The Business Problem
The business problem identified in the case study is how companies can internationalize effectively. Businesses face problems when trying to internationalize because of the cultural differences in their area of operation, their experience in internationalization, as well the local people’s perception of the company or the country of origin in the company. KPL faced tremendous challenges in Netherlands Antilles because they did not have any experience in internationalization. They used the wrong approach by imposing their culture on the Antilleans, and the local people opposed them. Although the country is largely dependent on the Netherlands, the people were concerned about the colonial history and opposed a new form of imperialism. KPL were more aware of the Indonesian culture and were ready and willing to accept it and conduct their business according to the cultural customs. Hence, the company was more successful in Indonesia than it had been in the Antilles.
Rank-Order the Critical Issues
Country’s cultural contexts affect the process of internationalization of companies. People who identify strongly with their cultures do not want a foreign culture imposed on them. Some cultural practices take precedence over business operations in some countries
A company’s approach towards dealing with cultural complexities can affect its operations in the country where they want to operate. Using a polycentric approach enables a company to identify the most esteemed cultural factors in a country, which can hinder their operation.
Another critical issue is the political context. Companies have to be aware of the relations that their country of origin have with the country of operation, as this can determine the local people’s perception of the company. It will influence the way the people interpret the company’s decisions and actions, as well as how they accept the product
Adopting a polycentric approach is more effective because it recognizes the importance of implementing local solutions to the local problems. The company management has to be aware of the different cultural elements of a country and their way of conducting business. This will ensure that they are aware of what to expect before beginning operations such as, people’s perception of the business and the willingness to accept it once it begins operating.
Recommendations of implementation of the solutions
I will first conduct research concerning the country. This will enable to enhance my knowledge of the country, and I will be able to know what to expect once I begin working there. I will have to identify a person who is knowledgeable concerning the business environment in the country. He or she understands the local environment better and can identify the requirements of the organization. The local agent will help in laying out the strategies, which the company shall follow when setting up the business. The information collected shall focus on different items including the importance of different cultural elements such as religion, dressing, and business etiquette, as well as the suitable marketing strategies to implement. It shall also include information concerning the necessity of product localization to suit the market
Communicating the solutions
I will submit the results of my research in a report, which will contain all the information I have gathered. I shall make the report and the proposed recommendations available to the company management.
Fanning, E. D. (2000). Analyzing a case study. Retrieved from the Arthur W. Page Society Web site: http://www.awpagesociety.com/images/uploads/Analyzing_A_Case_Study.pdf
Van Marrewijk, A. (2004). The management of strategic alliances: cultural resistance. Comparing the cases of a Dutch telecom operator in the Netherlands Antilles and Indonesia. Culture & Organization, 10(4), 303-314