International Business Assignment 3 - International Business

INTERNATIONAL BUSINESS ASSIGNMENT 3 International Business Assignment Student’s Name University Affiliation

Thanks to globalization, everything has gone global, even the manner which individual conduct business. Today we have businesses conducting their business on multinational levels and this trend keeps on happening as new emerging markets keep coming up. Emerging markets are a great opportunities for local and international businesses to grow and expand but in most cases international business face unique challenges in such markets especially in the manner which they associate with key stakeholders of the business such as the suppliers because of a shift of culture.

To help us understand the nature and unique business of conducting international business below is an interview done on Caviar court, Saudi Arabia. This is a food processing company that has its headquarters in San Francisco in the United States. Here are responses from the interview. Tell me stories about successful and unsuccessful experiences of working with local suppliers in the country? Our success experiences working with local suppliers have revolved around the fact that we have managed to mend the cultural differences gaps in our relationships with the local suppliers.

Differences in culture were always one of the main challenges we anticipated in building a relationship with our suppliers. However, we managed to find ways to bridge these differences early on in the establishment of our relationships and this has led to a series of many other successes along the way. Our main unsuccessful experience is centered on the fact that suppliers have found it easy to take advantage of us and lock us due to limited choices of suppliers to explore. Breaking the relationship with one supplier to find another has been a major challenge for many reasons and this has reduced our bargaining power majorly. Compared to your home country, what was the most surprising aspect of working with local suppliers in the country? The most surprising thing for us is actually very positive. At our home country, there is a very bad culture of bad communication from the side of the suppliers and this serves as a major challenge in the supply chain. Working with local suppliers, however, has given us a totally different experience. Suppliers here are surprisingly way more reliable compared to our home country. This has been good for business and for proper supply chain management.

They have great value for communication and this is a very productive culture. How dependent are you and your partner or local supplier upon each other in country? There is generally a very high level of reliance between a business and its supply chain partners because the suppliers have a very major role to play in driving production in an organization. This is the reason why reliance on suppliers is something very important for the organization and something that we have managed to get from suppliers in this market. In general, the organization dependence on the suppliers is high.

Do you feel that any of your partners or suppliers have greater power in the relationship than all others in the country? Power bargaining for us is a very dangerous way of establishing a relationship with such an important partner in business, For his reason, we have focused more on developing a mutual relationship with each one of our suppliers and a more flat kind of culture where there is no power hierarchy provided that every individual's roles are clear and well executed. However, the company still remains the employer and therefore has more decision making roles in regard to this relationship. A re you happy with relations you have had in the past with the local supplier in the country? Yes.

Dealing with supplier and individuals from a different country with a whole lot of difference especially in terms of culture can be very challenging and it has been for us. I am happy not because we have not faced challenges or because we have been able to avoid challenges but because we have managed to establish our values and be assertive with them in building relationships with suppliers in the past and also the fact that we have handled the challenges that have come our way in the best ways possible. Do you feel that the local supplier and the company share the same interest or do you perceive much conflict in the country? Yes, we share most of the interest. This is because this question was a major consideration made during the selection of the suppliers that the company was going to work with. Right from the word go, the company intended to create the best possible relationships with all stakeholders and the best way we could do this is making sure we had individuals who shared out interests and values.

Paper For Above instruction

In the realm of international business, navigating cultural differences and establishing effective relationships with local stakeholders are paramount to success. The interview with Pierre El Hakim, General Marketing Manager of Caviar Court in Saudi Arabia, underscores the critical role of cultural understanding, communication, and strategic relationship management in international supply chains, especially in emerging markets.

One of the key insights from the interview is the positive impact of bridging cultural gaps. Caviar Court's experience highlights how proactively addressing cultural differences can foster trust and cooperation with local suppliers. This aligns with existing scholarly research emphasizing cultural competence as a vital component of international business success (Hofstede, 2001). Effective communication, as observed by El Hakim, not only facilitates smoother operations but also enhances reliability—an essential factor in supply chain resilience (Christopher, 2016).

Contrasting experiences between the home country and Saudi Arabia reveal the importance of cultural context in supplier relationships. While the company's home country suffers from poor communication and unreliable suppliers, Saudi Arabia offers a more dependable environment. This difference exemplifies how cultural alignment and local relationship-building can mitigate risks associated with supply chain disruptions (Meyer, 2014).

Dependence between organizations and local suppliers is critically high, especially in emerging markets where options may be limited. This dependency underlines the importance of developing mutually beneficial relationships rather than seeking power dominance. As El Hakim states, forming flat, non-hierarchical relationships based on shared interests fosters mutual respect and long-term collaboration, consistent with the theories of relational contracting (Dyer & Singh, 1998).

Regarding power dynamics, the interview emphasizes the avoidance of hierarchical relationships that could lead to exploitation or imbalance. Instead, fostering mutual understanding and shared goals enhances cooperation and reduces conflicts. This approach supports the growing body of research advocating for strategic partnerships grounded in trust and shared interests (Gulati, 1994).

The overall positivity expressed by El Hakim about past relationships with local suppliers underscores that success in international supply chains is achievable through value alignment, effective communication, and cultural sensitivity. Despite inherent challenges, these strategies cultivate stability and mutual growth, highlighting essential practices for international firms entering emerging markets.

In conclusion, the experience of Caviar Court illustrates the significance of cultural awareness, strategic relationship management, and ethical practices in international business. Companies aiming to succeed in emerging markets must prioritize understanding local cultural nuances, establishing reliable communication channels, and fostering mutual interests to build resilient and productive supply chains.

References

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