Culture refers to the influence of religious, family, educational, and social systems on people, how they live their lives, and the choices they make. This chapter examines the dynamics of culture and its effect upon international business operations and strategy. This environment poses a serious challenge to the business, and the business managers while formulating business strategies and policies should give due weight to this pivotal factor. The Effects of Strong Company Culture. Let’s highlight some important key areas one may encounter while doing business in China. Marketing always exists in an environment shaped by culture. The Impact of Cultural Diversity in the Workplace ... having an unwelcoming work environment. These characteristics are reflected in the way they negotiate. Culture influences the way people behave, communicate and think. In today’s volatile and uncertain global business environment, nimble and adaptable organizations are the ones that thrive. Socio-cultural environment consists of factors related to human relationships and the impact of social attitudes and cultural values on the business of the organization. Doing business on the international plane presents many challenges because of a variety of factors which differ from one market to the other. In addition to impacting your revenue, here are five key ways a winning company culture can affect your business. A strong culture positively impacts your business in more ways than one. Differences in negotiating styles. Impact of Language on Business • Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts. However cultural differences present significant barriers between Chinese and western partners. Impact of culture on international business: A business cannot simply rely on its current method of conducting business when it decides to take its business at international level. Of the various environments stated above, the social and cultural environment has the greatest impact on the policies and performance of all business firms. One of the environmental factors that present such a challenge is culture. Environmental factors can be explained as identifiable elements within the cultural, economic, demographic, physical, technological or political environment which impacts the growth, operations and survival of an organization. These differences are basically informed by the environment of the host country, which is often times different from that at home. While exploring the causes of cultural differences, rigidities, and changes, it focuses upon the impact of cultural traditions on business activities, as well as the mutually satisfactory reconciliation of cultural differences. 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