Culture differences in Business Relations



Culture differences in Business Relations

Question 1: Main Issues in the Culture Case Study

Cultures are an aspect that have been sidelined over the passage of time, yet it is the most important aspect that needs to be viewed and assessed primarily before any business arrangements are being made and assessed over the period of time.

These days, not only are companies and organizations involved in the development and the establishment of strong business relationships, but acquainting themselves with a variety of cultures existing around the world is a matter of high importance, in order for businesses to progress (Ancona, 2003).

Amongst the most prominent ones that hinder business relationship include:

Communication;

Higher potential transaction costs,

Different objectives and

Ways through which two parties establish cooperation and rapport.

Communication is the most important aspect, since it narrates the founding pillars of any business relationship to establish (Hansen, 2000). This transcends into the probability for both to develop and commence higher cost of transaction, causing them added stress and weight upon their financial portfolio.

Lastly, with the ways and trends through which companies and organization cooperate and bond their relationship is essential (Ancona, 2003). Through these, it becomes evident that not only does the culture of countries make way for a better understanding and comprehension, which prove to be factors of distress for countries to establish strong bonds.

Question 2: Challenges and Difficulties experienced when dealing with different cultures and countries around the globe and their influence upon organizational success.

These factors, directly or indirectly influence how companies comprising of distinct cultural ethics and bonds over the passage of time. Considering the case study, the first and the foremost aspect would be the differing objectives. This is necessary for companies and countries working around the globe, since the essence of ...