Introduction
Socio cultural differences are one of major problems facing tourism and other new international investments. Coping up with new environment is a challenge to the investor and employees. It is important to reflect on these problems and device a method of dealing with them. When investing in overseas it is important to consider national language, customs, ethics, legislations, physical environment and financial laws of the destined country. Some of these differences are a problem to Walt Disney when setting up parks abroad. Communication plays a key role in the success of any investment. For example, parks cannot be set up in areas where the employers cannot communicate with the natives. Customs are beliefs of a society; setting up a business that contrasts with beliefs of a society is like mocking the society. Legislations are laws that govern a country; these laws ensure proper running a country. It is necessary to consider taxes or revenues for the government, high taxation rates will not attract investors such as Walt Disney. There are some designated areas businesses, for example, hurricane prone areas are unsuitable for setting up of a park. Ajami & Goddard (2006)assert that managing employees needs a perceptive mind, to understand the socio-cultural differences. Walt Disney needs to understand its employers regardless of their origin to be successful.
When an employee relocates to another country on employment terms, his salary should be raised up to cover the additional costs. Some employees may opt to move with their families while others might leave their family members. Those who leave their families at home have to make to and from trips whose expenses should be covered by the firm. Another thing to be considered is the local expenses and the currency of the destined country. People who relocate, facilitate the geographical growth of the firm, hence should be paid for the additional work they are doing. It is ethical to increase their salaries.
Preferably, selling American fast foods in overseas theme parks has both benefits and limitation. Firstly, by selling the American fast food means, promoting American culture which is important in developing its reputation globally. It also benefits the United States tourists who are afraid to test foreign foods or who believe in food cooked in their home manner. On the other hand selling American food does not carter for those who like change, which is inevitable. As a result, Disney loses income from such customers. Disney needs to provide fast foods from both United States and the foreign country to maximize profits. Additionally, providing only American fast foods means that employment opportunities are narrowed to only Americans. A good business should provide job opportunities to diverse group of people.
In conclusion, the socio cultural issues affect any business any setting, hence, it is important to deal with them correctly. Global investors such Walt Disney has to treat their employees in a good way, being able to understand them in order to maximize the output and generate profits. Walt Disney should try to embrace the culture of the country in which they invest by providing the natives’ fast food to blend in that society.
References
Ajami, R. A., & Goddard, J. (2006). International business: theory and practice. New York:
M.E. Sharpe.
Aswathappa. (2010). International Business 4E. New York: Tata McGraw-Hill Education.
Moran, R., Harris, P. R., & Moran, S. (2010). Managing Cultural Differences: Global
Leadership Strategies for Cross-Cultural Business Success. New York: Routledge
