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The purpose of writing this report it to analyze the issues that Bran Company may face while venturing into the international market.
Bran Company which is located in Australia and whose cultural perspectives used in the company relates to those of Australians plans to venture into the American market. The company deals with the manufacture of food products. I was appointed as a human resource team member in studying the market environment of the target country. The team identified various cultural issues in the other country. Some of these issues include differing social classes, religion, education background, social institutions etc. The team also carried out a market survey in order to establish the culture of people living in the regions where the company is to open up more business stores. It was found out that the American market is comprised of people from different races. Their consumption behavior depends on their social class, family set up and the level of education.
Due to the prevailing market competition, businesses have been forced to expand through merging or through joint ventures. They mingle and associate with other individuals from different countries possessing different cultural backgrounds and language but participate well in business matters. Hofstede (1997) describes that it is important for managers in a particular company to be aware of the culture of that other country before venturing into the market. This is because being unaware about the culture and beliefs of the people in a country results to differences and misunderstandings between the customers and the sellers. It also makes the business environment unstable. To avoid this occurrence, it is necessary to involve intercultural training before planning to venture into the American environment (Aaker and Maheswaran, 1997).
In this intercultural training, the participants or the company’s manager
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