4.3.3 Flashcards
Cultural/Social factors considerations for business - Languages
Although much of international business is conducted in the English language, understanding other languages makes communication much easier and helps to cement relationships.
Over-reliance on one language is also risky, in that it may lead to miscommunication and less sensitivity towards other cultures. Communication is much more than simply language, however.
For instance, there are differences in the nature of communication between high-context and low-context cultures.
Low-context cultures, such as those of North America and much of Europe, tend to say what they mean. That is, in discussions, what is said can usually be taken at face value.
Firms ‘get down to business’ and view socialising as being for after the deal is done. Agendas, letters, contracts and other formal documentation are essential and relied upon during negotiations as well as after they are completed.
Cultural/Social factors considerations for business - Cultural differences
Working across differing national cultures can add levels of complexity.
Each step in conducting business needs to be carefully prepared for and considered, to take account of cultural differences and build trust.
To understand how, companies need to think about each level of the business relationship: the introductions, the negotiations and communicating on a day-to-day level.
Meeting someone from a different culture is often awkward, but in a business setting there can be elaborate formal and informal procedures that have developed over time and, if not followed, can cause much offence.
For example, in Asian cultures, such as Vietnam, a person is expected to shake hands when first entering a room. Participants are expected to shake using both hands, upon meeting and when saying goodbye and need to nod the head slightly while doing so as a sign of respect.
The two parties must then exchange business cards. The etiquette surrounding these is also extremely important.
Business cards are thoughtfully crafted, giving an individual’s name and contact details, and always kept in a special case to ensure they are in perfect condition when handed out. The card must be given and received with both hands.
Cultural/Social factors considerations for business - Differing taste
Depending on the product and the country, there may be the need for more or fewer adaptations. For example, UK products for the Australian market may require fewer adaptations than those for the Chinese market since the cultural and social differences between Australia and the UK are relatively small.
Some differences in taste are due to local variants - for example, Coca-Cola has the same base concentrate in every country, but due because it is mixed with the water in local countries it has a slight variation in taste depending on location. This sort of adaptation is not something that a business can control and not something that they would implement themselves.
Other differences can be based on religious beliefs. The use of halal meat is common in fast-food restaurants in Middle Eastern countries. In India, many international fast food restaurants will not sell pork or beef due to the prevailing religious beliefs of that country. By respecting these beliefs and catering to their market in these countries, businesses ensure that they adapt sufficiently to gain a market share from local businesses who may be better suited to understand the regional specifications.
Some adaptations to products are based upon legal requirements. For instance there are many food products used in the US that are banned for use within the European Union. Brands that want to transfer their products from, for example, the US to the UK willb have to adapt them to meet the necessary legal requirements. For example, brands such as Pringles and Starburst have had additives removed from their US ingredients list to be able to be sold in the UK.
Cultural/Social factors considerations for business - Inappropriate branding and promotion
There are many accounts of mistakes involving language, mistranslations and unintended meanings when businesses operate abroad.
Sometimes this can be due to laziness and poor efforts to check with native speakers of a lanquage that a translation is correct. Here are two well-known examples that caused embarrassment:
• the beer maker Coors translated its slogan ‘Turn it loose’ into Spanish, where it meant ‘Drink Coors and get diarrhoea’
• General Motors sold its branded ‘Nova’ car in Latin America, where its name in Spanish means ‘No go’. Not a very good name for a car!
However, mistakes can also be due to one language not having any direct translation for particular words in another. Transferring brand names even just across from the UK to the US or vice versa can still cause issues – cultural, dialectal and grammatical differences can all be a barrier to the brand name being accepted and not becoming a joke. One example of transferring a brand without considering the new market was when Gerber, a Nestlé- owned baby food company, replicated the packaging on their products in Africa, displaying an image of a smiling baby. However, most African products include an image of what is found inside the product due to high levels of illiteracy in the country. Promotions must also be versioned across different international markets. Many brands want to create a global image and become an internationally recognised brand this does not mean that the same marketing campaign that worked so successfully in the US will work as successfully in an entirely different market.
Audience is key when crafting marketing campaigns, and if you do not consider the cultural norms of your audience then your expansion into that region will not be successful. For example, a Proctor and Gamble television advert was originally made for the American market. It featured a husband and wife in a bathroom and intended to show how soap could make the woman more attractive. However, it was considered inappropriate when transferred to the Japanese market where
