What are Some Examples International Business Blunders?

Examples of Cultural Fails in International Business

Looking for real examples of cross cultural business blunders?

When companies expand into international markets, even small cultural misunderstandings can lead to costly mistakes. From mistranslations and marketing missteps to misunderstandings around behaviour and etiquette, these errors highlight how important cultural awareness is in global business.

Below are real examples of cultural blunders in international business that show what can go wrong when culture is overlooked….and why cross cultural training for international business is so important.

Which one stands out to you?

Real World Examples of Cross Cultural Business Blunders

1. Translation Mistake: Cooking Oil Brand Name in Latin America

1 – Managers at one American company were startled when they discovered that the brand name of the cooking oil they were marketing in a Latin American country translated into Spanish as “Jackass Oil.”

2. Product Name Failure: The “Matador” Car in Puerto Rico

2 – American Motors tried to market its new car, the Matador, based on the image of courage and strength. However, in Puerto Rico the name means “killer” and was not popular on the hazardous roads in the country!

3. Workplace Culture Clash: Time Management in Hong Kong

3 – A sales manager in Hong Kong tried to control employees’ promptness at work. He insisted they come to work on time instead of being 15 minutes late. They complied, but then left exactly on time instead of working into the evening as they previously had done. Much work was left unfinished until the manager relented and they returned to their usual time schedule.

4. Advertising Misstep: US Telecom Campaign Targeting Latinos

4 – A US telephone company tried to market its products and services to Latinos by showing a commercial in which a Latino wife tells her husband to call a friend, telling her they would be late for dinner. The commercial bombed since Latino women do not order their husbands around and their use of time would not require a call about lateness. A great example of cultural differences in advertising.

5. Cultural Symbol Misunderstanding: Cologne Ad in Islamic Markets

5 – A cologne for men pictured a pastoral scene with a man and his dog. It failed in Muslim countries where dogs are considered unclean.

6. Cultural Norm Violation: Proctor & Gamble Advertisement in Japan

6 – Proctor & Gamble used a television commercial in Japan that was popular in Europe. The ad showed a woman bathing, her husband entering the bathroom and touching her. The Japanese considered this ad an invasion of privacy, inappropriate behaviour, and in very poor taste.

7. Business Etiquette Mistake: Refusing Coffee in Saudi Arabia

7 – An American businessperson refused an offer of a cup of coffee from a Saudi businessman. Such a rejection is considered very rude, and the business negotiations became stalled.

8. Communication Style Clash: Feedback in a US–Japan Workplace

8 – A Japanese manager in an American company was told to give critical feedback to a subordinate during a performance evaluation. Japanese use high-context language and are uncomfortable giving direct feedback. It took the manager five tries before he could be direct enough to discuss the poor performance so that the American understood.

9. Gesture Misinterpretation: The “OK” Sign in Latin America

9 – One company printed the “OK” finger sign on each page of its catalogue. In many parts of Latin America, that is considered an obscene gesture. Six months of work were lost because they had to reprint all the catalogues.

10. Cultural Symbol Misuse: Taj Mahal Comparison in India

10 – Leona Helmsley should have done her homework before she approved a promotion that compared her Helmsley Palace Hotel in New York as comparable to the Taj Mahal – a mausoleum in India.

11. Cultural Numerology Mistake: Packaging in Japan

11 – A golf ball manufacturing company packaged golf balls in packs of four for convenient purchase in Japan. Unfortunately, the pronunciation of the word “four” in Japanese sounds like the word “death” and items packaged in fours are unpopular.

12. Cultural Misalignment: Bechtel Project in New Guinea

12 – In 1985 Bechtel pulled out of a joint venture in New Guinea. It seemed flawed from the start. Bechtel had 33 months to build a new plant, organise services, and meet a production deadline or face financial penalties. They planned to place a mine at the top of a mountain in an isolated rain forest, creating a town of 2,500, camps for 400, a power plant, air strip, roads, hospitals, and support services (for natives who had never seen a Westerner). The natives who were recruited to work (while receiving 400 inches of rain during the rainy season) had no concept of private property, modern money, central government, or work regulations. The multicultural workforce of 5,000 was composed of mixed indigenous people and imported technicians from the United States, Canada, New Zealand, Korea, and the Philippines. The road builders did not believe in working around the clock (the contractor finally went bankrupt). Natives also did not like the work schedule, so they went with bows and arrows to shut down telephone lines, roads, and frighten personnel. There was an 85% turnover in the native workforce.

13. Operational Model Failure: FEDEX Expansion into Europe

13 – FEDEX (Federal Express) wisely chose to expand overseas when it discovered the domestic market was saturated. However, the centralised or “hub and spoke” delivery system that was so successful domestically was inappropriate for overseas distribution. In addition, they failed to consider cultural differences in business: In Spain the workers preferred very late office hours, and in Russia the workers took truck cleaning soap home due to consumer shortages. FEDEX finally shut down over 100 European operations after $1.2 billion in losses.

14. Cultural Etiquette Mistake: Showing Soles of Shoes in Saudi Arabia

14 – Mountain Bell Company tried to promote its telephone and services to Saudis. Its ad portrayed an executive talking on the phone with his feet propped up on the desk, showing the soles of his shoes – something an Arab would never do!