They will need translation services and interpreters, but they cannot rely on these things forever. In addition, the people who will work in the new offices and the people who will work with the people in the new offices must clearly and properly speak the language. Learning a new language can take time, but it is advisable for anyone who is going to be dealing with business in a foreign country (Kwintessential, 2010).
Cultural issues and language barriers are the two most significant problems that are faced by companies that are looking to expand into something more global in nature (Centre, 2011; Geert-Hostede, 2011). If those barriers can be worked through, the company will have a much higher chance of succeeding where other companies may have failed. Even though cultural issues may seem confusing, or a person may not understand why another culture does something differently, being open-minded about communication can diffuse misunderstandings that may have otherwise turned into more significant problems. Translation and interpretation services are always a good idea for companies that are moving into new markets in unfamiliar countries (Centre, 2011).
Because there are going to be local staff hired to run the offices in the new markets, decision-making and the use of hierarchy will have to change. Up until this point, Newfoundland Capital Corporation has operated in Canada (Performance, 2011). As such, the company is used to the culture, attitude, and overall work ethic of the Canadian people. In Mexico and Germany, Newfoundland Capital Company will face challenges because those two countries have different attitudes and work ethics. This is not to say that these attitudes and ethics are better or worse, but only that they are different -- and that will be something Newfoundland Capital Company will have to understand and accept.
Having local people operating their offices will cut down on language barrier and cultural barrier issues within the new markets, but it will increase the likelihood of these...
This is something for which Newfoundland Capital Corporation must be aware. By paying close attention to what is taking place in other countries and how the new markets are doing in terms of sales, the company can get a better understanding of whether it needs to make changes or whether it needs to simply accept the differences that are seen between the cultures and allow the local offices to operate in a way that makes the most sense for the countries in which those offices are located. The new offices must be included in decision making, and they need to understand the hierarchical structure so that everyone is clear on their standing with the company.
The importance of this assignment relates to the cultural differences that are seen in a business climate that is becoming increasingly more global. Gone are the days when a company did business only with people in its geographical area. Now, through the Internet, companies can do business with people down the street or across the world. The interconnectedness of the online world has changed business in ways that are both good and bad -- but there is no denying that things are different. If business owners and the people they employ cannot learn to work well with and respect other cultures, the business could fail. Being able to open new offices in other countries is a great step for a business, but what is more important is how those offices are operated in the long-term. This assignment is a good reminder of the importance of being respectful of other cultures and navigating through much more than a language barrier.
References
Centre for Intercultural Learning. (2011). Retrieved from: http://www.international.gc.ca/cfsi-icse/cil-cai/index-eng.asp
Geert-Hostede. (2011). Retrieved from: http://www.geert-hostede.com
Kwintessential. (2010). Retrieved from: http://www.kwintessential.co.uk
Performance. (2011). NewCap Radio. Retrieved from: http://www.ncc.ca
