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Session
Cultural Environment
Topic Outline
Geography History Culture Social Behaviour Language Customs
This Session
Weekly Activity: Doing Business in Another Country Go to: http://www.worldbusinessculture.com Select the country you are thinking of exporting to and go
through each of the sections in “Doing Business” for that country:
background business structure management style meetings teams communication style women in business business dress code
Comment on your findings. Word Count: 300 - 400 words
National Culture
Sub Culture
Corporate Culture
Cultures
Geography & Culture
Knowledge of a country’s geography and history are important fundamentals in understanding a society’s behaviour and basic attitudes.
Culture may be defined as a society’s program for survival and responses to external and internal events.
It is important to understand the geographic characteristics to which culture responded to and adapted.
It is appreciating the historical events that have formed the attitudes and behaviour of it’s society.
Consider the characteristics of the Latin American countries.
Why do they have population concentration in the major cities?
Select a South American country to research and explain your reasoning.
For geographic information on countries go to: http://geography.about.com for information.
Word limit: 200 - 300
Activity: Geography & Culture
Culture includes all that we have learned in relation to:
Values and norms Customs and traditions Beliefs and religions Rituals and Artifacts (i.e. tangible symbols of a culture, such as BOOST! or the Great
Wall of China)
Culture
Topic Example Video
The following video explains cultural diversity and understanding its importance within intercultural communication.
Take note of the key points. http://www.youtube.com/watch?
v=ZDvLk7e2Irc
How would you describe it’s make-up? It is not sufficient to simply say the
‘Economy’ or ‘Society’. You need to outline such aspects as social
institutions, education system, political structure, legal system, religion, language, etc.
This is also where a “PEST” analysis is undertaken as part of an Environmental Analysis.
A Country’s Culture
A country’s culture can be explained through understanding its:
Orientation History and Ethnic Relations Urbanism, Architecture and Use of Space Food and Economy Social Stratification Political Life Social Welfare and Change Programs Non-Governmental and other Organisations
A Country’s Culture
Gender Roles and Statuses Marriage, Family and Kinship Socialisation Etiquette Religion Medicine and Health Care Secular Celebrations The Arts and Humanities Physical and Social Science States.
A Country’s Culture
Topic Explanation Video
The following video provides examples of cultural differences.
Take note of the key points. http://www.youtube.com/watch?
v=mUCODUvKbzE
Activity: Country’s Culture
Go to: www.everyculture.com and http://geert-hofstede.com/countries.html, Look up the country you intend to export
to. Find out about their culture. Discuss what aspects of their culture will
support your decision to export to that country.
Word count: 200 - 300 words
Economic Growth
Unfortunately with economic growth comes pollution.
Poor hazardous waste management and the increase of industrial pollution are environmental problems for which the industrialised world and those reaching for economic development must assume responsibility.
Social Responsibility
Governments, organisations and businesses are becoming increasingly concerned with the social responsibility and ethical issues surrounding the problem of generating and disposing of wastes.
Responsibilty for cleaning up the environment does not rest soley with Governments.
The classical viewThe classical view
The view that management’s only social responsibility is to maximise profits.
The view that management’s only social responsibility is to maximise profits.
The socioeconomic viewThe socioeconomic view
The view that management’s social responsibility goes well beyond the making of profits to include protecting and improving society’s welfare.
The view that management’s social responsibility goes well beyond the making of profits to include protecting and improving society’s welfare.
Two views of social responsibility
10. Superiority of prevention
9. Possession of resources
8. Shareholder interests
7. Responsibility and power
6. Discourage regulation
5. Better environment
4. Public image
3. Ethical obligations
2. Long-run profits
1. Public expectations
Arguments for social responsibility
7. Lack of broad public support
6. Lack of accountability
5. Lack of skills
4. Too much power
3. Costs
2. Dilution of purpose
1. Profit maximisation
Arguments against social responsibility
Social responsibility - an obligation beyond that of law and economics for a firm to pursue long term goals that are
good for society Social obligation - obligation of business to meet economic and legal responsibilities Social responsiveness - capacity of firm
to adapt to changing societal conditions
Levels of social involvement
The ‘greening’ of management
The recognition of theclose link between anorganisation’s decisionsand activities and itsimpact on the natural environment
Global IssuesAffecting theEnvironment
The “Greening”of Management
Natural Resources
Global Warming
Pollution
Industrial Accidents
Toxic Waste
Global problems management must address to ‘go green’
Social Responsibility
Social responsibility of the marketer pertains to: Employment practices and policies Consumer protection Environmental protection Political payments and involvement in
political affairs Basic human rights and fundamental
freedoms
Social Responsibility Questions
Is it legal? Is it right? How will the public and vested
stakeholders view your actions?
Business Ethics
What people believe is right or wrong can be different for every culture.
The standard issue related to business ethics in international marketing usually is related to bribery.
The other major issue related to ethics is socially responsible acts.
Topic Example Video
The following video explains business ethics as well as bribery and corruption.
Take note of the key points. http://www.youtube.com/watch?
v=cswJze7D9N0
Who bears social responsibility? Should it be left up to just organisations or should
countries get involved? The United Nations has a charter, part of which
involves ensuring social responsibility amongst the countries of the world.
Go to: http://un.org/en/ and view their various programs for:
human rights humanitarian affairs peace and security and international law.
Activity: Social Responsibility
Social and Cultural Environments
Basic aspects of culture: it is not innate, but learned the various facets of culture are
interrelated - touch a culture in one place and everything is affected
it is shared by group members, and defines boundaries between different groups
Edward T. Hall, Beyond Culture (1977)
Cultures across countries
High context culture the meaning of individual behaviour and
speech changes depending on the situation
nonverbal messages are full of important meaning (Read between the lines) e.g. Saudi Arabia and Japan
written contracts are not always enforceable as new people move into executive positions (Chile, Mexico)
Low context culture intentions are expressed verbally the situation does not change the
meaning of words e.g. India, China, Australia, New
Zealand
Cultures across countries
Low v/s High Context Language
A low context language is one that is heavily dependent on explicit verbal expression. Swiss, German, Scandinavian
A high context language is one that relies heavily on the context or nonverbal communications. Japanese, Arabian, Latin American
Low Context Culture
(North America and much of Western Europe) logical, linear, individualistic, and action-oriented.
DIRECT Solving a problem means lining up the facts and
evaluating one after another. Discussions end with actions
Decisions are based on fact rather than intuition. . And communicators are expected to be
straightforward, concise, and efficient in telling what action is expected.
To be absolutely clear, they strive to use precise words and intend them to be taken literally.
Explicit contracts conclude negotiations. High-context business people may even distrust
contracts and be offended by the lack of trust they suggest.
High Context Cultures
Middle East, Asia, Africa, and South America emphasize interpersonal relationships and trust. Collectivist culture, preferring group harmony and
consensus to individual achievement. less governed by reason than by intuition or feelings. Context over words: speaker’s tone of voice, facial
expression, gestures, posture—and even the person’s family history and status.
Flowery language, humility, and elaborate apologies are typical.
Topic Example Video
The following video explains the difference between low and high context communication cultures.
Take note of the key points. http://www.youtube.com/watch?v=8tIUilYX56E
Social and cultural influences Cultural differences
language, spoken and silent mental processes and learning values and norms rewards and recognition
Type of buyer behaviour consumer business government
The influence of others in the buying process
decision-making unit family peers
STEEP influences on buyer behaviour
Social and cultural influences
Specific cultural influences religion education family reference groups
The influence of the market distribution channels manufacturer service provider
Phillips, Doole and Lowe (1994)
Social and cultural influences
‘Self-Reference Criteria’
1. Define problem or goals in terms of home-country cultural traits, habits and norms
2.Define problem or goals in terms of foreign cultural traits, habits and norms
3.Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem
4. Redefine the problem without the SRC influence and solve for the foreign market
James Lee (1966)
English: but what does it mean?
Japanese hotel notice to guests:‘ You are invited to take advantage of the chambermaid’Bangkok dry cleaner to potential customers‘Drop you trousers here for best results’A Roman laundry innocently suggests:‘ Ladies, leave your clothes here and spend the afternoon
having a good time’A Copenhagen Airline promises to‘Take your bags and send them in all directions’A Hong Kong dentist claims to extract teeth‘By the latest Methodists’
Cross-cultural Analysis
Determine the relevant motivations of the culture
Determine the characteristic behaviour patterns
Determine what broad cultural patterns are relevant to this product
Determine the characteristic forms of decision making
Evaluate promotion methods appropriate to the culture
Determine appropriate institutions for this product in the mind of the consumer
Cross-cultural Analysis
Tempo and Time
Tempo is related to how you deal with time and the use of it.
How cultures handle time can be viewed in the following: Polychronic Time (P-Time) Monochronic Time (M-Time)
Topic Example Video
The following video explains through a slideshow presentation, the differences between monochronic and polychronic tempo and time between cultures.
Take note of the key points. http://www.youtube.com/watch?
v=UOE4nuivNKI
P Versus M-Time
M-Time tends to focus on doing one thing at a time. It tends to view time as linear and is
usually related to low-context cultures. P-Time tends to focus on doing
many things at a time. It tends to focus on many tasks at once
and is usually seen in high context cultures.
Tempo Questions
How does the client consider usage of time?
Are you coming off to hasty in your business dealings?
Are you losing out because you are not following the tempo of your client/customer?
Body Language
* According the a social anthropologist, Edward T. Hall, in a normal conversation between two persons, less than 35% of the social meanings is actually transmitted by words.
* So, at least 65% of it is conveyed through nonverbal channel.
Importance of Body Language
* Mario Pei, a communications expert, once estimated that humans can produce up to 700,000 different physical signs.
* Birdwhistell estimated that the face alone is capable of producing 250,000 expressions.
* People in other parts of the world observe “body language” more than the Anglo Saxons do.
Topic Explanation Video
The following video provides examples of different body gestures.
Take note of the key points. http://www.youtube.com/watch?
v=fRQSRed58XM
Learning a Foreign Language
“You can buy in any language, but to sell you have to speak their language”
Language can be obstacle in business. Just because someone speaks English, one should remember it never is spoken nor understood quite same way in the country it is spoken, ie. Australia, United Kingdom, Canada, New Zealand, U.S.A.
Useful References Kiss, Bow, or Shake Hands: How to Do
Business in 60 Countries by Terri Morrison, Wayne Conaway, George Borden, Hans Koehler, Adams Media Corp, 1995.
Japan Business : The Portable Encyclopedia for Doing Business With Japanby Christine Genzberger (editor) and Edward G. Hinkelman World Trade Press, 1994.
Mind Your Manners: Managing Business Cultures in Europeby John Mole, Nicholas Brealey Publishing,1996
Recap Video
The following video recaps the basic fundamentals and concepts of intercultural communication such low and high context messages and monochronic and polychronic tempo and time considerations.
Take note of the key points. http://www.youtube.com/watch?v=2JFcscxkfik
Next Session Weekly Activity: International Finance Go to: World Bank website (www.worldbank.org) and International Monetary Fund (www.imf.org). Obtain an overview of these institutions’ purpose
and programs. Search for criticisms of the World bank and the
International Monetary Fund programs on other websites.
Prepare a brief report on the key issues. Word Count: 300 – 500
