individually, but work together towards meeting the social needs of the consumers. More importantly, the organizations need to ensure that it meets the corporate social responsibility principles as this way; they it positively reached the consumers of its products and services in India18. Family Life According to the experiences of the technology companies in the Indian markets, it can be argued with evidences that Intext Computers has proficient and reliable strategy of entering technology markets than other markets in India. This is because the growth rate of technologies across several markets is very high, and targeting on this product will boast their performances after a specified period of time. People have started realizing the importance of using modern technologies in the Indian families and this helps significantly in promoting the technology companies. Thus, the family life in India can be considered to be supportive to the computer technologies companies, hence a good foundation for Intext Computers19. Housing, Clothing and Food The structures in the country and dressings are appropriate and acceptable across every culture. There are various lessons that each company learnt from their experiences in the Indian markets and with respect to their competition in the technology industry. Considering the experiences of Intext Computers, the company learnt that advertising through cultural festivals is beneficial in sustaining local tastes, and that the use of celebrity appeal helps in reaching people from different regions not only in one market but from across markets. Additionally, the firm learns that matching with the emerging trends in the markets is not easy, and is expensive to market and promote products in countries where the trade laws are influenced by cultures. One of the fundamental lessons learnt is that it is essential to pay attention to deals or treaties made with the government to avoid having negative reputation with the consumers. Additionally, the firm gets a chance to realize that increase in sale of technology products is influenced by the advertisement and promotion criteria that the marketing personnel use in their operations. The company also realizes that popularity can diminish if appropriate measures are not employed in promoting a product. Class Structure Most Indians are currently categorized as middle class individuals due to their financial and economic status. The company is observed to have generated promotional activities and practices that were alike, and this limited their efforts of making their products unique to the anticipated consumers irrespective of the social class. For instance, the organization relied on promotional strategies and approaches that were linked to the sporting events and celebrations in the country. The company needs to have devised unique techniques of promoting and marketing their products to attain a more defined competitive advantage and a better entry strategy in the Indian markets. Having unique advertisement and promotional strategies allows consumers to take advantage of some of the promotion activities and contests that the organizations make without purchasing their products. It is also evident that the pricing policies of the organization are being changed frequently, and this lowers the consumers’ confidence in the company’s products because they were unable to balance their income accordingly. Value Systems Globalization of a product or a service implies that the product is supplied in different regions across the world, while localization implies that the product or service is fashioned to suit the customers from the local markets. The Company integrates localization and globalization measures of producing, promoting and distributing its products to local and global reaches. Economic Institutions Most of Indians are middle class people, and this follows their realization that businesses and agriculture are solutions to poverty. It is evident that when a business company focuses on international trade where it promotes its products and services in foreign nations, there are several options that the firm can make in relation to the entry strategies that the organization might consider to apply. These options are measured with respect to the costs, risks and the control strategies that are linked to each of the options20. Considering the advantages of the entry behavior that can be used by the technological company, it can be argued that monitoring the economic status of the Indians is the best measure that the management can consider to achieve competitive advantage. Religion and Folk Beliefs Hinduism has different beliefs and norms from those of the Christians, but this cannot be considered as a barrier to the development and improvement of technological business in the country. It has been observed that both religions need technologies to improve their performances and living standards. This is an indication that Intext Computers will be highly accepted in India because it will offer a better business grounds for both the company and the country. There are numerous graduates in the country, who have specialized in computer technologies, and this is not with consideration of the religion, and these graduates have not secured any job. Thus, establishment of the company to the country will offer job opportunities to the graduates among other people. Political Patterns The political systems of India can be said to be supportive to international businesses, and this follows the observation that they offer licenses to new businesses in the country. This implies that the establishment of the computer technologies in the country will be highly supported by the government due to the positive benefits that are expected to be accrued from the business. Indian government is considered to be unfriendly to most investors, especially the foreign investors. This attribute immensely costs the performance of the organizations in the country because the outside investment allowed products and services to be marketed, promoted or sold in India. These issues were anticipated due to the increased rate of corruption in the government of the country, and this subjected the companies to hard situation in attempt to fit in the competitive markets of India with their products. Conclusion In the main, Intext Computers is a fast growing company in the technology industry, and the introduction of the software products is indeed a big boost to the organization. Blending the hardware and software aspects of computer has increased our sales significantly in the past one year through an increase in customer base. Such an observation is indeed an indication showing that with proper strategies and effective marketing, Intext Computers could make it big in the global markets. Therefore it can be argued that the political environments that play a fundamental responsibility as explained in the case are with inclusion of the form of government that India exercises and also the strong feeling of nationalism in the country. The government has very strong trade policies and regulations that did not favor all the companies in entering the market and promote or market their products21. This implies that one of the companies was favored by the trade policies and regulation that the other. The factor of cultural nationalism can be also considered to have contributed greatly to the difference in entry behavior between the two foreign investors in India. It should have been the responsibility of the government to encourage consumption of both local and foreign products to enhance foreign investment. This is an indication that the government used to encourage its citizens to focus on consumption of local products, and this consequently lowered the efforts of foreign investors. Recommendation As a menas of enhancing business ties between different nations, businesses need to diversify the business approach tactics in ensuring a faster integration into other cultures. The most appropriate means of achieving such success involves the establishment of a diverse workforce to include individuals of diverse cultures. Such a perspective ensures that any organization making expansion into other nations, gets soft landing spots and a faster business integration. References Bel, B. (2010). Communication, culture and confrontation. Los Angeles: Sage. Byram, M. (2003). Context and culture in language teaching and learning. 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