1. International BusinessThe Role of Culture Proprietary Copyright@2008:Peerasak C.
2. Culture• Composes of Value, Behavior, Customs and Attitude• Culture of a society will influence various rules and policies setting in roles of a business organization• Culture inherits from a generation to another e.g. parents train their children in courtesy, seniors introduce freshmen in university’s customs• Culture reflects business behavior e.g. Japanese culture has seniority and high loyalty that create a lifetime employment and a low job turnover Proprietary Copyright@2008:Peerasak C.
3. Culture• Culture succeeded by learning so, it’s changeable. It changed by external forces e.g. Germany after WW2 though it’s a nation which has accumulated culture for a long time, the behavior of its people who live below Russia is quite different from West Germany.• Culture helps to identify which person whether or not he belongs to a member of which society Proprietary Copyright@2008:Peerasak C.
4. Elements of Culture Society Structure Culture Proprietary Copyright@2008:Peerasak C.
5. Elements of Culture• Society Structure Each society has a structure as a ground to cling people on in a society – Relatives Count How to count relatives is different in each society. To operate a family business, Americans don’t reckon on relatives. – Social Classes Every society make differences upon race, occupation, education and success level. In some societies, the employment must concern about social classes. – Changes in a Society าSome societies persons are able to change their own statuses by the education or success especially in the society which is not highly differentiate Proprietary Copyright@2008:Peerasak C.
6. Elements of Culture Language Society Structure Culture Proprietary Copyright@2008:Peerasak C.
7. Elements of Culture• Language It is a principal element to differentiate cultures in a society. Specialists said that there’re more than 3,000 languages and up to 10,000 accents on our earth.• Language can tell us about ways of thinking of a particular society. If in a particular nation, there’s more than a language, it indicates that there is a variety of cultures in that country. It may comprise of a difference in revenues, in work culture, and educational level. ⇨ The smart businessman will adjust marketing strategies and business operations properly. In Canada, Canadian-British prefers a soap for hygiene, but Canadian-French prefers a soap for impressiveness. Proprietary Copyright@2008:Peerasak C.
8. Elements of Culture• Language “Business Weapon” Countries who use English are advantageous in world trade arena because English is used worldwide. Spain used a language advantage to attack Latin America market where it uses Spanish primarily. Turkey used Turkish to invade a group of new born countries after Soviet collapsed.• At present English is mostly a major world language. Countries who’re weak at English will be disadvantageous accordingly (e.g. in a negotiation or losing an opportunity for MNCs to establish its offices). Proprietary Copyright@2008:Peerasak C.
9. Elements of Culture• Language and Local Culture – Japanese will not say “No” because it’s not polite in Japanese society. – Translation from one language to another may cause a problem because it shows a different meaning. A good translation should aim for a meaning, not word by word. Proprietary Copyright@2008:Peerasak C.
10. Elements of Culture Language Society Communication Structure Culture Proprietary Copyright@2008:Peerasak C.
11. Elements of Culture• Communication by speaking or silent (body language, face, action, queue, and others)• In same culture, the communication may be ineffective. In different culture, more misunderstanding.• Specialists believe that 80 – 90 % of silent communications in same society will be understandable. But if it’s from different society, possible to have different meanings e.g. Americans keep 20” distance when talking. In Saudi Arabia it keeps 9 – 10” distance so, when they meet, Saudi moves closer but American moves away. This makes both misunderstood. Proprietary Copyright@2008:Peerasak C.
12. Elements of Culture• In U.S.A. when you nod once it means “Yes” but in Bulgaria means “No”• Shaking face means “No” in general. But India, means “Yes”• Use the thumb touches a forefinger means “Okay” in U.S.A., “Money” in Japan, and “Worthless” in France, and rather rude in East Europe Proprietary Copyright@2008:Peerasak C.
13. Elements of Culture• Gift and Host Japanese will set up a neat party to build up nice relationship and increased by exchanging gifts that will not be opened in front to avoid uncomfortable feeling. In Arabs are the similar.• Informing bad news will be done immediately for Americans, done after work for Koreans, done through third person for Japaneses Proprietary Copyright@2008:Peerasak C.
14. Elements of Culture Languages Society Communications Structure Culture Religion Proprietary Copyright@2008:Peerasak C.
15. Elements of Culture• Religion influences behavior in same and different society• Religion influences attitude towards job, consumption, responsibility, way of life, and goal of life• Caste in India is strictly to a person’s job. Female is not permitted to work in Muslim countries.• You must understand and recognize doing businesses in Saudi Arabia that has praying 5 times a day Proprietary Copyright@2008:Peerasak C.
16. Elements of Culture Language Society Communication Structure Culture Value Attitude Religion Proprietary Copyright@2008:Peerasak C.
17. Elements of Culture• Value is the accepted principles or standards of a person or a group in a society.• Attitude is action, feeling and opinion that’re reflected from the value.• Time In each culture, the attitude towards the time is different. For Americans “Time is Money”, time is the opportunity to be more productive, more money. So, time shall not be wasted. – American businessmen will expect the meeting to be on time and getting to the point. Keeping attendees await is seriously impolite. Proprietary Copyright@2008:Peerasak C.
18. Elements of Culture• In Latin America, starting the meeting late 45 minutes is not wrong• In Arab, the meeting starts late usually, and during the meeting if there’s an interruption by a friend or family’s member, it means paying respect to all• During the meeting, Americans usually follow an agenda and, argument is common. Japaneses and Saudis will introduce each other at the beginning of the meeting Proprietary Copyright@2008:Peerasak C.
19. Elements of Culture• Seniority Americans for young people but Asians for elderly• Education Education system is an important indicator towards attitude of a society – In USA, stress on personal development, creativity, and independency. Open for all classes – In UK, pass the test to higher classes and limit to the qualified ones Proprietary Copyright@2008:Peerasak C.
20. Elements of Culture– In Germany, there’s a well developed system in engineering and technical skills training for young to serve its industry– In Japan and France, stress on memorizing as to prepare for nationwide test. Who gets the top score, deserves to study in first ranking institutes and mostly to be selected for jobs by big companies Proprietary Copyright@2008:Peerasak C.
21. Elements of Culture• Social Status some inherit through ancestors, and some are from personal successes – In some European countries, lords are higher that new successors – In USA, admire successful persons from hard works but their children may not be admired if cannot do the same – In Japan, personal status depends on its family or company so, when introduce they refer to family or company Proprietary Copyright@2008:Peerasak C.
22. Elements of Culture• Elements of the culture influence the behavior and expectation of managers and staffs in the organization. International businessmen will encounter these challenges to manage and motivate staffs who have different cultures, and must understand these cultural elements.• To easily understand, there’s a model to help us explain Proprietary Copyright@2008:Peerasak C.
23. Elements of Culture Hall’s Low-Context-High-Context Approach Low High Context Context Sw i an Kor ese Jap a ese Bri t a U.S avian Gre s h ne se Chi n nad Spa n Ita l h ek ea ni m ia n Vie t rab nam is ndin s s Ge r ./Ca A S ca◊ In Low-context culture spoken indicates certain meaning and clear to listeners – straight talks◊ In High-context culture spoken and conversation content convey indirect meaning Proprietary Copyright@2008:Peerasak C.
24. Elements of Culture◊ Business behavior of these 2 groups are different e.g. ad in Germany will get to the point and be a fact. But in Japan will be more emotional◊ High-context group stresses on personal relationship so, building up a familiarity is necessary to do the businesses together◊ Low-context group stresses on the business directly and in a negotiation included a lawyer Proprietary Copyright@2008:Peerasak C.
25. Variety of Culture and International Business ManagementSome specialists say that culturespreads through out the world uponcommunication and transportation,from MTV and CNN Proprietary Copyright@2008:Peerasak C.
26. Variety of Culture and International Business Management• Understanding New Culture – Businessman forgets that he’s a stranger from other culture. He usually makes mistakes e.g. American meets German and asks about family (polite for American) but for German is impolite to ask about family. – Some behavior in a society are incorrect, but in another’s may be common – International businessmen need to learn and understand differences of cultures Proprietary Copyright@2008:Peerasak C.