Element 010 International Intercultural Management
Element 010 International Intercultural Management
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Culture termed as the people brief, norms, values and religion of the country. Different countries is having its own culture and tradition. In globalised world this culture factor is very important.(Alvesson, M., 2012). The company which is establishing their business in the different country at globalised level they need study and do research on this culture factor. Here enterprise company look after the values, tradition, norms of the different countries in with they are plan to do business(Hofstede, G., 1994).According to that only the company will prepare the business strategy. In context to the internal culture this is a new concept of the research in which they study the growing concept of globalisation and in this they take into the consideration those managers who work on the globalised level for different companies(Linke, A. and Zerfass, A., 2011). In this mangers have to relocate from one place to another place for operation and adopt the different culture according to the different country. It is very important to manage this factor because it decides company failure and success. For very multinational company its important to study these factors to run their business. It helps the manger to improve their managerial skill by handling the company different branches in different countries.
The company which has to be chosen for this particular report is Mc Donald's. It is a fastest growing food chain company in the world. Its having more than 300 fast food restaurants world wide. It started its operations and business from china(Shiu, Y.M. and Yu, T.W., 2010). They adopt the standardized policies and the tag line which company uses I'm loving it. There target customers are children, family, youth. For children they have the special product name as happy meal in that they give the toys included in the meal. The biggest competitor of Mc Donald's is burger king which is also have the same product line(Barzoki, A.S. and Ghujali, T., 2013). They adopt the different culture according to the company. the difference can be in their pricing, the menus, range of products, promotional strategy etc. there are expanding its business by giving franchises in different countries. By its giving franchise this company allow the franchise business and shareholders to share the risks(Justinek, G. and Sedej, T., 2011). They encourage the females employees to participate and they have the cut price menu. They have comfort and delight dinning in their restaurants.
Different culture adaptation in different countries
In India Mc Donald's serves vegetarian burgers to the customers. They the chicken burger and paneer , aloo tiki burgers. They don't serve beef and pork in India because of people brief and their culture. In beverage they serve shake, soft drinks ,coffee. While in china the meat which they use must be standardized breast meat. They opened express window which sells ice creams and cold drinks. In India the eggs burger is serve in breakfast. While in japan they serve hot dogs. Every time they come up with new deals and new product variation in different countries according to the demand.
In different countries they adopt the different pricing strategies as per the consumers buying behaviour and how much they can spend on a burger. As in India customers are more price sensitive so they set the prices accordingly.
They have different kind of restaurants in different countries as in china its having the multiple floors restaurant in which one floor serve the western food and another floor they have the traditional food.
Mc Donald's promote its product by doing different advertisement in different countries . In some countries they advertise its product by offering the deals in low prices some where it advertise in emotional appeal and some times as the taste food.
Theories adopted by Mc Donald's
Individualism and collectivism:- InUS the people follow more individualism they create their own individual thoughts and values. While in china the people are more collectivism they create their values and belief in the group. Mc Donald's has to keep in mind before selling product in the country they have to communicate the manner so they have more satisfied customers. They have to promote their product and serve their services in that way so they can met individual values and also collective thoughts.
Masculine and feminine:- masculine society is a society in which more importance give to the male gender they have the following factors like dominance, egoist, strength, power etc. and feminine society is a society there is factor considered like care, understanding, relationship oriented.
Compare And Contrast
Individualism and collectivism theory:- there are some countries those who create their own value and belief with their individual thoughts in that companies has the different strategies for that this kind of population is called individualism. even in the organisation the company encourage the collectivism among their employees in which they generate the belief , values in their group. In japan the employees are believe in team work and they initiate the employees to participate more. In that way company advertise its product in different countries like in US they prepare the advertisement which influence the individual preferences. And in china the advertisement done in a manner which influence the group of the people. Every different country has the own language and the company advertise accordingly they promote the products in common languages which is acceptable by all countries. In Mc Donald's case also they have different advertisement but they follow the same language across the world. They different appeals in their advertisement like emotional appeal, brand appeal, youth appeal.
Masculine and feminine:- this is the another theory followed by organisation. In 2001 the Mc Donald's initiate the female employees to work on their system and have the important role in the organisation. They have the gender quality in their organisation. In any country they have the same proposition of male and female. They treat them equally they gave the same importance and support to the female staff which they gave to the male once. In masculine oriented the organisation except more decision making skills, and feminist they management except more managerial skills. In some of the countries to encourage the women rolls they advertise their product in which the women is using her empowerment. To influence the society the major role of women in the society.
The major strategy the company followed to analysis what the customer wants and what are needs that has to fulfilled in terms of food industry. What are the expectations of the consumer from the company. They do research on different cultures in different countries they make idea to provide the product which is suitable for the particular country. In India they have chicken burgers and people of India are fount of paneer so they they introduce paneer burger. Children in India like aloo in their food so for them they introduce basic aloo tiki burger and also with different culture of India they introduce the happy meal in which they have toys for the children and these toys are included in the meal according to the maximum carton charter liked by the children. Another strategy of Mc Donald's was to deliver the product at the costumer house because in big city there is lot of traffic and in that traffic costumers can easily get the food at their home and some time there is too much crowd at the restaurant location so they start giving the service at home also and delivering meal at home means there is less requirements to clean the table and restaurant. Also they the walk up window only for beverages and ice creams. They the take way option also so that costumer can pack the meal and take to their place. They deliver the product at home at faster time so the customer get the fresh quality.
Strategies followed by the company :-
different menu in different countries :- Mc Donald's has the different menu for the different countries according to culture and norms of the particular country like in Asian countries and japan people like to eat together as a family and they like to share because they believe it increase the good bound in the family members but Mc Donald's hamburgers is for single person to eat so for Asian people they introduce the new product mac rice so they can share the food.
Different physical arrangements in different countries:- they have different layout of restaurants in different countries. Japan previously there were no table and no seats was there. customer used ordered the food and eat on the way. But now they have the floors on which one they can ordered the food and another they can seat. In japan people put their their stuff on table so no one can seat on that and then ordered the food.
Think global act local:- this is the very important strategy adopt by the most of the multi national companies in this very international companies expand their business globally but they think and operate the business in they way of the local people living in the country. Every country has its different need , they have their own style of doing work, they have different taste and different languages so when the multinational company expand its business to another country then the company has to think in that particular country citizens. For example in japan the customer will greet in a different manner but India they greet people by saying Namaste.
Standardisation of product and service :- the company operates in many countries but they want to serve their services in a same manner so that what the customer of japan feels the Indian customer has feel the same. They keep their services standardise within all the countries.
Pricing strategy:- the other important strategy adopt by the company is pricing strategy in which they will fix the prices of the items shown in the menu. The company has to fix the price properly so that they get more and more customer using the services. if they set prices very high no customer can buy the product and they reject the product because of its pricing. pricing is the one of the factor which decide the company failure or success. Competitor has to look after the competitor price and then decide their prices. Prices is to be set so that the company can covered it cost and earn some margin of profits. Different country has its different pricing strategies like in India customers are more price sensitive if they think the price are to high they reject the services. In japan customers are very quality conscious they are ready to pay high for good quality. So company has to take all this things into mind they can do the research of the market and then set the prices.
By this strategies the company has many benefits like they can operate in different countries , they have more profits, they can increase the growth of the company, established the brand name, they can achieve their goals and aims and get the future success. Mc Donald's has achieved the largest 6th food chain store in the world. Mc Donald's is reaching every corner of the world and serve its customers.
Marketing strategies:- every company is going for the marketing strategy for two reasons to promote its sales and to help the customer recall the product for longer period. But as the culture of countries differ from one another. The promotion strategies also may differ in this the factor which influence will be type of people, target market, people preferences and behaviour, which channel to use and language. Keeping all these factors in mind company will design the advertisement. They use different appeals in their advertisement like emotional appeal , hunger, youth and family appeals , children fun place. In japan people stay at the restaurant with there laptops. There it is work place where people have their food and do their work with it. It is not a place where the customer get only junk food they have salad and healthy items in their menus. Like Starbucks Mc Donald's also serve good quality coffee and other drinks.
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In this report we studied about the culture factor of different countries influence the international company. How these companies established their business in global market and have the core competence in the market. In the report an example of Mc Donald's has taken and how the company conduct its business in the different part of the country. There are different promotion strategies adopt by the company to reach the maximum number of population. Different theories has been studied to know the culture of the organisation. What is the population company has target. What are the approaches company followed to expand its restaurants and increase the brand name of the company . They come up with new idea to serve more customers and reach to every population every corner of the world. Mc Donald's established its brand name in the world wide. Today is any ones want to each the burger the first thoughts comes into his/her mind will be Mc Donald's. They adopt many strategies liking pricing, standardised servicing, different layout design, think global act local, promotion strategies to get the success and growth in the organisation. Company have its different rules, regulation, norms, value, belief for every different countries world wide. They employees also get the benefit as their get the opportunity to learn different culture knowledge. The mangers get chance to develop its managerial skills because they handle different branches at different times in different countries.
Books and journal:-Trompenaars, F. and Hampden-Turner, C., 2011. Riding the waves of culture: Understanding diversity in global business. Nicholas Brealey Publishing.
Jones, G.R., 2010. Organizational theory, design, and change.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Alvesson, M., 2012. Understanding organizational culture. Sage.
Hofstede, G., 1994. The business of international business is culture. International business review, 3(1), pp.1-14.
Linke, A. and Zerfass, A., 2011. Internal communication and innovation culture: developing a change framework.Journal of Communication Management,15(4), pp.332-348.
Shiu, Y.M. and Yu, T.W., 2010. Internal marketing, organisational culture, job satisfaction, and organisational performance in non-life insurance. The Service Industries Journal, 30(6), pp.793-809.
Barzoki, A.S. and Ghujali, T., 2013. Study the relationship of internal marketing with job satisfaction, organizational commitment and organizational citizenship behavior. International Journal of Academic Research in Business and Social Sciences, 3(3), p.33.
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