In this article, I want to show you that doing International business is never about the price. For that matter, doing any kind of business is not about the price. I can almost hear you think: “Yeah, right…“, but let me explain. Of course, Price determines your bottom line.
However Price is not the most important influencer when it comes to your bottom line, people are. The reason is that people usually buy value first. Of course, price is important, but if and when people can afford a product or service, price tends to weigh in much less than other factors like:
- Does this product or service solve my problem?
- Do I like what I buy?
- Do I like who I buy from?
- Does it look/smell/feel nice?
- Will I get good service?
and that value is very much influenced by perception.
In This Article
Emotion Only, No Reason
You see, human beings, from any culture, can only base their (buying) decisions on emotions. Some researchers claim that we are still 10% rational in our decision-making, but I believe that we base 100% of our decisions on our emotions.
Why would we otherwise buy a $600 Smartphone, while there is a $300 phone from a different brand lying right next to it? It’s not that we really “need” the more expensive one, do we? Whatever the reason is, I bet you it is emotionally based. So when it comes to buying anything it is very often about emotions. We make our decisions with our emotions, and we rationalize them with our brains.
Not only when we’re buying (luxury) products or services do we make our decisions based on our emotions, also when it comes to working with others. Here are a couple of examples where emotions usually are leading in our value judgments:
- Why do you like your most favorite colleague?
- Why do you dislike your least favorite colleague?
- Why do you prefer to work with Americans or Germans?
- Why do you dislike working with Dutch or Germans?
Also here goes: we base our likes and dislikes on our emotions, and we rationalize those decisions with our brain. In addition to this, we tend to like those who are like us, and we tend to dislike those that differ from us. When working internationally we call those differences Cultural Differences.
Bottom Line Pitfalls
If you are working in an international environment or organization, then those cultural differences can be a decisive factor in how smoothly your organization runs. There are several things where cultural differences play an important role, and that is detrimental to your bottom line:
- A high staff turnover
- Exceeding international project timings and budget
- Innovative capacity
- Overall margin
- Management style
- Decision making
- Level of details of projects
It is not the cultural differences themselves that cause these potential problems. It is the fact that too many organizations don’t pay enough attention to handling these in an appropriate way – or even better, to getting leverage from them, which in turn leads to the above-mentioned pitfalls.
Which of the above pitfalls do you recognize? How much attention are you paying to cultural differences in your organization?
Get a Taste of How Chris Presents, Watch his TEDx Talk
Call Direct: +32476524957
European Office (Brussels) Whatsapp: +32476524957
The Americas (USA; Atlanta, GA; también en Español): +1 678 301 8369
Book Chris Smit as a Speaker
If you're looking for an Engaging, Exciting, and Interactive speaker on the subject of Intercultural Management & Awareness you came to the right place.
Chris has spoken at hundreds of events and to thousands of people on the subject of Cultural Diversity & Cultural Competence.
This is What Others Say About Chris:
- “Very Interactive and Engaging”
- “In little time he knew how to get the audience inspired and connected to his story”
- “His ability to make large groups of participants quickly and adequately aware of the huge impact of cultural differences is excellent”
- “Chris is a dedicated and inspirational professional”
In addition, his presentations can cover specific topics cultural topics, or generally on Cultural differences.
Presentations can vary anywhere from 20 minutes to 2 hours and are given World Wide.
Book Chris now by simply sending an email. Click here to do so.
Read more about what Chris can do for you.
- Percentage of People Rating a Presentation as Excellent 86% 86%
- Rating the Presentation as Practical 89% 89%
- Applicability of Chris' presentation 90% 90%
About Peter van der Lende
Peter has joined forces with Culture Matters.
Because he has years and years of international business development experience joining forces therefore only seemed logical.
Being born and raised in the Netherlands, he has lived in more than 9 countries of which most were in Latin America.
He currently lives in Atlanta, Georgia (USA) with his family.
You can find out more at https://expand360.com/
Or find out what Peter can do for you here.
- 157 Peter van der Lende and Chris Smit Interviewed by Leonardo Marra - 9. September 2021
- How International Business Schools can Benefit from Cultural Competence - 9. August 2021
- Tell me Something I don’t Know - 8. July 2021