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Coping with cultural
differences in international
business- A study on
Nike Inc.
Nike Shoe
Overview of the Company
• Founding
• Headquarter
• Key people
• Operating segments
• Portfolio brands
• Selling
• Manufacturing
• Product offerings Nike CEO Mark Parker
Nike Lifestyle Products
Nike World Head Quarter
in Beaverton, Oregon,
Portland, United States
Culture of the Home Country
Language: most commonly used language is English (specially
American English)
Religion: Religion in the US according to Gallup, Inc. (2016)
Affiliation US population (in total 100%)
Christian 73.7%
Protestant/Other Christian 48.9%
Catholic 23.0%
None/Atheist/Agnostic 18.2%
Non-Christian faiths 5.4%
No response given 2.6%
Other non-Christian religion 2.5%
Jewish 2.1%
Mormon 1.8%
Muslim 0.8%
Culture of the Home Country
Education:
• Provided by public, private, and home schools.
• Spends more per student on education than any other country.
Economy:
• World's largest national economy (nominal terms) and second largest (PPP)
• The New York Stock Exchange is the world's largest stock exchange.
• Leads in international ranking on venture capital and Global R&D funding.
• Two economic philosophies – trickle down and bottom up.
Social structure:
• Stratified into social classes based on wealth, income, educational
attainment, occupation, and social networks.
• Classes: upper 3%, middle 40%, working 30%, lower 27%
Political philosophy: liberty, equality, democracy, individualism, unity,
diversity.
Culture of the Host Country
• Language: The official national language is Vietnamese Tiếng Việt
• Religion:
• Education: extensive state-controlled network of schools, colleges
and universities, and a growing number of privately run and partially
privatized institutions.
Vietnamese folk religion or not religious population 73.2%
Buddhism 12.2%
Catholicism 6.8%
Caodaism 4.8%
Protestantism 1.5%
Hoahaoism 1.4%
Others 0.1%
Culture of the Host Country
• Economic philosophies: Primary sector, Secondary sector,
Tertiary sector
• Social Structure:
• Political Philosophy: determined by a number of factors of
which communism is the latest. The major influences on
Vietnamese political culture were of Chinese origin.
Vietnam's social
hierarchy
Ruling
class
The
Emperor
Royal
family
members
Scholar
Class
Working
class
Farmers Manual
workers
Artisans Laborers
Business/class
merchants
Comparison between home
country and host country culture
Determinants USA Vietnam
Language •Primary language: English
•Well structured
•Primary language:
Tiếng Việt
•Tonal will no
grammatical rules
Religion Christianity and Atheism Indigenous Religion
and Buddhism
Education
System
•Provided by: Public,
Privatized and Home School
•3 Levels
•Has 8 of worlds top colleges
and Universities
•Provided by: State
Controlled facilities
•5 Levels
•Currently under
massive reformation
Comparison between home
country and host country culture
Determinants USA Vietnam
Economic
Structure
• Worlds largest national
economy
• No dependency on outside
funding
• Rather weak
economical structure
• Japan’s aid for
development
Social
Structure
Basis for Social Class: Wealth,
Income, Education, Occupation
and Social Network.
Classes: Upper, Middle,
Working, Lower.
Basis for Social Class:
Inheritance, Education
and Occupation.
Classes: Emperor, Royal
Family, Scholar, Worker,
Merchants/Business.
Political
Philosophy
liberty, equality, democracy,
individualism, unity, and
diversity.
Mixture of Chinese
Confucian Rules and
Communism.
Techniques to cope up with
cultural differences
• Acknowledge and admit the existence of different cultures
• Encourage leaders to prepare and present cultural profile
• Accept cultural differences without any judgment
• Learn how your culture is perceived by people from other culture
• Identify their management style
• Identify their need for structure and certainty
• Understand their view
• Refrain from using culturally biased competencies
Finally,
Agree on a common working approach, Or
Move towards a dominant culture, Or
Train managers and employees to attain advantages from this
differences
Conclusion
• Culture, Religions, education, political environment may
vary home country to host country.
• Business strategy depends on the country’s language,
culture and many other things.
• Nike should have more concentration on country’s
cultural differences.
• It can create privileges for the members for bonding the
relationship between the customer and the company.
Thank you

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Coping with-cultural-differences-in-international-business-a-study-on-nike-inc.

  • 1. Coping with cultural differences in international business- A study on Nike Inc.
  • 3. Overview of the Company • Founding • Headquarter • Key people • Operating segments • Portfolio brands • Selling • Manufacturing • Product offerings Nike CEO Mark Parker
  • 5. Nike World Head Quarter in Beaverton, Oregon, Portland, United States
  • 6. Culture of the Home Country Language: most commonly used language is English (specially American English) Religion: Religion in the US according to Gallup, Inc. (2016) Affiliation US population (in total 100%) Christian 73.7% Protestant/Other Christian 48.9% Catholic 23.0% None/Atheist/Agnostic 18.2% Non-Christian faiths 5.4% No response given 2.6% Other non-Christian religion 2.5% Jewish 2.1% Mormon 1.8% Muslim 0.8%
  • 7. Culture of the Home Country Education: • Provided by public, private, and home schools. • Spends more per student on education than any other country. Economy: • World's largest national economy (nominal terms) and second largest (PPP) • The New York Stock Exchange is the world's largest stock exchange. • Leads in international ranking on venture capital and Global R&D funding. • Two economic philosophies – trickle down and bottom up. Social structure: • Stratified into social classes based on wealth, income, educational attainment, occupation, and social networks. • Classes: upper 3%, middle 40%, working 30%, lower 27% Political philosophy: liberty, equality, democracy, individualism, unity, diversity.
  • 8.
  • 9. Culture of the Host Country • Language: The official national language is Vietnamese Tiếng Việt • Religion: • Education: extensive state-controlled network of schools, colleges and universities, and a growing number of privately run and partially privatized institutions. Vietnamese folk religion or not religious population 73.2% Buddhism 12.2% Catholicism 6.8% Caodaism 4.8% Protestantism 1.5% Hoahaoism 1.4% Others 0.1%
  • 10. Culture of the Host Country • Economic philosophies: Primary sector, Secondary sector, Tertiary sector • Social Structure: • Political Philosophy: determined by a number of factors of which communism is the latest. The major influences on Vietnamese political culture were of Chinese origin. Vietnam's social hierarchy Ruling class The Emperor Royal family members Scholar Class Working class Farmers Manual workers Artisans Laborers Business/class merchants
  • 11. Comparison between home country and host country culture Determinants USA Vietnam Language •Primary language: English •Well structured •Primary language: Tiếng Việt •Tonal will no grammatical rules Religion Christianity and Atheism Indigenous Religion and Buddhism Education System •Provided by: Public, Privatized and Home School •3 Levels •Has 8 of worlds top colleges and Universities •Provided by: State Controlled facilities •5 Levels •Currently under massive reformation
  • 12. Comparison between home country and host country culture Determinants USA Vietnam Economic Structure • Worlds largest national economy • No dependency on outside funding • Rather weak economical structure • Japan’s aid for development Social Structure Basis for Social Class: Wealth, Income, Education, Occupation and Social Network. Classes: Upper, Middle, Working, Lower. Basis for Social Class: Inheritance, Education and Occupation. Classes: Emperor, Royal Family, Scholar, Worker, Merchants/Business. Political Philosophy liberty, equality, democracy, individualism, unity, and diversity. Mixture of Chinese Confucian Rules and Communism.
  • 13. Techniques to cope up with cultural differences • Acknowledge and admit the existence of different cultures • Encourage leaders to prepare and present cultural profile • Accept cultural differences without any judgment • Learn how your culture is perceived by people from other culture • Identify their management style • Identify their need for structure and certainty • Understand their view • Refrain from using culturally biased competencies Finally, Agree on a common working approach, Or Move towards a dominant culture, Or Train managers and employees to attain advantages from this differences
  • 14. Conclusion • Culture, Religions, education, political environment may vary home country to host country. • Business strategy depends on the country’s language, culture and many other things. • Nike should have more concentration on country’s cultural differences. • It can create privileges for the members for bonding the relationship between the customer and the company.