Premium Essay

Culture

In: Business and Management

Submitted By blauw
Words 3567
Pages 15
J ournal of Intercultural Management
Vol. 2, No. 2, November 2010, pp. 16–25

Sylwester Marek Kania
Uniwersytet Gdański

The Role of Cultural Differences in Forming a Business Strategy

1. Introduction
International business covers all transactions undertaken between enterprises from two or more countries. In order to finalise a transaction companies have to form international operational structures distinct from those applied in their domestic market. Besides knowledge of international strategies managers need to comprehend the interdependence between the strategies and their financial results. Differences between an international and a domestic business concern commercial practices, the scope of managerial decisions, disparities in legal systems, as well as restraints put in place by governments, limitations connected w ith different currencies, not to mention cultural differences. Different business cultures in different countries lead to distinct commercial practices. Therefore, executives operating internationally encounter difficulties that people managing enterprises on a local scale do not have to face. Cultural differences are of fundamental importance for running an international business .
The aim of this essay is to indicate the impact of cultural differences on the business strategy formulated for various countries and to show the significance of knowledge about the culture, behaviours, customs and traditions of the partner country in international business.
This article is composed of three parts. The two first parts comprise a theoretic essay, in which native cultures are described in the context of international management, and a description of cultural factors that influence the formation of a business strategy. The third part describes the experiences of Young Digital
Planet in negotiations and relations with countries...

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