In global marketing, where corporations want to achieve a success in selling their products in the foreign country and gain more profits and revenue, in order to succeed at those certain objectives corporations need to understand the culture and customs of the foreign country because it is a very important element, consumers normally tend to relate products that are suited with their culture values, habits, and customs. Individuals also follow and are affected by values and behavioral patterns of a society, a great example is the Indian society, they can be taken as a culture and many different religion groups such as, Muslims, Christians, Hindus, and Sikhs are the subcultures. When corporations don't understand culture and customs in the foreign country this may result in failure of the corporation's objectives and goals, an example of a company that has failed in one of the foreign country's is Walmart, Walmart had entered various foreign countries, but wasn't able to succeed in certain countries such as what happened in South Korea, where the company didn't understand the local culture, they didn't understand local preferences among consumers. Also the campaign strategy didn't work as well in some countries "Every Day Low Prices" campaign didn't have the same pitch, it sounded to consumers like low prices was associated with low quality, it made consumers cautious to shop there.
Culture is a very important factor that corporations need to consider in global strategy, some culture factors are language, religion, behavior and negotiations. Since we are considering China as the country to use global strategy in, China has a completely different language and culture from the United States, speaking the local language of the foreign country is an advantage to the company but it's not an easy task, so we just need to make sure that campaigns or certain phrases that we use to market our products don't' have an offensive meaning in the other language. Religion also has a huge impact on global strategy, religion differs from one person to another, each person has different religious values and traditions, in certain religions, certain types of food is forbidden and unacceptable. Behaviors differ in each society, not understanding behaviors leads to communicating challenges between consumers and the company. Negotiations is another important culture factor, negotiation tactics differ from one country to another, for an example where Americans are pretty straight forward in their terms where Chinese people are more likely to avoid being forward while negotiating with other companies.
When an organization decides to expand to another country, it must first do the analyses that we have considered in our global strategy such as PEST analysis, one of the factors in PEST analysis is the social factor, which analysis the society differences, and possible culture issues that may affect the corporation (Jim Makos, 2015). We need to understand the country's culture, have experts in our company that are aware of the culture in the country we are expanding to, we need to offer products that are in our consumers preferences, we may face certain problems but most small problems could be fixed pretty easily but if they are not treated effectively it may result in bigger problems that may lead to closing our company and having big losses, but this will mainly not negatively affect our strategy if the right information was taken into consideration from our analysis.
In the end, culture consideration is an important element, if our analysis, planning and decision making were accurate, it will not affect our strategy or change our approach. Any organization that wants to increase its profits, it must increase its selling of their products and have low production cost, this objective will be a success when an organization has good culture inside the organization and between the organization and society.
Need response 100 words