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Global Strategy: Preparing for Cultural Challenges

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A global strategy can be a problem for the international firm if it causes the firm to overlook important local or regional differences in areas such as personnel practices or customer tastes. For example, culture is one of the most powerful-and most often neglected-elements of the profit equation. There are few other aspects of your business that have the inherent capacity to increase employee productivity, streamline your work processes, and grow revenues in ways that are as powerful and predictable as your corporate culture. You have been asked to define global strategy as used in international strategic management. Your response should include the following:

Explain in what way culture might be a problem in your global strategy for a successful national organization that is intent on going international.

Discuss the differences between corporate culture and local or regional cultures, and give an example of how one of them may or may not interfere with Formulae's global strategy.

Give examples of cultural problems Formulae may face if it overlooks important local or regional differences.

One example of corporate culture is how you deal with the idea of change. Briefly discuss how Formulae should prepare itself to withstand this challenge.

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The response address the queries posted in 1517 words with references.

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The response address the queries posted in 1517 words with references.
//Before writing about the cultural issues faced by a Company in the international market, we will write about the importance of 'Competent and Promising Global Strategy'. Then, we will write about the cultural issues faced by the selected national corporation, which is Formulae Inc., for analyzing the global strategy.//


In the present scenario, to compete in the international market successfully, it is essential for the company to develop a competent and promising global strategy. For formulae, Inc., to change the company from national to international, it is necessary to review and analyze the aspects and factors which play a prominent role in deciding the success or failure of its global strategy. Formulae, Inc. is a national company which is planning to move towards the international market for the expansion of its business which requires a global strategy for the fulfillment of its objective. This paper will describe the cultural issues and factors which have an important place in the international market.

Cultural issues

There are various activities or procedures which explain the fact which states that the culture might be a problem in global strategy for a successful national organization. As culture is a key factor, which determines the probability of success or failure of a global strategy formulated by a company for entering in an international market, so the avoidance of this aspect may result in to a big problem for the company. Different countries have different assumptions and values system in context of cultural aspects or environment and have a significant impact on the consumption patterns of the consumers (Boone & Kurtz, 2006). Improper analysis or review of the cultural environment of the host country may result in to the creation of obstacles in the path of internalization of Formulae, Inc.

If Formulae fail to interpret the culture of host country, the new customs, value system, attitudes and working habits, its managers might act as they are in their home country and this unconsciousness will result in to a problem for the global strategy of Formulae, Inc. The avoidance of the cultural norms and belief system may also result in to a problem for Formulae, Inc. in the implementation of its global strategy for the purpose of internationalization. The promotional campaign of the company, if consist of some ambiguous or opposite meaning for the ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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