Topic 1: Analyze the role of cultural factors that can create comparative advantage for a company. Give some relevant examples.


Facing with the diversity of the market as well as the establishment of more and more enterprises, managers’ pressure is weighed on how to make their firms different and attract more customers compared to other companies. In the opinion of Michael Porter, entrepreneurs who only focus on two objectives of growth and product diversification strategy does not guarantee long-term success for business. It is important for any business organization to build a sustainable comparative strength. Since then the concept of “Comparative advantage” was born with the sense that the specific value of the enterprise will help businesses reach high performance and always be unforgettable. There are many factors that create comparative advantages for business and one of the basic elements and also plays the important role is the cultural factors. It is supposed that culture is the promotion of the ability and the fullest expression of human nature. Hence, culture exists in any human activity such as economy, politic, society, communication, behavior, or in the innermost thoughts. Each nation brings its own different cultural values, creating the cultural diversity. This has caused not only difficulties for multinational companies to be able to adapt but also an opportunity for businesses to learn, thus make the particular policies that create comparative advantages which other companies can hardly compete. In my opinion, there are several cultural factors which will have the influence on the comparative advantage of a company, including: language, customs, education and material values.

The first element I want to mention is “Language”. Language is regarded as the barrier for companies to penetrate foreign markets. Therefore, training leaders as well as employees who can communicate properly to the country and the local that the firms...