Organizations always try to enhance their economic belonging and strategic compatibilities. Continuous development and expansion are some of the major elements on which the entire productivity of an organization depends upon. When a company tries to enter in a new country, then there are certain things that comes under the same ambit and among them, the name of cultural based issue is one of them.
It is essential for a company to understand the culture of the country in which they are intending to establish their business. Here a question arises, that why it is important for a company to understand the culture of another country? The answer of this particular question is extremely easy as organizations have to consider different things while establishing the business in the jurisdiction. Analyzing and adopting the culture of a country would enable a company to keep their head in the shoes of the customers and citizens of that country (Schein, 2010). With the help of analyzing the culture of a country, a company could get a closer idea about the mindset of the people along with their buying power, and in relation to that, companies may launch the same products which would be in relation to the behavior of the consumers in total.
Culture also e enables a company to comply with given standards and regulations of a certain country. Cultural based decisions could be effective from different standpoints and if a new company would enter in a new culture, then consumers of that country only prefer the company; if it has the similar culture in they are living (Randle, 2011). For example, if P&G is trying to enter in China, then they have to comply and adopt the culture of China, rather than going with the same culture and provision of United States (US) as it is a US based company.
Randle, Y. (2011). Corporate Culture: The Ultimate Strategic Asset. Stanford: Stanford University Press.
Schein, E. H. (2010). Organizational Culture and Leadership. New York: John Wiley & Sons.