Name: Lupita Ardhyaningrum
Student Number: 100807173
Course: BUSI 4708 Intl Expansion
From the Charles Martin case, it is known that Uganda encompasses different cultural
traits that are very much distinct to that of the United States. For that reason, there are many
Ugandan cultural attributes that might affect the operations of a foreign company doing business
there. Uganda is a multi-ethnic, multi religious and multi-language country. Although English is
the official language in Uganda, majority of the population only speak an indigenous language
that others may not speak such as Bantu, Nilotic languages of the Bugandas, Langos, Acholi,
Teso and Karamojong. What this implies is that foreign companies may run the risks in
encountering language barrier issues and can result in communication problems, for instance at
one point, the company will need a translator to assist business operations. This factor needs to
be taken into consideration because in order to be successful in the project, effective
communication is crucial.
Other cultural aspects such as different religions, beliefs, and tribal rituals that the
Ugandans believe in certainly have major impacts on HG’s business practices in the host
country. When hiring local employees the company needs to think of these religious practices
and beliefs because religions shape cultural values and will influence business practices (e.g
holidays, work attributes, benefits, etc).
In addition to that, nepotism and corruption are common business practices in Uganda.
According to the East African Bribery Index 2012, published by Transparency International,
Uganda has the highest bribery levels in East Africa, and worse yet, corruption and bribery levels
are predicted to increase in the long run. Because of this, Uganda is politically unstable and
business practices move at a slow pace. It is as if bribery is almost the only way to access fast
and prompt services due to Uganda’s corruptive system. This is a controversial issue because it
conflicts with HG’s home country law and by doing so will negatively affect their business and
reputation in the international world. The company needs to clarify guidelines and rules to the
certain extent on what is acceptable when conducting business in Uganda.
In addition to that, the extent to which the company will be successful also depends on
the general management orientation of the company doing business in the host country. From the
study case, it is apparent that Charles Martin, due to his International background and having
lived in Africa before, exhibited polycentric perspectives as he att