Why Is It Important to Understand the Cultural Background of a Foreign Supplier?
was 1.83% in 2017. While taking on global partners or expanding into emerging markets offers many opportunities, it also brings challenges, not the least of which are the cultural differences that arise when doing business outside the United States.Recognizing the importance of culture in the business world is an important step toward success in the global marketplace.
Some visitors to the café have mentioned that Ellen's menu, largely consisting of American-style diner food such as bacon and eggs, cheeseburgers, creamy soup and meatloaf can be difficult to navigate for some of the international students. The difficulties include lactose intolerance, which is common in many countries, and religious prohibitions against eating meat or certain types of meat. Realizing that she needs to make changes, Ellen reaches out to one of the patrons who mentioned the need to update her menu and asks for feedback. The patron suggests that Ellen contact the head of the international program and bring together a focus group of students who can give feedback on dietary preferences. After talking with students in learning about their concerns, Ellen talks to her cooks. After trying out some new recipes and tweaking their offerings, Ellen’s restaurant debuts a new menu that features vegan dishes, customizable burgers (including veggie burgers), build-your-own omelets and an extensive salad bar.
This can be a mistake in the long run, especially if Andritz wants to enter a completely new country where they are not aware of the different possibilities and translator availabilities. Because of this, time and money can be wasted and it can become more difficult to gain the country’s trust and respect. When entering a new location, it is a great advantage to speak the local language. The advantage can come from easier negotiations and respect earnings. It is even easier to understand contracts and to interact with business associates during leisure time. This in turn can also lead to gaining respect and the trust of the other part. Because language is a part of a country’s culture, the foreign negotiator can thereby feel that the company invests in the co-operation and thereby even in the cultural issues (Hoecklin,L. 1994.).
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