ATHE Level 7 Extended Diploma in Strategic
Management
(Core Qualification), 610/2088/6
Unit 6: International Business Environment
H/650/5365
Unit 6: International Business Environment Semester
Assignment
AC 3.1
Cultural and Regulatory Diversity in International
Markets
Introduction:
It is very important that our marketing
strategies take these cultural and
regulatory differences into
consideration because ignoring cultural
and regulatory dimensions cannot only
make us miss opportunities but also
damage our brand. Furthermore, we
have many different cultures and
distinct international markets in this
world.
Cultural Diversity in International Markets
(1) Cultural Diversity: Culture might have many implications for international
businesses. Among the numerous implications of cultural diversity on
international businesses are the following:
(FasterCapital. n.d.)
Cultural Diversity in International Markets
Language Localization: Since language is the backbone of
communication, a firm should localize and adapt its product labels,
advertisements, and packages into the local customers’ language in
order to avoid any misunderstandings or blunders.
For example, Rolls Royce almost marketed the (Silver Mist) car
model in Europe, before recognizing that (Mist) in German means
(excrement). Then, they changed the name to Silver Shadow.
Cultural Diversity in International Markets
Product Adaptation: Companies
should customize their products to
align with the customers’ tastes and
preferences because different culture
means different preferences, styles,
tastes, and needs.
For example, in China, Starbucks
started marketing and selling tea
drinks to adapt to the customers'
tastes and preferences.
Cultural Diversity in International Markets
Pricing Strategy: It is very important for
companies to choose the pricing strategy that
best aligns with their business goals.
Therefore, companies need to localize and
adapt their prices to comply with the
customers’ needs in different countries.
For example, IKEA modified their product
line in India to include cheap items to better
suit customers’ local preferences and
affordability.
Regulatory Diversity in International Markets
Regulatory Diversity: Companies need to know what is
and what is not legal in order to operate successfully and
rightfully. Because every country has its own rules and
regulations such as job laws, health laws, customer laws,
safety laws, etc.
Furthermore, companies should be aware of changes in
laws and legislation and the impact they might have on
their businesses in the future.
Regulatory Diversity in International Markets
Consumer Product Safety:
This law differs from one country to
another. However, every country has
some set of rules about what kind of
safety a product might have to have.
Therefore, it is not only the specifications
of the product but also how well it works
whatever task it is supposed to perform,
and what kind of responsibility the
company bears if the product fails.
Regulatory Diversity in International Markets
Legal Pressures of Governments:
Legal forces include the official outcomes of
political processes as manifested in
regulations. In fact, regulatory changes affect
the entire businesses at once. Governments can
directly affect companies’ performance and
success by exerting both political pressure and
legal sanctions.
For example, many European countries
applied legal pressure on the USA’s
technological companies such as Microsoft
and Apple.
Regulatory Diversity in International Markets
Legal Compliance:
Companies should abide by `both industry
standards and government laws and regulations.
All companies need to be compliant in the
industry to ensure being good corporate
companies and complying with all laws and
regulations in each country in which they
operate.
For example, the rules of data privacy in Europe.
AC 3.2
Conflicts Between Corporate Strategy & Ethical,
Social, and Sustainable Responsibilities in
International Markets
Ethics & Profits:
The long-term sustainability of a company is
not possible without being ethical. There are
countless ways to make money, but we
cannot heal the wound if we have a bad
reputation. We have to care about our
customers more than care about profits or
money.
Conflicts Between Corporate Strategy & Ethical,
Social, and Sustainable Responsibilities in
International Markets
Stakeholders Expectations: Companies have
historically operated in pursuit of a single goal,
which is profit. However, over the past
decades, that has changed. Many companies
have come to recognize that they have a
responsibility to do what is best, not just for
their companies but for people, society, and the
globe as well.
Conflicts Between Corporate Strategy & Ethical,
Social, and Sustainable Responsibilities in
International Markets
Corporate Strategy & Long-Term
Sustainability: Companies’ strategies which
concentrate on short-term goals for profits
and minimizing costs, should ignore the
issues related to sustainability. Thus, in order
to achieve sustainable success, companies
must make sure they are efficient and
effective in their use of resources, minimize
their environmental impact, and engage in
responsible practices that benefit both the
company and the society.
AC 3.3 The importance of Corporate Social Responsibility and
Sustainability for Supporting Business Success in
International Markets
Introduction:
When companies decide to act in a moral way, they
not only earn more trust from their customers but
also make more profits. Furthermore, the more a
company cares about the community and its
customers, the more support it gets from them.
The importance of Corporate Social Responsibility
Customers’ Trust:
Corporate social responsibility
(CSR) helps build customer trust by
caring about things like environment
day and pushing for social change.
The importance of Corporate Social Responsibility
Employees’ Satisfaction:
The way a company treats its
community says a lot about how a
company treats its employees.
People who feel respected and
supported in their jobs are often
more productive and satisfied at
work.
The importance of Corporate Social Responsibility
Customers Loyalty:
A recent study showed that more than
50% of customers said that a brand
being known for its social value was
one of their top purchasing drivers.
Customers are more likely to be loyal
to brands if corporate values align with
their personal ones.
The importance of Sustainability
Introduction: What is sustainability?
Sustainability is a concept of interest
these days, debated by many
researchers, and with applicability in
many fields. Since 1987, when
Brundtland defined sustainability as the
“ability of present generations to meet
their needs without compromising the
ability of future generations to meet
their own needs”. (Coca, L.-C. 2024)
The importance of Sustainability
Sustainability benefits
1) Reduce costs & increase
productivity: Operations and
efficiency will rise when more
sustainable company practices are
developed. Enhanced utilization and
preservation of resources will lead to
cost savings and simpler operations.
The importance of Sustainability
2) Increase business ability to comply
with regulations: Integrating
sustainability into our business will
position it to meet changing regulations in
a timely manner. Increasingly more and
more companies are making public
commitments to sustainability through
actions like reducing waste, and investing
in renewable energy.
Conclusion
In summary, companies should realize that
sustainability and (CSR) will affect both their internal
and external growth. Furthermore, by innovating and
participating in (CSR) and sustainability initiatives,
companies have the opportunity to showcase their
essential values and create trust among their
employees, customers, and investors.
AC
3D1
Comparison & Contrast of Management Approaches to
Sustainability
Introduction:
Research on sustainable management seeks to provide
solutions for how we may satisfy our demands without
compromising the natural and social resources of the
present and future generations. Therefore, many
companies try to select different approaches to deal with
the challenges of sustainability.
Comparison & Contrast of Management Approaches to
Sustainability
Many companies concentrate
on short-term profits, but
sustainable practices and
approaches encourage
companies to take into
account long-term future
goals. For example,
AliExperess focuses on
recycling and reducing waste.
(In, E. a. 2024)
Comparison & Contrast of Management Approaches to
Sustainability
Social sustainability is the process of
establishing effective, long-lasting
environments that enhance welfare by
learning what stakeholders, people,
employees, and societies require from
their homes. The best example of this is
IKEA. IKEA mentioned in its mission
that it cares about creating a better life for
a lot of people and ignores anything
related to profits at this point.
Comparison & Contrast of Management Approaches to
Sustainability
Sustainable Innovation:
Applying new developments,
innovations, and technologies to
minimize the impact on the
environment and economy. For
example, Tesla & BYD
concentrate on innovation and
clean energy more than the other
car companies which makes it
very competitive in this industry.
Conclusion
In summary, we can see that every company uses
a distinct kind of approach to sustainability and
that is according to the strategies they are
following. We see AliExpress focuses on the
reduction of waste and recycling whereas Tesla
and BYD are concentrating on clean energy and
eco-friendly products. We also see IKEA focuses
on creating a better quality of life for all people.
References
FasterCapital. (n.d.). Cultural differences and market demand: Navigating global markets.
FasterCapital. Retrieved [insert date], from https://fastercapital.com/content/Cultural-
Differences-and-Market-Demand--Navigating-Global-Markets.html#How-Cultural-Differences-
Shape-Market-Demand-
Coca, L.-C., & Pislaru, M. (2024). Definition of sustainability - Bibliometric analysis of the
most highlighted papers. Proceedings of the International Conference on Business Excellence,
18, 888–897. https://doi.org/10.2478/picbe-2024-0077
In, E. a. P. (2024, September 6). Sustainable Management Definition & Top 10 Best Practices in
‘24. AIMultiple: High Tech Use Cases &Amp; Tools to Grow Your Business.
https://research.aimultiple.com/sustainable-management/
