Cross Cultural Perspective

Cross Cultural Perspective

Introduction

One of the most significant issues confronting global businesses across the world involves cultural difference. Cultural differences influence a number of businesses operating across the world. In order to respond towards cultural challenges, businesses need to devise and implement effective strategies. Wal-Mart is the largest discount store in the United States. The retail store has not only successfully operated in the United States but also across the globe (Molin, 2004). The company is still in the process of expansion. The company has witnessed the success in its local market. However, the success in the local market does not guarantee success in the international market. When expanding internationally, companies come across with diverse cultural issues. The fundamental principles and rules that distinguish Wal-Mart from its competitors are present in “The Wal-Mart Culture” (2004). These principles explain why Wal-Mart has achieved global success. The international expansion was not an easy process for the company.

Discussion

The global economy is changing rapidly during the last two decades. The transformation in the global economy has reduced the geographical boundaries present between countries. The technological advancements have allowed a number of businesses to expand their markets globally. The changing global environment has provided businesses with diverse opportunities. The most vital opportunity that is available to businesses in the current business environment is globalization. Globalization has not only increased the number of opportunities available to businesses, but also intensified the competition. The global competition has made it hard for businesses to survive. Nevertheless, it has also resulted in some positive changes. For instance, as a result of competition, the quality of products has improved. It has also increased the number of alternatives available to customers. Now, customers can choose from a number of product alternatives. Globalization has not only benefited customers but also manufacturers. The market of manufacturers and suppliers has become broad.

One of the most important vehicles for company growth is international expansion. In order to manage growing operations, Wal-Mart has set up the International Division. The expansion of stores is the most important plan of Wal-Mart. The standardization of formats has helped the company in international expansion. The strong retail proposition is another factor that has augmented the growth of Wal-Mart. Cultural Perspectives

The current economic situations have influenced a number of businesses. The most important factor that influences international businesses is culture. The influence of culture on the operations of a business has increased the importance of cross-cultural studies. Organizations have become more interested in hiring managers who can effectively deal with cross-cultural challenges.

Before the surge of globalization, the focus of businesses was on standardization. Businesses were offering standardized products across the globe. However, they soon realized the standardization strategy cannot always yield fruitful results. It is because the needs of customers are different in different countries. This differentiation does not only exist in terms of customer choice but also in products and services. The values and beliefs of customers largely influence their choice of product (Kaynak, ...