Importance of culture in business operations of organization

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March 4, 2017
Organizational design article analysis
March 4, 2017

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Introduction:

The culture of the people belonging to a nation is defined as the collective programming of the mind of the residents of the country, whose unique set of beliefs, ideals and norms largely distinguish them from the members of a different culture. The specific culture of a group of people governing their basic assumptions and values of life, not only determine the way they behave, but also the way they interpret the behavior of other people. Hence, cultural differences within an organization will lead to cultural conflict, if not managed properly by the management authority of the organization (Ferraro and Brody 2015). The culture is an important factor that is often being overlooked by the organizations and yet it plays a vital role in influencing the decision-making and negotiating process of the organization, the pace of the business, propensity of risk-taking capacities as well as the internal administration within an organization. Besides, the culture not only affects the internal administration of an organization, but also potentially influences the distribution, promotion and sale of products and services, in a foreign country. The following report, thus, intends to analyze the impact of culture on the business practices of an organization (Kinloch and Metge 2014).

Discussion: Importance of Culture in Business Operations of an Organization:

The very term “culture” is being defined as the way in which the people of a particular ethnic groupthink, interact, and function. Since the cultural bent of mind can largely affect how they act as well as react, any organization, in order to achieve recognition in a foreign market, must learn how to incorporate and integrate the local customs and culture of a foreign country, while expanding its local business in a foreign market. In order to illustrate the point, one may refer to the recognized organization Dunkin’ Brands, anAmerican organization dealing with the sale of donuts, which in the year of 1990, expanded into the market of Indonesia (Cavusgilet al. 2014). In Indonesia, the organization discovered that  the local operators instead of selling the manufactured products of the American company, decided to sprinkle a white layer of cheese, over the custard-filled donuts, and yet as globally aware, the organization was, it did not intervene in the decision of the local traders. The result was a huge success in Indonesia. The global success of the organization in anywhere across the world, has always been attributed to its mindfulness of the cultural issues, while monitoring their trade in a foreign business setting. Since each nation has a distinct food habit, it is important for any organization to customize its local operations as per the local preferences and demands of the local citizens of the culture (Cavusgilet al. 2014).

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Attachment:- Project Assignment.rar

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