International Business
When a business planned to take a bid leap in making business in other country, the organization must be prepared to take the risk in crossing the other territorial boundaries. It is good for a business to introduce their product in the place far from them. The introduction of a product in the foreign land needs a thorough support. The competitors are flaring in the side and challenging the new business to foster the existence.
In doing international business affairs, the firm must expect much trouble than the traditional domestic affairs. The business should consider many things and options, the cause and effect, and worst-case scenario must be anticipated. After a job-well done, the business should keep doing the process and take a chance to acquire right technology, materials, people, and the demand to compensate the effort.
Socio-Cultural Environment
The socio-cultural fabric is an important environmental factor that should be analyzed while formulating business strategies. The buying and consumption habits of the people, their language, beliefs and values, customs and traditions, taste and preferences, education are all factors that affect business. For a business to be successful, its strategy should be the one that is appropriate in the socio-cultural environment. The marketing mix will have to be so designed as best to suit the environmental characteristics of the market.
There are people of different culture that use the same basic product, the mode of consumption, conditions of use, purpose or perceptions may vary so much that the product attributes method of presentation, positioning, or method of promoting the product may have to be varied to suit the characteristics of different markets.The differences in languages sometimes pose a serious problem, even necessitating a change in brand name. The values and beliefs associated with color vary significantly between different cultures.
Social stigma also affects the international business, but still success of marketing depends, to a very large extent, on the success in changing social attitudes or value systems. A number of demographic factors, such as age, and sex composition in the population, family size, habitat, religion, etc., which influence the business. While dealing with the social environment, the business must also consider the social environment which encompasses its social responsibility and the alertness or vigilance of the consumers and of society at large.
Socio-cultural Analysis
To be able to construct the socio-cultural analysis, it best to start it with a research to gather the cultural intelligence. The cultural intelligence can be used effectively in determining the information about the socio-cultural or lifestyle in the certain area. It will also determine the reasonable action in the sense that it can be used in decision-making. In addition, the cultural intelligence includes perspective, theory, and method derived from the social and behavioral sciences. Having the cultural intelligence also means of the capability to adapt effectively to new cultural contexts and proposes constructs for recognition, motivation, and behavior.
The Significance
The importance of the socio-cultural aspect in the life of the business is very obvious; they are the guidelines of the firm to make a success entry in the foreign land. If the business hooked the tastes and needs of every client, then they should expect the good fortune. If the business tried to explore the things that the customer wants, then the business should expect a growth in the sales. The culture of a country is as important and the business should respect it. In return, the people will give the business the proper credit on it. The essence of knowing the socio-cultural on the country is that the business can establish the limitations and make alternatives out of the traditional way. The basic idea that maybe arises through this is to make an advantage over the competitors by not pushing the customers in favor of the business.
Conclusion
One of the business’s aspirations is make their business known in the specific area, most especially when it is known worldwide. Many international businesses succeeded in their chosen business line, and there are other more promising businesses that are waiting for the right time to make a break. Behind their success is the intensive research and broad awareness about the new market domain. They extended their market understanding and boost their market share towards the demand they seek to achieve.
References:
Friedland, L., Shaeff, G., & Turnley, J., (2007). Socio-Cultural Perspectives: A new Intelligence Paradigm. Report on the conference at The MITRE Corporation. [Online] Available at: http://www.mitre.org/work/tech_papers/tech_papers_08/07_1220/07_1220.pdf [Accessed 28 August 2009].
International Business – An Overview International Business Environment (2008). [Online] Available at: http://www.scribd.com/doc/7008525/International-Business-Environment [Accessed 28 August 2009].
International Business Cultural considerations (2009). [Online] Available at: http://www.witiger.com/internationalbusiness/culturalconsiderations.htm [Accessed 28 August 2009].
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