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business level 3 unit 39 D2
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Unit 39 D2Evaluate the impact of cultural diference on internatonal uuineuu performance in the internatonal
market. D2
Teuco uued to e UK aued uuineuu and iu aluo Teuco’u hout country. It uued to e in 13 countrieu
however decreaued to 11 countrieu and the unuucceuuful countrieu include United Stateu and Japan.
Cultural iuuue iu hard to overcome
Cultural iuuueu can e hard to overcome for uuineuu like Teuco to operate in the internatonal feld.
Teuco operated and changed their name into Tuurakame however lef Japan in 2011. Thiu wau due to
cultural diference etween UK and Japan, japanu hau a diferent utyle of doing uuineuu and religion,
Japan ofen value and like uhopping with uuineuu that hau rich hiutory of uelling and like to uhop in
family owned uuineuu according to Guardian. For example, the main religion in Japan iu Shinto and
Buddhium and ofen hau important dayu where people who elief will have to put in ofering to their
God therefore meanu that they will need to uy goodu from a uuineuu. Japaneue people are more
likely to go to a uupermarket that they are familiar which aluo meetu their daily requirement making
it hard for Teuco to provide. Au a reuult, cuutomeru will go to the uupermarket they are familiar with
whilut Teuco looue pouui le ualeu from their cuutomeru therefore it iu important for Teuco to e more
uenuitve a out the culture in order to gain ualeu. Aluo aalthough Japaneue cuutomeru love to uy
weutern product from Europe and the USA, it iu utll important to preuent them in a way that will
appeal to the Japaneue mind-uet.” If the promotonu don’t uuit the Japaneue mind-uet than it can e
hard to gain ualeu. Furthermore, uuineuu failure in the USA for Teuco uhowu that cultural iuuueu are
hard to overcome. For example, Teuco repouitoned their rand name au aFreuh and Eauy” and
promoted their goodu au freuh organic food. However, the lifeutyle and culture in US iu much more
diferent than of UK, UK cuutomeru are more atracted to organic foodu whilut American cuutomer
like convenience and more junk food. Reuearch uhowed that only 3 percent of the American
populaton liveu a healthy life utyle of eing of a non-umoker, exerciue 30 minuteu a day and at leaut
fve tme a week, conuume fve portonu of fruit a day and maintain BII of under 25.. Although Teuco
uucceeded on diferentatng themuelveu making them unique, it did not meet the cuutomer needu au
a reuult the uuineuu failed.
Cultural iuuue can e overcome
Cultural iuuueu can e overcome. For example, ig uuineuu like Ikea learned from their miutakeu
earlier on the utart-up of the uuineuu. Ikea’u media relatonu manager uaid that they found out their
cuutomer did not adapt to the kitchen meauurementu they uued in Ikea in Japan therefore learned
from their miutakeu and provided their cuutomeru with the meauurementu that American people
were uued to. Ikea aluo found out that the Vaueu they uued in Japan wau uued au drinking glauueu
therefore they made uure they made them much uuita le with diferent deuignu to meet the
requirementu of their American cuutomeru. Furthermore, Teuco in Thailand hau overcame the
cultural iuuueu and renamed their uuineuu au aLotuu”. For example, the cultural iuuue of Thailand
wau overcomed ecauue Teuco made uure that they were meetng cuutomer needu and
requirementu, thiu wau done y approaching Thai cuutomeru with loyalty card ucheme which wau
approach in a much more diferently than the loyalty ucheme in UK. The loyalty ucheme allowu
cuutomeru to earn point and turn it into cauh couponu, the cauh coupon iu aluo uent out every 3
monthu. The loyalty ucheme hau uucceuufully een approached to meet the needu and requirementu
of the Thai cuutomeru.
Recommendaton for Teuco to meet itu internatonal growth aupiratonu
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