Global Business



Global Business

Introduction

This paper intends to discuss the cross cultural and ethical issues that are observed across countries. Expanding into international markets often create several challenges for the companies. These challenges are essentially related to ethical situations and cross cultural differences. For instance, certain marketing strategies that are accepted whole heartedly in European countries might not be correct strategies for marketing in the Asian or Muslim countries. This paper focuses on the cross cultural issues that companies need to explore while extending their markets from one region to another, for example, from Europe to Asia. Major cross cultural issues in relation with communication, marketing strategies and ethical differences between conducting business within United States and Japan will be explored.

Discussion

I am a member of the expansion team possessing a key role in ensuring the success of expansion venture initiated by Company 'A.' This particular company is located in United States main manufacturing area. The company produces engine components and is a streamline supplier to all the renowned United States truck and automobile manufacturers. The company has recently expanded into a European country quite successfully. Currently, the expansion venture which company 'A' is focusing on relates to the expansion in an Eastern Asian market. This expansion seems to be a difficult task because of underlying cultural differences within the American and Asian regions. However, this expansion will increase the profit base of the company immensely.

I am asked by my manager to focus on developing a detail marketing approach for the purpose of expanding in an Eastern Asian market. I will address significant cross cultural challenges and hindrance that can impact the expansion of company 'A' into an Eastern Asian market. I am choosing the specific country of Japan to be the focus of my analysis.

Major Cross Cultural Issues

Marketing approaches are impacted by cultural sensitive within Japan. There are several cross cultural underlying issues that the marketing team needs to consider while expanding the business of Company 'A' to the region of Japan. Moreover, the best prevailing marketing practices are impacted by the cross cultural sensitivity issues. Customs and traditions of doing business within United States and Europe are assumingly quite similar, that is why the expansion of Company 'A' in Europe proved to be a huge success. However, customs and traditions of doing business in Japan immensely differ from the culture of United States. The marketing team of Company 'A' needs to adapt the prevailing and best practices from the perspective of Japan for the purpose of attracting customers in that region (Chatterjee & Pearson, 2003).

Effective marketing requires a prominent understanding of the culture for which the marketing plan is being developed. There are many prevailing cultural differences between Japan and United States. The people in Japan are extremely social in comparison with the people of United States. From the perspective of conducting business in Japan, Japanese prefer knowing the other parties on a personal level before they enter into any business relationship. Various small parties are arranged for making ...