Lack of cultural awareness in company AD leads to loss of consumers and brings a bad reputation to the company as the consumers will get offended and avoid any kind of collaboration with the company. No one want to purchase from a company which can not respect the culture or does not know about their culture. At the same time the goodwill of company will also affected due to loss of customers and its lack of cultural awareness.
Culture is a very sensitive issues and company should be very careful regarding the company AD as it could lead to hurt of sentiments . The famous example could be of Microsoft which showed some part of Kashmir as not part of India. It got a lot of flack. The case of vegetarian pizza for vegetarian Indians is an excellent example of cultural awareness to get space in market.
So company should be very attentive regarding its AD if it is working in a different cultural environment.
If company has no idea about the culture and put something offensive which was not offensive in company's home country could affect the sale of the organization.
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