Wednesday, October 31, 2007

How culture can affect foreign companies in their business

During this trip, I have learnt how the Vietnamese culture affects the way foreign companies do their things and their management.

For example, during our free time, my friends and I went to one of the fast food restaurants call ‘Lotteria’. It is a Korean fast food restaurant. The moment I entered the restaurant, I was shocked. Several motor bikes were parked in front of the counter (see picture below) where we were supposed to order our food from. We decided to go to the next storey to find a seat before we go down to the counter and order food. The moment we sit down, one of the staffs gave us the menu. And then we realized that we could order the food from them and need not go down to the counter and queue.


I was surprised as in Singapore, only if you go to restaurants then you will receive such service but you will need to pay a service charge. However in ‘Lotteria’, you get this service free. Last year when I went to the ‘Lotteria’ in Korea, we have to queue at the counter to buy our food. It is different from what I have experienced in the ‘Lotteria’ in Vietnam.

After that I realized that the reason is because Vietnamese do not like to queue so the fast food restaurant provides such service. And maybe it is because Singaporeans & Koreans don’t mind queuing, that’s why I do not see such service in Singapore & Korea fast food restaurants.

Thus in order for foreign companies to survive in another country, they must understand the culture and the people first as different culture and different people have different habits and practices. One cannot use the management style or way which administer in its home country to apply exactly the same in Vietnam. It won’t succeed as things don’t work the same everywhere. ‘Lotteria’ in this case has understood the Vietnamese and has adapted to the situation; changed the normal style of serving the customers which they normally do in its home country.

0 comments: