Impact of foreign culture on Business
Impact of foreign culture on Business: Doing business on a global scale has several problems due to a range of elements that vary from one market to the next. These variations are mostly influenced by the host country’s environment, which is often different from one’s own. Culture is one of the environmental elements that poses such a problem.
Culture is a complicated construct that encapsulates a community’s knowledge, morality, art, beliefs, conventions, laws, and other skills accumulated through time. The culture of the host country has a significant influence on the success of an international enterprise. The social structure, religion, language, and education are all important characteristics of culture in international commerce. G4S, a corporation with a strong worldwide presence, has had its fair share of difficulties in this area.
Explanation of Impact of foreign culture on Business
Doing business on a global scale is a challenge. The agreement or contracts aren’t the most important part of a good business relationship. It is built on interpersonal interactions more than anything else.
Foreign culture’s influence on business has brought various individuals into contact with other cultures throughout the globe, and it has given them a better knowledge of other cultures and people’s behaviour around the world.
Globalization has opened up additional opportunities for business in the nation in the fields of marketing, sales, distribution, and technology transfer across borders.
The way society is structured is referred to as social structure. It might be seen from the perspective of a person or a group, or from the perspective of social stratification. Individuals are seen as the backbone of social structure in several countries. When G4S entered the American and other Western markets, it faced this dilemma. The problem was instilling a spirit of collaboration among the personnel.
For managers who had been taught to believe in the supremacy of collaboration as individuals strive for success, it was a difficult challenge. However, the corporation discovered that in Japan, the focus was on collective performance rather than individual success. Though it is believed to be the driving force behind the company’s success in Japan, it is chastised for imbuing innovation and is seen as a barrier to dynamism. This is a problem that the company has had to deal with in the past.
The term “social stratification” refers to the classification of people into different social classes. There are people from many walks of life, including the lowest, medium, and high classes. This is often the result of one’s familial history, money, or employment. Those from the lower class may only expect to rise up via a process known as social mobility, which is usually accomplished through education and work prospects.
When prospects for mobility are constricted, there is a greater likelihood of friction between classes, as well as between management and people in the workplace. Social mobility is possible in certain civilizations but not in others. In a nation like the United Kingdom, social mobility is limited. As a consequence, there is a constant state of friction between management and employees, which the company has had to deal with on occasion. When labour conflicts become common, the company finds doing business in the nation to be too costly. In America, where social mobility is quite simple, such an issue is uncommon.