MNC

Sr. Name of the Student Roll No.

1 Shivani Indulkar 68

2 Soha Chewale 62

3 Ajit Pawar

4 Akansha Joshi 60

5 Richardson 53

Socio – Cultural Factors in MNC’s

Introduction When thinking about the international business environment,

concerns over economic, political, cultural, technological and regulatory conditions of your target markets will always crop up.

The dynamics of the international business environment are driven by complex combinations of these factors.

As such, it is always important to consider the implications of country-specific investment climate when making operational and strategic decisions for a multinational corporation.

There are basic standards in every culture for social relations such as personal space distance, eye contact, body languages in public, negotiation, etc.

A simply American have eighteen inches apart when engaged in normal conversation, prefer direct eye contact , affectionate with body language and negotiate very directly.

In other cultures they may stand closer or further than we are comfortable, may view direct eye contact as rude, but be more or less open to displaying body language and negotiate more indirectly specially in Asian.

To clear, American males view assertive responses as appropriate social behavior, whereas Japanese males perceive nonassertive responses are socially appropriate.

Cross Culture Communication

The interaction of people from different backgrounds in the business world. Cross culture is a vital issue in international business, as the success of international trade depends upon the smooth interaction of employees from different cultures and regions.

A growing number of companies are consequently devoting substantial resources toward training their employees to interact effectively with those of companies in other cultures in an effort to foment a positive cross-cultural experience.

In an ever-expanding global economy, cross culture and adaptability will continue to be important factors in the business world.

Gestures & Body Movement

CULTURE

Americans Germans French

British Hispanics

Latin Americans Middle Easterners Asians

Koreans Arabs

HANDSHAKES

Firm Brusque, firm, repeated Light ,quick, not offered to

superiors, repeated Soft Moderate grasp, repeated

frequently. Firm, long lasting. Gentle, repeated frequently. Gentle: for some shaking hand

is unfamiliar and uncomfortable. Firm Gentle, kisses on both cheeks.

Advantages of Diverse Culture

Enhances Creativity, lead to better decision & results in more effective & productive performance.

Prevents Group Thinking. Social Conformity & Pressures on Individual members of Group to conform & reach Consensus.

Team can be effective in certain conditions like task requiring innovativeness

Helps in Team Development which in return helps in Achieving Ultimate Goal of the Organization.

Problems associated with diverse culture in

MNC’s Attitudinal Problems which may cause lack of cohesion that results in the unit’s inability to take concerted action or to be productive.

Perceptual Problems like when culturally diverse groups come together, they often bring pre-conceived erroneous stereotypes with them.

Inaccurate biases & Inaccurate communication within the group of the Organization.

Hits & Misses !Marketing internationally can be a tricky

thing. The most important aspect is to research possible meanings for your brand or logo in that country before releasing it into mainstream use. Advanced research is much less expensive than a complete brand recall.

COCA COLA – “To Refresh The World”

The Coca-Cola company is the world’s largest beverage company.

Coca-Cola currently offers nearly 400brands in over 200countries or territories and serves 1.5 billion serving each day.

Coca Cola in INDIA. ENTRY , EXIT & Re-ENTRY. Coca- Cola acquired most of the local

brands including Thums Up, Limca, Maaza, Citra and Gold Spot.

Over the last 22 years, ever since its re-entry in 1993, the company has gone on to establish an unmatched portfolio of beverages.

Coca-Cola with its partners is to invest USD 5 billion in its operations in India by 2020.

Mc Donaldization: Globally lovin’ it! McDonald's restaurants are found in 118

countries and territories around the world and serve 68 million customers each day.

McDonald's operates over 35,000 restaurants worldwide, employing more than 1.7 million people.

First India McDonald’s opened in 1996. Critics and Cultural challenges. Adapting and Innovating new Menu as per

tradition, acceptance and preferences with NO BEEF & PORK POLICY.

4 Reasons for McDonald’s success in India. McPRODUCT. McPRICE. McPROMOTION. McPACKAGING.

McDonald’s is the clear leader in cost, speed and consistency.

Heineken and Saudi Arabia

Heineken engaged in a special promotional campaign during the 1994 soccer World Cup.

They created a special beer bottle featuring all of the countries flags from the World Cup finalists.

One of the country’s flags featured on the bottle was Saudi Arabia.

Their flag features a religious verse from the Quran, Islam’s holy book.

After the bottles were released, Saudi Arabia and Muslims all over the world were outraged because their religious verse was affiliated with alcohol.

Subsequently ,the brewer had to recall all of the bottles and discontinue its promotion.

A simple cultural oversight led to considerable embarrassment and customer disappointment.

PEPSI in China

Revlon in Brazil Revlon, a leading U.S. cosmetics and fragrance brand once tried

to market flower-scented perfumes in Brazil. They faced disaster due to overlook the country's customs and

beliefs. Following the practices in Brazil, the Camellia flower is for

funeral purpose. Unconscious about this practice, Revlon launched a perfume

with the aroma of Camellia in the country. Overlooked, customs and beliefs. As this perfume received gloomy respond from the market as the

Camellia is only meant for funeral intention to the Brazilians. This perfume received gloomy respond from the market as the

Camellia is only meant for funeral intention to the Brazilians. Needed to recall back their product Spent extra time, effort and money. Moreover, their brand name has been infected by this incident as

they are being viewed as disrespecting the culture.

United Airlines and Asians

Gerber in Africa

Coors in Spain