Importance of Understanding Culture in International Business

As described by the famous author Edgar Schein, the culture in reference to the corporate world is the different corporation’s learning that is developed by different discoveries, invention and the development for handling the internal and the external issue effectively. These learning and development should be successful enough to be passed and taught to the coming and joining employees for handling such affairs in the future. He also remarked the famous quote, “the culture has a same meaning to the group what personality has to with individual”. Also it is well understood in the current era of global market that a successful multinational company has to have an in-depth knowledge of the environment and the different cultural background of the different countries and regions in which it is operating to have a considerable amount of success.

Importance of Understanding Culture in International Business

For any of the successful MNC, it is very essential to understand the different cultural distinctions between the different cultures. The selling of same kinds of products in the markets that are entirely different in terms of their cultural backgrounds has always proven to be quite a tough task. Also, the product or services should not violate any rule or regulation based on the culture of the country it is operating. The promotional campaigns and the mode of the advertisements also should be designed according to the cultural background of the region it is going to be launched or shown. If these things is not taken into the marketing strategy, the product which had been very much successful in one country, may even fail in the other. The local branding strategies, management of the human resources, etc all should be decided and implemented while taking into account the cultural distinctions on whose basis its applicability and the feasibility has to be decided. The same reward schemes, motivational methods, desired working environments, etc also cannot be the same for different employees working for the company in the different nations and thus it also needs the understanding of different aspects of the impacts of the cultural differences. For good relationship of foreign supervisor with its subordinate local employees, the cultural understanding of both becomes an essential object. When it comes to the market, the customers with entirely different cultures have a different perspective of looking the product and deciding its feasibility for them which depends upon their general mindset, price tags, quality and features required as per the natural climate, and its importance for them as an individual.

Case Study of L’Oreal: Dealing With Different Cultures

As a world leader in the field of cosmetics and beauty industries, the L’Oreal group is always up with the blend of beauty with the design of products by intense research in science and technology with a tinge of innovations. The company has been selling its products to the men and women to more than 130 countries based on different cultures, different mindsets and with the different perceptions to evaluate its products. For surviving in these diversities, the company has to take innovation and quality management as one of its major requirement for its product manufactured. The company sells the most advanced product in each and every country it is serving independent of any culture it has to serve. Being present in any country the company always gives the credits to its employees to build the L’Oreal a leader in the beauty and cosmetic industry of the country by their unequal and unparallel talent and ambition in doing so. As described above the company has opened its subsidiaries and research centers factories etc all around the globe with the vision of having some standardized ethics and principles along with scope of flexibility to adopt the different cultures for its employees and customers to maintain its brand value at the international level. The four different cultures that can be taken under the consideration can be that of USA, India, Canada and China which can describe how well the company has been successful in dealing up with the cultures which were entirely different in many perspectives.

The L’Oreal USA which is based in New York has worked successfully well to sell its products mainly related to hair color, hair care, skin care, skin care, fragrances and the color cosmetics in the consumer and the professional markets. The major causes of the success of the company had been its progressive research and development of the new and innovative products, high amount of the dedication shown by its employees and the well distributed marketing of its products. The company also did some success providing acquisitions for example that of the Maybelline, Soft Sheen, matrix, etc. The L’Oreal group in the country of India succeeded with its objective of focusing all its energy and know-how of the Indian requirement which it used during the manufacturing of the products and then its selling through effective Indian style marketing strategies. The company provided the Indian men and the women with its all new and innovative products with latest advancements developed in its research and the development centers. The company gives the credit to its more than 600 employees who worked with all the devotions to build the L’Oreal India with all success in beauty and the cosmetic market in India. The L’Oreal China had entered into the Chinese market in 1996 with all efforts to provide the customers in China their desired cosmetic requirements but providing its key products of international quality and some especially made products suiting the Chinese skin, hair, etc. The company did very well in adopting the local marketing strategies by coming up with the products like that of whitening and the anti-aging creams, etc. The L’Oreal group performed extremely well in the country of Canada with same commitment of innovations, best quality products and its effective marketing and distribution. The company launched its 25 prestigious brands to overcome the high amount of beauty and cosmetic needs of the people of this country. There are 1200 employees working in L’Oreal Canada with the same dedication and devotion for the profits of the company.