The document discusses cross-cultural practices at select multinational companies (MNCs). It provides examples of how companies like Starbucks, Nestle, Coca-Cola, BMW and IKEA adapt their strategies to different cultural contexts. For instance, it notes that Starbucks in China offers Chinese teas and mooncakes in addition to coffee drinks. It also discusses Nestle's emphasis on cultural diversity and inclusion. BMW provides cultural engagement through various projects worldwide. IKEA customizes its products, stores and services for markets like India and China.
The document discusses cross-cultural practices at select multinational companies (MNCs). It provides examples of how companies like Starbucks, Nestle, Coca-Cola, BMW and IKEA adapt their strategies to different cultural contexts. For instance, it notes that Starbucks in China offers Chinese teas and mooncakes in addition to coffee drinks. It also discusses Nestle's emphasis on cultural diversity and inclusion. BMW provides cultural engagement through various projects worldwide. IKEA customizes its products, stores and services for markets like India and China.
The document discusses cross-cultural practices at select multinational companies (MNCs). It provides examples of how companies like Starbucks, Nestle, Coca-Cola, BMW and IKEA adapt their strategies to different cultural contexts. For instance, it notes that Starbucks in China offers Chinese teas and mooncakes in addition to coffee drinks. It also discusses Nestle's emphasis on cultural diversity and inclusion. BMW provides cultural engagement through various projects worldwide. IKEA customizes its products, stores and services for markets like India and China.
The document discusses cross-cultural practices at select multinational companies (MNCs). It provides examples of how companies like Starbucks, Nestle, Coca-Cola, BMW and IKEA adapt their strategies to different cultural contexts. For instance, it notes that Starbucks in China offers Chinese teas and mooncakes in addition to coffee drinks. It also discusses Nestle's emphasis on cultural diversity and inclusion. BMW provides cultural engagement through various projects worldwide. IKEA customizes its products, stores and services for markets like India and China.
(How power is distributed within people) Individualism Indicates Less Bonding Indicates More (How people connected Bonding with community)
Hofstede Model Masculinity
(How roles of men & Men work hard than women Work is equally distributed women distributed) Uncertainty Indicates Less Freedom Indicates More (Degree of anxiety Freedom people feels in unknown situation) Long Term Orientation Men and Parents have Everyone treated (How you value your more request than equally. tradition) women and young. Starbucks • In China: Positioned stores in high traffic and visible locations Coffee shops here are a destination Products offered range from Chinese teas to mooncakes Best selling beverage is “Strawberry Cheescake Frapuchino” Management makes an effort to know employees families Cultural diversity and inclusion is an integral part of Nestlé’s culture. Nestle hasover 300,000 employees around the world, made up of more than 150 nationalities. Cross cultural communication
• Benefiting From A Multicultural Top Management Team
• Giving Written Instructions to its subsidiaries • Encouraging Interaction • Formal Versus Informal Negotiation Styles • Different cultures' expectations can differ radically about the formality of the negotiation process. For instance, if an Nestle company called a Japanese negotiator by his first name at a first meeting, the Japanese businessperson would be offended. In the Nestle company, a person's first name is often used as a sign of friendliness. • A formal style of negotiation includes using a person's titles and refraining from conversation directed toward a person's family or private life.
Cross cultural negotiation
CROSS CULTURE DECISION MAKING • DUBAI • Coca-Cola created a Hello Happiness Phone Booth in the Dubai Labour camps. • This campaign was started to show human compassion towards these labours. CHINA • Logo color was changed to adopt to the Chinese festival color to signify a sense of belonging. • Packaging was integrated with the Chinese culture to create brand recognition. • Coca-Cola pays more attention to the cultural background. The ads created in China were made keeping in mind people’s desire for Auspicious, jollification and family psychologically. USA South Korea • The commercial featured actors • Young mom bloggers were reached singing the Patriotic tune “America the out to the target South Korean Beautiful” in 7 languages, these market. targets the diverse American population. Founded in 1916, Bavarian Motor Works, also known as BMW, is a German luxury automobile, motorcycle and engine manufacturing company. They are also the makers of fine vehicles such as the Mini Coopers and Rolls-Royce.
With over 100 projects worldwide, BMW Group cultural
commitment has been an essential part of corporate communications for over 40 years now
Social commitment is a major concern of the BMW Group.
There is no doubt that cultural engagement is part of the BMW Group. BMW-No Spare Tyre BMW launched it’s car in India with the run flat tyre technology (RFT). The RFT tyre are stiff and not very suitable for the Indian roads.
But it fails to add a spare tyre in the
car, popularly known as the stephany which is very important for the Indian roads.
Indian regulations have made it
mandatory for every manufacturer to provide spare wheels with cars they sell in India. BMW-No Spare Tyre BMW has started selling a So, the spare wheel ends Plus, the boot design of spare wheel now at their up occupying a lot of boot BMW does not have a nearest retail stores, but it space leaving very little for wheel well. has to be paid for. the actual use. IKEA
INDIA • Ikea’s first store opened in Hyderabad has setup its first ever in-house assembly team due to the “do-it- for-me” culture prevalent in India. • Ikea also opened a restaurant and café inside the store to woo the Indian customers. • The products are specially designed to cater to the Indian market. E.g.- Firm mattresses are offered in India. • Ikea’s Mumbai store will be quite small to reflect the city’s apartment sizes. IKEA CHINA • Ikea faced a cultural clash in China. Chinese people are not very reluctant to changes. They respect their tradition a lot and are very family oriented. • China made changes in their product range. E.g. Chinese are fond of balconies, so special model sets were made in the store. • Ikea stores in China are located close to the city centre. • Chinese consumers come to IKEA to buy Swedish products from IKEA in China, not from a Chinese IKEA. • Chinese people want to “show off ” that they are better off than others, and richness, money is one of the ways that measure the success. THANK YOU
