Assignment Cover Sheet

Qualification Module Number and Title

BM5156: Cultural Aspect of International

HD in Business Management
Business

Student Name & No. Assessor

Name: M H M ADHIL
Student No: KD/HDBM/59/23

Handout date Submission Date

TBA 28/12/2021

Assessment type Duration/Length of Weighting of Assessment

Assessment Type

Coursework Report (4500 words) 100 %

Learner declaration

I, …M H M ADHIL...certify that the work submitted for this assignment is my own and
research sources are fully acknowledged.

Marks Awarded

First assessor

IV marks

Agreed grade

Signature of the assessor: Date:

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FEEDBACK FORM

INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY

Progra HD in Business Management No of 1st Attempt ü 2nd Attempt

m Attempt (Original (Resubmission)
Submission)
BM5156
Unit No

Cultural Aspect of
Unit
International Business Assessment type & (Weight) Individual Report (100%)

Student M H M ADHIL
Assessors’ Name & Sig.
Name
Date of Evaluation

Task No
Task Assessors’ Feedback

Explain the key characteristics and

1 challenges of doing business in other
countries.
Explain the concept of Ethnocentrism and
2 how it will influence decision making in
international business
compare and contrast one country each from
3
Group A and Group B

Evaluate how culture can influence

international business negotiations and
4 suggest different cross-cultural negotiation
strategies that can be useful for business
executives
Analyse with appropriate realistic examples,
how verbal and non-verbal communication
5
differ cross cultures and how this will impact
on business activities across cultures
Identify the source of the conflict and
6 suggest how it could have been avoided or
minimized

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*Please note that the final result of an assessment is subject to Exam Board review. Above is
a constructive feedback only.

ACKNOWLEDGEMENT
In performing my assignment, it is a success I had to take help and guidance from some
respected persons. First, I’m grateful to my lord. Who gives me sound mind and sound health
to accomplish my assignment? And my special thanks to Mr. Subodha Perera, the lecture of
“cultural aspects of international business” of international college of business and
technology for making the subject interesting and giving a great support to make this report
successfully.

Also, I would like to thank my parents for gave me the valuable opportunity of building up
my future.

Further thanks to my colleagues who have been sharing knowledge and helping each other to
clear any doubts.

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 ABSTRACT

This individual report is based on cultural aspects of international business, which consists in
evolving set of collective beliefs, values and attitudes. This report will also assess the major
elements of culture are material culture, language, aesthetics, education, religion, attitudes
and values and social organization. This report derives from an in-depth study, personal
knowledge and some research has been done in order to explore more details on the selected
organization.

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Table of Contents
ACKNOWLEDGEMENT.........................................................................................................3

ABSTRACT...............................................................................................................................4

INTRODUCTION......................................................................................................................6

TASK 1......................................................................................................................................7

TASK 2....................................................................................................................................10

TASK 3....................................................................................................................................11

INDIA..................................................................................................................................11

ITALY..................................................................................................................................14

TASK 4....................................................................................................................................16

TASK 5....................................................................................................................................19

References................................................................................................................................22

Figure 1 INDIA / ITALY.......................................................................................................11

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 INTRODUCTION

I am the managing director of JANET AYURVEDICS. As a plan of the growth strategy, I am

planning on selling our products in overseas markets. I have to put together a team of
business promotions managers in order to implement the plan to market our products
overseas.

But first I am thinking of arranging a training camp on cultural aspects of international

business to guide them on some key challenges on doing business in other countries.

Janet Ayurvedics (Pvt) Ltd is the pioneer in the manufacture of Ayurveda beauty and
personal care in Sri Lanka. Since 1961, we have been producing natural skin and hair care
preparations on a small scale.

Five years later, the Janet Ayurveda – Health & Skin Care Range comprising of nearly 50
different herbal and Ayurvedic preparations for skin, hair and body care; was launched
nationally. In a short period of six months from launch, sales of this range achieved market
leadership status in Sri Lanka’s herbal beauty care market. (anon, n.d.)

We look to the future with confidence. As the world return to the east to re-discover the
wonders of centuries-old natural therapies, Janet Ayurveda is poised to offer discerning
global consumers safe, effective, nature-based product alternatives to enrich the quality of
life… Naturally.

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 TASK 1
International business can be defined as the production and sale of goods and services
between countries. There are several ways a business can be international:

 It produces goods domestically and sells both domestically and internationally.

 It produces goods in a different country but sells domestically.
 It produces goods in a different country and sells both domestically and
internationally.

Due to lower labor costs or taxes businesses produce goods overseas, and they sell products
and services in the global market because of the high potential for larger audience, new
customers, and increased revenue.

According to Reinhardt “Although international business is extremely exciting, it can also be

risky,” (Reinhardt, 2015)

Since every country has its own government, policies, laws, cultures, languages, currency,
time zones, and inflation rate, navigating the global business landscape can be difficult.
Following are few common challenges to consider;

1. Language Barriers

When engaging in international business, it is important to consider the languages spoken in

the countries to which you’re looking to expand.

According to our brand “JANET” is considered to give a feminine touch. When entering the
international market we should not forget to translate and change our packaging information
to match the specific country that we export to, which will make it easier for the international
people to understand and identify the products.

It’s also critical to consider the languages spoken by our company’s team members based in
international offices. However, investing in translators can help ensure our business continues
to operate smoothly.

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 2. Cultural Differences

Just as each country has its own makeup of languages, each also has its own specific culture
or blend of cultures. Culture consists of the holidays, arts, traditions, foods, and social norms
followed by a specific group of people. It’s important and enriching to learn about the
cultures of countries where you’ll be doing business.

When managing teams in offices abroad, selling products to an international retailer or

potential client, or running an overseas production facility, demonstrating that we’ve taken
the time to understand their cultures can project the respect and emotional intelligence
necessary to conduct business successfully.

3. Managing Global Teams

Another challenge of international business is managing employees who live all over the
world. When trying to function as a team, it can be difficult to account for language barriers,
cultural differences, time zones, and varying levels of technology access and reliance.

To build and maintain a strong working relationship with our global team, we have to
facilitate regular check-ins, preferably using a video conferencing platform so I can interact
in real time.

Research by Gallup shows that employees who have regular check-ins with their managers
are three times more likely to be engaged at work than employees who don’t.

When distance divides teams, as it has for many during the coronavirus (COVID-19)
pandemic, communication is key to ensuring everyone feels valued and engaged.

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 4. Currency Exchange and Inflation Rates

The value of a dollar in our country won’t always equal the same amount in other countries’
currency, nor will the value of currency consistently be worth the same amount of goods and
services.

Getting to know the currency exchange rates between our country and those where we plan to
do business. The exchange rate is the relative value between two nation’s currencies.

It’s also important to monitor inflation rates, which are the rates that general price levels in an
economy increase year over year, expressed as a percentage. Inflation rates vary across
countries and can impact materials and labor costs, as well as product pricing.

Understanding and closely following these two rates can provide important information about
the value of our company’s product in various locations over time.

5. Nuances of Foreign Politics, Policy, and Relations

Business is influenced by politics, policies, laws, and relationships between countries.

Because those relationships can be extremely nuanced, it’s important that we closely follow
news related to countries where you do business.

The decisions made by political leaders can impact taxes, labor laws, raw material costs,
transportation infrastructure, educational systems, and more.

It’s both exciting and intimidating that the nuances of international politics, policies, and
relations can impact our business. We have to stay informed and make strategic decisions as
new information arises. (catherine, 2020)

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 TASK 2
Ethnocentrism can be defined as thinking one's own group's ways are superior to others or
judging other groups as inferior to one's own.

An ethnocentric person judges everything based on his predefined values and compares
others way of life, language, culture, and group with their own. It often leads to self-pride and
prejudice toward outsiders and has been known to lead to contempt for others. Ethnocentrism
can harm a company when it results in a failure to understand the views of your customers or

Ethnocentrism has many functions. In business, it has many implications. Ethnocentrism may
be applied to products and services from other countries.

For instance, if a consumer group is highly ethnocentric, they would prefer to buy domestic
products to international or multinational product. Or they may prefer to buy products from
the country which have the same or similar ethnocentric attributes.

It can cause problems for a company when going abroad. Just as it allows domestic
companies to protect their markets, it can prevent a company from entering a foreign market.

For example, a Sri Lankan company will have difficulties entering a foreign country if the
country is highly ethnocentric itself.

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 TASK 3

Figure 1 INDIA / ITALY

Group A

INDIA

1. POWER DISTANCE

The concept of Power Distance refers to the extent to which members of various institutions
and organizations in a country accept and expect that the distribution of power is unequal.

The Power Distance score of India is 77 out of 100. This indicates that its members value the
top-down structure of society and institutions. The words and phrases used to describe Indian
attitudes can be divided into two categories: dependent on the power holder and the un-equal
rights of those below him or her in the hierarchy. On the other hand, a paternalistic leader
who values loyalty from his or her employees would give reasons for the work life and
rewards that an employee receives. Even though power may not seem centralized, managers
rely on their team members' obedience. Employees also expect clear instructions and the
ability to perform their duties. Even if one is on a first name basis, their attitude towards
managers is formal. Feedback that is negative is rarely offered up the ladder as
communication is top-down and direct.

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 2. INDUVIDUALISM

This concept revolves around the degree to which a society maintains its members'
interdependence. The concept is related to how people's self-image is defined. In individualist
societies, people are expected to look after themselves, while in collectivist societies people
are expected to take care of others.

In India, the concept of collectivist traits is considered to be a significant factor in the

development of society. This is because individuals are more likely to adopt a larger social
framework that encourages them to act in the best interests of their fellow citizens.
Individuals' actions are influenced by various factors, such as their family, friends, extended
family, and work group. For collectivists, being rejected by their peers or being regarded as a
poor person by their immediate in-groups can leave them with a feeling of intense emptiness.
The relationship between an employer and an employee is also considered to be a key factor
in the development of a collectivist society. This is because the employee's loyalty and the
employer's protection are often the factors that influence the decisions that are made in the
organization.

Hinduism, which is a dominant religion in India, is also considered to be a major factor in the
development of society's Individualist aspect. In this religion, people are expected to lead
their lives in a way that is consistent with their beliefs. This means that their actions and
decisions will have a significant impact on their future. The development of individualism in
India is also linked to the country's collectivist tendencies.

3. MASCULINITY

The Masculinity dimension indicates that society is driven by competition and achievement.
This concept also states that success is defined by the winner or the best in the field.

The low score on the dimension indicates that society values the importance of caring for
others and the quality of life. This is a negative sign for a feminine society, as it means that
people are not able to stand out from the crowd. The fundamental issue is what drives people
to want to be the best or what they like to do.

Masculinity is considered a prevalent concept in India, as it is a country that values the

importance of power and visual display of success. This is evidenced by the use of designer

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labels and the advertising that goes with it. However, it is also a spiritual nation with
numerous religious beliefs. One of the oldest continuously surviving cultures in the world,
this country has plenty of lessons to teach its people about the importance of being humble
and abstinence. This is typically the case in Masculinity-oriented societies, where the focus is
on achievements and success. The presence of success symbols in the workplace is very
important to people.

4. UNCERTAINITY AVOIANCE

The concept of uncertainty avoidance refers to the way people deal with the uncertainty
surrounding the future by asking themselves if they should try to control it or let it happen.
This ambiguity can trigger anxiety and various cultures have their own ways of dealing with
it. The extent to which members of a culture have created institutions and beliefs that try to
avoid situations that are ambiguous is also reflected in the score.

The concept of uncertainty avoidance is considered a medium-low priority in India, as the

country tends to accept imperfection. There is also a high tolerance for the unexpected, which
is a welcome break from the monotonous routine. Most people do not feel driven to take
action-initiatives or make changes to their routines or actions. They are more likely to settle
into their existing routines and rolls without being questioned. Rules are often put in place to
be circumvented, and people often rely on innovative methods to bypass the system. The
word "adjust" is used to describe various actions, such as turning a blind eye to situations that
are not being handled properly or coming up with a new solution that is more effective. This
attitude is considered to be both the cause of distress and the most empowering aspect in the
country. There's a saying in India that says "Nothing is impossible," so long as one can
"adjust".

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Group B

ITALY
1. POWER DISTANCE

In Northern Italy, the desire for autonomy and equality is strong. On the other hand, the
younger generation is more likely to dislike formal supervision and control. This is because
they prefer to work with others and manage their projects in an open manner. The high score
on individualism also highlights the aversion to being controlled.

2. INDUVIDUALISM

In Italy, the word "me" is associated with the individualist culture, which is centered around
the idea that people can feel alone in the middle of a busy crowd. This is why it is important
that people have friends and family around them. However, the word "friend" in business is
used to refer to people who are close to you and can be helpful in introducing you to powerful
individuals.

Being able to have your own goals and ideas in life is very important in Italy, as it allows
people to achieve their personal fulfillment. However, in Southern Italy, the individualist
culture is not as prevalent. There, social aspects such as family networks and rituals are more
important.

According to people who moved from Southern Italy into the North, they felt colder due to
the less warm relationships they had with their new acquaintances.

3. MASCULINITY

The Masculinity dimension indicates that society is driven by competition and achievement.
It also values the winner and the best in the field.

The concept of a low score (Feminine) is that society values the quality of life and caring for
others. This is a negative sign because it suggests that people are not satisfied with life and
are not willing to stand out from the crowd. The fundamental issue is what drives people, and
what motivates them.

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At 70, Italy is a Masculinity society that values the winner and is driven by success. Children
are taught that competition is important in life. The country's citizens display their
achievements by acquiring various status symbols such as expensive cars and a large house.
Competition among colleagues is also strong as every Italian is expected to reach his or her
professional goals.

4. UNCERTAINITY AVOIANCE

The uncertainty avoidance score of Italy is 75, which indicates that its citizens are not used to
dealing with situations that are ambiguous. In addition, it’s civil and penal codes are complex
and formal. This is surprising for foreigners as they often see Italians not following the
procedures and norms of the country.

In a bureaucratic country, one learns quickly which the important ones are and which are not.
This process can lead to a lot of planning. For Italians, the low Uncertainty Avoidance
strategy can be very stressful.

Life in Italy is very stressful due to the high Masculinity and Uncertainty Avoidance levels.
To relieve some of the tension, Italians need to have a good and relaxing day. They can also
spend their time enjoying long meals and coffee breaks. Since they have a high Masculinity
score, they tend to be passionate about their emotions. They can't keep them inside and must
use body language to express their feelings.

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 TASK 4
Today's culture is complex and hard to understand. In Western languages, the word "culture"
is often used to refer to refinement. However, in today's context, the word is used to describe
a group of people's beliefs and values. The norms and behavior patterns of a group are
included in this analysis. It takes into account the various assumptions, rules, and logic that
are specific to that group. Each of us is exposed to a belief system that has a tremendous
influence on our individual perspectives.

Today, professionals tend to think that cultural differences aren't as significant as they once
were. It's also a common mistake to think that people automatically think alike because
they're wearing the same clothes.

In today's global economy, cultural differences still exist. They have a significant impact on
how people conduct business. Some of the factors that influence how people do their jobs
include the pace of their work, the way they communicate, and the decisions they make.

Many people around the world still think that business is mainly about making money and
core principles. They also assume that cultural differences don't matter. In reality, these
issues can have a huge impact on how people interact with one another and how they conduct
business.

Cultural differences can affect how people communicate and how they conduct business. For
instance, when you're dealing with individuals from another culture, you might notice that
their management style, communication, and business practices are different from what
you're used to. Understanding the people's culture is very important in order to successfully
conduct business.

The concept of customs and manners refers to collective and individual traditions, habits, and
fashion. It's a type of behavioral pattern that's observed in a specific area for a long period of
time. Since custom is formed from history, it has a strong social impact. In addition to being a
part of law and morality, it also serves as the foundation of various social practices, such as
holiday customs and national customs. Each country has its unique customs and etiquette,
and these are not easily changed.

Thinking patterns are used to describe various forms of reasoning and solutions to problems.
Thinking patterns can vary from culture to culture, and in some cultures, a reasonable

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argument is regarded as unintelligible or illogical. Since people have their own unique ways
of thinking, they have different negotiating strategies.

Before conducting business with people from different cultures, it's important that you first
put aside your preconceived notions. This will allow you to get to know the other person's
culture.

Understanding the cultural differences of different countries can help you sell to different
markets in your home country or expand your reach into other countries. It can also affect
how you conduct business and how you communicate with one another.

Cultural understanding can affect your ability to conduct business successfully in a local
market, establish and maintain relationships, negotiate deals, conduct sales, and engage in
advertising and marketing campaigns. People tend to get tangled up in the web of cultural
differences because of the incorrect signals they receive or send.

Understanding the history and politics of a region or country where you work or with whom
you plan to deal is very important. It is also crucial to remember that each person has their
own perspective on the world and their own sphere of influence. We often ignore the impact
of cultural differences, which can have a lasting impact on our lives.

In order to handle and reduce Cultural Differences;

1. Learn the other side’s culture

It is very important that we know the culture of our counterparty. This is a vital part of
building trust and credibility, and it can help us choose the right tactics and strategies during
a negotiation.

2. Don’t stereotype

Making assumptions can create barriers and distrust between people. We tend to be cautious
and reserved when it comes to other people.

3. Find ways to bridge the culture gap

Adopting the culture of the other side can help us adjust to the environment and situation. We
can also try to influence the other party to adopt our own culture.

4. Establishing Cross-Cultural Awareness

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Cultural differences are exhibited in four different ways. These include concepts of values,
customs, negotiation styles, and ways of thinking. If negotiators fail to recognize these
differences when negotiating, they might cause problems and risks during the course of
international business transactions.

Following are three steps for more effective and more profitable cross-cultural negotiations;

1. UNDERSTAND YOUR BLIND SPOTS

When it comes to negotiation, everyone has their own cultural expectations and biases. These
can lead to tension and create a negative environment that can affect the entire discussion.

It’s important to prepare for cross-cultural interactions, as some people tend to behave poorly
in these situations. For instance, some people tend to talk faster when they feel that they are
not being understood properly. Having this in mind can help you avoid potential issues before
you even start negotiating.

2. IDENTIFY THE CULTURAL GAPS

Before you start to think about the challenges that you're likely to encounter when dealing
with another party, it’s important that you first think about the cultural values of the other
party. These values will likely influence how they will approach your negotiation.

It’s important to identify the gaps between your own values and those of the other party. This
will help avoid misunderstandings and make sure that both parties are on the same page.

3. ADJUST AND REFINE YOUR NEGOTIATION STRATEGY

After identifying the areas of potential conflict between you and the other person, you’ll want
to work on developing a strategy to close these gaps. This will involve coming up with a set
of values that are related to the needs of both parties.

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 TASK 5
The concept of communication refers to the ability of people to communicate with one
another. It is a vital aspect of human interaction. Due to the technological advancements that
have occurred in the field of communication, intercultural communication has become more
prevalent.

One of the most common forms of communication is verbal communication, which involves
sharing thoughts or information orally. According to Hopkins, body language is used by
around 75% of the people in the world for information transmission. Even though written
communication is commonly practiced, verbal communication is still considered the most
natural and effective method of communication.

Despite the advantages of modern communication methods, such as the use of emails, it is
still not enough to completely replace verbal communication. People still prefer to use
traditional methods, such as the use of telephones and one-to-one meetings.

Non-verbal and verbal communication are very important in international communication, as

they can help people from different cultures exchange ideas and thoughts. Although written
communication is commonly used, it cannot completely replace oral communication.

Verbal communication allows people to receive direct feedback, while non-verbal

communication provides subtle messages that can't be expressed verbally. In certain contexts,
such as in lecture rooms, teachers and lecturers need to use verbal communication in order to
explain concepts. Intercultural communication is therefore necessary to ensure that the
various cultures are able to communicate effectively.

According to Gallup, an organization's success is greatly affected by effective nonverbal and

verbal communication. In business negotiations, cultural differences can make it difficult for
businesspeople from different backgrounds to communicate effectively. This is why it is
important for them to develop their non-verbal and verbal communication skills. (Gupta,
1998, p. 107)

In business negotiations, body language interpretation is also important. It can lead to

miscommunication if the messages are not interpreted properly.

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Besides business negotiations, multicultural workplaces are also becoming more prevalent.
Effective non-verbal communication and verbal communication are therefore very important
for workers from different backgrounds to work together seamlessly.

In addition to cultural differences, various factors such as language barriers can also make it
difficult for people from different backgrounds to communicate effectively.

Communication is a type of interaction between two or more people that involves the
exchange of ideas or opinions. It requires that the receiver be able to interpret the message
and make the appropriate response.

Despite the importance of communication, cultural differences can still make it hard for
individuals from different backgrounds to effectively communicate. For instance, in some
cultures, people use different methods of communication.

In some cultures, people from different backgrounds use different accents, language, and
words when communicating. They may also produce distinct sounds when speaking or using
certain words. According to Wierzbicka, a 2010 article, words can have varying meanings
depending on how they are used.

People from varying cultural backgrounds construct sentences differently, even when using
English as the medium. The meaning of words can also vary depending on one's culture. For
instance, the words "no" and "yes" have varying meanings in different cultures.

In terms of tone, pace, and usage of silence, cultural backgrounds can also affect how they
are used. In some cultures, silence is regarded as a form of communication, but others may
interpret it as weakness.

The pace and tone of verbal communication can also affect how effectively people from
different backgrounds can communicate. For instance in Korean and Chinese cultures, the use
of implied messages is commonly used. (Balsmeier, & Heck, 1994, p. 124).

Cultural differences regarding the usage of body language can also make it hard for people
from different backgrounds to communicate effectively. For instance, in some cultures,
people use different gestures and facial expressions.

There is a significant difference between people from different backgrounds and cultures
when it comes to the use of gestures. Miscommunication can occur because of the

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interpretations of gestures. Cultural differences also influence the way people use space and
contacts.

Being able to understand the non-verbal communication of people from different

backgrounds can promote intercultural understanding.

Being able to improve the communication between people from different cultures is also very
important in order to promote intercultural understanding.

An intercultural training course can help individuals learn about various cultures and improve
their ability to interact with others. It can also assist them in interpreting or communicating
messages in the context of other people.

Through intercultural training, individuals from different backgrounds can also improve their
non-verbal communication skills in order to promote effective communication. Having the
necessary language skills is very important in order to ensure that communication is effective.

In order to conclude, Due to globalization, people interacting with each other from different
cultures have increased. Effective non-verbal and verbal communication is very important for
these interactions. Verbal communication should be quick and clear to make it appropriate for
negotiation and discussion. In a cross-cultural setting, effective communication is required.
Learning and training in intercultural language can help improve it.

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 References
anon, n.d. Janet Ayurveda. [Online]
Available at: https://janet.lk/

catherine, c., 2020. Harvard business school. [Online]

Available at: https://online.hbs.edu/blog/post/challenges-of-international-business
[Accessed 24 11 2020].

Reinhardt, F., 2015. Harvard Business School Online. [Online]

Available at: https://online.hbs.edu/courses/global-business/
[Accessed 2015].

Balsmeier, P. & Heck, A. 1994. Cross-cultural communication. Cross Cultural MaCross-

cultural 2.

Gupta, N. 1998. Cross cultural communication: global perspective. Concept Publishing

Company, New Delhi.

Hopkins, L. 2010. Non-verbal communication-An overview. Web.

Knott, C. 2009. Improving Non-verbal Communication with Cross-cultural cultural exercises.

Web.

LeBaron, M. 2003. Cross-cultural communication. Web.

Liamputtong, P. 2010. Performing Qualitative Cross-cultural Research. Cambridge

University Press, Cambridge.

Novinger, T. 2001. Intercultural communication: a practical guide. University of Texas Press,

Austin.

Wierzbicka, A. 2010. Cross-cultural communication and miscommunication: The role of

cultural keywords. Intercultural Pragmatics. Vol. 7 No.1 pp. 1-23.

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