Drawing on academic literature and theory, analyse the reasons why the merged Lindt and Smithson firms were experiencing problems. What key points would an appropriate strategy for successfully understanding international cultures need to adhere to, and why?
1. The cultural differences is one of the most difficult problem when we go for the international business and international marketing. Essentially, management should be ready to
2. answer for following two questions:
a. What and to whom we are going to sell.
b. How we supply
The above can be answered and succeeded only when the management is conscious about the international culture.
In this case, merged Lindt and Smithson firm were experiences problems because of the lack of the following reasons and we have listed out some key points to overcome those problems.
STRONG BUSINESS RELATIONSHIP:
It has been stated that the two companies never agreed on any other location for their headquarters despite selecting from their work locations. It shows clearly that the business relationship is not good.
Working with different ideas and cultures of people is difficult and filled with the opportunities for misunderstanding. Though this requires time to develop the trust and understanding, they have to show the interest on learning that. One should not judge the results based on their own countries cultural standards. There is nothing more damage for the international business other than the lack of understanding. We have to create the hybrid strategies using the elements from the both the side people of different culture which will guarantee the relationship, unification and understanding.
INTERNATIONAL CULTURE UNDERSTANDING:
It has been stated that the hard driving and mission oriented American approach has shocked to the Swedish managers. Moreover U.S practice of rewarding the managers with stock options also had the problem because of the Sweden's tax system.
The above shows clearly that they haven't concentrated on knowing the culture of other country.
When we talk about international culture, let us take an example of offering gifts and culture followed in some of the countries.
In the countries like Malaysia and Paraguay, they are concerned with corruption. So whatever u gift others especially employees will be considered as bribe. In Singapore, the government employees are not allowed to accept the gifts. One of the important thing in Asia and the Middle East is that the people use the right hand or both the hands to offer or accept the gifts. In Japan and Hong Kong, people use both the hands.
There are some religious laws on selection and offering gifts to some people.
For Muslim people, they will not select a gift made from pig skin. In India we should not offer a gift made from cow hide.
Following are the some of the countries in which gift is expected:
Europe - Russia, Poland and Ukraine
Latin American - Bolivia and Columbia.
Pacific - China, Hong Kong and Indonesia.
Taiwan, Malaysia and Philippines
Following are the some of the countries in which gift is not expected on the first visit but will expect on further visits:
Europe - Portugal and Spain.
Latin American - Brazil and Panama
Pacific - Malaysia and Singapore
In today's world, with global companies the people are influenced by different by different religions and cultures. It is important to learn and develop the international business by learning about the people you are doing the business with.
When we talk about Americans, they have some behaviors’ followed as their culture. Following are the behaviors’ u can notice from the Americans.
1. Business conversations may take place during meals.
2. Business meetings may be arranged as breakfast meetings or luncheon meetings or dinner that depends upon the time and the subject.
3. Most of the U.S companies do not encourage the gifts either offering or accepting.
4. If the people are standing in queue for some