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Unit 39 D2

In: Business and Management

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Evaluate the impact on the cultural differences Cadbury’s has faced having traded in chosen country. (D2)

I will be evaluating some problems which Cadburys have face in regards to cultural differences. I will be looking at a number of problems and issues which Cadburys have faced when going to do business in India for instance their belief systems, language, environmental systems and so on.
When Cadburys enters India, they must make sure that at least one of Cadburys representatives must know Hindi (India’s common language). even though the most common language used in the world of international business is English, India have an incredibly low command of the English language, so it becomes very helpful when there’s a member of staff that speaks the language. It’s in Cadburys best interest to attain the best deals, create agreements and form negotiations and without a common language this can become very difficult and result to mislead information and translators are very costly.
When operating in India, language could also be incorporated with the human resource sector of business. The language amongst management and employees needs to be the same no matter if it’s transferring staff or local staff, or else human resources activities will not be able to function at all. It is also crucial that Cadburys label there goods in a local language and also a description in a local language, ingredients etc. all have to be in a the local language.
Belief Systems
Religion can have a major impact on the way Cadburys operate in India in a number of ways. First, religion is defined as ‘a cultural institution that directly guides human behaviour.’ For instance, a majority of Indians are Hindu, this will obviously drive employees work, it will encourage production and impact commercial activity, and it will most probably boost Cadburys trade overseas. However, Hinduism disheartens the short term (pursuit of happiness) this could result in Cadburys workers desires being dampened resulting in temporary welfare-improving economic transactions.
The comparative fortes of Hinduism’s positive and negative influential effects on Cadburys international trades is different types of Hinduism, this is due to each different type of Hinduism offers slightly different incentives for human behaviour.
Religion is a very crucial cultural factor which has to be assessed by international organisations who want to enter a new market. India is a Hindu country, which means that it’s not always appropriate to bring in goods that you would sell in a domestic country like the United Kingdom for instance, to a foreign nation such as India.
For example, Cadburys, can no longer put pork or anything with a source of pork in any of their confectionary products when operating in India because of Hindu law, it is forbidden. This will mean that Cadburys would have to establish a replacement product which doesn’t go against Halal requirements.
When Cadburys operates in India and starts employing Indian personnel, Cadburys would have to ensure that it creates special uniforms for its staff, for instance, head scarves for the female employees. If Cadburys choose to not make provision of such uniforms or decide to disagree with them, they will be condemned as a businesses that victimises its employees and this could lead to them being fined by a court.
Environmental issues
Fundamental environmental issues which have an impact on Cadburys include; industrial waste, sustainable development of raw materials and water and air emissions. These issues have an impact on Cadburys because Indian laws necessitate businesses such as Cadburys to rectify their actions and equipment to reach expectation, which will have a negative impact on Cadburys and cause them to lose money. Cadburys will need to commence in bringing forward stricter changes which will hopefully reserve the environment. Cadburys will need to pay for proactive and protective environmental measures in effort to recuperate the expenses via consumer good or additional consumer base attained from India’s environmentally friendly policy.
People across India are unique and have different attitudes towards work - this may have an impact on Cadburys human resources as well as their customers. Because of these different attitudes it may become a struggle for Cadburys to present their message across to the public along with establishing a firm long term relationship with their customers and partners. Attitudes can also diminish Cadburys organisational structure and management style. For instance, conferring to Hofstede’s scale apparently, British people like to be treated equally and they don’t like there managers ordering them around, unlike the Indian people, who find it natural being told what to do by their superiors and find it hard to function if a business decided to operate in another way. This proves, that Cadburys would have to rectify its management approach as a whole, because Cadburys expanding from the United Kingdom to India, due to the Indian people struggling to function independently without being constantly observed.
Education can have an impact on Cadburys when they operate internationally. Due to the education system in India being much obscured it may be a challenge when looking at human resource, which Cadburys use a lot to create their products. India’s educational systems teach a number of theories but no actual hands on practice, this means that when Cadburys want to start recruiting staff there may be lack of experience however they are very capable with handling theories, this would mean that Cadburys would have to spend a lot of time and money, which will result to a fall in production. India has a lack of skills required to run a business daily. Cadburys have the option of transferring its staff from India to a domestic country such as the UK, which is ridiculously expensive and besides it doesn’t mean that all employees will actually want to go abroad to train. If Cadburys employs local labour without any experience or skills, Cadburys would then be pressured into spending money on training, if not Cadburys production and daily activities will be practically impractical. There are some countries that Cadburys are based in such as United Kingdom with a healthy educational system, the employees are more than likely to request a higher wage due to their high level of professionalism as well as their degrees and qualifications.
When Cadburys operates in India they must keep in mind, the values of the customers, the staff and Cadburys partners. There are some vital values which the Indian people consider which are; fairness, honesty, achievement and having a concern of others. Although there a number of values which are bought to light when Cadburys operates in India. If Cadburys wants to be successful and meet the requests of its employees and customers, Cadburys must do a background check on Indian values and principles. If Cadburys take Indian values into consideration, Cadburys can achieve cross-cultural ethical practices.
Social Environment
Cadburys must familiarise and make use of its external social environment, or Cadburys will come to an end. Cadburys must be deeply aware of India’s social preferences concerning its wants and needs. These wants and needs as well as preferences will be motivated by the Indian people’s practices, values and beliefs.
If Cadburys decided to not adapt to India’s developing social preferences, Cadburys sales will decline, and eventually leading to Cadburys collapsing. Obviously, on some occasions the change in India’s social preference may be so large that Cadburys may find it difficult to adapt.

To conclude my evaluation of Cadburys when trading in India, I believe that this probably won’t be the best investment Cadburys have made. When assessing the pros and cons of Cadburys operating in India, there are more negative factors in comparison to positives. I believe that profit can be made in India but there annual turnover will be diminishing in comparison to the profits made in other coutries.

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