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Cultural environment

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  • 1. CULTURAL ENVIRONMENT
    INTERNATIONAL BUSINESS II
  • 2. BUSINESS FUNCTIONS VS CULTURE
  • 3. CULTURAL ANALYSIS
    Understanding the cultures & physical characteristics of groups of people is useful because
    business employs, sells to, buys from, is regulated and is owned by people.
    An international company must consider these differences in order to predict & control its relationships & operations.
    A company first should determine differences in business practices  adjustments necessary.
  • 4. THE NATION AS A DEFINITION OF SOCIETY
    Similarity among people is a cause & effect of national boundaries. (Belonging sense)
    Nations include subcultures, ethnic groups, races, classes. (Challenge Segmentation)
    National Identity (certain characteristics physical, demographic & behavioural norms that may affect a company’s methods of conducting business)
  • 5. THE NATION AS A DEFINITION OF SOCIETY
    Nationality is not the only basis on which to group people . Everyone belongs to various other groups based on profession, age, religion, and place of residence.
    Country-by-country analysis has limitations because:
    Not everyone in a country is alike.
    Variations within some countries are great.
    Similarities link groups from different countries
    Data bases are scarce- Non-reliable-Outdated.
  • 6. PHYSICAL ATTRIBUTES
    Physical differences can affect business decisions such as whether & how to change a product, how high to place production machinery, & which advertising message to use. (Images-Frequency-Comparative Ads)
    (Ready to serve food, Cleaning, Shampoo, Packing, Sizing, Digital, Fool-Proof, Organic, Friendly Products)
    Physical attributes to take into account:
    An individual’s size.
    Age distribution.
  • 7. THE CONCEPT OF CULTURE
    Culture consists of specific learned norms based on attitudes, values & beliefs, all of which exist in every society.
    It can’t be easily isolated from such factors as economic & political conditions & institutions.
    Cultural value systems are set early in life & are difficult to change, but change may come through:
    Choice or imposition.
    Contact with other cultures.
  • 8. MAIN CULTURAL DIFFERENCES
    • Language: When people from different areas speak the same language, culture is transmitted more easily. Factors to take into account:
    (Negotiation-Promoting-Advertising)
    • Spoken language.
    • 9. Silent language.
    • 10. Religion: Is a strong moulder of values. When a religion is dominant in an area, it is apt to have great political, legal & economic influence. It is also apt to limit acceptance of products or business practices.
    • 11. Christian - Hindu – Judaic – Muslim - Buddhist.
  • LANGUAGES OF THE WORLD
    English
    Spanish
    French
    Chinese
    Malaysian
    Portuguese
    Russian
    Arabic
    Other
  • 12. RELIGIONS OF THE WORLD
  • 13. BEHAVIORAL PRACTICES AFFECTING BUSINESS
    Group Affiliations: Populations are subdivided into groups.
    Ascribed: Determined by birth. Gender, age, family, caste & ethnic, racial or national origin.
    Acquired: Include those based on religion, political affiliation, profession and other associations. Reflect status, class.
    Role of competence: In some societies, a person’s acceptability for jobs & promotion is based primarily on competence. Prevention of discrimination is important.
  • 14. BEHAVIORAL PRACTICES AFFECTING BUSINESS
    Importance of different group membership: Country by country attitudes vary toward:
    Gender based groups  Male & female roles.
    Age based groups  Respect for age.
    Family based groups  Family ties.
    Importance of Work: Explained by the interrelationship of the cultural & economic environments of the particular country.
    The motives for working are different in different places.
  • 15. MOTIVATION
    • A fulfilledneedis no longer a motivator.
    • 16. Materialism leads towork.
    • 17. Work leads toproductivity and economicgrowth.
  • BEHAVIORAL PRACTICES AFFECTING BUSINESS
    Importance of Work:
    Attitudes toward work may change as economic gains are achieved.
    Protestant Ethic  Work viewed as a means of salvation.
    Belief in success & reward.
    Work as a habit  Problems with free time.
    High need achievement  Material or career success.
    Lower need achievement  Prefer social relations.
    The ranking of needs differs among countries.
  • 18. Whichisthemost
    prestigiousprofession
    in your country?
  • 19. BEHAVIORAL PRACTICES AFFECTING BUSINESS
    Importance of Occupation: The perception of what jobs are best.
    Self Reliance:
    Superior subordinate relationships.
    Autocratic.
    Democratic.
    Free-rein.
    Trust.
    Attitudes of self-determination vs. fatalism.
    Individual vs. group.
  • 20. STOP AND THINK ABOUT THE FOLLOWING:
    Do youknowwhichlanguageisspoken in Monaco?
    What’sthefirstthingthat comes toyourmindwhenyouhearthewordMexico?
    What do Canada, U.S.A and Englandhave in common?
  • 21. BEHAVIORAL PRACTICES AFFECTING BUSINESS
    • Communications:
    • 22. Language  Complex & reflective of environment.
    • 23. Silent Language  Colour associations, sense of appropriate distance, perception of time, status cues and body language.
    • 24. Cultural Awareness: Problem areas that can hinder it are:
    • 25. Things learned subconsciously.
    • 26. Stereotypes.
    • 27. Societal subgroups.
    • 28. Grouping Countries: Some countries are relatively similar to one another, usually because they share many attributes that help mold their culture  Cluster.
  • RECONCILIATION OF INTERNATIONAL DIFFERENCES
    • Fitting needs to the company position: Need for cultural awareness and extent of international involvement.
    • 29. Polycentrism: Control is decentralized. Extensive delegation or imitation of proven host country practices. Managers foster local rather than worldwide objectives.
    • 30. Ethnocentrism: The belief that one’s own group is superior to others. Important factors are ignored, believe home country objectives should prevail, think change is easily introduced. Control is centralized.
  • CHANGE KEY FACTORS
    The more a change upsets values, the more resistance.
    Cost benefit of change.
    People are more willing to implement change when they are involved in the decision to change.
    People are more apt to support change when they expect personal or group rewards.
    Managers seeking to introduce change should first convince those who can influence others  Opinion leaders.
  • 31. CHANGE KEY FACTORS
    International companies:
    Change some things abroad.
    Change themselves when encountering foreign environments.
    Learn things abroad that they can apply at home.
  • 32. FRACTURED TRANSLATIONS
    English translations made by Japanese firm added to labels to increase prestige for their products being sold in China.
    ProductEnglish Translation
    Equivalent to Japanese Spam Liver Putty
    Toilet Paper My Fanny Brand
    Ready to Eat Pancakes Strawberry Crap Dessert
    Antifreeze Spray Hot Piss Brand
    Pediatrician’s Slogan Specialist in Deceased Children
    SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post, December 9, 1996 p. 12.
  • 33. WHOSE ENGLISH?
    United StatesUnited Kingdom
    Trunk Boot
    Hood Bonnet
    Convertible Top Hood
    Elevator Lift
    Toilet W.C.
    Bathroom Tub or Shower
    Vacuum Hoover
    ??? Shag
    Bloody ???
    Irwin/McGraw-Hill
  • 34. RELIGION
    Marketing in an Islamic Framework
    Source: MushtaqLuqmani, Zahir A Quraeshi, and Linda Delene, “Marketing in Islamic Countries:
    A Viewpoint,” MSU Business Topics, Summer 1980, pp. 20-21.
  • 35. CULTURAL FACTORS
    Never touch the head of a Thai or pass an object over it. The head is considered sacredin Thailand.
    Avoid using triangular shapes in Hong Kong, Korea, and Taiwan. It is considered a negative shape.
    The number 7 is considered bad luck in Kenya, good luck in Czech Republic and has a 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.
  • 36. IT’S NOT THE GIFT THAT COUNTS, BUT HOW YOU PRESENT IT
    Japan
    Do not open a gift in front of a Japanese counterpart unless asked, and do not expect the Japanese to open your gift.
    Avoid ribbons and bows as part of the gift wrapping. Bows as we know them are considered unattractive, and ribbon colors can have different meanings.
    Do not offer a gift depicting a fox or badger. The fox is the symbol of fertility; the badger, cunning.
    Europe
    Avoid red roses and white flowers, even numbers, and the number 13. Do not wrap flowers in paper.
    Do not risk the impression of bribery by spending too much on a gift.
  • 37. IT’S NOT THE GIFT THAT COUNTS, BUT HOW YOU PRESENT IT…
    Arab World
    Do not give a gift when you first meet someone. It may be interpreted as a bribe.
    Do not let it appear that you contrived to present the gift when the recipient is alone. It looks bad unless you know the person well. Give the gift in front of others in less –personal relationships.
    Latin America
    Do not give a gift until after a somewhat personal relationship has developed unless it is given to express appreciation for hospitality.
    Gift should be given during social encounters, not in the course of business.
    China
    Never make an issue of a gift presentation—publicly or private.
    Gifts should be presented privately, with the exception of collective ceremonial gifts at banquets.