Driving Profit across Cultures
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Driving Profit across Cultures

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This presentation was held by Andreas Fried, Director of Business Development at Universal Consensus, during Northern California World Trade Center’s annual expo conference “Gateway California”. ...

This presentation was held by Andreas Fried, Director of Business Development at Universal Consensus, during Northern California World Trade Center’s annual expo conference “Gateway California”. The presentation is a sample of our 3-day, 300+ slide workshop “Driving Profit across Cultures” based on Universal Consensus BMIA framework.

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  • Welcome: 8:30 to 9:00Purpose of Slide:The purpose of the slide is to validate the challenge the client is facing that this Certification Program will address.Selling Nation:Instructor Guide:Describe and empathize with the challenge the client is facing.Acknowledge the difficulty of selling to the [Buying Nation]. Buying NationInstructor Guide:None
  • Examples of clients from different industries. Global corporations, government agencies, and universities
  • That the results are this great is largely due to lack of cross-cultural training among Fortune 1000 companies You simply can’t sell effectively to people if you don’t understand their culture
  • We don’t have much time so we will move rather rapidly to cover the entire concept. What you will hear today is 3 full days 300 slides work-shop compromised into one hour (and fewer slides…) Usually this presentation is targeted towards a single nation/culture, but today we will mix and match to give you an overview of cross-cultural interactions and how they impact business
  • Time: +7 min
  • Instructor Guide:Quickly Explain the Business Model of Intercultural Analysis. More detailed info in their hand-outs. The purpose of this model is to understand the attitudes and behaviors that are key for successful global business. The model also focus on attributes that vary most significantly from culture to culture.Six LensesCultural ThemesGlobal Vision / GlocalizationGlocalization: Implementation of global policy with flexibility for local adaptionGlocalization significantly affects the sales processProcess EngineeringCommunicationTime OrientationGroup DynamicsHow it will be usedTo identify what cultural variables come into play in the sales processFind ways to adapt to the cultural variables and sell successfully
  • Our program approach is a key differentiator. No to engagements are the same – our assessment process and solution is highly customizable. It helps you identify and target the right problems and synergies from the start. It helps you leverage the power of culture to optimize your bottom line. DISCOVERY PHASE: Interviews with top management and/or other global stakeholders are conducted to determine with whom these individuals interact, what their goals in working together are, and how each culture involved impacts the process. The customized questionnaires are based on meetings with the client, but may evolve during the interview process in order to address challenges identified during the initial interviews. As the interviews progress, the deeper the dive and the more in-depth the questions become. CORROBORATION PHASE: Based upon the results of these interviews, an online survey is generally developed and administered in order to corroborate or clarify the assumptions made as a result of the initial interviews. Factors influencing this stage of the process include:FINDINGS PHASE: The data from steps one and two form the basis of the cross-cultural core competence findings. The findings include answers to the following questions:  RECOMMENDATIONS PHASE: Based on the findings, recommendations are developed and a formal report is presented to the client. Recommendations are generally pragmatic, programmatic, long-term and sustainable and may include:  PROGRAMMATIC PLAN PHASE: A programmatic plan for the recommendations is developed, including an implementation timeline. The implementation phases may consist of group training, executive coaching, case study development and/or another strategic integrative solution. The implementation phase is concrete and tangible because:  IMPLEMENTATION PHASE: The implementation of the plan, if performed by us, includes the Universal Consensus proprietary Business Model of Intercultural Analysis (BMIA), as the structural framework for all training and coaching. We deliver the requisite tools to effectively navigate the cultural differences identified, drive efficiencies, neutralize cultural bias and optimize cross-cultural process such as selling internationally. SUPPORT PHASE: All initiatives are most successful if they are sustained and nurtured long-term. Universal Consensus will always provide support and will work with the client to develop the best long-term strategic program.
  • Time: +10 min
  • Theglocalization lens is key in strategy, marketing and branding
  • GLOCALIZATIONWhen we evaluate our engagements in another culture with domestic-centric values, we’re likely to miss the most important elements that impact the organization. This lens analyzes the nature of the organization’s global leadership and departmental functions and the extent to which global functions and values are regionally adaptive.
  • Instructor Guide:Continue explaining the importance of Branding and Marketing by using the example shown – Example of Marlboro marketing their cigarettes to the Japanese.Japan is a “collective” culture where the focus is put on the needs, responsibilities, and goals of the many versus the needs and goals of the individual.The picture of the lone cowboy (an American (USA) icon) did not translate.
  • Describe Euro-Disney’s failure:When Disneyland launched Euro Disney, it tried to maintain its standard tried and tested American (USA) formula with the assumption that customers would seek the authentic Disney experience. But shortly into the launch, Euro Disney was declared a failure. The key reason for the failure was Euro Disney’s lack of localizing the brand experience.
  • Instructor Guide:Describe Euro-Disney’s failure (cont.):Euro Disney followed the brand policies to the letter:English-only instructionsNo wine consumption on park groundsHigh ticket pricesStandardized merchandise and food itemsThis resulted in wide spread dissatisfaction among customers and changes were quickly made.
  • Instructor Guide:Describe the changes Euro-Disney made:Wine and beer soldReal cutlery not plasticName change from Euro Disney to Disney ParisTo Americans (USA), the word ‘Euro’ is associated with glamour and excitement. For Europeans, however, it is a term they associate with EU (bureaucracy) and the currency. Renaming the park ‘Disneyland Paris’ was a way of identifying it with one of the most romantic and exciting cities in the world.Prices of hotels lowered (original price was comparable to a very good hotel in the center of Paris; customers weren’t willing to pay this amount.)Kennels were built for the many French families who would never think of going on vacation without the family dog.Grooming standards were relaxed (women were allowed to wear very red nail polish — not so in the U.S.)Buying NationInstructor Guide:None
  • Instructor Guide:Make point that Euro Disney was just following the golden rule of branding – consistency in brand elements, but failed because it didn’t take local adaptation into consideration.
  • Instructor Guide:Make point that the four P’s of marketing are all affected as a company markets globally.Product – might contain different ingredients due to law or cultural taboosPrice – might need to be adjusted to fit the budget of the target audiencePlacement – might need to be changed to make the product more accessible to the target audiencePromotion – images, logos, and slogans may need to be changed to fit with the sensibilities of the target culture
  • With the upcoming free-trade agreement with South Korea in mind we will use Korea as an example in this presentationProduct: Korean conglomerates such as Samsung, Hyundai, and LG produce all kinds of goods. With Koreans’ nationalistic tendencies apparent even in consumerism, foreign companies must imperatively offer products that are at least different– if not superior 2) Brand-name luxury goods are exceptions. Just by their brand-names, companies can establish a solid consumer base.Price: Wal-Mart entered the Korean market on the assumption that its price-superiority will triumph over other Korean supermarkets. However, Koreans shunned Wal-Mart’s western style of promotion strategies. Koreans prefer domestic products in foods and beverages. For other consumer products, Koreans tend to buy what looks fancy and is influenced heavily by aggressive sales techniques.
  • Promotion:Social media websites (Cyworld, Facebook, Naver, Yahoo.co.kr, and Twitter) are the strongest promoters of products. TV, magazines, and newspapers still have an influence, but they are overshadowed by what people are finding available through blogs and social media. What’s hip, what’s cool, what you should be wearing, what you should be doing, what you should be consuming. EX: iPhones entered the Korean market through information sharing from blogs and social media websites rather than TV, magazines or newspapers that were sponsored by Korean cell phone producers. Placement:The Korean market is like a large system of intertwined networks, that is often times very inclusive. Using a local Korean distributor will help foreign companies to establish local representation to reach out to the consumers more. This will also allow Korean consumers to trust the foreign products more.Also consider:The Korean American community comprises about 0.5% of the U.S. population, or about 1.6 million people
  • Time: +25 min
  • Business Norms of Nation: 11:15 to 12:00 Purpose of Slide:The purpose of the slide is to use the BMIA to analyze the cultural themes of the [Buying Nation]. The first lens, CULTURAL THEMES, set the stage for our discussion of the other lenses and how culture impacts business.Selling Nation:Instructor Guide:NoneBuying NationInstructor Guide:Explain that we are now going to use the BMIA to analyze the cultural of the [Buying Nation]. The first lens, CULTURAL THEMES, will set the stage for our analysis of culture and how culture impacts business.
  • +35 min
  • Explain that PROCESS ENGINEERING comprises several topics. This slide serves to provide a preview. We are going to focus on Risk and Change Tolerance as well as trust of outsiders & technology since that cultural characteristic will affect business transactions.We are NOT going to focus on the Optimization of SalesProcesses across Cultures
  • Non-Western people have a social fabric that is much tighter. Theses loyalties can transcend national borders. In many countries, such as former Soviet countries, institutions are viewed with outright hostility. Koreans tend to be very wary of outsiders because they have been invaded by foreign powers throughout history. Even in terms of America, generally considered to be Korea’s closest ally and even mentor, some Koreans (especially the politically-leftist individuals) consider Americans to be colonists without the label. Also Russia, Norway and Hungary are just a few of countries with strong national preferences.
  • Time +42 min
  • These are the major styles to consider:Direct vs. Indirect CommunicationExamples of indirect communication:Smiles can mean embarrassment/nervousness“No” is often couched as silence, changing the subject, or the use of “perhaps” (China)“No is considered impolite (India). Instead they will evade the issue, use the expression “we’ll try,” or simply prolong the negotiationsDialog Examples of data-oriented cultures (Germany) Researches to produce lots of information Acts on informationExamples of dialog-oriented cultures (Italy) Use their personal network to gather information Use personal relationships to solve problemsInformation Brazilians are a friendly people. They will very soon feel comfortable disclosing sensitive information. In Arab countries you’ll have to spend a long time building relationships; earning trust and building rapport to be trusted with information
  • Americans (USA) have a short-term orientation.For example, one American department store executive traveling to Japan to buy six different consumer products for her chain was surprised that negotiations for the first product took an entire week. In the United States, such a purchase would be consummated in an afternoon. Chinese officials may take a century-long approach when planning its country’s future Endurance is often seen as an important quality The process itself is valued (for example building a relationship or negotiating) In Western cultures only the outcome is appreciated
  • +48 min
  • Monochronic Time measured by 60 minute clock. Clocks, agendas, calendars, and deadlines determine when things get done. Time is viewed as a limited commodity that must be carefully managed. People are expected to do one thing at a time, and don’t tend to tolerate lateness or interruptions.
  • Business Norms of Nation: 1:15 to 1:45 Purpose of Slide:The purpose of the slide is to make the distinction between a monochronic vs. a polychronic culture. Selling Nation:Instructor Guide:NoneBuying NationInstructor Guide:Review slide, which shows the nature of a polychronic society.Share the story of the African Bus.A colleague in Africa had some time to visit the city. She determined what bus she needed to take to get to her destination. She got on the bus at the appointed time, and sat and sat. After nearly an hour, she approached the driver and asked when the bus was going to leave?He looked at her somewhat incredulously, and answered, “When the bus is full, of course.”
  • Business Norms of Nation: 1:15 to 1:45 Purpose of Slide:The purpose of the slide is to continue to make the distinction between a monochronic vs. a polychronic culture. Selling Nation:Instructor Guide:NoneBuying NationInstructor Guide:Review slide, which continues to characterize a polychronic society. Re-emphasize that a polychronic society is event driven. A polychronic society is different than a multi-tasking multi-event driven environment. In other words, a polychronic executive is still event driven though they may appear to be multi-tasking. Although he or she may be doing several things at once, they all occur at their own pace – there is no deadline driving them. Deadlines are suggestive, rather than mandatory in a polychronic society. A deadline is based on all preceding necessary events being successfully completed.
  • +55 min
  • -No matter how good the prospects of business is, Koreans will generally not do business unless a certain amount of trust is established through interpersonal relationships. If the prospects look good, Koreans will first choose to make efforts in getting to know the potential partner better-Koreans are very suspicious people. Cold calls will almost never work, and introductions must be done by a 3rd party for mutual trust. Otherwise, reaching the right executives in a Korean company will be nearly impossible-”Be ready to entertain and be entertained” means that Koreans like to build interpersonal relations through social outings which commonly involve drinking. More information to follow next page. -Reciprocity is extremely important, in both giving and receiving. One should refrain from giving overly lavish gifts that is difficult to reciprocate. This would be considered rude and flaunting
  • Your internal staffYour outsourced staffYour clients
  • You may have noticed that the Universal Consensus logo looks a bit like a human eye with the Pangaea as the iris.Pangaea was the supercontinent that existed during the Paleozoic and Mesozoic eras about 250 million years ago, before the component continents were separated into their current configuration.It is symbolic of our mission in that we are connecting cultures in business the way they were once connected geographically -- without boundaries or impediments.Universal Consensus performs both as an external resource and internal advisor. We are willing to be present at an initial consultation, without cost to the client
  • Thank you for coming. Follow-up…

Driving Profit across Cultures Driving Profit across Cultures Presentation Transcript

  • Driving Profit Across Cultures: The BMIA™ Framework Andreas Fried, M.Sc.Director Of Business Development Universal Consensus
  • WelcomeWho We AreUniversal Consensus is an international businessdevelopment firm. We develop and executestrategies, processes, and training for successfulinternational business. 2
  • WelcomeWho We Do It For Specialize in delivering success for multi-cultural operations 3
  • WelcomeThe Result Significantly Increased Sales Internationally 2008-2010 Average Client Quantifiable ROI (International Sales-product) 4
  • Agenda 5
  • AgendaToday’s AgendaExtracts from a 3-day workshop on InternationalSales & Marketing1. Framework - BMIA™2. Branding and Marketing - Glocalization3. Cultural Themes4. Key Business Norms by Lens 6
  • Framework - BMIA™ 1 7
  • Foundational FrameworksBusiness Model of Intercultural Analysis™ (BMIA) 8
  • Foundational Frameworks Assessment ProcessDiscovery Corroboration Findings & Recommendations Planning Implementation & Support
  • Branding and Marketing -Glocalization 2 10
  • Cultural BackgroundBusiness Model of Intercultural Analysis (BMIA)1. Glocalization2. Cultural Themes3. Process Engineering4. Communication5. Time Orientation6. Group Dynamics 11
  • Branding and MarketingGlocalizationGlobal Branding –Local AdaptationBe aware of cultural“blockers”
  • Branding and MarketingBranding and Marketing• Importance of getting it right 13
  • Branding and MarketingEuro Disney: A Company that Did It Wrong• When Disneyland launched Euro Disney: – It tried to maintain its standard American (USA) formula – It assumed that customers would seek the authentic Disney experience• Shortly into the launch, Euro Disney was declared a failure• The key reason – not localizing the brand experience 14
  • Branding and MarketingEuro Disney: A Company that Did It Wrong• Euro Disney followed brand policies exactly: – English-only instructions – No wine consumption – High ticket prices – Standardized merchandise and food items• Widespread dissatisfaction resulted and changes were quickly made 15
  • Branding and MarketingEuro Disney: A Company that Did It Wrong• Changes: – Wine and beer sold – Real cutlery, not plastic – Name change from Euro Disney to Disneyland Paris – Kennels built for French families who go on vacation with the family dog – Grooming standards relaxed (women were allowed to wear red nail polish) 16
  • Branding and MarketingEuro Disney: A Company that Did It Wrong• Euro Disney followed the golden rule of branding – consistency in brand elements… but failed because it didn’t take local adaptation into consideration. 17
  • Branding and MarketingMarketing• The “Four P’s” of marketing are all affected as a company markets globally – Product – Price – Placement – Promotion 18
  • Branding and MarketingMarketing in South Korea• Product – Foreign goods must be competitively different or superior as local brands are preferred – Exception for global luxury brands as Koreans are brand sensitive• Price – Do not favor (Western style) discount price strategies – Prefer local brands and to buy what looks fancy – More influenced by aggressive sales techniques than price 19
  • Branding and MarketingMarketing in South Korea• Promotion: – Social media very strong. Korea most digitalized country in the world – “Word of mouth” extremely important. Korea is very densely populated and group oriented which facilitates word of mouth• Placement: – Large system of intertwined middle-men networks that is often very inclusive – Using a local distributor will allow network access and build consumer trust 20
  • Cultural Themes 3 21
  • Cultural ThemesBusiness Model of Intercultural Analysis (BMIA)1. Glocalization2. Cultural Themes3. Process Engineering4. Communication5. Time Orientation6. Group Dynamics 22
  • Cultural ThemesKey Business Values - ChinaEight Key Business Elements in China:1. Guan Xi 關係 (Personal Connections)2. Zhong Jian Ren 中間人 (The Intermediary)3. Shehui Dengji (Social Status)4. Renji Hexie (Interpersonal Harmony)5. Zhengti Guannian (Holistic Thinking)6. Jiejian (Thrift)7. Mian Zi 面子 (Face or Social Capital)8. Chiku Nailoao (Endurance) 23
  • Cultural ThemesZhengti Guannian (Holistic Thinking)Plan and Structure Negotiation, Presentations, Meetings andProjects Effectively 24
  • Cultural ThemesFace (面子 mian zi )• Importance for successful business : High• Face = Self-respect = Dignity• Lose face• Grant face• Give face 25
  • Key Business Norms 4 26
  • Business Norms by LensBusiness Model of Intercultural Analysis (BMIA)1. Glocalization2. Cultural Themes3. Process Engineering4. Communication5. Time Orientation6. Group Dynamics 27
  • Business Norms by Lens: Process Engineering Process Engineering Includes: 1. Optimization of business processes across cultures 2. Risk, Change and TechnologyWillingness to Change Trust of Outsiders Risk Tolerance Trust of Technology 28
  • Business Norms by Lens Process EngineeringChange Tolerance Saudi Arabia Brunei Argentina Qatar Hong Kong Australia Iran Chile Austria Romania Israel Canada Czech Republic Belgium South Japan Egypt Brazil Korea Netherlands Indonesia China Spain New Zealand Mexico Denmark Sweden Norway Philippines Finland Switzerland Singapore Russia France Taiwan United Kingdom Thailand Germany Turkey United Arab Greece Ukraine Emirates India United Vietnam Ireland States Italy Malaysia Pakistan Poland Portugal
  • Business Norms by Lens Process EngineeringTrust• Trust of Outside Groups – Many cultures trust only their own compatriots • Their family • Their kin • People from their region • Their tribe – They are wary of outsiders • For example, many Koreans and Japanese are wary of all outsiders, including Americans • Nationalism strong in countries such as Japan, Russia, Norway, Hungary, and Korea 30
  • Business Norms by LensBusiness Model of Intercultural Analysis (BMIA)1. Glocalization2. Cultural Themes3. Process Engineering4. Communication5. Time Orientation6. Group Dynamics 31
  • Business Norms by Lens: CommunicationCommunication Style Direct? Indirect? Data-oriented? Dialog-oriented? Disclose info freely? Restrained? 32
  • Business Norms by Lens: CommunicationCognitive Style• Short-term vs. Long-term Orientation• Long-term orientation – No urgency to make decision by some arbitrary deadline – Will use time deadlines (e.g. flight schedules, meetings) as a negotiation tactic, e.g. requesting changes very late in the game in areas in which they wish to gain an advantage – The process is appreciated – Decade-long planning 33
  • Business Norms by LensBusiness Model of Intercultural Analysis (BMIA)1. Glocalization2. Cultural Themes3. Process Engineering4. Communication5. Time Orientation6. Group Dynamics 34
  • Business Norms by Lens: TimeMonochronic vs. Polychronic• Monochronic – Time measured by 60 minute clock – Clocks, agendas, calendars, and deadlines determine when things get done – Time is viewed as a limited commodity that must be carefully managed – People are expected to do one thing at a time, and don’t tend to tolerate lateness or interruptions 35
  • Business Norms by Lens: TimeTime Orientation• Polychronic – There is plenty of time. It flows from the infinite past, through the present, into the infinite future – Time is event driven, not schedule driven – Relationships and immediate needs usually determine when things get done 36
  • Business Norms by Lens: TimeTime Orientation• Polychronic – Punctuality is not as important as in monochronic cultures; it is acceptable to interrupt someone who is busy – A manager in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time – In meetings, people tend to speak at the same time (time is simultaneous) 37
  • Business Norms by LensBusiness Model of Intercultural Analysis (BMIA)1. Glocalization2. Cultural Themes3. Process Engineering4. Communication5. Time Orientation6. Group Dynamics 38
  • Business Norms by Lens: Group DynamicsRelationships in South Korea• Extremely interpersonal – Relationships & trust is more important than business potential – No cold calls – always be introduced by a 3rd party – Reciprocity is very important for respect and trust – “Be ready to entertain and be entertained” 39
  • Business Entertaining in South Korea 40
  • In Conclusion Solidify your cross-cultural competence • Top-Rated Business Oriented Cross-cultural Certification Program • Distinct Skills and Competences to be Successful in International Business
  • Strategic Alliance PartnersIn Conclusion for Global Execution 42
  • In Conclusion Are you prepared to truly leverage the power of culture to optimize your bottom line?Universal Consensus performsboth as an external resource andinternal advisor. We are willing tobe present at an initialconsultation, without cost to theclient
  • A Winning Approach toCulture, Training and Business Denise Pirrotti Hummel, J.D. CEO & Founder