The International

Business Environment

In ternationa l Business Env ironm ent

Cultural Environm entTh e V a lu e S ys tem

Political Environm entTh e R u les

Econom ic Environm entTh e O p p ortu n it ies

Culture and Cultural Change

Learning OutcomesDefine culture and its effects on membersDefine key variables of cultureDescribe difference between high and low context culturesUnderstand cross-cultural skillsLearn guidelines for managing cultural changeUse a procedure to reduce the influence of our cultural values

CultureWhat we are as a group

Learn itShare itCompelled to behaveValues, behaviors, assumptions are all related.

We are unaware of our conditioning.

“Hai” in JapaneseEnglish Translation: “Yes”What does it mean In Japanese? - Hai means the other person had heard you and is contemplating a reply.Is there a ‘yes’ in Japanese that corresponds to the Western ‘yes’? - Yes, when Hai is accompanied by ‘sodesu’ (it is so) and ‘soshimasu’ (I will do so).

Cultural Factors Never touch the head of a Thai or Pass an object over it

The head is considered sacred in Thailand.

Avoid using triangular shapes in Hong Kong, Korea, and Taiwan.

The triangle is considered a negative shape

The number 7 is considered bad luck in Kenya and good luck in the Czech Republic and Magical connotation in Benin, Africa

The number 10 is bad luck in Korea.

The number 4 means death in Japan

Red represents witchcraft and death in many African countries

Red is a positive color in Denmark

SOURCE: Business America, July 12, 1993

Elements of CultureMaterial Culture Technology Economics

Social Institutions Social Organization Education Political Structures

Man and the Universe Belief Systems

Aesthetics Graphic and Plastic Arts Folklore Music, Drama, and Dance

Language

Key Cultural Variables

Context ImportanceIndividualism vs. CollectivismTimeWork and AchievementRelationship to NatureYouth orientation

InformalityCompetitionStatus of Women and Men

Contextual Background of

Various CountriesHigh Context Implicit

Japanese

Arabian

Latin American

Spanish

Italian

English (UK)

French

North American (US)

Scandinavian

German

SwissLow Context Explicit

High and Low Context Cultures

Factors /Dimensions

HighContext

LowContext

Less important

Is his or her bond

Taken by top level

Lengthy

JapanMiddle East

Lawyers

A person’s word

Responsibility fororganizational error

Negotiations

Examples:

Very important

Get it in writing

Pushed to lowest level

Proceed quickly

U.S.A.Northern Europe

Comparisons & Contrasts

Japan USAJapan USA

Individual With a Skill

OrganizationManView of Self

IndependenceInterdependenceAssumptions

CompetitionCooperationStyle

RightsObligationsEmphasis

Self-ExpressionIndependence

Self-DenialDependenceAttitude

GroupMyth / HeroEmphasis Individual

Comparisons & Contrasts

Japan USA

Production / Financial Return

Quality / Customer ValueOrganization Goal 3

National MarketsWorld MarketsOrganization Goal 2

Share of MarketOrganization Goal 1(Jobs / Employment)

Profitability,Financial Success

"Not Invented Here"Syndrome

Willing To Borrow/Adopt/AdaptCultural Attitude 2

Everyone IsJust Like UsWe Are UniqueCultural Attitude 1

Japan USA

Comparisons & Contrasts

Japan USAJapan USA

FreedomSuccessWinning

PerfectionHarmony

ConsensusKey Values & Goals

StockholdersEmployeesKey Stakeholder

40 : 6080 : 20Financial Structure(Debt : Equity)

SeparationCooperationGovernmentalBusiness Relations

ThinkingFeelingTrust In

GeneralistManagement

Craft / FunctionCompanyWorkerIdentification

Specialist

Managing Our Values

Define problem in terms of our cultureDefine problem in terms of their cultureIsolate and analyze the self-reference criteriaRedefine problem without our self-reference criteria

Managing Cultural Change

Identify deterrents to proposed changeEvaluate looking for modifications/adaptationsTest and evaluate in the host cultureDemonstrate the effectiveness locallyRemember technical changes are easier than social or political changes

Cultural Diversity:How To Succeed in a World of

Differences

1: Why People Fail

Ethnocentric OrientationIgnoranceArroganceTime Factor

Cultural Diversity:How To Succeed in a World of

Differences

2: Success Factors

Geocentric OrientationRespectLearningLanguagePersonal Attitude: Humility and PridePersonal Qualities: Adaptability and Flexibility

Cultural Diversity:How To Succeed in a World of

Differences

3: How To Be Successful

Study and PreparationAwareness of Cultural DifferencesCommitment To LearnDo The Work

Culture Quiz1.Which European city

is a favorite locale for test marketing? A. Madrid B. Brussels C. Rome

2.High-pressure sales and hype are counter-productive in many countries. True or false: Australians tend to fiercely resist pressure tactics.

3.Radio and television commercials are often more effective than newspaper advertisements in: A. Sweden

B. Hawaii

C. Bolivia

4.German and Brazilian consumers' tastes in ads are opposite, because Germans generally like what in their ads? A. Lots of data

B. Fewer facts and more sex

C. Hysterically manic imagery

Culture Quiz

Culture Quiz5.True or false: Advertising in many Central American newspapers is tantamount to taking a political stand.6.Why hasn't mail-order shopping caught on in Chile?

A. It is too impersonal. B. Chileans tend to distrust the warranty and service guarantees. C. Chileans enjoy window-shopping and comparison pricing. D. All of the above

Culture Quiz7.True or false: Direct-mail marketing is difficult in Costa Rica because many residences do not have street addresses.8.Marketing in Saudi Arabia must abide by local traditions. This precludes:

A. Using children in advertisements B. Depicting a dog in an ad C. Direct marketing

9.Successful toothpaste sales in Canada depend on your target market and pitch. True or false: Promote the cavity-fighting aspects to Canadians of French descent, and the breath-enhancing capabilities to English-Canadian consumers.

10.Local representatives can be invaluable, but local laws often protect them from being terminated. Which country won't penalize you for changing your local agent? A. Japan

B. UAE

C. Ecuador

D. USA

Culture Quiz

Building Cross-Cultural Skills

Tolerate ambiguityDevelop flexibility and patienceDisplay empathyPersonalize observationsShow respectBe nonjudgemental