It is true that national environments are potential markets for businesses to investigate and operate. However, there are whether or not responsibilities that these businesses have to pay attention to the communities in these countries. Therefore, in this essay, I am going to present, first, the environmental extent, then, cultural extent that businesses are supposed to take into account.
In terms of the environmental extent, there are two points. First, it is crucial to protect the natural environment in which multinational companies operate. To illustrate, every country has its own environmental law, so complying with national law is all of the companies’ responsibility. Second, it is beneficial to promote products which are environmentally friendly. To demonstrate, it is not compulsory for businesses; however, most people are fond of ‘green’ products. For instance, Cocoon, which is a skincare brand, attracts thousands of customers thanks to their organic products. As a consequence, combining commercial and environmental purposes can help businesses get numerous achievements.
In terms of the cultural extent, there are two points. First, investigating the cultural environment is one of the primary factors for cross-national businesses. This is because people in different countries have different shopping behaviors. For example, BurgerKing, which is a fast food business, was criticized a lot because of a wrong statement about chopsticks culture of Asians. As a result, there was a dramatic decrease in followers on Instagram of BurgerKing. Second, it is advantageous to adjust products to be more suitable for local communities. To illustrate, combining original characteristics and local features can satisfy customers. For instance, KFC has not only chickens but also rice in Asia’s meals, so KFC succeeded in Asia markets thanks to this strategy.
In conclusion, I have discussed the environmental and cultural extents that multinational companies are supposed to take into account.