In today’s world, businesses are continuing to appreciate the aspect of globalization. Firms are now operating internationally. The world is providing companies with new destinations. Because of high competition, companies that operate internationally are now faced with another taskthat is, to deal with the cultural issues that are practiced in such countries. Companies are now forced to deal with the culture obstacle that can affect the entire organization. Culture influences business in a variety of ways. Pricing difficulties, culture collisions and language problems are common, especially during the early stages. Companies must be able to face these difficulties in a satisfying way. Mistakes in handling cultural issues can be difficult to correct. Disrespecting the country’s culture can lead to the destruction of the entire organization. Before a company decides on its import or export destination, there is a need to ascertain the viability of the country. This paper analyses thecultural perspectives of doing business in Nigeria. It explores the business and economic resources of the country to decide if it offers a productive and viable import or export opportunity for my organization (Bottled Water Company).

The major elements and dimensions of business culture inNigeria:

Nigeria is anationsituatedon the western side of Africa and borders Cameroon in the east, Niger in the north, Chad on the North East and Benin on the west. It is the richest and the most populous country in Africa. The country has six major business cities which are Abuja, Kaduna, Lagos, Kano, Aba and Onitsha. It is also blessed with natural resources such as timber, rock salt, zinc, column bite oil, gemstone, iron ore, tin and a vast agricultural land for both arable and crop farming. The country has rich economic and business resources. In addition, the nation has many tribes which are estimated to be 371, and 400 spoken languages(Ogbonna, 2010).The three major tribes in Nigeria are Yoruba, Hausa and Ibo. Nigeria has many cultures, but the major ones are Hausa, Igbo and Yoruba. Different cultures have different practices such as farming, fishing and trade.

Culture is a major influence on business in Nigeria. Culture is described as the summation of the people’s way of life. It is transferable and, therefore, influences business since businesses revolve around culture. Culture is categorized into four dimensions and each dimension influences business in a certain way. The first dimension is power distance which deals with the way people accept power inequality or divide themselves in respect to authority allocation. It is further divided into two; higher and lower power distance(Ogbonna, 2010).The high-power distanceculture authority is for those within the top authority. In the low-power distance, there are no social classes and individuals can condemn or appraise the actions of the authority. Nigeria has a high-power distance culture because its authority is assigned on the basis of education, age, experience and authority exercise through the centralized political system. Authority in Nigeria flows from the top to the bottom. Authority flows downwards.

Another dimension of culture is individualism and collectivism,the degree of value between a person’s interest and that of the group. Nigeria is a nation that practices collectivism. Issues are considered from a group perspective(Ogbonna, 2010).There are extended families and other social practices in Nigeria. The third cultural dimension is uncertainty avoidance. This refers to how people in the society perceive or accept/treat a new situation and its uncertainties. There is high and low uncertainty avoidance. High-uncertainty avoidance rejects and hates change and prefer regular and old routines (Ogbonna, 2010).Nigerian culture has a high degree of uncertainty avoidance. As a result, there has been a rejection and neglect of government policies that introduce change and improvement in the nation. The last dimension of culture is masculinity and femininity, which refers to the ways in which goals, achievements and ambition are valued in the society. Nigeria has a femininity culture considering its interpersonal relationship and affiliation among other nations in the African society. Also, for example, in a government organization, when and individual is in difficulty, members of the organization make a financial contribution to assist the person. Nigeria values care for one another.

Other elements of culture in Nigeria include language, religion, national pride, family and hierarchy. With more than 400 spoken languages, Nigeria has a diverse culture(Ogbonna, 2010).However, there is the official language of Nigeria, which is English, and which was chosen to promote linguistic and cultural unity. Though English is used for business transactions, most ethnic groups prefer to speak in their local languages. English is still used by a small minority, which lives in the nation’s urban areas. It is not spoken in rural areas. There are many religions in Nigeria. Christians subsist in the south and Muslims are foundin the north. There are also other native religions. The communication style of Nigeria is also a culture that may either be good or bad for import or export business. Just as the ethnic makeup, there is a variance in the communication style. The people of the Yoruba tribe employ sayings, songs and even proverbs when greeting(Ogbonna, 2010).Those of the south speak directly. The people of Nigeria are friendly and outgoing. They also prefer developing personal relationships before conducting business.

Residents in Nigeria are involved in a lot of thriving businesses. Despite the language, religious and cultural differences, the Nigerians live in peace and have business relationships. For example, shop owners do not segregate based on language or religion, and everybody is usually a good customer. Also, though Nigerians have language differences, those in the urban areas use English during business transactions. However, businesses in Nigeria are also affected by religion in that, the northern part of the country, for instance, the NigerDelta is not a safe place for people, especially Christians who belong to the south(Falola, 2002). As such, establishing businesses in the NigerDelta is usually a mission impossible. This is because the area is prone of military and religious wars. All in all, the people in Nigeria have understood the cultural elements and dimensions in the country. Therefore,they appreciate them. A business is given priority before any cultural difference. Furthermore, Nigerians disregard the cultural elements and dimensions. This is evidenced through their caring for one another, especially those at the lower class who do business peacefully, not regarding the ideologies held by those in the authority (Falola, 2002).

Nigeria and USA:

Language is one of the key cultural essentials in Nigeria. Many people speak their native language compared to those who speak the official language. The USA does not have native languages. English is spoken by the majority and is referred to as American English(Schmidt, 2007). Therefore, culture and business in the USAare a thing of the past. Without local languages, businesses thrive better due to theuse of a common language. In respect to religion, there are many religions in the United States, ranging from Muslims, Christians, Hindus and many others. Surprisingly, the USA does not have divisions based on religion. Businesses are not affected by religion at all, as is the case of Nigeria. There are no religious hostilities, and this provides a good climate for businesses to thrive. Also, the USA is diverse. The population is comprised of immigrants, unlike the local residents. There is a culture mix in the nation (Schmidt, 2007). Rather than Nigeria, which upholds collectivism in that, people prefer a group rather than personal interest; individualism is regarded highly in the United States. This is seen in the family unit. Also, people are proud of their individual success, initiative and accomplishments and may not share such success with their relatives.

Furthermore, the communication style in the USA is linear, logic and direct compared to that of Nigeria. Unlike Nigerians who give priority to building relationships first before getting into the business, Americans are deal-focused, and they get down to business right immediately. Relations come later. Negotiations in the USA business culture are purposed on signing a contract. Also, despite the collective nature of the Nigeria business culture, the USA business culture puts emphasis on personal initiative and achievement(Schmidt, 2007). Finally, the USA business culture is informal. The Nigeria business culture recognizes and honors personal titles such as chiefs, and people are addressed by their titles. First names are not used without permission. On the contrary, titles are not often used in the USA business environments and many business partners prefer to use their first names. This is usually not a sign of disrespect, but anexpression of Americanculture.

Challenges for U.S. businesses that desire to carry out business in Nigeria:

Nigeria is still a destination for many countries because of its thriving economy, natural resources and available labor, which is provided by the large unemployed population. There is a vast human capital. However, doing business in Nigeria can be frustrating and tough. The United States and Nigeria have different business cultures. US businesses that wish to conduct businesses in Nigeria would have to deal with a different business culture, as well as other challenges. Nigeria has a diverse language, and English is used by few. USA businesses would have to deal with the problem of language barrier (Falola, 2002).This would affect buying and selling as well as business transactions. Nigeria has religious clashes(Falola, 2002).Muslims and Christians are hostile to each other, especially in the north, which is a Muslimdominated area. US businesses in Nigeria would have to deal with religious differences and hostilities which can either destroy or halt businesses. The communication style of Nigeria is different from that of the USA. Therefore, US business people would have to adapt to the Nigerian communication style, greetings style and business transaction style. This is a challenge to the Americans, who give priority to business, time and do not regard name titles.

Nigeria has a high degree of uncertainty avoidance. This is a challenge since establishing businesses in the nation would be a way of initiatingchange. The USA businesses would face challenges in thriving since the people and even the government is not flexible to change, for example, in terms of goods and services, technology and any other business product. The USA businesses will have to persevere and be patient for the people to adopt to change. This would affect businesses. Other challenges that USA businesses would face if they were to establish businesses in Nigeria are poor infrastructure, power challenge and corruption.

Nigeria is a potential countryfor any company which intends to export/ import. However, international firms must be ready to deal with and handle the cultural challenges in order for them to survive. Nigeria has a good economy, mineral resources as well as large human capital. The country is also peaceful place to run a business and, therefore, it presents a viable and productive export opportunity for my Bottled Water Company. However, my organization would have to adapt to the business culture of the country.

References

Ogbonna, C. (2010).Cultural Issues about Doing Business in Nigeria: Case Study for Thurmo Oy.Degree Programme in Business Management.

Falola, T. (2002).Culture and Customs of Nigeria. Westport, CT: Greenwood Publishing Group.

Schmidt, P. (2007). Understanding American and German Business Cultures: A Manager’s Guide to the Cultural Context in which American and German Companies Operate. Midland, Blvd: Meridian World Press.

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