Abstract
Cultural factor is recognized as a vital influence to communication as well as the key to success for a business. Cultural awareness helps organizational firm more efficient while behave cross-culturally to the international market. Meanwhile, the global business’s environment has become excessively complex because of the continuous entry of new corporations and private entrepreneurs where they tend to expand their market-share as well as differentiate their brands in order to compete in the world marketplace. Studies have shown that multinational organizations have to emphasize on cross-cultural management while competing with other organizations for the purpose of global expansion. Hence, it is important that businesses in different countries to raise their level of sensitivity, understand and respect towards each other’s cultural difference which would benefits them with the growth of their international business. This paper’s provide an analytical framework and concise version of conclusion of the importance of communication and source of conflict in cross-cultural management whether marketers doing standardization or global localization.
Highlights
According to Lillis and Tian (2010), it is getting obvious that the cultural differences between countries, regions as well as ethnic groups are becoming stronger nowadays
Standardization can be defines to a common approach to business throughout the world where adaptation of a business organization requires a different approach over the global market (Ang and Massingham, 2007)
Standardization can be refers to the use of the similar marketing mix in as many countries across the globe as possible when a corporation operates beyond its national borders
Summary
According to Lillis and Tian (2010), it is getting obvious that the cultural differences between countries, regions as well as ethnic groups are becoming stronger nowadays. Standardization can be refers to the use of the similar marketing mix in as many countries across the globe as possible when a corporation operates beyond its national borders. Global localization or adaptation is when a corporation modifies its marketing mix in virtually every country that it operates to suit national taste, preferences and culture. The globalization of the world economies shows the importance of understanding of doing business in different countries to marketing managers. Multinational companies, in their effort to expand their global presence and market share, increase profitability and to overcome problems related to saturation of existing markets, continually seek opportunities for growth (Vrontis and Thrassou, 2007). Czinkota and Ronkainen (1998) as cited in Vrontis, Thrassou, and Lamprianou (2009) have say that marketers are subject to a number of macro-environmental factors, for example like climate, races, occupations, law, culture, technology as well as society
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