International Business Arena
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There are many challenges that businesses organization must address especially to those firms that wish to establish more of their business in presence in international frontier. Some of the issues mentioned by the scholars revolve around culture and how understanding it can promote business or lack of it can cause a downfall of business. As confirmed by Stroh (2005), national cultures influence firms operating in the international business arena and must be factored into the strategic planning of a business to guarantee success. Needless to say, some of the cultures in some countries present ethical dilemmas to the business operating in such them.. However in such cases, it is important for a company to enforce ethical standards and refrain from engaging in act such as corruptions in any form.
The success of a business in an international level rests on the understanding of the culture of the host county. A firm often strives to conform to the culture of the host country in order to ensure that customers accept them and thus purchase their service or products. Ferrell and Pride (2008) believe that the culture of a host country affects how marketing is done as marketing efforts such as advertisement must reflect the culture. Culture also determines what is right or wrong in a given cultural environment. If the business firm does not take into account of culture, there is likelihood that the enterprise will incur losses from its operations. An illustration of this is Wall-Mart which failed to account for the German culture during its entry in Germany thereby suffering losses (Street & Matelski, 2008).
Despite the need to align business operation to culture of host countries, business organizations must not engage in international practices like corruption. Natarajan (2010) believes that corruption is unethical and hurts people and thereby causes outrage from the affected and this can be disastrous to any business growth at an international level and must be avoided at all coast in order to promote business interest on foreign nations.
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