Instructions for Capstone Project Part 3

Going global and conducting new businesses on an international level can be challenging, but it can also be a great opportunity to enhance potential and growth. Many companies have decided to go global and enjoy the opportunities presented to them, but such a vital expansion is not always easy. There are several risks and challenges one can experience since businesses work differently in other countries. Yum Brands, an American fast-food company, is considering expanding to the Asian markets specifically India. This project will, therefore, analyse the cultural differences between America and India. It will also analyse the cultural exchange, and lastly, analyse the best distribution method for the company.

Cultural Differences

We can define cultural differences are the several beliefs, languages, vocabularies, practices, and behaviours considered distinctive to members of a particular national origin, race, or ethnicity. One of the major cultural difference between Indian and American culture is family relationships. Indians are much more family-oriented, on the other hand, Americans are individual-oriented. In India, family values are more significant than individual values. On the contrary, individual values are more significant than family values in America. Indians are more dedicated to their family whereas Americans are more dedicated to themselves.

Another difference relates to hierarchies and goals. Americans are goal-oriented, they work to get profits as fast as they can. This is normally attained by effective teamwork, with every individual accountable for their own actions and decisions. In India, on the contrary, individuals emphasize more on the hierarchies (geerthofsted.com). Individuals at the lower part of the hierarchy are not authorised to make any decision and those at the upper part of the hierarchy could make decisions based on their interests.

Unlike in America, In India, the head of the company or family make decisions. Moreover, older people are more respected and addressed and referred to in a formal way. On the other hand, older people in American culture are not respected because of their age but because of their achievements. In America, people can also question and challenge their superiors in public, within reasons. This can be viewed as rude and disrespectful in India.

The other difference relates to time. Americans are normally impatient. Deadlines in business contracts are strict and they must be met. Individuals will work for long hours to accomplish this and there is no easiness for delays. In India, in contrast, life goes at a slower speed. Indians view time more of circular than linear and relationship is more vital than deadlines.

In India, it is important to build relationships. Having an established and solid relationship help to put the other party in context and enhance clear communication (Bryant, 2019). On the contrary, in America, businesses are more of task-oriented. Small talks are thought to be a waste of time, which Indians could find offensive.

Indians have a strong and solid sense of face. For instance, saying “no” to someone else is considered offensive because it causes them to be humiliated. Criticising a person in front of their workmates is a taboo. In America, speech is more direct. Shouting at a subordinate is normal, and feedback is critical and direct.

Cultural Exchange

Business is all about creating a rapport effectively and quickly. One common challenge most companies face when expanding to global markets is having an inadequacy in cultural awareness. Gaining some cultural awareness and knowledge of different traditions and customs is, therefore, important as it can give a company a competitive advantage to work successfully in an international market (Meyer & Peng, 2016). In this case, in order for Yum Brands to work successfully in India, it must do the following:

· Be aware of religious celebrations and national holidays in India

· Learn a few phrases in India. Learning a few phrases of the local language can enhance a great level of acceptance.

· Be aware of gestures. The simplest gesture through a body language can lead to the worst insult.

· Be aware of hierarchies when conducting businesses

· Be ready for small talks. Indians usually expect small talks before business meetings. Being attentive to the current affair in the country is, therefore, important as it can act as a strategy to make a prospective client more relaxed and comfortable.

Distribution Methods

Distribution methods are a major element of an entity marketing strategy as they help a business reach its market and expand its customer base and increase revenue. Customer satisfaction will be impossible without an effective and efficient distribution method. The best distribution method that Yum Brands can use in India is a direct channel. The direct method is among the oldest methods of distribution. The method does not involve intermediaries, manufacturers are in direct contact with their customers (Mikušová et al., 2018). In this case, Yum Brands will use its own workers and physical assets such as restaurants, warehouse, and delivery vehicle to distribute its products directly to the consumers. A direct method will mean lower prices for customers since they will be buying directly from the outlets. This will also establish a closer relationship with consumers.

References