06 Jun 08 Ibm The Role Of Culture Presentn@Ume Btb

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International International BusinessBusiness

The Role of CultureThe Role of Culture


CultureCulture

• Composes of Value, Behavior, Customs and Composes of Value, Behavior, Customs and AttitudeAttitude

• Culture of a society will influence various rules Culture of a society will influence various rules and policies setting in roles of a business and policies setting in roles of a business organizationorganization

• Culture inherits from a generation to another Culture inherits from a generation to another e.g. parents train their children in courtesy, e.g. parents train their children in courtesy, seniors introduce freshmen in university’s seniors introduce freshmen in university’s customs customs

• Culture reflects business behavior e.g. Culture reflects business behavior e.g. Japanese culture has seniority and high loyalty Japanese culture has seniority and high loyalty that create a lifetime employment and a low job that create a lifetime employment and a low job turnover turnover


CultureCulture

• Culture succeeded by learning so, it’s Culture succeeded by learning so, it’s changeable. It changed by external forces changeable. It changed by external forces e.g. Germany after WW2 though it’s a e.g. Germany after WW2 though it’s a nation which has accumulated culture for nation which has accumulated culture for a long time, the behavior of its people a long time, the behavior of its people who live below Russia is quite different who live below Russia is quite different from West Germany. from West Germany.

• Culture helps to identify which person Culture helps to identify which person whether or not he belongs to a member of whether or not he belongs to a member of which society which society


Elements of CultureElements of Culture

Society Society StructureStructure

CultureCulture



• Society StructureSociety Structure Each society has a structure as a ground Each society has a structure as a ground to cling people on in a societyto cling people on in a society– Relatives CountRelatives Count How to count relatives is different in How to count relatives is different in

each society. To operate a family business, Americans each society. To operate a family business, Americans don’t reckon on relatives.don’t reckon on relatives.

– Social Classes Social Classes Every society make differences upon Every society make differences upon race, occupation, education and success level. In some race, occupation, education and success level. In some societies, the employment must concern about social societies, the employment must concern about social classes. classes.

– Changes in a Society Changes in a Society าาSome societies persons are able Some societies persons are able to change their own statuses by the education or to change their own statuses by the education or success especially in the society which is not highly success especially in the society which is not highly differentiatedifferentiate



LanguageLanguage


CultureCulture



• LanguageLanguage It is a principal element to differentiate cultures It is a principal element to differentiate cultures in a society. Specialists said that there’re more than 3,000 in a society. Specialists said that there’re more than 3,000 languages and up to 10,000 accents on our earth. languages and up to 10,000 accents on our earth.

• Language can tell us about ways of thinking of a particular Language can tell us about ways of thinking of a particular society. If in a particular nation, there’s more than a society. If in a particular nation, there’s more than a language, it indicates that there is a variety of cultures in language, it indicates that there is a variety of cultures in that country. It may comprise of a difference in revenues, in that country. It may comprise of a difference in revenues, in work culture, and educational level. work culture, and educational level. ⇨⇨ The smart The smart businessman will adjust marketing strategies businessman will adjust marketing strategies and business operations properly. In Canada, and business operations properly. In Canada, Canadian-British prefers a soap for hygiene, Canadian-British prefers a soap for hygiene, but Canadian-French prefers a soap for but Canadian-French prefers a soap for impressiveness. impressiveness.



• Language “Business Weapon” Countries who use Language “Business Weapon” Countries who use English are advantageous in world trade arena English are advantageous in world trade arena because English is used worldwide. Spain used a because English is used worldwide. Spain used a language advantage to attack Latin America language advantage to attack Latin America market where it uses Spanish primarily. Turkey market where it uses Spanish primarily. Turkey used Turkish to invade a group of new born used Turkish to invade a group of new born countries after Soviet collapsed. countries after Soviet collapsed.

• At present English is mostly a major world At present English is mostly a major world language. Countries who’re weak at English will be language. Countries who’re weak at English will be disadvantageous accordingly (e.g. in a negotiation disadvantageous accordingly (e.g. in a negotiation or losing an opportunity for MNCs to establish its or losing an opportunity for MNCs to establish its offices).offices).



• Language and Local CultureLanguage and Local Culture– Japanese will not say Japanese will not say “No”“No” because it’s not polite because it’s not polite

in Japanese society. in Japanese society. – Translation from one language to another may Translation from one language to another may

cause a problem because it shows a different cause a problem because it shows a different meaning. A good translation should aim for a meaning. A good translation should aim for a meaning, not word by word. meaning, not word by word.



LanguageLanguage

CommunicationCommunicationSociety Society StructureStructure

CultureCulture


Elements of CultureElements of Culture• CommunicationCommunication by speaking or silent (body by speaking or silent (body

language, face, action, queue, and otherslanguage, face, action, queue, and others))• In same culture, the communication may be In same culture, the communication may be

ineffective. In different culture, more ineffective. In different culture, more misunderstanding. misunderstanding.

• Specialists believe that 80 – 90 % of silent Specialists believe that 80 – 90 % of silent communications in same society will be communications in same society will be understandable. But if it’s from different society, understandable. But if it’s from different society, possible to have different meanings e.g. Americans possible to have different meanings e.g. Americans keep 20” distance when talking. In Saudi Arabia it keep 20” distance when talking. In Saudi Arabia it keeps 9 – 10” distance so, when they meet, Saudi keeps 9 – 10” distance so, when they meet, Saudi moves closer but American moves away. This moves closer but American moves away. This makes both misunderstood. makes both misunderstood.



• In U.S.A. when you nod once it means “Yes” In U.S.A. when you nod once it means “Yes” but in Bulgaria means “No”but in Bulgaria means “No”

• Shaking face means “No” in general. But Shaking face means “No” in general. But India, means “Yes”India, means “Yes”

• Use the thumb touches a forefinger means Use the thumb touches a forefinger means “Okay” in U.S.A., “Money” in Japan, and “Okay” in U.S.A., “Money” in Japan, and “Worthless” in France, and rather rude in “Worthless” in France, and rather rude in East EuropeEast Europe



• Gift and Host Japanese will set up a neat Gift and Host Japanese will set up a neat party to build up nice relationship and party to build up nice relationship and increased by exchanging gifts that will not be increased by exchanging gifts that will not be opened in front to avoid uncomfortable opened in front to avoid uncomfortable feeling. In Arabs are the similar. feeling. In Arabs are the similar.

• Informing bad news will be done immediately Informing bad news will be done immediately for Americans, done after work for Koreans, for Americans, done after work for Koreans, done through third person for Japanesesdone through third person for Japaneses



LanguagesLanguages

CommunicationsCommunications

ReligionReligion


CultureCulture



• Religion influences behavior in same and different Religion influences behavior in same and different society society

• Religion influences attitude towards job, Religion influences attitude towards job, consumption, responsibility, way of life, and goal of consumption, responsibility, way of life, and goal of lifelife

• Caste in India is strictly to a person’s job. Female is Caste in India is strictly to a person’s job. Female is not permitted to work in Muslim countries. not permitted to work in Muslim countries.

• You must understand and recognize doing You must understand and recognize doing businesses in Saudi Arabia that has praying 5 businesses in Saudi Arabia that has praying 5 times a daytimes a day



LanguageLanguage

CommunicationCommunication

ReligionReligion


Value Value AttitudeAttitude

CultureCulture


• ValueValue is the accepted principles or standards of a is the accepted principles or standards of a person or a group in a society. person or a group in a society.

• AttitudeAttitude is action, feeling and opinion that’re is action, feeling and opinion that’re reflected from the value. reflected from the value.

• TimeTime In each culture, the attitude towards the time In each culture, the attitude towards the time is different. For Americans is different. For Americans ““Time is MoneyTime is Money””, time is , time is the opportunity to be more productive, more the opportunity to be more productive, more money. So, time shall not be wasted. money. So, time shall not be wasted. – – American American businessmen will expect the meeting to be on time businessmen will expect the meeting to be on time and getting to the point. Keeping attendees await is and getting to the point. Keeping attendees await is seriously impolite. seriously impolite.



Elements of CultureElements of Culture• In Latin America, starting the meeting late 45 In Latin America, starting the meeting late 45

minutes is not wrongminutes is not wrong

• In Arab, the meeting starts late usually, and In Arab, the meeting starts late usually, and during the meeting if there’s an interruption during the meeting if there’s an interruption by a friend or family’s member, it means by a friend or family’s member, it means paying respect to all paying respect to all

• During the meeting, Americans usually follow During the meeting, Americans usually follow an agenda and, argument is common. an agenda and, argument is common. Japaneses and Saudis will introduce each Japaneses and Saudis will introduce each other at the beginning of the meetingother at the beginning of the meeting



• SenioritySeniority Americans for young people but Asians for Americans for young people but Asians for elderlyelderly

• EducationEducation Education system is an important Education system is an important indicator towards attitude of a society indicator towards attitude of a society – In USA, stress on personal development, In USA, stress on personal development,

creativity, and independency. Open for all creativity, and independency. Open for all classesclasses

– In UK, pass the test to higher classes and limit to In UK, pass the test to higher classes and limit to the qualified onesthe qualified ones



– In Germany, there’s a well developed system in In Germany, there’s a well developed system in engineering and technical skills training for engineering and technical skills training for young to serve its industry young to serve its industry

– In Japan and France, stress on memorizing as to In Japan and France, stress on memorizing as to prepare for nationwide test. Who gets the top prepare for nationwide test. Who gets the top score, deserves to study in first ranking institutes score, deserves to study in first ranking institutes and mostly to be selected for jobs by big and mostly to be selected for jobs by big companiescompanies



• Social StatusSocial Status some inherit through ancestors, and some inherit through ancestors, and some are from personal successes some are from personal successes – In some European countries, lords are higher that new In some European countries, lords are higher that new

successorssuccessors– In USA, admire successful persons from hard works but In USA, admire successful persons from hard works but

their children may not be admired if cannot do the same their children may not be admired if cannot do the same – In Japan, personal status depends on its family or In Japan, personal status depends on its family or

company so, when introduce they refer to family or company so, when introduce they refer to family or companycompany



• Elements of the culture influence the Elements of the culture influence the behavior and expectation of managers and behavior and expectation of managers and staffs in the organization. International staffs in the organization. International businessmen will encounter these businessmen will encounter these challenges to manage and motivate staffs challenges to manage and motivate staffs who have different cultures, and must who have different cultures, and must understand these cultural elements. understand these cultural elements.

• To easily understand, there’s a model to help To easily understand, there’s a model to help us explain us explain


Hall’s Low-Context-High-Context ApproachHall’s Low-Context-High-Context Approach

◊ InIn Low-contextLow-context cultureculture spoken indicates certain meaning and clear to listeners – straight talks

◊ InIn High-contextHigh-context cultureculture spoken and conversation content convey indirect meaning


LowLowContextContext

HighHighContextContext

Ger

man

Ger

man

Sw

iss

Sw

iss

Sca

ndin

avia

n

Sca

ndin

avia

nU

.S./C

anad

a

U.S

./C

anad

aB

ritish

Bri

tish

Ital

ian

Ital

ian

Span

ish

Span

ish

Gre

ekG

reek

Ara

bA

rab

Vie

tnam

ese

Vie

tnam

ese

Japan

ese

Japan

ese

Kor

ean

Kor

ean

Chin

ese

Chin

ese



◊ Business behavior of these 2 groups are Business behavior of these 2 groups are different e.g. ad in Germany will get to the different e.g. ad in Germany will get to the point and be a fact. But in Japan will be more point and be a fact. But in Japan will be more emotional emotional

◊ High-context group stresses on personal High-context group stresses on personal relationship so, building up a familiarity is relationship so, building up a familiarity is necessary to do the businesses togethernecessary to do the businesses together

◊ Low-context group stresses on the business Low-context group stresses on the business directly and in a negotiation included a directly and in a negotiation included a lawyerlawyer


Variety of Culture and International Variety of Culture and International Business ManagementBusiness Management

Some specialists say that culture Some specialists say that culture spreads through out the world upon spreads through out the world upon communication and transportation, communication and transportation, from MTV and CNNfrom MTV and CNN


Variety of Culture and International Variety of Culture and International Business ManagementBusiness Management

• Understanding New Culture Understanding New Culture – Businessman forgets that he’s a stranger Businessman forgets that he’s a stranger

from other culture. He usually makes from other culture. He usually makes mistakes e.g. American meets German and mistakes e.g. American meets German and asks about family (polite for American) but asks about family (polite for American) but for German is impolite to ask about family. for German is impolite to ask about family.

– Some behavior in a society are incorrect, but Some behavior in a society are incorrect, but in another’s may be commonin another’s may be common

– International businessmen need to learn and International businessmen need to learn and understand differences of culturesunderstand differences of cultures

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06 Jun 08 Ibm The Role Of Culture Presentn@Ume Btb