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International business is in many ways similar to national industry, but there are also significant differences. The major challenge is managing the differences in national cultures, which are discovered in the process of doing business. As an example, many Eastern companies have a highly developed nepotism of doing business, while the Western ones are likely to be more liberal (FeedPix, 2014). There are four primary strategies for global business development, yet the international culture plays different roles in each.
Primarily, the enterprises export strategy is a long-term plan of the companys activities related to the export of goods, services, works, and capital abroad to a foreign counterparty. It incorporates a set of tools and methods that the company will use to achieve its export goals. When embarking on this strategy, it is vital to mind the intercultural standards ( Global business strategies, n. d.). For instance, when exporting goods from the U.S. to China, the manufacturers should follow the hierarchic nature of their partners. It signifies that Chinese people prefer discussing matters in a respectful manner with the producers themselves rather than with managers or other personnel (FeedPix, 2014). Setting out an export approach implies relying on the partnering countrys norms and rules of communication.
The standardization approach views the product as a constant, white it considers the place of its distribution as a variable. The arguments proposed by the proponents of this strategy are based on the assertion that the latest means of communication and other social processes form the unity of a cultures tastes, requests, and values. This leads to a global market with identical demand for goods of good quality and reliability at reasonable prices ( Global business strategies, n. d.). The approach is that a single range of products is sold according to a single standard marketing program. International culture plays almost zero role in implementing this method as it primarily aims to fit into the norms of a given nation. For instance, Coca-Cola compiles with the foreign markets regulations and thus distributes its goods without much pressure.
The multi-domestic strategy involves adapting the company to the conditions of competition in each country separately. A multinational company may have plants in many countries, but its management can rightfully relinquish the idea of a international market. The internationalization strategy in international marketing is observed when the number of countries involved in the production and marketing of a particular product increases significantly, and the product loses its nationality. The trademark is associated more with the company and not with the nationality of the product. The company must deal with the cultural specifics and adjust its products accordingly. For example, 7-11 stores have adapted their products to each region it operates in in Japan, they sell sushi and ramen in South Korea.
The transnational strategy is created to guarantee both global cooperation and a reputation of the company in individual countries. It is complicated to implement a solid international strategy as attaiting one of the corporate objectives may demand intercultural business management. On the other hand, numerous organizations experiencing the necessity to boost global efficiency encounter the demand for more satisfaction in domestic markets ( Global business strategies, n. d.). Each manufacturer must comply with their countrys laws and apply necessary changes if needed. For example, car producers sell different adds-on to adjust the car accordingly to the regions policy.
In conclusion, global business strategies are dependent on intercultural environments. When setting out to implement a strategy, a manufacturer should consider the partnering countrys laws, modes of communication, traditions, and other peculiarities to be eligible for selling their goods. Adaptation, customization, and recognition of the cultural elements are the primary elements of successful penetration of a foreign market.
References
FeedPix. (2014). The differences between Western culture and Eastern culture [Video]. YouTube. Web.
Global business strategies for responding to cultural differences (n. d.). Lumen. Web.
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