Socio-cultural analysis

Socio-cultural analysis

Introduction

JBS USA Holdings, Inc. is a food processing company found in the United States of America. The company processes fresh beef and pork that help in feeding the Americans and Canadians. The company has been successful, and this has been reflected in the sales they make annually (Aithal, 2017).  It usually makes fifty billion dollars yearly sales, thus maximizing more profits. The management feels that the company should be expanded to other countries. The management is confident that by establishing the company in other countries, it would maximize more profits because of the excellent quality and service delivery that the company has been able to maintain over the years. As much as the company has been able to attract more clients, it would be prudent that it selects a suitable market. Apart from choosing an appropriate market, it also needs to consider the socio-cultural factors of the target market in a particular geographical region. Taking into account the people’s socio-culture is essential because it would determine the goods and services to be exported, the people’s preferences, and products that are in line with their socio-cultural aspect. Kenyan’s culture has a score of about 60 within Hofstede dimension, which makes it be a collective society that can accommodate different races as well as foreign activities.

Socio-cultural factors

The first social-cultural factor that the company needs to consider is the people’s preferences. There are those countries whose faith does not allow them to take pork, and they have to ensure that they find a perfect alternative, such as exporting meat. By doing this, the company would be complying with the cultural norms that the people consider as unacceptable. The international markets are exporting their goods to have varied tastes, brand, and quality. It would, therefore, be appropriate that these cultural differences be taken into account to enable the company to satisfy its customers’ needs.

The second factor is the language the people are using as a means of communication. A language is an essential tool that aids different functions such as marking the products, advertising, and gathering of information about the products being offered (Wales, Gupta, Marino & Shirokova, 2019).  The company, therefore, needs to identify a suitable language that would enable it to respond to different needs and complaints raised by its customers. Additionally, by knowing the people’s language, they would be able to market and advertise their goods, thus making the people familiar with their products.

The third factor is the population changes. The population structure influences the rate of supply and demand in a country. When there is an increase in population, it implies that the company would need to increase its supply because the people are demanding more products to satisfy their needs. The company would, therefore, have to target developing countries to enable them to have a continued supply of food because of the shortest of food and rapid population growth in these countries.

The fourth factor is people’s attitudes towards foreign products. The people’s attitudes are determined by the beliefs and traditions that guide them in their society. For instance, when Muslims do not consume pork, it doesn’t mean that the Christian would also not consume it. There is a religious structure made up of both Muslims and Christians that have different beliefs and traditions that the company would need to respect. The company would need to consider the cultural differences between these two groups and ensure that each is well served. The company would need to modify its products in a way that their production would not violate the people’s values, traditions, and beliefs. Attitude as a social factor would, therefore, enable the company to enjoy local support because the people will create a suitable business environment that would allow the business to thrive.

JBS USA Holdings, Inc. International expansion in Kenya

It would be prudent for JBS USA Holding, Inc. to expand in Kenta because of the favorable government policies, more comprehensive market, and high demand for goods because of the high population of about 52.57 million. Its life expectancy was about 66.44  in 2019which is an increase of approximately 0.39 in 2018. This, therefore, implies that it is capable of producing readily and an available source of labor for the company to many years. The availability of labor would, therefore, not be a challenge to the company. Kenya is a developing country that the United States of America should invest in at the international level because it is still lagging economically.

Several socio-cultural factors make Kenya a country that would accommodate international trade. Demographic changes are one of the suitable socio-cultural factors that make Kenya be an appropriate country for expansion. Kenya’s economy is a promising one, and this lies in the country’s Gross Domestic Product of 99.246 billion dollars. Its economy is one of the fastest in Africa. The rapid population has been a challenge because about two-thirds of the people cannot access financial services (Ghazzawi & Palladini, 2016). By America trading in the country, it would support its growth and development economically. The ever increasing population is composed of youths who have no employment. By America establishing JBS USA Holding, Inc., the challenges of unemployment would be solved. America would be able to enjoy the increased volume of sales because of the stability of the market that the high population would be providing. The company would also be able to enjoy affordable labor because Kenya’s labor organization accommodates international trading activities without imposing strict laws.

The large population expresses themselves through two languages, which are Kiswahili and English, meaning that language would not be a barrier because the majority of the Kenyans can express themselves in English that the Americans would also understand. Communication between the Americans and the Kenyans would, therefore, be accessible. The company would be able to market and advertise its various products with less difficulty. Additionally, people’s attitudes are positive, and this, therefore, means that the new products would be accepted positively. Marketing concerns would consequently not be a challenge because the large size market will welcome the new products so long as they are in line with their socio-cultural beliefs, values, and traditions.

Conclusion

Before a company invests in a particular country, it would be prudent that it conducts research, especially on its socio-cultural factors, to identify whether it can accommodate international expansion and investment. JBS USA Holding Inc. has been thriving in both the United States of America and Canada because of the quality products the company is processing (Wales, Gupta, Marino & Shirokova, 2019).  Marketing concern is an issue that America can handle because of the improved technology it already has in the production of its goods and services. It is high time that the company explores Arica and, in particular, Kenya because of the favorable government policies, stable and readily available market, and availability of labor.The Kenyan government has suitable business policies that would enable the company to take advantage of the high volume of sales. The negotiating tactics involve the use of diplomacy that is fair to both Kenyans and the Americans. The socio-cultural factors are also not comprehensive as long the company can adhere to the people’s preferences, attitudes, language, beliefs, and traditions that are culturally and socially accepted.

References

Aithal, P. S. (2017). Impact of Domestic, Foreign, and Global Environments on International Business Decisions of Multinational Firms: A Systematic Study. International Journal of Management, Technology, and Social Sciences (IJMTS), 2(2), 93-104.

Ghazzawi, I., & Palladini, M. (2016). The coin has two faces: Differences that matter — Journal of the International Academy for Case Studies, 22(1), 61.

Wales, W., Gupta, V. K., Marino, L., & Shirokova, G. (2019). Entrepreneurial orientation: International, global, and cross-cultural research. International Small Business Journal, 37(2), 95-104.