Cultural Differences and Their Effect on Strategic Planning Case Study

Cultural Differences and Their Effect on Strategic Planning - Case Study Example India is the prime destination for outsourcing of services as well as the destination of new firms. It is one of the emerging economies with great potential for the future. Although it will be a huge step for Telmarket to move into a market so diverse from the UK, the setting up and operating costs will be relatively low. India has an abundance of human resources and the environment will be conducive to success. The expansion of Telmarket into an international market such as India will have many strategic implications for the firm. Indian culture differs greatly from British culture and thus many cultural issues may emerge. Culture defines behavior, values, and ambitions; and especially for businesses involved in training, culture affects every aspect of operations. The target market of Telmarket includes individuals and firms that are involved in marketing and customer care and thus the language barrier may result in problems. Hindi is the national and other languages are prevalent as well. As a UK based training firm Telmarket would impart most training in English and with relevance to English speaking customers, however, if the customers of their clients are Indian it will be necessary to train them in Hindu and/or other languages as well. Thus Telmarket would have to hire trainers from India. This could turn out to be an advantage for Telmarket in the form of salaries. Pay scales in India are lower than those in the UK and to hire Indians would cost less than to bring English trainers. The strategic implication of the language barrier might be in training and hiring costs. Trainers recruited in India might not meet the requirement of the firm and may need to be sent to the UK to for further training themselves this will increase recruitment and hiring costs whereas employee salaries may remain low.