Topic: Cultural Awareness and the Importance of

Cultural Awareness in the Business Environment.

Class: 231_ENTI1012_01
Teacher: Mrs. Phan Tu Lan
Group: 1
 TRƯỜNG ĐẠI HỌC THƯƠNG MẠI
I. Introduction (LinhKHOA
Anh) KHÁCH SẠN DU LỊCH
II. Developing
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1. Introduction (Linh Anh)
● Definition of cultural awareness
+ Cultural

Culture is a broad term that refers to the social behavior, customs, and beliefs of a
particular group or society, which develops over time.

+ Cultural awareness

Cultural awareness means being sensitive to the differences and similarities

between two cultures when communicating or interacting with members of other
cultural groups

→ Although language plays a significant role in developing cultural awareness, being

fluent in a foreign language doesn’t mean that you’re culturally aware, as there are
nuances and a wide range of contextual meanings for words that native speakers use,
which you can’t learn from books alone.

● How important is cultural awareness in a globalized world?

- Know how to respect the way others operate based on their cultural
backgrounds.
E.g: Indians eat with their fingers because in their country, they believe that
food is given by God and Genie, so they eat with their fingers to show
respectful

- Understand yourself better, your weaknesses, your psychology, and how to

become a better person.
E.g: In Vietnam, you've learned in a passive way at school, so you lack
confidence and you have a fear of speaking in public, but if you understand this
weakness and try to improve it then you’re going to be a better person.

- Help people get along without misunderstandings, confusion, or poor decisions.

E.g: The religion of Malaysia doesn’t allow people to eat pork. It's a sin. So if
you want to buy some food for your Malaysian friend, don’t buy pork.
2. Benefits of Cultural Awareness in Business (Lan Anh)

Cultural awareness plays a crucial role in today's globalized business

environment. As companies expand their operations across borders, it becomes
essential for them to understand and appreciate the cultural differences that exist
in different markets. I will explore the numerous benefits that cultural awareness
brings to businesses and how it can positively impact their operations.

- Enhancing communication and collaboration

One of the key advantages of cultural awareness in business is improved
communication. When business professionals possess knowledge and respect the
cultural norms and communication styles of their international partners or clients,
they can effectively convey their ideas and messages. By understanding the
preferred communication styles, greetings, and body language, professionals can
establish rapport and build strong relationships with clients and partners from
different cultures. This leads to enhanced trust, smoother negotiations, stronger
relationships, and successful collaborations.
In addition, businesses can also receive benefits, such as:
- Foster a positive and respectful work environment by valuing diversity and
promoting inclusivity.
- Provide opportunities for professional development and growth to enhance
employee satisfaction and productivity.
- Encourage open and honest communication to foster collaboration and
teamwork.
- Foster open and transparent communication to build trust and create a positive
working relationship.
- Be respectful of cultural differences and avoid making assumptions or
stereotypes.
- Demonstrate flexibility and adaptability in your approach to accommodate
different cultural practices and customs.

- Increased customer satisfaction

Another significant benefit of cultural awareness in business is increased
customer satisfaction. When companies demonstrate cultural sensitivity and adapt
their practices to align with the cultural values and expectations of their
customers, they create a positive customer experience. For example, by providing
multilingual customer support, offering culturally-appropriate products or
services, and respecting religious or dietary preferences, businesses can build trust
and loyalty among their diverse customer base. This leads to higher customer
satisfaction, repeat business, and positive word-of-mouth referrals.
- Increased global market opportunities
Cultural awareness also provides businesses with an enhanced understanding of
the global market. From there, it opens up doors to new market opportunities for
businesses. By recognizing and appreciating the cultural differences of their target
markets, companies can tailor their products, services, and marketing strategies to
suit the local preferences and needs. This knowledge allows businesses to develop
effective localization strategies, avoid cultural faux pas, and create a positive
brand image in diverse markets. Ultimately, a deep understanding of different
cultures enables businesses to gain a competitive edge and expand their operations
internationally.

- Avoiding cultural misunderstandings and conflicts

By embracing cultural awareness, businesses can avoid potential
misunderstandings and offenses that may arise due to cultural differences.
Cultural nuances can significantly impact business negotiations, decision-making
processes, and even day-to-day interactions. Being aware of these differences
allows business professionals to adapt their behavior, communication style, and
practices accordingly. This helps in fostering respect, avoiding cultural faux pas,
and maintaining positive relationships with stakeholders from different cultures.

- Promoting diversity and integration

In addition to the aforementioned benefits, cultural awareness promotes
diversity and integration within the business environment. When companies value
and respect diverse cultures, they create a welcoming and inclusive workplace
where employees feel appreciated and encouraged to contribute their unique
perspectives and ideas. This fosters creativity, innovation, and collaboration,
leading to a more dynamic and successful business. Furthermore, embracing
cultural diversity can also attract top talent from different backgrounds, enhancing
the company's reputation and competitiveness in the market.

In conclusion, cultural awareness plays a crucial role in the success of

businesses operating in today's globalized world. It enables improved
communication, enhanced global market understanding, and increased customer
satisfaction. By embracing cultural diversity and adapting their strategies
accordingly, businesses can effectively navigate the challenges of cross-cultural
interactions and leverage the numerous benefits that cultural awareness brings.
Embracing cultural awareness is not only ethically important but also a strategic
advantage that can drive business growth and success.

3. Strategies for Developing Cultural Awareness (Bá An)

As workplaces become increasingly diverse, managing this diversity in the

workplace has become a critical capability for any successful organization. To
achieve this, promoting cultural engagement competencies and improving cultural
awareness can be powerful tools in creating a harmonious and product
environment.

I’ll explore five strategies for driving cultural awareness in the business
environment to embrace and celebrate diversity.

● Invest in global citizenship training

To truly promote cultural awareness and ensure that your workforce

understands why cultural competence is beneficial, you should begin by
building the cultural knowledge of your employees. One way to achieve this is
by holding development workshops to build cultural awareness capability in
staff. These learning opportunities should be framed in a way that allows your
employees to learn how to deal with working in an increasingly diverse global
economy and society. They should also be framed against the context of your
company. For example, if your company does a great deal of business in China,
arrange for formal training from someone who has worked in China.

● Promote culturally sensitive communication skills

Effective communication is a crucial skill when it comes to managing diversity

in the workplace. How you communicate with others, both verbally and non-
verbally, can make or break a deal. While it’s ideal if your employees know the
language of the country you’re doing business with, effective communication is
still possible even if they don’t. It all starts with having a thorough
understanding of the local culture, which can help avoid misunderstandings and
build stronger relationships.

● Promote good manners in employees

Promoting good manners in the workplace is an important aspect of building

cultural awareness, improving emotional judgment and managing diversity.
Regardless of where you do business, demonstrating polite and respectful
 behavior is crucial for building trust and forming strong relationships with
clients and colleagues from diverse cultural backgrounds.

In addition to using appropriate language, it’s important to be aware of cultural

differences when it comes to formality. In some countries, it may be
inappropriate to use informal language or to address a customer by their first
name during initial contact. By providing guidance on these issues, you can
help your employees avoid potential misunderstandings and show that your
company is respectful of cultural differences.

● Celebrate your colleagues’ traditional holidays

Celebrating traditional holidays is one of the best activities to promote cultural

awareness in the workplace. It shows that the company values and respects the
cultural heritage of its employees, and creates a sense of inclusivity that can
lead to greater job satisfaction and productivity. By celebrating different
holidays and festivals, the company can also increase awareness and
understanding of different cultures and traditions, which can help to break
down barriers and promote cross-cultural communication.

● Listen to foreign clients and colleagues

Encouraging your employees to listen to foreign clients and colleagues is a

crucial aspect of promoting cultural awareness in the workplace. This becomes
even more important when managing a remote team where communication is
often the only means of collaboration. Listening to others with an open mind
allows your employees to learn about different customs and perspectives. It
also shows respect and a willingness to understand different viewpoints.

In addition to listening, it’s also important to observe the attitudes and

behaviors of culturally diverse customers and colleagues. This can help your
staff to understand the underlying logic and values that shape their actions and
behaviors. Even though these behaviors may seem odd, confusing, or even
annoying at first, your staff will be able to respond to cultural differences in a
calm and rational way. This can help prevent cultural conflict and build better
relationships with clients and colleagues.

Developing cultural literacy and awareness among employees will naturally have
a positive impact on communication, productivity, and unity in the workplace.
Culturally competent employees can work effectively with foreign customers and
colleagues, resulting in fewer misunderstandings and mistakes, and ultimately
better work outcomes.
4. Examples of Successful Cultural Awareness in Business (Minh An)

There are a number of reasons for KFC’s success, such as being first to the
market, building a strong supply chain, and deploying a more strategic expansion
plan. However, a big reason for KFC’s success is that it adapted to the local
culture.

The difference between Western countries and China is that the latter had no
frame of reference for burgers. The country was closed for so long that burgers
seemed too strange and fore. KFC, meanwhile, had the advantage of offering fried
chicken, which is a familiar food for people in China. Key to KFC's success in the
country has been its aggressive catering to Chinese tastes, with menu items that
will never make their way to US restaurants. While KFCs in China serve fried
chicken, they also serve a variety of local dishes like egg tarts, congee (rice
porridge), and the "Dragon Twister."

Additionally, Chinese in particular and people all around the globe in general
tends to concern more about heathy diets. Therefore, in order to adapt to this
change, KFC opened a new “K PRO” restaurant in Hangzhou, China in 2017,
which included in the refresh was the menu innovation that no longer caters to
their main-selling fried chicken but is now filled with healthier options. The
Chinese K PRO completely transformed the former KFC food offerings with
healthy salad, smoked salmon, crayfish, chicken, sandwich, and Japan's Asahi
beer.

5. Example of failed cultural awareness in Business (Lâm Anh)

How McDonald’s failed in China?

No fast food company does international expansion as well as McDonald’s.

Meanwhile, competitor KFC always lagged behind, especially in Asia. When
China opened up its borders to international companies in the late 1980s, it
would have been safe to bet that McDonald’s would continue its dominance.

That never happened, however. Today, McDonald’s has half the presence that
KFC does when it comes to total stores, while losing out to KFC in revenue per
store and margin. There are a number of reasons for KFC’s success, such as
being first to the market, building a strong supply chain, and deploying a more
strategic expansion plan. However, a big reason for KFC’s success is that it
 adapted to the local culture while McDonald’s initially refused to cater to the
tastes of Chinese customers.

McDonald’s had great success with its line of American-style burgers when it
expanded to Japan and other Asian countries. They stubbornly decided to roll
out the same line of product that worked in nearby countries. The difference
between those countries and China is that the latter had no frame of reference
for burgers. The country was closed off for so long that burgers seemed too
strange. KFC, meanwhile, had the advantage of offering a familiar food for
people in China. They also took active steps to localize their menus for the
Chinese market, and their wildly successful breakfast menu featuring staples
like congee is a testament to their localization efforts like Mr An said

McDonald’s has since learned from its mistakes and enjoys a strong position in
China’s fast food market. But due to their botched rollout, they’re still a
lagging competitor to KFC’s market position. A little localization could make it
easier to be successful, especially when it’s done correctly from the start.
Unfortunately, McDonald’s couldn’t do it from the beginning.

So as we can see, there are numerous challenges in Culturally Diverse

Workplaces. Let’s move to the next presentation by Mai Anh and Nhung to
look over and find out the solutions of these tough challenges.

6. Challenges and Solutions in Culturally Diverse Workplaces (Mai Anh,

Nhung)
● Challenges (Mai Anh)

There are many benefits to diversity in the workplace but bringing a diverse
group of people together can also lead to some challenges. Let’s explore what
those are.

The first one is communication issue. Communication can be used to share

emotions, transmit information through different modes of communication
channels, and coordinate efforts within an organization. It is not uncommon for
communication issues to arise during exchanges. Communication issues can be
somewhat common on diverse teams. There may be language barriers, different
communication styles or preferences, or people with hearing loss on your team.
 The second one is different perspectives due to different cultural backgrounds.
It can be difficult to conclude one idea among the best. Selecting one among
different perspectives might mean disappointing others who might have come
up with better ideas. Too many perspectives can also hinder the timelines for
completing tasks and productivity.

The third one is discrimination. As you diversify your team, it’s possible you
could see more biases, discrimination, and harassment. In fact, 61 percent of
workers have witnessed or experienced discrimination in the workplace based
on age, race, gender, or LGBTQ+ identity. This can keep employees from
bringing their authentic selves to work, hindering innovation, creativity, and
teamwork.

● Solutions (Nhung)

Bringing a diverse group of people together can also present some challenges.
So what solutions are needed to improve the above challenges?

For Businesses. Businesses need to create space for cultural requirements. Be

responsive to the different cultural needs of employees and colleagues. Be
aware of cultural factors and incorporate them into your workplace policies so
everyone feels included. Cultural awareness in the workplace is about
establishing common ground so people can understand and respect each other's
differences. Ensuring that people from different cultural backgrounds feel
included and safe is an important step in overcoming cultural barriers in the
workplace. Creating an environment that fosters teamwork, creates new
opportunities, and fosters positive attitudes across departments - all are
essential to creating and maintaining a healthy work environment.

For each individual. When entering a new cultural environment, we should try
to ensure clear and polite communication. In situations where language
differences arise, such as when speaking with colleagues, use short and simple
communication to reduce any misunderstandings. When you deliver your
words, make sure you speak to your target audience accurately.
Communicating effectively can help you find a balance between expressing
your own unique voice.

The solution is not completely accurate and is for consultation only.

III. Conclusion: (Minh An)

1. Recap of the importance of cultural awareness in the business environment

Globalization has led to a vast impact on the expansion of businesses

worldwide. Hence, organizations need to be wise to become culturally aware of
dealing with international clients. As a result, organizations will work more
effectively and comfortably. Cultural awareness promotes people to build
successful and professional relationships in diverse backgrounds.

2. Call to action for businesses to prioritize and invest in cultural awareness

initiatives

 Regularly communicate with the locals

 Adapt to local culture
 Respect customer’s need
 Be willing to change

TASK OF EACH MEMBER

Name Code Mission

 - Examples of Successful Cultural Awareness
Lê Minh An 21D111001 in Business
- Conclusion

Nguyễn Bá An 21D111101 Strategies for Developing Cultural Awareness

- Benefits of Cultural Awareness in Business
Bùi Lan Anh 21D111102
- Build outline
Challenges in Culturally Diverse
Đồng Mai Anh 21D111103
Workplaces

- Examples of Failed Cultural Awareness in

Nguyễn Lâm Anh 21D111104 Business
- Word

- Introduction
Nguyễn Nguyệt
21D111105 - Definition and How important is cultural
Linh Anh
awareness in a globalized world
Nguyễn Thị Hồng
20D191025 Solutions in Culturally Diverse Workplaces
Nhung