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Culture and cultural diversities impact on business in India

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  1. Cross cultural management and the cultural differences issues
    1. What is the culture?
    2. Interest of a training on cultural differences
    3. Issues raised by cultural differences
  2. Analysis of the cultural diversities in India
    1. The PEST analysis
    2. Hofstede's analysis
    3. Trompenaars' analysis

Culture is defined as a system of shared beliefs, values, customs, behaviors, and artifacts that the members of society use to cope with their world and with one another, and are transmitted from generation to generation through learning. This document focuses on the impact of culture and cultural diversities on business in India. With the increasing globalization, reaching out to several foreign countries becomes essential. It is indispensable to be present on the international market to be more competitive in this incontrovertible global world. This helps reduce costs of production by seeking lower costs of labor and raw materials in developing countries as well as increasing growth opportunities, reducing costs of distribution or finding new market shares. In order to avoid problems of settling, before expanding into a foreign country, we have to focus on its environmental factors and cultural differences. We employ the PEST analysis to analyze the environment of a country here.

[...] We provide pre-departure programmes but we advise to go on training even after their arrival to cope with the difficulties they might encounter. These problems show how important it is to train the manager to be able to identify the differences of reaction of a culture and its participants. Our training includes: Academic lectures on the influence of culture on behaviour, cultural self-awareness of the country employees are sent to, and role ?plays and negotiation simulations to put them in real cultural issues situations. The training stimulates learning in cognitive, affective and behavioural areas. [...]


[...] Work values inherent to India are: learning, honesty, tolerance, and a sense of duty whereas in France, we insist more on productivity, efficiency, rights and self determination. Masculinity India's masculinity index reaches 56, with a world average just slightly lower at 51. This index evaluates the place of women in the country. It refers to the degree of masculine values (assertiveness, materialism, lack of concern for others) that prevail in a society. On the other hand, a feminine society emphasizes on feminine values concern for others, for relationships and for the quality of life. [...]


[...] Interest of a training on cultural differences With the code of behaviour, values and differentiations in the way of life from a country to another, it is crucial to prepare the employees that are sent abroad to the culture of the country they will work in. Culture determines the basic attitudes towards work, time, materialism, individualism and change. Without realizing it, culture often influences how close we stand to our partners, the type of relationship we develop at work, how we deal with conflict and even how we participate in a meeting. [...]

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