UNDERSTANDING THE INTERNATIONAL MARKET IN WHICH BUSINESSES OPERATE
Multinational organizations are required to focus towards analyzing the market before entering and accordingly the strategies are to be adopted so that the key goal is to ensure the business expansion. As every market has its separate customer base having its needs and interest and accordingly the products and services are to be developed and to be served so that the organization’s strategic position can be established and further can be retained within the industry.
IMPLICATIONS OF CULTURAL AND REGULATORY DIVERSITY IN INTERNATIONAL MARKETS
Cultural and regulatory diversity are the key factors that have a great impact on the organization’s operation within the international market. Focusing towards the cultural aspect it can be analyzed that the culture within the nation contributes towards the communication practices, the managerial approach as well as the product offered. As depending upon the cultural impact, the communication plans are to be developed through which the customers can be attracted and the internal effectiveness can be retained. As in the diverse work environment or industry, it is required that a cross-cultural approach can be adopted and further be promoted so that the organizational effectiveness can be ensured.
Such cultural diversity also has an impact on the workplace etiquettes and the operational practices, as in some culture employees may be strict with their time and accordingly, the practices within the organization are also required to be executed in the specified time otherwise it may have a negative impact over the employee satisfaction, whereas there are certain cultures in which more preference is given to work quality and the analysis rather than the time, therefore, depending upon such attitude the work will be performed.
Similar to cultural diversity, regulatory diversity also has a great impact on organizations operating in the international market. As such regulations may be related to a trade of specific products or services or in respect to the industry expansion and further growth. As it can be analyzed with the increasing threat of climate change, the governments are implementing regulatory policies in order to utilize the renewable sources of energy, however, certain nations have a loose hold over such regulations, whereas some are strict about such environmental policies, therefore, accordingly it is required that the regulatory practices or policies are being analyzed and being adopted within the organization so that the business goals and objectives can be achieved.