This discussion question is based on the following example How culture affects c

Question

This discussion question is based on the following example

How culture affects companies?

When German automakers began their expansion into the U.S. market, cup holders were not a feature of their products. In contrast, because many Americans spent significant time in their cars, ate in their cars, and so on, advertisements for American cars often boasted of the number of cup holders that were part of their design. The German companies had to shift their thinking from strictly performance-based cars, to ones that better fit the needs of Americans. Today, many automakers have shifted their focus to emerging markets and how they can best serve the customers in those markets.

2-a) Consider how different cultural dimensions might be reflected in the design of automobiles? How culture might affect the manufacturing side of the business? How does culture affect relationships with suppliers? With employees?

2-b) How marketing might differ across market?

Explanation / Answer

2.a) culture defines what an individual, organisation or country values, behaves or adopts in their lives, these cultural aspects have greater impact on the offerings of companies. In this case, German manufacturers are affected by the American culture related to facilities and design a car has. They prefer to have cup holders, because of their lifestyle habits, and German company needs to transform their culture to meet the cultural aspects of the country where they are operating. They manufacturing side of the business will be shifted from performance based cars to one that fits customer's need. There manufacturing unit needs to bring additional materials, new methods and equipments to bring about changes as per the required needs and demand in their cars. As they will be witnessing cultural change with new add ons in their operations. Cultural changes also affect the supplier, because they need to change their supply materials, as per the requirement, there policies will change and pricing also. Therefore, it is very important to maintain healthy business relationship with suppliers to have all the materials on time without any delays. Employees need to adjust the shift in culture, they will be provided with training to upgrade and improve their skills and capabilities to overcome any difficulty due to cultural change, they need motivation and counseling to help them adapt the change as soon as possible and bring the improved products with demanded facilities and design as per the common culture.

2.a) marketing strategies needed to be adopted based on the market demand and customer preference. Product with a unique design which is successful in one market area, cannot be guaranteed that it will be successful in other areas. Because, regional demand also impacts the product designs, facilities and value addition. Therefore, company needs to focus on cultural aspects, segmentation, and effective positioning to get larger market share. Based on segmentation it can decide what marketing tactics and strategies will make that particular product successful in that particular market. It will also help to change or upgrade features, design and facilities of a product and helps the organisation to stay competitive

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