The organization that you work Essay Example for Free

The organization that you work Essay The organization that you work for is interested in expanding their business overseas. You have been asked to gather some preliminary information to help management decide on whether to pursue this idea further. Search the Cybrary or other online resource and find an article describing an experience of either: (1) a US company or division that conducts business in a foreign country; or (2) a company or division based in another country which has started doing business in the United States. Perform searches on joint venture, licensing, or strategic alliance. Based on your research submit a three page document to the managers of the organization which answers the following set of questions: 1. Was the companys experience positive, negative, or mixed? Justify your answer. 2. What legal or political barriers did the company have to overcome? What cultural or business differences did the company encounter? What problems did these differences create for the company? What did the company do to overcome the obstacles? Did the company handle cultural and business differences effectively? Why or why not? 3. Companies involved in international trade have to watch the exchange rates for the euro, Japanese yen, Brazil real, Russian ruble, and US dollar. If you were a U. S. exporter, how might a stronger dollar affect demand for your products? How might a weaker dollar affect demand? (Note: One Internet source for foreign exchange rates is www. x-rates. com/ ). Doing business in another r country can be extremely tricky. Numerous problems result from a failure to adapt packaging for other cultures. For instance, white symbolizes death in Japan, and much of Asia, green represents danger or disease in Malaysia. Some product names travel poorly. For instance, the gasoline company Esso found out that its name means stalled car in Japan. Proper market research may reduce or eliminate most international business blunders. Market researchers can uncover needs for product adaptations, potential name problems, promotional requirements, and useful market strategies. Food research may even uncover potential translation problems. As you can see, doing business in other cultures can be risky if youre unprepared. However, awareness of differences, consultation with local people, and concern for host-country feelings can reduce problems and save money. In dealing with international business you should know about licensing, strategic alliance, and joint venture. Licensing is an agreement to produce and market another companys product in exchange for a royalty or fee. Strategic alliance is a long-term partnership between two or more companies to jointly develop, produce, or sell products in the global marketplace. Joint venture is a special type of strategic alliance in which two or more firms join together to create a new business entity that is legally separate and distinct from its parents. More and more companies are experiencing the excitement of conducting business in the global marketplace. Although selling goods and services in foreign markets can generate increased sales, produce operational efficiencies, expose companies to new technologies, and provide greater consumer choices, venturing abroad also exposes companies to many new challenges. Each country has unique ways of doing business which must be learned: Laws, customs, consumers preferences, ethical standards, labor skill, and political and economic stability vary from country to country, and all have the potential to affect a firms international prospects. Volatile currencies and international trade relationships can indeed make global expansion a risky proposition. Companies must recognize and respect differences in social values, ideas of status, decision-making habits, and attitudes toward time, use of space, body language, manners, and ethical standards. Otherwise, such differences can lead to misunderstanding in international business relationships, particularly if language differences also exist. The best way to prepare yourself to do business with people from another culture is to study that culture in advance. Learn everything you can about the cultures history, religious, politics, and customs-especially its business customs. Who makes decisions? How negotiations are usually conducted? Is gift giving expected? What is the proper attire for a business meeting? In addition to the suggestion that you learn about the culture, seasoned international business people offer the following tips for improving intercultural communications: Be alert to the other persons customs. Expect the other person to have values, beliefs, expectations and mannerisms different from yours, Deal with the individual. Dont stereotype the other person or react with preconceived ideas. Regard the person as an individual first, not as a representative of another culture. Clarify your intent and meaning. The other persons body language may not mean what you think, and the person may read unintentional meanings into your message. Clarify your true intent by repetition and examples. Ask questioned and listen carefully. Adapt your style to the other persons. If the other person appears to be direct and straightforward, follow suit. If not, adjust your behavior to match. Show respect. Learn how respect is communicated I various cultures-through gestures, eye contact, and so on.