International Business Operation

International Business operation

In the process of International trade, the problem of cultural differences does rack many managers' brains. Have to say that it is a great challenge for all multinational corporations, especially for those just entering a market without experience. Whether it is an individual or a team can't avoid culture shock when they want to go abroad. For instance, I can't bargain when I want to buy a laptop in PC world due to language, let alone when I would like to sell goods.

Whereas if a firm can learn and embrace target market's culture well, it will be able to understand the needs of those consumers deeply. This is not a short time to achieve the goal, managers need to show patience, initiative, sensitivity.

The first method is to employ local people, the locals understand local consumption habits, festivals, religion, social system better than foreigners. So it is something we all take for granted: the locals can manage locals easier or build local ties better. In addition: Cultural exchange is a two-way process, after local employees working with foreign staffs, the locals can give suggestion to help foreign staffs to adapt faster. For example: There are two telecommunications companies want to expand business in U.S.. One is from India,another is from China.Indian company's U.S. division has been fully localized, senior staffs are almost all Americans, it has been deemed to come from behind global competitors after U.S. local telecommunications giant's did a strategic analysis. On the contrary, Chinese state-owned enterprise, all the senior staffs are sent from China. In addition to considering the Chinese market, U.S. telecom operators never consider the Chinese counterparts as a global competitor.[REFERENCES:

(2010), Tao Zhang, <the "syndrome" of the internationalization in Chinese enterprises> http://chinese.wsj.com/gb/20101111/ZHT081928.asp?source=UpFeature ,last accessed 15th November 2012

] Therefore it is necessary for every multinational corporations to provide an open and fair working environment without exclusivity.

Additionally, learning from local organization directly through the acquisition of shares of local companies. For instance: It is reported that Japanese household appliances retail started earlier than Chinese. Now Japanese market is leading Chinese market in three to five years. The Japanese household appliances chain enterprise has been the role models of Chinese domestic appliances chain enterprise. However,