Ethical Differences in Intercultural Business Environment

Introduction

Products and services must always be channeled according to the needs of consumers within a particular market environment. For a company to succeed in the global market, it has to assess the needs and preferences of consumers. Another way of maximizing the company’s customer base is through the creation of alliances that enables organizations to concentrate on their businesses while providing new capabilities (Keegan & Green, 2002).

Standardized consumer products, low price, and technology are key points for successful globalization

The international marketing strategies applied by any company should conform to the already designed marketing policies and should have the capability of achieving global competitive advantages. This ensures the preservation and maintenance of any culture across the nations through the creation of business related opportunities. The various barriers to international trade should be reviewed as the world move closer to globalizing free trade (Chung, 2003).

Identify major cross-cultural issues that may impact A’s marketing approach in this situation

Company A should undertake a sequential pattern of expansion whereby it must first take a move to understand the international market environment. Then the company must decide on the proportion of external sales they would require and the country where the possible target can be achieved. There should be an evaluation of particular markets to establish the probable rate of return on investment measured against the level of expected risks.

There is a very big cultural gap between U.S.A and Japan as far as business is concerned. There is a language barrier that may pose a big challenge to the company’s employees. The Japanese have got fear of losing fame in the social setting hence will want to gain technological know-how, establish their own company, and replace the mother company. The Japanese also lack belief in contracts, trusty, and confidence in alliances and so the President will have trouble in winning their confidence (Reich and Mankin, 1986).

The penetration of the Japanese market is easier when Company A ally with other Japanese Companies dealing with engine component products. This is due to the cultural perception that consumers in Japan already have with external engineering products. The application of the Global Strategy Partnership may help the organization to expand its economies of scale beyond the borders ensuring access to more customers and a wider market. GSP presents a firm with the ability to exploit a wide range of resources from other countries. It also helps in extending the product’s life cycle, since products that are considered cheaper can be sold to less developed countries (Bartlett and Sumantra, 2010).

Describe how the issues you identified may impact the approach Company A takes

Concerning management within Company A in the Japanese market, It will appear complex to structure and manage a new business venture especially with the distance between the two countries. Mostly we find that concentration will be given on the parent company in the US thus retarding the growth of the other branches due to cultural pressure and perception. Marketing strategies like pricing, promotion, development, and distribution have to be implemented appropriately by Company A. The value that consumers attach to any product in the Japanese market is dependent on the price, brand name, and the place where it originates from. This is evident in so many countries based on product branding and consumer preferences (Doole and Lowe, 2008).

Explain how cross-cultural communication affects marketing strategies in the Eastern Asian country you identified (provide examples that support your explanation)

Management in Japanese has got a different perception from that of Americans. For the engine components to be accepted within the Japanese market they have to convince the consumers of real-life experiences with the machines. This is since the Japanese believe in direct and immediate experience with products which is verified through introverted observation. They don’t believe in the analysis or conceptualization of products since this to them may distort reality and serve as a move towards anti-intellectualism. Japanese cultural attributes place lots of emphasis on the level of trust and confidence brought about by the language barrier.

On retailing strategies to be used in Japan, it is believed that in-store promotions and personal selling are the most preferred communication techniques amongst the retailers. There’s a need for Company A to harmonize labor-related problems like communication and differences in the technological know-how of these two countries as well as countering the occurrence of natural calamities since Japan is in a region that is more prone to natural calamities

Differences that occur between countries calls for designing of different marketing approaches

Evaluate the impact of cross-cultural ethical differences in marketing strategies between the United States and Japan as Company A enters the Eastern Asian market.

Ethical differences in cross-cultural settings have to be dealt with for the success of Company A’ in the Japanese market. The difference in cultural background influences consumers’ ethical reasoning in Japan. Establishing a branch in Japan will require a wealth of changes in the whole structure i.e. management, shifting customer demand, technologies, and dynamics. The President has to take a long time studying the new complex environment.

The application of sales promotion within the Japanese market may influence consumers towards purchasing the products. This is since Japan is a rising technological country and the consumers are so much used to native engineering products than external products. The ability to induce the customers to buy gives an immediate response to sales in the market (Fill, 2005). The techniques applied in consumer sales promotion prove significant by their ability to determine important levels of purchasing. The majority of consumers in Japan do not focus on the brand but base their decision to buy on prices and quality. The only method that can be used to effectively differentiate between suppliers in the Japanese competitive market is sales promotion.

References

Bartlett, A., & Sumantra, G. (2010). Managing across Borders. The Transnational Solution. Web.

Chung, L. (2003). International standardization strategies: the experiences of Australian and New Zealand firms operating in the greater China markets. Journal of International Marketing, 11(3), 48-82.

Doole, I. & Lowe, R. (2008). International Marketing Strategy. Web.

Fill, C. (2005). Marketing Communications – Engagement, strategies and practice, Pearson Education Ltd., Edinburgh Gate: Sage Publications Inc.

Keegan, M. & Green, K. (2002). Global marketing management, NY: Prentice hall.

Reich, R., & Mankin, E. (1986). Joint ventures with Japan give away out future. Harvard Business Review, 64 (2), 78-86.