DISCUSSION: CULTURE AND SOCIAL CONSIDERATIONS
GRADED DISCUSSION:
For this module you will complete a discussion summary based on research using concepts from 2 modules: Cultural Systems and Global Ethics and Business Practices modules. HINT: This assignment relates directly to the SOCIAL – S OF THE P.E.S.T. REPORT.
SCENARIO
You work for a pulp and paper manufacturing company. The company is considering global expansion to Latin America or Africa from both supply and product demand perspectives. Your boss has asked you to evaluate the regions for consideration.
Select a cultural assessment tool from the Cultural Systems module such as Klukhohn and Strodtbeck’s Value Dimensions, Hofstede Culture Continuum, Culture Crossing Guide, or World Business Culture. You are free to select the model you best like/understand. Assess and define 2 key cultural considerations for doing business in the two regions. The 2 considerations should be supported with specific measurements from the selected model.
Which countries would suggest further research and which countries would pose ethical and/or cultural challenges?
Should social / cultural considerations be a factor in determining where you set up operations?
Respond to at least 2 classmates posts by the Sunday due date. (3 sentences)
Classmate #1
When looking into the expansion of paper and pulp into Latin America there are 2 cultural considerations to look at. when looking into Latin America more specifically Brazil it can be seen that they have the 5th largest market opportunities in the world according to World Business Culture (Warburton, 2020). In Brazil they have an absolute advantage to the production of paper due to their large area of wooded areas giving them a low cost advantage in comparison to other countries. On the other hand in Africa Nigeria is stated to had the most “potential” to become a one of the strongest global economies according to World Business Culture. This is a vast difference in comparison to Brazil. The two countries are well built but both pose their own specific sets of issues. The most sound business decision would be to expand into Latin America. In Nigeria a lot of their common risks begin with the higher likelihood of cyber security risks as well as ” (the) risk-managers cite difficult macroeconomic conditions and market volatility as other obstacles to be aware of when considering to business in this part of Africa”(Warburton, 2020). It was also stated that Nigeria is somewhere that would be good in order to “establish export missions rather than early stage startup companies”(Warburton, 2020). In comparison to Brazil which still has its own separate issues it is shown that Brazil’s numerous problems stem more from their heavy government involvement in the Brazilian economy. some cultural differences that should be taken into account in latin America would be their want for close relationships this should not be a brief strictly business encounter in Brazilian culture it is considered rude to not nurture these relationships.
Classmate #2
When considering global expansion for pulp and paper manufacturing companies, Latin America is the best option, specifically Brazil. For a while now, Latin America has been favorable in the eyes of the market. Ever since, they have been known for their resourcefulness, creativity, and willingness to take risks. Two cultural considerations you want to pay attention to using Hofstede’s Culture Continuum are power distance and uncertainty avoidance, which are relatively high in Latin America. They have a different way of living, and some of the regions are still underdeveloped, so people aren’t used to big businesses and high-end retail. Brazil is a good example of a society that values hierarchy and accepts individual inequality in society. The fact that those in positions of power profit more than others in less powerful positions in society is supported by the unequal distribution of power. Respect for elders is highly valued in Brazil, where children look after their elderly parents. In businesses, there is one boss who bears ultimate accountability. To convey social standing and “communicate” potential respect, status symbols of authority are important. These cultures express the need to organize life through difficult legal systems and regulations. Yet there is no reason for an individual to follow these laws. But other regulations apply if the existing ones are broken. Like in many societies with high levels of uncertainty avoidance, Brazil places a high value on the government, laws, and regulations as a way of ensuring public safety. Brazilians require happy, carefree moments in their daily lives, whether they are mingling with coworkers, having a leisurely dinner, or dancing with visitors and friends. Brazilians have a high score in this category, which makes them very expressive and passionate people whose body language clearly expresses their feelings. There is no doubt that choosing a location for businesses should take social and cultural factors into account. Ignoring cultural preferences may result in misunderstandings, poor communication, and eventually failed businesses. A company’s chances of long-term success in the global market can be raised, connections with local stakeholders are likely to grow, and its reputation can be improved by paying attention to the cultural values and customs of the country.
