This chapter examines the dynamics of culture and its effect upon international business operations and strategy. In today’s volatile and uncertain global business environment, nimble and adaptable organizations are the ones that thrive. Of the various environments stated above, the social and cultural environment has the greatest impact on the policies and performance of all business firms. Environmental factors can be explained as identifiable elements within the cultural, economic, demographic, physical, technological or political environment which impacts the growth, operations and survival of an organization. Impact of culture on international business: A business cannot simply rely on its current method of conducting business when it decides to take its business at international level. 5. Differences in negotiating styles. Environmental factors can be both internal as well external for the business. However cultural differences present significant barriers between Chinese and western partners. The Impact of Cultural Diversity in the Workplace ... having an unwelcoming work environment. The beliefs, values and norms of a society determine how individuals and organisations should be inter-related. Culture refers to the influence of religious, family, educational, and social systems on people, how they live their lives, and the choices they make. These differences are basically informed by the environment of the host country, which is often times different from that at home. The Effects of Strong Company Culture. Culture influences the way people behave, communicate and think. This environment poses a serious challenge to the business, and the business managers while formulating business strategies and policies should give due weight to this pivotal factor. While exploring the causes of cultural differences, rigidities, and changes, it focuses upon the impact of cultural traditions on business activities, as well as the mutually satisfactory reconciliation of cultural differences. Let’s highlight some important key areas one may encounter while doing business in China. A strong culture positively impacts your business in more ways than one. A company with cultural and cognitive diversity can be quicker to spot a gap in the market. Attract and keep top talent. Marketing always exists in an environment shaped by culture. Doing business on the international plane presents many challenges because of a variety of factors which differ from one market to the other. The Immense Impact of Culture in Global Marketing. These characteristics are reflected in the way they negotiate. Socio-cultural environment consists of factors related to human relationships and the impact of social attitudes and cultural values on the business of the organization. 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