What Is “Culture”? - Uni Trier: Willkommen · Jean-Claude Usunier and Julie Anne-Lee (2009), Marketing Across Cultures What is “Culture”? ... Prof. Geert Hofstede,

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What Is “Culture”?Culture is defined as the shared patterns of behaviors and interactions cognitive constructsinteractions, cognitive constructs and affective understanding that are learned through a process of socialization. These shared patterns identify the members of a culture while also distinguishinga culture while also distinguishing those of another group

– Center for Culture and Language Learning University of Minesota

What is “Culture”?

Culture: earned and shared human tt d l f li i d tpatterns or models for living; day-to-

day living patterns. These patterns and models prevade all aspects of human social interaction. Culture is mankind’s primary adaptive mechanism

Addison-Wesley, Fifth Dimension on the Language Classroom

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Culture is the collective programming f th i d hi h di ti i h thof the mind which distinguishes the

members of one category of people from another

Hofstede, G. (1984). National Cultures and , ( )Corporate Cultures


Culture is a set of beliefs or t d d h d b fstandards, shared by a group of

people, which help the individual decide what is, what can be, how to feel, what to do and how to go about doing it

Goodenough, Ward (1971), Culture, Language and Society

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Culture is the collective fingerprint of id tit C lt l diffour identity . . . Cultural differences

exist, but no culture is globally superior or inferior to another

Jean-Claude Usunier and Julie Anne-Lee (2009), Marketing Across Cultures


Heaven is where the cooks are F h th h i GFrench, the mechanics are German, the policemen are English, the lovers are Italian, and it is all organized by the Italians. Hell is where the policemen are German, the mechanics are French, the cooks are British, the lovers are Swiss and it is all organized by the Italians

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Elements of Culture

LanguageN ti lit

SexS i l lNationality

EducationProfessionEthnic groupReligion

Social classCorporate culture

gFamily

Question for Discussion

Discuss the case of multi-l / lti i t i (language/multi-region countries (e.g. India, Canada, Switzerland); how can people in these countries share a common culture? On which segments of culture?

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What is “Culture”? From a Business Point of View

Culture is about different ways of Culture is about different ways of doing business and different client expectations in different business communities

Barry Tomalin and Mike Nicks (2007), The World’s Business Cultures and How to Unlock Them

International Business: WhyGeneral Philosophical Reasons

Absolute advantage: a condition in which a country can produce a product exclusively, or nonexclusively but more cheaply than others, and therefore possesses an absolutetherefore possesses an absolute advantage for that product

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International Business: WhyGeneral Philosophical Reasons

Comparative advantage: the i i l th t t th t t iprinciple that asserts that countries

should specialize in producing those products in which they have the greatest advantage or the least disadvantage in relationship to other countries. It is job specialization on the international level

Question for Discussion

Explain the following statement:

Companies exploring comparative advantage should be aware that it rarely lasts for very long

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International Business: WhySpecific Reasons

Desire to expand marketsSearch for natural resourcesGlobal marketingProximity to consumerLabor savings

International Business: How

Exporting: General export license/validated export licenselicense/validated export license

Foreign licensing: A company in the parent country (licensor) gives the right to a company in the host country (licensee) to make use of an exclusive patent, t d k t h l Thtrademark, process or technology. The license in granted in exchange for money: a fixed fee or a percentage of profits

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International Business: How

Foreign assembly: A company exports parts from the parent countryexports parts from the parent country to the host country, where final product assembly takes place. Foreign production subsidiaries: a company actually establishes a factory in the host country If it is infactory in the host country.If it is in conjunction with a foreign company it is called a joint venture

International Business: Problems

Communication (see study cases)C lt l diff ( t d )Cultural differences (see study cases)Protectionism and trade barriers

Tariff: a tax levied against an importQuota: the government limits the quantity of foreign goods allowed to enter the countryEmbargo: a government prohibition against the entry of foreign goods

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Human Resources: Aquisition and t i itraining

Expatriate managersAcquiring local human resources

Control and accounting standardsControl and accounting standardsGAAP (generally accepted accounting principles)


International piracy: generally, t d k d t t (i t ll t ltrademark and patent (intellectual property)rights guaranteed under local law are described as territorial –protection ends at the border.

The Pineapple examplepp p

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International Business: A Success Story – Study Case

Makudonarudo and Den Fujita: the success of McDonald’s in the Land of the Rising Sun

What spoke against McDonald’s success in Japan?success in Japan?How did Den Fujita overcome the initial disadvantages?

Benefits of Entering Foreign Markets

Increased Sales: more opportunities during periods of domestic downturnsduring periods of domestic downturns, excellent outlets for excess inventories, and opportunities to utilize productive capacity fully.

Leverage Strengths: larger international k t lti l th ff ti fmarkets multiply the effectiveness of

whatever company resources helped the firm succeed in the domestic market place.

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Achieving a Competitive Edge

Stay-at-home firms will lose market share to leverage benefits generated by a firm’s international marketing activities

Stay at homes will lose a futureStay-at-homes will lose a future opportunity to enter and grow foreign markets occupied by early-bird competitors


Achieve Tax Advantages

In the U.S. the Foreign Sales Corporation has been set up to make international marketing activities more profitable by providing firms with certain tax deferrals. For example, if a firm’s p ,subsidiary qualifies for FSC, a portion of its income is exempt from U.S. corporate income tax.

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P l P d LifProlong Product Life

Increase Profits

Specific Problems to Entering Foreign Markets

Economic/Demographic Influences: a lack of people in age income orlack of people in age, income, or occupational groups likely to buy your products

Technology: underdeveloped infrastructures to facilitate transportation and communication can make it very expensive to market products in foreign countries

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Specific Problems to Entering Foreign Markets

Control Problems: problems in coordinating marketing activities and monitoring competitors in dispersed markets

Universalism vrs. ParticularismFons Trompenaars Models

UniversalistsNorth America and

ParticularistsSouthern EuropeNorth America and

North West Europe, AnalysisRationalityLogicSystemsPower based on

Southern Europe and South America; AsiaPersonal relationsIntuitionEmotionSensitivityPower based on

achievementindividualistic

SensitivityPower based on senioritycollectivist

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Hofstede’s Framework for Assessing Culture

Hofstede’s studies of the interactions between national cultures and organizational cultures demonstrated that there are national and regional cultural groupings that affect the behaviors of societies andbehaviors of societies and organizations, and that are very persistent across time


You can use Hofstede’s model to lt l i t i lassess cultural impact on managerial

structures, hierarchical relationships, management of expatriate personnel and variation and consumption patterns across cultures.p

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Low vs. High Power DistanceThe extent to which the less powerfulThe extent to which the less powerful members of institutions and organizations expect and accept that power is distributed unequally

Low PD (Austria, Israel, Denmark, New Zealand) expect power relations which are more consultative or democratic A sense ofmore consultative or democratic. A sense of equality as human beings prevadesHigh PD (Malaysia): autocratic and paternalistic structures. Power is centralized.

(see “More equal than others, p.20)


Individualism vs. Collectivism / Independence vs. dependence (Anglo cultures /Latin American)

Refers to the extent to which people are p pexpected to stand up for themselves and to chose their own affiliations, or alternatively act predominantly as a member of a life-long group or organizationIn individual societies people tend to be motivated by personal preferences, needs and rights; personal goals and rational analysis take precedenceprecedenceIn collectivist societies people tend to be motivated by norms and duties imposed by the group; ingroup goals and relational analysis takes precedence.

(See “From Chanel chick to individualist,” p.17

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Masculinity vs. FemininityRefers to the value placed on traditionally male or female valuesMasculine cultures: competitiveness, assertiveness, ambition, personal achievement accumulation of wealth (J )(Japan)Feminine cultures: caring for others, nurturing roles, quality of life. (Sweden)


Uncertainty AvoidanceThe extent to which members of a societyThe extent to which members of a society attempt to cope with anxiety by minimizing uncertainty.High UA societies: avoidance of ambiguous situations, preference of known stable situations, uncertainty-reducing rules and procedures (Mediterranean societies, Latin A i J )America, Japan)Low UA societies: ambiguity is more accepted. Uncertainty = opportunity. People as individuals are the engine of change

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Long vs. Short Term OrientationDescribes a society’s “time horizon,” or the esc bes a soc e y s e o o , o eimportance attached to the future versus the past and presentLT societies: values include persistence, ordering relationships by status, thrift, having a sense of shame (China, Japan, Asian countries)ST societies: values include personal t di d t bilit ti t t tsteadiness and stability, normative statements,

protecting one’s face, respect for traditions, and reciprocation of greetings, favors and gifts (Western nations)

(See “Communication Styles,” p.19)


“Culture is more often a source of conflict than of synergy Cultural differences are a nuissance at best and often a di t ”disaster”

Prof. Geert Hofstede, Emeritus Professor, Maastricht University

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American Culture and the 2008 Financial Crisis -- Hoftstede

A study conducted between 1995-2002 in 17 countries2002 in 17 countriesCompared to their colleagues in 16 other countries US business leaders scored higher on seeking:

Growth of businessP l lthPersonal wealthShort-term profitsPower


They were seen as pursuing to a l t t th b i l d ilesser extent than business leaders in other countries the following goals:

Profits 10 years from nowResponsibility towards employeesResponsibility towards employeesCreating something newContinuity of business

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The list reflects two aspects of the US ti l lt d ib d inational culture described in

Hofstede’s booksMasculinity – stands for belief in big business and showing off, and a lack of care for others weaker than oneselfShort-term orientation – a lack of understanding of the long-term consequences of one’s own doings

Tomalin’s and Nicks’ Personal Cultural ProfileCommunication Style

DirectGets to the point

IndirectEncircles the pointGets to the point

CriticizesFaces disagreementAddresses issues directly

Encircles the pointSaves faceAvoids disagreementAddresses issues sideways-on

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Tomalin’s and Nicks’ Personal Cultural ProfileWorking Style

Formal InformalPrefers “dressPrefers business

dressUses surnames and titlesClosed doorPrefers a more

Prefers “dress-down”Uses first namesOpen plan/open doorPrefers a more Prefers a more

formal style of speech

familiar and intimate type of speech

Tomalin’s and Nicks’ Personal Cultural ProfileDiscussion Style

Fast MovingInterrupts more

Slow and MeasuredInterrupts more

Talks more and quicklyConversation has to keep movingDislikes silence

MeasuredNever interruptsPrefers measured tone and pacePauses are acceptableIs tolerant of silence

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Tomalin’s and Nicks’ Personal Cultural ProfileBusiness Attitude

ProgessiveEmbraces change

TraditionalNeeds change toEmbraces change

Likes new technologySeeks new organizational methods

Needs change to be based in present practiceIs cautious in adopting new technologyP f t i d dWants new people Prefers tried and tested solutionsPrefers loyal staff

Tomalin’s and Nicks’ Personal Cultural ProfileLeadership Style

FlatCommunicates

VerticalC i tCommunicates

directlyCommunity decisionTwo-way feedbackStrict line of

Communicates through hierarchyLeader decisionTop-down feedbackDotted line matrix reporting

management reporting

p g

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Tomalin’s and Nicks’ Personal Cultural ProfileBusiness Relationship

RelationshipTakes time in

TaskFocuses on having

building relationshipsWon’t work with you unless he/she likes youTakes interest in understanding

l

gjob doneMay begin with small-scale deals and then build up if original deal is successfulFocuses on task

th thpeople“My business colleague is my friend

rather than on peopleBusiness and friendships don’t mix

Tomalin’s and Nicks’ Personal Cultural ProfileDecision Making Style

IndividualisticRisk taking

CollectiveRisk averseRisk taking

Decides first then persuades othersMakes decisions within budget and job descriptions

Risk averseSeeks consensus, then decidesDecisions and budgets are agreed with higher

tIs accountable for decision and implementation

managementTakes decision agreed by the group

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Tomalin’s and Nicks’ Personal Cultural ProfileBasis for Decision Making

FactsMakes decisions

InstinctsMakes decisionsMakes decisions

based on data and figuresPersonal connections are not importantMaintains strict

it i

Makes decisions based on instinct and intuitionPersonal connections are importantP f t k ithcriteria

Agreements are independent of hospitality or gifts

Prefers to work with existing contactsAgreements are accompanied by hospitality and gifts

Tomalin’s and Nicks’ Personal Cultural ProfileAttitude to Time

ScheduledTime conscious

FexibleR l d b t tiTime conscious

PunctualSchedules by the clockMeetings start/end on time

Relaxed about timeLateSchedules by activityCompleting the business is more important than the schedule/time

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Tomalin’s and Nicks’ Personal Cultural ProfileWork/Life Balance

Live to WorkO ti t d

Work to liveOvertime unusualOvertime expected

Taking work home admiredOut of hours phone contact toleratedWeekend working

Overtime unusualTaking work home criticizedOut of hours phone contact unacceptableg

normal Weekend working exceptional

Documents

What Is “Culture”? - Uni Trier: Willkommen · Jean-Claude Usunier and Julie Anne-Lee (2009), Marketing Across Cultures What is “Culture”? ... Prof. Geert Hofstede,