...Culture and its Impact on International Business Introduction As businesses have grown and expanded to the international level; certain aspects of business have become abundantly clear. One thing that has become the norm when doing business on the international level is dealing with different cultures. Culture, as defined by Geert Hofstede is “the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” The concept of a culture has been around for a very long time; in-fact, when people exist in the same place together they end up following a set of rules. These rules can be called a “social norm” or culture and can be made up of simple things like how to act in certain situations all the way to a very devout set of beliefs or values. This paper will focus on the role that culture plays on multinational businesses around the globe and the differences that culture plays from one area of the globe to the next. An in-depth look will be taken on the obstacles that may arise due to culture, adjustments that need to be made, and any ethical conundrums that may arise due to different cultures. Literature Review D. Elenkov and d. Kirova, state that “MNCs should not underestimate the importance of the cultural specificity of the host countries because different staffing, selecting, training, motivating and compensating practices should be applied in accordance...
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...company faced the most challenging test in late 2007 with its launch of MTV Arabia in the Middle East, which some experts considered as the biggest launch in the channel’s history. While the market in the Middle East offered MTVN with huge opportunities due to its huge youth populace, MTV’s controversial content that was known for angering religious, political, and conservative communities could easily backfire in the conservative environment prevalent in the region. On the other hand, too much localization to suit the tastes of the region could dilute MTV’s global brand. The case discusses in detail the strategy adopted by MTVN to enter and expand in the Middle East and also the challenges faced by the channel. TEACHING OBJECTIVES & TARGET AUDIENCE The case will help the students to: • Understand the issues and challenges in entering and expanding operations in new markets which were culturally different from the organizations home/traditional/existing markets. • Understand the pros and cons of entering a new market with a standardized/adapted product to suit local preferences. • Analyze MTVN’s strategy in the Middle East, identify challenges and explore strategies that the channel could adopt in the future This case is meant for students of the MBA/MS level programs in the Business Strategy curriculum. The case is also suitable for International Business/International Marketing/Brand Management curriculum. TEACHING APPROACH AND STRATEGY ...
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... The channel MTV Arabia was formed as a result of a licensing arrangement between MTV and AMG. MTVN (MTV Networks) launched MTV Arabia on November 17, 2007, in partnership with Arabian Television Network (ATN), which is part of the Arab Media Group’s (AMG) Arabian Broadcasting Network (ABN). According to analysts, MTV’s success in the Middle East was contingent upon a tactical balancing between delivery of international quality music and the culturally sensitive environment prevalent in the region. The Fundamental Management Issue: The key fundamental issue within the MTV case study is to determine whether localisation is needed to be successful in the market in conjunction with maintaining the MTV global brand and product. This is an issue since the market that MTV was entering, the Arabian market, presented a different cultural and socio-ethical construction from which MTV was used to and MTV was forced to adapt to the market to be successful. Analysis of the Fundamental Management Issue: There are many idiosyncrasies within the Middle Eastern culture that MTV would not have been familiar with, although MTV has a high degree of cultural competence with its extensive forays into regions such as Europe, Asia and Latin America. One of the major attributes to...
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...that influence trade between them. The approach used is one of situational analysis by looking at how the relationship has been over the past ten years, the current situation, and what is expected in the next one decade. Main problem were also analyzed in this report which includes cultural issues affecting trade, mutual interests, education and the fact that mutual respect plays a pivotal role in allowing the relationship to flourish. These changes are revised over time to enable the international relations not to be affected by adverse global developments. Ensuring a stable state of political affairs in Egypt shall be imperative in ensuring the relations do not deteriorate. The training that Canada appropriates for Egyptian diplomats should be given more emphasis. Egyptian borders should be rendered impervious to the ISIS onslaught. Table of Contents Introduction 4 Issues Affecting Business Relations between Canada and Egypt 4 Mutual Respect, Mutual Benefit 4 Common Interests 4 Changes over the Past Decade 5 Disarmament 5 La Francophonie 5 Other Areas of Cooperation 6 2025 Outlook 6 La Francophonie 6 Cultural Exchange 6 Recommendations 7 Political Stability 7 Middle East Tensions 7 Conclusion 7 References 8 Appendix 9 Introduction: How the Relationship between Canada and Egypt has developed, the Current Situation...
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...fakultetsgränserna. Vi samarbetar med alla institutioner vid Stockholms universitet som bedriver miljörelaterad forskning. CTM utvecklar tvärvetenskapliga utbildningar, samordnar större forskningsprojekt och informerar omvärlden om universitetets miljöforskning. Centrum för tvärvetenskaplig miljöforskning hette tidigare Centrum för naturresurs- och miljöforskning, CNM, och har funnits vid Stockholms universitet sedan 1990. Hemsida: www.ctm.su.se STOCKHOLM UNIVERSITY Centre for Transdisciplinary Environmental Research Sustainable Enterprising Master’s Thesis (20p) CORPORATE SOCIAL RESPONSIBILITY IN THE HOTEL INDUSTRY: A CROSS CULTURAL PERSPECTIVE TERESA NORD Academic Advisor: Hans Rämö Stockholm University School of Business Master’s Thesis (20p), Fall 2006, Stockholm University ABSTRACT Attention to business ethics in varying environmental, economic and cultural contexts has become increasingly important as enterprises expand globally. This thesis attempts to determine the impact of culture and local context on CSR performance by evaluating and comparing CSR performance across hotel groups in culturally and geographically diverse regions. Data on indicators for waste production, water consumption, energy use, equal employment opportunity, employee training and employee organization were collected...
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...WHAP Cultural Heavyweights Dar Al-Islam and The Byzantine Empire. The Muslim World and The Byzantine Empire were two of the most powerful and most-linked-together civilizations during the Middle Ages due mostly to their cultural achievements, religious values, and economic activities. The Byzantine Empire and Muslim World had very similar and different cultural achievements due to their very unique styles but also sharing each other’s ideas as well. The Muslim world’s cultural achievements focused more on the development and interaction of cultures while the Byzantine Empire’s cultural achievements revolved more around the ideology of state building and the arts, but although there are some obvious differences between the two civilizations, their cultural achievements were very similar in many ways. Although the two civilizations practiced religions that shared some similarities, they did have religious oppositions as well and differed in many of their beliefs. Contrary to their very different religious values, they had very similar economic structures by trading on the silk roads and having very strong banking systems. The Muslim World and Byzantine Empire do share some similarities when it comes to economic activities and cultural achievements, they vary and contrast greatly when it comes to each of the civilization’s religious values. The Dar Al-Islam and the Byzantine Empire had quite different religious values, although some similarities are...
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...Literature Review on Human Resource Management in the Middle East. This paper seeks to investigate and review the literature of Human Resources Management (HRM) and its integration into the Middle East. According to Jordanian researchers, Aladwan, Bhunupgopan, & Fish, the few available 129 HRM Jordanian studies are not based on empirically-based but tend to be anecdotal in nature. Consequently, little concrete information exists to chart an effective awareness of either current or future HRM strategies or practices in the Middle East (2014). More fundamentally, structural barriers exists as well. Some of the local challenges that confronted the region included the very rapid demographic shift in the population, the varying oil prices, the glaring extremes of wealth, inadequate educational system and a very large semi illiterate population, and less than assertive governments that failed to bring long-term and short-term changes (Harry, 2007). To begin, there must be some recognition of the diversity of the Middle East. The three main areas are so-called because of the legacy of colonization and European statecraft. The Levant consists of the geographical region that includes Israel, Palestine, Syria, Jordan and Lebanon. This area has a very long history tied to Europe going back centuries to the Crusades and the Holy Roman Empire. The Gulf regions comprised of the Arabian Peninsula and has only been regionally important in the past century and the discovery of oil....
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...Stenbaek Trenton Norton Table of Contents Economic Environment………………………………………………………………………....3 Azerbaijan…………………………………………………………………………….....3 Saudi Arabia………………………………………………………………………….....5 Political and Regulatory Environment...………………………………………………………..6 Azerbaijan………………………………………………………………………………6 Saudi Arabia………………………………………………………………………….....6 Cultural and Societal Framework………………………………………………………………7 Azerbaijan………………………………………………………………………………7 Saudi Arabia………………………………………………………………………….....9 Technological Environment…………………………………………………………………....10 Azerbaijan………………………………………………………………………………10 Saudi Arabia…………………………………………………………………………....10 Conclusion……………………………………………………………………………………...10 References………………………………………………………………………………………12 Economic Environment Azerbaijan Azerbaijan is a developing country that is heavily dependent on the exportation of gas and oil for its economic status. Other forms of sustainable economic consistency are from non-export organizations such as construction, banking, and real estate (CIA: World Factbook). Even in times of various economic trends, the country maintains its middle-class economy through the increase/decrease of the prices of their main resources. It’s from the positively consistent results that the government permits pervasive corruption and structural economic inefficiencies from these local companies to pose as an obstacle to their long-term growth. In other words, the economy of Azerbaijan is, for the most part...
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...NO. 4 – Alexander Gavin’s Dilemma: Cultural Relativism and Business as Usual I. Point of View: Professor Hennessey II. Statement of the Problem: The dilemma of Alexander whether to accept the deal or compromise his ethics. III. Objective/s: 1. Appeal on the proposal and proceed to the regular bidding process. 2. Advocate correct sound business ethics. IV. Areas of consideration: 1. Alexander Gavin, a Senior Project Manager of El Sahd Construction Company in Kuwait. Mr. Gavin was offered a proposal by the Ajax’s Manager to increase the bid amount to $33 Million of the project in Iran. Of the $3 Million increase, $1 Million will be his share for not disclosing the matter. If Mr. Gavin will not accept the deal, he will experience a physical harm. He was already involved in the pay-offs before, but this time he was put in to a situation where his ethics is on the line. Gavin needs to make a decision that will benefit the company in the long run. 2. El Sahd Construction Company is a prosperous company, with an excellent reputation for producing a timely and cost effective way on major construction project in the Middle East. Two months ago, Mr. Gavin participated the bidding on Iran project. The company put in a bid of $30 Million to Ajax Ltd. to be the principal sub-contractor on a project in Iran. 3. Ajax Ltd is a British based-company. As the company’s business culture, the Ajax’s Manager had a proposal...
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...ii ABSTRACT FOR TRADE INFORMATION SERVICES 2007 C45 586 TRA INTERNATIONAL TRADE CENTRE UNCTAD/WTO (ITC) SMALL & MEDIUM ENTERPRISE DEVELOPMENT AUTHORITY (SMEDA) Trade in Services: An answer book for small and medium-sized exporters Lahore, Pakistan: ITC/SMEDA, 2007. xiv, 196 p. Guide for small and medium-sized enterprises in the services sectors in Pakistan; provides practical advice to help them improve their export performance or enter new markets. Using a question and answer format, the topics covered include the decision to export, preparing for export, choice of market, identifying customers, selecting a strategy, cultural considerations, promotional materials, quality assurance, pricing, securing payment and temporary market entry. The General Agreement on Trade in Services (GATS) and the functions of the World Trade Organization (WTO) are also described. National appendices include overviews of the services sector in Pakistan, Pakistan’s role in the WTO GATS negotiations, including Pakistan’s schedule of GATS commitments, key national laws and regulations of interest to services exporters, and a list of information resources for services exporters. Subject descriptors: Services, WTO, Multilateral trading system, Pakistan. English Palais des Nations, 1211 Geneva 10, Switzerland 6th Floor LDA Plaza, Egerton Road, Lahore 54000, Pakistan Trade in Services: An answer book for small and medium-sized exporters is a joint publication published by ITC and SMEDA...
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...McDonald’s started as a small business in the USA in the 1950s (Stonehouse, Campbell, Hamill & Puride, 2004). Today, it has grown to be a global phenomenon with 34,000 restaurants in over 118 countries (McDonald’s Australia, 2014). Through this expansion, McDonald’s has faced the challenge of transferring a symbol of American culture to places where there are significant national, cultural and religious differences. This essay will analyse some management issues that McDonald’s has experienced. Firstly, the strategic debate regarding global integration versus national responsiveness will be examined. Associated with this issue, is the matter of diversity across different regions. Finally, the essay will consider McDonald’s corporate image of social responsibility in relation to environmental sustainability and increasing problems of worldwide obesity. McDonald’s as we know it today is a result of Ray Kroc taking the entrepreneurial hamburger ‘stall’ established by the McDonald brothers, and franchising the business with Ted Turner to create an international organisation (McDonald’s Australia, 2014). In the 1950s there was significant domestic growth in the United States of America. International expansion began in the late 1960s and 1970s, initially targeting Canada, the United Kingdom and western European countries of Germany, the Netherlands and Sweden (Stonehouse, et al, 2004). The first restaurant opened in Australia in 1971 (McDonald’s Australia, 2014). In 2001, McDonald’s...
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...new product through lifestyle magazine is now taken over by the new ‘two way' method of communication that includes advertisements as well as feedback from the customers1. RELATED ARTICLES Adidas-Reebok Merger Fashion journalists are keen on publishing what is happening in Londonand Paristo be the first to report fashion revolution that not only consists of innovation but is also of importance for cultural production. Fashion writers are conscious about associating the culture of each nation to a season's fashion to ensure there is a national identity for the products2. Advertisement is a mass media because it reaches a mass market. The notion that advertising is non-targeted and non personal is a wrong implication. Advertising luxury brands in mass media like television and magazine targets a narrow group comprising of the specific luxury consumer market. Advertisement is a method of communicating the brand history, personality, products, image and services that increase the visibility of the bands. Traditionally advertisements of superior brands usually appear in business publications, fashion magazines, high end publications and airline in-flight magazines focusing target audience1. 1.Uche, Okonkwo, Luxury fashion branding: trends, tactics, techniques (New York: Palgrave Macmillan 2007) 2. Sandra Niessen, Re-orienting fashion: the globalisation of Asian dress (Oxford:Berg Publishers 2003) Some of the modern communication strategies are Push Trade promotion, Pull...
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...HeRunning Head: Heineken moving into Qatar Heineken moving into Qatar before the 2022 FIFA World Cup to gain the major beer sponsorship Anthony Colaluca Southern New Hampshire University Table of Contents Heineken Background: Past and Present Information about Qatar Risks and Opportunities for Heineken to consider Cultural Differences between the Netherlands and Qatar Entry Strategy into Qatar Recommendations for Heineken setting up an operation in Qatar World sporting events bring people together throughout the globe to one location for the event. These events happen usually every four years and bring the host country great tourism and added income. One world sporting event in particular, FIFA World Cup, happens every four years and is one the best attended world sporting event. FIFA has decided to award the 2020 World Cup to the country of Qatar, the first Middle East nation to host such an event. Big events like the World Cup have major sponsors that are able to advertise their name to millions of fans attends and even more watching throughout the world. One of the major sponsors and marketing affiliates of the World Cup is beer. A major beer company that has the potential to be a sponsor for the 2022 World Cup in Qatar is Heineken. However Heineken currently does not have an operation set up in Qatar and needs to look into this idea to help it stand a chance to gain the major beer sponsorship for this worldwide event. We will be looking at what...
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...The Culture of Yemen Each society throughout the world has developed its own unique culture within itself. Culture is defined as an integrated pattern of human knowledge, belief, and behavior that is both a result of and integral to the human capacity for learning and transmitting knowledge to succeeding generations (Merriam). Factors such as historical events and geographic location contribute to the development of a culture. Cultures in Middle Eastern countries are diverse full of history and traditions. In this research paper, we will discuss the characteristics that shape the culture make up of the country Yemen. Yemen is an Arab country that is based on Islamic beliefs. In Yemen, the Muslim population is for the most part evenly divided between Sunni and Shi’a. In southern Yemen, the population is predominantly Sunni to where as the northern part of the country the Shi’a. Within Islam there are different religious beliefs that socially divide Muslim groups. Each religious group follow basic Islamic beliefs however, interpret the historical pass of leadership within the religion differently. This difference has placed strain amongst the two groups for hundreds of centuries (Shi’a vs Sunni). In ancient times, the area around Yemen was known by the name of Arabia Felix which meant happy or prosperous (Nyrop). The area was well known for the trade of indigenous goods such as spices, silks, precious stones and a variety of goods. The country was divided into tribal communities...
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...contract. The US government outlawed any company that participates in international trade to offer gifts or money in order to make deals. This is definitely not the case in countries such as Europe, Asia, and Africa where it is a social norm to offer these gifts to influence a business deal. The problem for BD is that other companies within the international market are going to use such incentives to gain business. BD needs to decide if they are going to have a uniform policy on gifts, or make a region-by-region policy? My recommendations are that the company treats these ethical issues on a region-by-region policy. As we have discussed in prior cases, culture is a large part of how people do business and companies need to respect the culture and their norms when running international businesses. But at the same time, BD should not be chosen because of how great the gifts or bribes are but rather how good of a product they provide. BD is trying to increase their attention onto ethics and ensure that employees are complying with their practices on an international basis. The problem is that in each country or region, social norms change. One must pay special attention to the cultural aspects when dealing with business ethics when determining what is right and wrong. In one country you could offend someone, and in another you might not. For example in American a...
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