Difference in Culture
Various cultural differences in the world could impact business practices. Mariah Brown (2015) defines culture as the way of doing things around. For daily operations of a business to be executed successfully, communication plays a pivotal role in the business world. When doing business with people of different cultures, it is crucial to understand cultural differences and language barriers. For example in a country like the USA, people are assertive and speak loudly especially when they share ideas, but in a country like Japan, the residents are said to be more persuasive and soft-spoken when exchanging ideas. This, therefore, shows that means to access information that is helpful in the business world may differ. This could also affect the relationship between different stakeholders in the same business and therefore cripple the business due to some misunderstandings as they make critical business decisions.
Conducting a market research creates strong basis if done before marketing campaigns are launched in different cultural business catchments particularly when one anticipates getting potential customers. The campaign can be hindered when the target audience feels insulted by the marketing strategies that are not in line with their cultural norms. This, therefore, means that the level of advertisements and creation of awareness in businesses may have varying costs in different cultures as they have to be strategized differently and therefore translating the same in the final returns (Mariah Brown, 2015).
Religion has a bearing on how people and companies engage in business. In an Islamic state, Muslims have no huge affinity for businesses or wealth instead they just view themselves as custodians of such and terming them as Gods properties (Muhammad Ali, 2017). This, therefore, makes it hard for them to sell properties or transact with people that do not believe in their ideologies. Interest in Islamic countries is prohibited and therefore when drafting business agreements it should be done with a careful selection of words, therefore, avoiding inclusion of interest in places of fair profits by the parties involved in the business. This, therefore, means that the internal business logistics and the manner in which Islamic countries conduct their international business may differ and therefore calling for careful consideration and development of policies altering some issues that are not allowed in the Islamic state.
Mariah J. Brown (2015). How Can Cultural Differences Affect Business Communication? Retrieved from http://smallbusiness.chron.com/can-cultural-differences-affect-business-communication-5093.html
Mohamed Ali (2015). Impact of culture on international Business. Retrieved from https://www.linkedin.com/pulse/impact-culture-international-business-ali-muhammad-mba-acca-uk-