4. What is the significance of culture for international business? And in what ways may a religion affect the international business activities of companies? Please discuss some cross-cultural issues involving international business management. Answer: The cultural nuances that affect international business obviously go far beyond the ability to greet your international colleague or choose the correct gift. Issues related to the culture’s time orientation, whether it is an individualist or collectivist society, space orientation, and power distance, not to mention conflict assumptions and non-verbal communication all affect understanding your colleague across the table, as well as your chances of being understood. Cross cultural sensitivity is the quality of being aware and accepting of other cultures. This is important because what seems acceptable in some countries can be rude or derogatory in others. A person who is culturally sensitive is aware that there could be differences between their culture and another person’s, and that these differences could affect their relationship and the way they communicate with each other. A culturally sensitive person would understand other countries’ traditions and ways of life, or attempt to learn and apply new understandings. Cross cultural sensitivity is seen as an essential skill in today's world. Cross cultural awareness is important when dealing in international relations or trade. It can mean the difference between a brand succeeding or failing in international market. Some cross cultural barriers are body language, etiquette, establishing trust, religious beliefs and social habits. The success or failure of a company, venture, merger or acquisition essentially depends upon people. If these people are not cross-culturally aware then misunderstandings, offence and a breakdown in communication can occur. The need for greater cross-cultural awareness is heightened in our global economies. Cross-cultural differences can lead to cross cultural blunders. Having a poor understanding of the influence of cross cultural differences in areas such as management, PR, advertising and negotiations can eventually lead to blunders that can have damaging consequences. A company having understanding of cultures in other countries can manipulate marketing strategies accordingly and use them effectively. For example- the main slogan of coke is open happiness. But happiness is defined differently in different cultures. So it targets that and has different types of advertisements for different countries/cultures
5. What are the key successful factors for 7-Eleven and Starbucks? Answer: The first Starbucks Coffee; "International Human Resource Management is concerned with identifying and understanding how multinational organizations manage their geographically dispersed workforce in order to leverage their human resources for both local and global competitive advantage.". The author further asserted that a strategy and structure is necessary to manage market competition. There are three cross-cultural management issues that are practiced in Starbucks Coffee. According to one of Starbucks Coffee's guiding principles; "Embrace diversity as an essential component in the way we do business". This means that even in Malaysia which has a multi-racial community; such as Chinese, Malay, Indians and other races are able to join in the Starbucks Coffee Company to work. There is no discrimination in whichever races. All employees regardless of gender or racial background are treated equally and are also given due attention in Starbucks Coffee. Besides managing diverse workforce, consideration of ethical practices is important for international business ventures. For example, Starbucks Coffee conforms to the HALAL requirements in their products as per Malaysia requirement. As part of their adaptation (or respect) to the country's culture and ethics; Muslims are allowed to wear their scarf. Starbucks Coffee...
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