Introduction and Background
We live in a world of diversity. From one part of the world to the other we come across people of different races and cultures. These differences in most cases translate to a different worldview and therefore a different way in which people go about their day to day undertakings. For example, when viewed from the point of culture, it is deemed harmless for women to dress in highly reduced shots and walk in public in western countries such as the United States. This means that if a business person has this kind of items in store, he or she will have market for them. On the other hand the Arab cultures in the Arab countries that are hugely Muslim do not allow women to dress in this manner. Therefore a businessman or businesswoman who stocks such shorts is not in touch with market needs. No one will buy them from him or her. Understanding cultural differences is a prerequisite for success in the modern business world (Hurley 2010).
Data collection methods: Research on cultural differences
This report will investigate and report on cultural differences among people and determine their impact on trade.Some of the differences is pretty obvious for example language. Literature that is available regarding cultural differences will be investigated.
Literature Review
Differences in culture are visible even from the angle of our treatment of both customers and other business partners such as suppliers. The Japanese are known for focusing on hard work which at times leads to unintentional disruption of the business chain. The reason for this is the minimum attention paid to key issues related to quality of both goods and services. The paradigm shift that makes the difference comes with smartness and not just hard work (Aguayo 1990).In business generally and management particularly, an effort is required to ensure that sensitivity is maintained in the process of aligning the workforce in the direction of desired strategy. This will positively impact on the workers and the customers. This is a balancing act that has always been a dilemma for businesses (Covey 1991).The values, practices and styles of leadership in business is also a product of culture. All these elements affect trade and can only be ignored to trade’s peril. The female culture of leadership in business is different in that it spreads out to engage in a dense network of relationship that bolster good relations thus encouraging the surrounding community to make good customers (Helgesen 1995). Besides the above, more cultural differences exist and their impact on trade is something we cannot escape.
Findings: The Cultural Differences and Impact
From one place to another, there is evidence of diversity. This is what is disclosed by the literature that was examined and the observation that was done. Different languages are spoken by different people. The British people speak English while most East African residents speak Swahili. It is not sensible for one to deny that this has an impact on trade. The British people have different values compared to the people from the Middle East. These range from religion to dress code. Dress code is a product of religion in Muslim populations. Some aspects of character are treated differently in these settings. The code of ethics of the Islamic world for instance is different from that of the rest of the world. For instance, it is not acceptable for a female to purchase some items such as condoms from a store in the Arab world. But this is not the case in the West. So what business sense will it make if a store keeper in Iran stocks these commodities? This undertaking makes no business sense. The cultural differences in general lead to misunderstanding and conflicts that hamper business. For example differences in language make communication between sellers and buyers difficult while a difference in consumption patterns leads to low sales for non-informed sellers.
Patterns of Behaviour across the Cultures
The western business life has been heavily affected by commercialism. Albeit there is an attempt to include a value driven strategy in business in the West (Collins 2001), much of the emphasis is on the commercial success. It tends to be more formal, inflexible and no emotions are involved. This is not the case with other parts of the world such as Asia and Africa where relationships are normally more than just customer-shopkeeper. It is more informal, personalized and sensitive.
Discussion of the findings and Survival mechanisms/Tactics
The Western business tradition has developed over a long period of time. The cold, inflexible and formalized nature of carrying out trade that is common in European countries as well as the United States is traceable to the pre-industrial revolution time when man was considered a machine for the production of goods and services for the company owners. The emotional and informal character of business relationships in most parts of Asia and Africa on the other hand are as a result of the too much human value attached to any interpersonal relations within these cultures. Other aspects such as religion also come into play whereby Islam is intolerant when it comes to dress code for women. The West is liberal hence the less restricted nature of dressing. All these values affect business. From this point, the big question for the businessman or the businesswoman is what to do to survive in such an environment that is full of cultural differences; regardless of where one is operating from.
Survival mechanisms/Tactics
It is well understood that in business, the customer is always right. This is sometimes described as the iron rule. It requires that the sellers or the producers of goods and services adjust so as to meet the requirements of the customers. So regardless of where one is operating from, it is the duty of the seller to meet the customer and not the customer to change. Also, there is the aspect of fitting into the culture in which you find yourself in. If you are the new person trying to run a business in a place where you are the minority, you are supposed to do what the local people are doing so as to survive in business. It is a case of when in Rome, do as the Romans do. It is sometimes thought that customers who go to places where they are new and a minority should adjust to the standards of the environment since it is sometimes difficult to spend a lot of resources to meet the needs of a small number of customers. Other survival tactics include enhancing awareness on the existing cultural differences especially between the East and the West so as to ensure that everyone knows how to go about their daily business lives without unnecessary errors. Cooperation is necessary if business is to prosper and this should also be emphasized to all the concerned parties. Another item to consider is the spreading of the new corporate culture so that it provides a fairly common cross cultural standard.
Conclusion
A careful look at the information obtained clearly indicates that cultural differences exist among people. These differences include language, religion which in turn impacts on consumption patterns and difference in the business traditions between the West and the East. These differences have an impact on trade. Language barrier makes business communication difficult while restrictive values that may come from religion or traditions affect consumption patterns. These obstacles can be overcome through enhanced cultural understanding, preaching tolerance and trying to create a standard corporate culture that can cut across the board in terms of application in the various cultures.
References
Aguayo, R. (1990) Dr.Deming: The American Who Taught the Japanese about Quality. New York: Simon and Schuster.
Covey, S. (1991) Principle Centered Leadership. New York: Simon &Schuster.
Collins, J. (2001) Good to Great: Why Some Companies Make the Leap…and others Don’t. New York: Harper Collins Publishers Inco.
Helgesen, S. (1995) The Female Advantage: Women’s Ways of Leadership. New York: Double Day Currency.
Hurley, L (2010) The Importance of Understanding Cultural Differences in Business (Online). Web.