Scaling Up Your Global Business Culture: Understanding the Different Scales
Globalization has brought the world closer, and businesses now have access to a larger market than ever before. However, expanding globally comes with its set of challenges. One of the most significant challenges is scaling up your business culture to meet the needs of a diverse global market.
In this article, we will look at the different scales involved in business culture and how to navigate them efficiently.
The Local Scale
Any business that wants to go global must first understand the local culture they are working with. Your business culture should be in tune with the local values, beliefs, and expectations of the market you are targeting. This requires in-depth knowledge of the local customs, language, and business practices.
For instance, consider McDonald’s successful entry into the Indian market. In India, the cow is considered a sacred animal, and beef is not consumed. To cater to the local market, McDonald’s introduced a range of vegetarian options, including the McAloo Tikki Burger, that didn’t include beef.
Failure to adapt to the local market can have significant consequences. The most infamous example of cultural insensitivity is the failed attempt of Walmart to enter the German market. Walmart failed to understand the importance of local partnerships and the need for local decision-making, which resulted in their eventual withdrawal from the market.
The National Scale
Once your business culture has been adapted to the local market, the next scale to consider is the national scale. While local customs and business practices may vary, national culture is often homogenous. Understanding the national culture can help in creating relevant marketing campaigns and pricing structures.
Take Coca-Cola as an example. In many countries, Coca-Cola prices their products differently based on the local economic conditions. The pricing strategy is designed to build a sense of ‘fairness’ within the national culture.
However, being too narrowly focused on the national culture can result in a backlash from the global community. Pepsi, for instance, faced criticism when its ad featuring Kendall Jenner trivialized the Black Lives Matter movement that was of global significance. The backlash was intense globally and threatened to impact its standing in other markets.
The Global Scale
Finally, the global scale is concerned with how businesses operate on a global scale. This means having a global business culture that stays true to your values and respects the cultures of the markets you are operating in.
The key to creating a successful global business culture is to strike a balance between global homogeneity and local diversity. Starbucks, for instance, has a universal brand, but the individual stores are responsive to the local market. As a result, Starbucks can succeed in a diverse range of markets, including Japan, where cherry blossom latte is introduced seasonally.
Conclusion
Scaling up your business culture to meet the needs of the global market is not an easy task. However, by understanding the different scales of business culture – local, national, and global – you can identify the challenges and create a plan that works for your business.
By keeping in mind the local values and customs, national culture and diversity of the global market, businesses can succeed in the global arena. It’s essential to be proactive in creating a culture that works for all markets and does not compromise your values, regardless of where you operate.
