Business Revitalization and Multicultural Environment
Business Revitalization and Market Viability Assessment
The company needs a Market Turnaround Plan to conquer the competitors. For that, the enterprise needs to have a turnaround management team in place. The team will accurately assess the situation; provide short-term survivability for the firm as well as ensuring that the turnaround is long-term and profitable.
Further, the XYZ Company needs to reposition itself in the market. That involves the reorganization of the entire company. Its leaders must be motivated and revitalized, as well as dedicated to winning back the market. It should focus on increasing the revenue accrued from business transactions. Decreasing the operational costs and capital employed. The strategy will ensure that the investment becomes profitable and positions that company at a better place in the market. Making profits is the essence of a business existence; however, in this case, the management should be concerned with decreasing operational costs and winning over the market. Increasing profits and business transactions will show that the company is on the way to reclaiming its lost position.
However, there is the need to assess the viability of a market. Before launching any product, the market should be ready for it, and the product should be affordable for the target market and clients. Therefore, it is imperative that XYZ Company assesses the market viability. The management should calculate the infrastructure, equipment and the overall costs, and recurrent expenditure. Next, the company should estimate benefits that will come from the business. With these, the company will test the financial viability of the investment, to get the point where the business will break even. With these the business will have tested the feasibility of the Indian market, the calculations will show whether the market is ready for its products or not.
The company will perform in a cross-cultural environment, where Japanese, American and Indian cultures play significant roles. It is vital that the company incorporate intercultural communication so that business is not affected by the different cultures. The Japanese and Indian companies are high-context cultures and rely on interpersonal relationships to get business done. Also, there is the issue of nonverbal communication differences among the three cultures involved in the firm. It is important that those in management positions acquaint themselves with the three cultures so that business is not affected by the cultural differences shown. For instance, Americans can show directions using fingers to point at something that is considered rude by the Japanese. The use of eye contact is also differently interpreted by the three cultures. Therefore, it is necessary that the management and staff working at XYZ Company familiarize with each other’s cultures.
The Indian culture is also different from both Japanese and American cultures. The Americans and Japanese have previously worked together in the business, but expanding to India will unbalance the equation. Therefore, there is a need to be acquainted with the Indian culture to avoid miscommunication. For example, eye contact among the Americans shows that a person is paying attention to a speech while in India; it may send a sexual message, especially if done by a woman. The same gesture is also considered rude in Japan.
However, since the branch in India is a new one, there is a need to develop social responsibility activities that will contribute to endearing the company’s products to the Indian market. Currently, the market is unexploited on the local front; there are no local car manufacturing companies in the country. By developing social responsibilities in the country, the Indian market will be drawn to the company as the company will seem to be dedicated to development and growth of the Indian people through their actions.
• Have become a brand to reckon with in the Indian market, and established itself firmly as the market leader.
• Overcome cultural differences and found a working business transaction formula that is acceptable across the three cultures involved.
• Repositioned itself as the market leader in the motor industry in Japan..
Global management
References
Boeger, N., Murray, R., & Villiers, C. (2008). Perspectives on corporate social responsibility. Cheltenham, UK: Edward Elgar.
Romanenko, A. (2012). Cultural diversity management in organizations : the role of psychological variables in diversity initiatives. Hamburg: Diplomica Verlag.
Solomon, M. R. (2003). Conquering consumerspace : marketing strategies for a branded world. New York: AMACOM.
