The relation that would be created between Tesco and the Indian customers will be influenced by the social and cultural norms of India. While holding a face-to-face meeting, the language and behaviour of the Tesco managers and employees and their mutual understanding of the two parties will determine or influence the efficiency and effectiveness of communication in the meeting. There is an influence on how well multicultural workplaces carry out activities and operate at all organizational levels. Depending on where the company has evolved and the culture and subculture that it encompasses, the firm tends to have unlike organizational and decision-making practices (Hoecklin, 1994).
Therefore, for Tesco to build a successful relationship, alliance and partnership with the Tata group, there is a requirement to have an understanding of each other’s organizational differences. It involves the relationship of employees at work with their employers, labour relation with each other and decision-making structure. When a company like Tesco is setting up its branches in India, its global managers need to understand that the Indian culture influences the behaviour and preferences of the potential clients and customers.
Hence, for them to be able to make successful sales of their products in India, the managers need to adapt to the products and services that meet customers’ needs (Taras and Steel, 2005). If the company makes any alteration in their marketing, product features, providing services or after sales services they will be partially be led by cultural differences (Dunning, 1993). When the managers fail to fit the cultural practices of this particular group, it will result in making marketing mistakes and causing an embarrassing communication mistake that becomes a marketing folklore.
Therefore, it is of much importance for Tesco to take serious the aspect of culture and institutional difference while they enter into the Indian market since it can greatly affect the firm’s future. Its notable that there here is a language barrier between the UK people and the Indians, whereby the UK people speak English while the Hindi is the official language in India. The various strategic management processes that are affected by cultural norms of India should be considered.
Martin, Frost, and ONeill argue that (2004), in formulating a strategy, the management need to conduct environmental scanning, implement and evaluate the strategy. All these elements are developed in relation to the current cultural environment.
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