Global Business Culture Case Study

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What is Globalization?

Globalization is the amalgamation of ideology, cultures, civilizations and perspectives, with technology, goods, and services, in order to create a “Global business culture”.

What are some of the main challenges of Globalization?

Localization of a good or service is one of the core challenges of globalization; to have the ability to ensure your product is successfully launched and is received well in your chosen local marketplace. This requires a lot of effort to test internationally, and then test locally, to ensure that branding and tastes match with cultural expectations and that the “Global business culture” is not perceived to be overpowering local cultures, with loss of sales as a result. A case in point is the perception of global brands in Latin America [1], which analyzed 669 brands, and sought to measure brand loyalty through: “Affinity, difference, brand leadership, fame, and price”. This study found that local brands have more loyalty as they are perceived as originating from the culture, whereas big brands are perceived more as an imposition of one
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This helps to accelerate growth for a company and to more easily penetrate markets, or to function together as one company in departments spread across the globe. One such theory of communication is Geert Hofstede’s cultural dimensions[4], where a survey of IBM employees was undertaken between 1967 and 1973. This showed that using six ways to analyze cultural dimensions, a company could accurately ascertain values that would be helpful for positioning a brand or product in a new market, or to allow global teams to interact and become more productive. This method also allows managers to communicate and negotiate more effectively with business people of other cultural backgrounds, particularly in the Decisional and Interpersonal management

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