Lecture 5: Ch. 5 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

International Marketing: MKTG 335-G
Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners.
International Marketing
MKTG 335-G

Dilbert on Ethics
Image Credit: dilbert.com

Photo Credit: http://danmaycock.com/wp-content/uploads/2014/02/PeterDrucker004_jpg.jpg
Quote of the Week
“When you enchant
people, your goal is not to
make money from them or
to get them to do what
you want, but to fill them
with great delight”
—Guy Kawasaki

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Culture, Management Style, and
Business Systems
Chapter 5

Takeaways: Chapter 5
What You Need to Know:
• Cultural imperatives, electives, and exclusives.
• Management styles around the world—PDI, High-Context/
Low-Context
• Gender bias implications
• Ethics and corruption: Lubrication, Subornation, Extortion,
Bribery
• Monochronic (M-time) vs. Polychronic (P-Time)
• Information-oriented vs. relationship oriented cultures

International Business
What is business etiquette?

What behavior is appropriate in a foreign country?

Business etiquette is driven by cultural norms

Analyzing them can give you a competitive advantage

Home Depot vs. IKEA in China

Imperatives, Electives, and Exclusives
When in Rome…
Cultural imperatives,
electives, and exclusives.

Cultural imperatives …?

Customs which must be met, conformed, recognized, and
accommodated for successful business relationships

BEIJING, CHINA: German Chancellor Angela Merkel and Chinese Prime Minister Wen Jiabao toast after the EU–China
Business Summit at the Great Hall of the People in Beijing. Drinking half a bottle is a cultural elective, but taking a sip is more
of an imperative in this case.
5-6
Elective or Imperative?
Cultural electives …?

Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 5-6
Elective: you may participate if you choose

Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 5-6
Some of these may seem a little weird

Cultural exclusives …?

Outsiders are not permitted to participate

What are some imperatives or exclusives in your culture?

LDS temples are an example of local cultural exclusives

Management Styles
The worldwide impact of
American management styles

Personnel selection and reward based on merit
Management Styles

Decisions based on objective analysis
Management Styles

Wide sharing of decision-making
Management Styles

Never-ending quest for improvement
Management Styles

Tony Hsieh
Holocrasy

Management Styles
Differences in
Management Styles
Around the World

Management Styles
High PDI: subordinates unlikely to contradict their boss

Management Styles
Low PDI: subordinates likely or encouraged to disagree

Management Styles
Three typical patterns:
1.Top-down decision-making
2.Decentralized decision-making
3.Consensus/Committee/Group decisions

Management Styles
Management Aspirations

Management Styles
• Security & Mobility
• Personal Life
• Affiliation & Social Acceptance
• Power & Achievement

Source: OECD, Labor Market Indicators, 2012.
5-11
Annual Hours Worked
2000 2010
Netherlands 1,435 1,377
Germany 1,473 1,419
S. Korea 2,512 2,193
United Kingdom 1,700 1,647
Mexico 1,888 1,866
Japan 1,821 1,733
United States 1,814 1,778

Communication Styles

The symbolic meanings of
time, space, things, friendships,
and agreements, vary across
cultures
—Edward T. Hall
Anthropologist
1914–2009

High Context: depends heavily on context (who says it,
when it is said, how it is said) or nonverbals

Low Context: depends more on explicit, verbally
expressed communications

Countries differ in their business tempo

Countries differ in their level of formality

Time
Countries differ in their perception of time

Perception of Time
Monochronic or
M-time
Polychronic or
P-time
• One thing at a time
• Low-context cultures
• North America, Germany,
Switzerland, Scandinavia
• Multitasking/people-centric
• High-context cultures
• Asia, Latin America

1-‹#›
Differences in Management Styles Around
the World
▪ Negotiations Emphasis
• Differences with respect to the product, its price and terms,
services associated with the product, and finally, friendship
between vendors and customers
▪ Market Orientation
• American companies are embracing the market orientation
philosophy
• Other countries are still in the traditional production, product and
selling orientations

1-‹#›
Gender Bias in International Business
▪ The gender bias against women managers exists in some
countries
• Women are not easily accepted in upper level management
roles in Asia, Middle East, and Latin America (although this is
changing)
▪ Gender bias poses significant challenges in cross-cultural
negotiations

Gender Equality in U.S. Corporate Management
Women in the Workplace 2015
McKinsey & Co. | LeanIn.org
http://womenintheworkplace.com
Equality in the C-suite is only
100 years away.

Japan & Saudi Arabia

Corruption: who’s cultural definition do you use?
What constitutes corruption?

54
Transparency International
Transparency International - USA
5-24

1-‹#›
Bribery: Variations on a Theme
▪ Bribery
• Voluntarily offered payment by someone seeking unlawful
advantage
▪ Extortion
• Payments are extracted under threat or duress by someone in
authority

1-‹#›
Bribery: Variations on a Theme
▪ Lubrication
• Small sum of cash, a gift, or a service given to a low-ranking
official in a country where they are not prohibited by law
▪ Subornation
• Involves giving large sums of money to entice an official to
commit an illegal act on behalf of the one offering the bribe

Ethics

1-‹#›
A Framework for Ethical Principles
1. Utilitarian Ethics
optimize the
common good?
2. Rights of the
Parties
Respect individual
rights?
3. Justice or Fairness
Respects justice or
fairness to all parties?

A conversation about honesty

http://www.slideshare.net/MarkZatta/nestle-baby-formula-case-study
http://www.nestle.com/aboutus/ask-nestle/answers/nestle-boycott?gclid=CO-
dteq0iMgCFURlfgodhXgH9Q
Nestle: Bottle vs. Breast

For Next Class
Due by Next Class (Feb 8, 2016):
• Country Notebook Part I (Group)
• Written Submission—via Canvas
• Oral Presentation—recorded on GoReact
• Peer Feedback—on GoReact

Lecture 5: Ch. 5 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

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Lecture 5: Ch. 5 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017