Informal Institutions

Understanding Institutions

• Formal Institutions

• Laws

• Regulatory bodies

• Rules

• Informal Institutions

• Norms

• Cultures

• Ethics

Culture’s Consequences• Gerber selling baby food in Africa featured a baby on the label.  Companies in Africa put pictures on the label of what’s inside, since most people can’t read.• The Coca-Cola name in China was first read as “Ke-kou-ke-la”,

meaning “female horse stuffed with wax”.• Pepsi’s “Come alive with the Pepsi Generation” translates into

“Pepsi brings your ancestors back from the grave” in Chinese.• A US phone company tried to promote its services via an executive

talking on the phone with his feet propped up on the desk.  An Arab would never show the soles of their feet.

• A t-shirt maker in Miami printed shirts for the Spanish market that promoted the Pope’s visit as “I saw the potato” (la papa) instead of “I saw the Pope” (el papa).

Culture

Culture reflects the collective programming of the mind which distinguishes the members of one

group or category of people from another.

What are the basic elements

that define and determine culture?Language

Religion

Social Structures

Demographics, Population, Climate, Geography

The Arts, Historical symbolism & Artifacts

Level of corruption

Attitudes toward minorities

Natural resource availability, Divisions

Wealth distribution, Stratification

Family

Customs and Traditions and Shared

Beliefs/Values

Trade/ResourcesEconomic historyEducationNorms of behaviorDress/Food/LeisureTechnological savvyInternal conflict/strifeWork EthicStruggle/history/WarsEducation

Language & Culture

• Organizes thought patterns

• Filters observations

• Competitive determinant

• Translation Business

• Words carry meaning

(sometimes unintended)

Communication & Culture

• Nonverbal communication

• Hospitality• Gift Giving

Religion & Culture

• Christianity 1.7B• Roman Catholic• Protestant• Eastern Orthodox

• Islam 1B• Sunni• Shiite

• Hindu 750M• Buddhist 350M

Cultural Adjustment

How can you ease cultural adjustment (living or visiting)?

What predicts cultural intelligence?

• Drive

• Knowledge

• Strategy

• Action