Business customs

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Business customs

  1. 1. Business customs in global marketing Mr. Cesar Augusto Díaz Moya
  2. 2. Willingness to adapt……a crucial attitude <ul><li>Dealing with foreign individuals, firms, and authorities: </li></ul><ul><li>Tolerance Flexibility </li></ul><ul><li>Humility Fairness </li></ul><ul><li>Tempos Adjustment Curiosity /interest </li></ul><ul><li>Knowledge of the country Liking for others </li></ul><ul><li>Respect commanding Oneself integration </li></ul>
  3. 3. Degree of adaptation <ul><li>Brazilians touch while speaking </li></ul><ul><li>Addressing germans as </li></ul><ul><li>«Herr, Frau, Fraulien» </li></ul><ul><li>Chinesse can´t «loose face» </li></ul><ul><li>So what to do???? </li></ul><ul><li>Differences have to be assessed. </li></ul><ul><li>«adhered or ignored» </li></ul>
  4. 4. IMPERATIVES, ADIAPHORA AND EXCLUSIVES
  5. 5. <ul><li>Guan-xi stablisment before doing business. </li></ul><ul><li>Not to lose face in most asian countries </li></ul><ul><li>(raise voice, correct others, lose patience) </li></ul><ul><li>Imperative to avoid somewhere - imperative to do in somewherelse (Eye contact in Japan, L.A.) </li></ul>Cultural Imperatives
  6. 6. <ul><li>May wish to participate in but not required . </li></ul><ul><li>(Food and Beverages, greetings) </li></ul><ul><li>Symbolic attempts to demostrate cultural awereness </li></ul><ul><li>Drinking or not drinking???? Imperative or adiaphora </li></ul><ul><li>Cheers in Czech republic and China, Arabeans coffee sip. </li></ul>Cultural Adiaphoras
  7. 7. <ul><li>«I´ll curse my brother, but if you curse him , you´ll have fight» </li></ul><ul><li>Christians attempting to act like Muslims </li></ul><ul><li>Marketers need to be perceptive to identify the situation. </li></ul><ul><li>Cultural awared allowances give chances but….. </li></ul><ul><li>“ fewer missteps better the business relation” </li></ul>Cultural exclusives
  8. 8. Methods of doing business <ul><li>Structures, Management attitudes and Behaviors differ!!! </li></ul><ul><li>Contact level </li></ul><ul><li>Comunication emphasis </li></ul><ul><li>Tempo </li></ul><ul><li>Formality </li></ul><ul><li>Government Involvement </li></ul><ul><li>Ethics </li></ul>
  9. 9. <ul><li>Countries are divided into: </li></ul><ul><li>Low PDI (Denmark –Israel) and High PDI (Mexico Malaysia) </li></ul><ul><li>Depending on the context these aspects vary: (Top level </li></ul><ul><li>management decisions, descentralization, committee group </li></ul><ul><li>decisions) Ej. France, Venezuela, USA, Japan </li></ul>
  10. 10. <ul><li>2. Management objectives and aspirations: </li></ul><ul><li>Understanding individual’s objectives and aspirations results in understanding his management style. </li></ul>
  11. 11. <ul><li>2 . Management objectives and aspirations: </li></ul><ul><li>Personal Goals: Wages, Profits, Good life, Security, Acceptance, Status, Advancement. </li></ul><ul><li>Security and Mobility: Security concept varies Wages-Trainning-Mobility/Lifetimepositions/RetirementPlans (Brittish Vs French Managers) </li></ul><ul><li>Personal Life: for Greeks job is an obstacle, for americans job is the key, for japanese job is the most important. </li></ul><ul><li>Social Acceptance : for asians it is refelected in DMP, Japanese workers name their company rather than their position. </li></ul><ul><li>Power: Some leader are not only profit oriented they also prefer becoming social and political leaders. </li></ul>
  12. 12. <ul><li>3. Communication Emphasis </li></ul><ul><li>«Even a good interpreter doesn´t solve the language problems» </li></ul><ul><li>Ambiguity of languages Eg. Japanese perfect comunication only 85% of time. </li></ul><ul><li>Translation & interpretation get complicated because of slangs (The man: the law) (grub, slop, garbage, gas:  food) </li></ul><ul><li>Low context countries (explicit verbally expressed messages) </li></ul><ul><li>High context countries (non verbal aspects) </li></ul><ul><li>Eg. «I Agree» means 15% agreement, it might be, not a chance! </li></ul><ul><li>Contexts are directly related with IDV and PDI </li></ul>
  13. 13. <ul><li>4. Formality and Tempo </li></ul><ul><li>“ At a cocktail party or a dinner, Americans are still on duty” </li></ul><ul><li>“ Arabs don´t like neither to be rushed nor deadlines” </li></ul><ul><li>Flying Visits or «I´ve got a day here» approach may be rude </li></ul><ul><li>P-Time v/s M-Time </li></ul><ul><li>Time is money or Time is to be savored not spend </li></ul><ul><li>P Time: One thing at the moment - Small Units – Promptness </li></ul><ul><li>M Time: More flexible on defining late or early. Many things at once, looser schedules, deeper involvement with people. </li></ul>
  14. 14. <ul><li>5. Negotiation Emphasis </li></ul><ul><li>Negotiation approach and attitude </li></ul><ul><li>6. Gender Bias </li></ul><ul><li>Sending or not women to do business???? </li></ul><ul><li>International assignments are more common nowadays </li></ul><ul><li>In most countries women are treated first as foreigners </li></ul>
  15. 15. <ul><li>7. Business Ethics </li></ul><ul><li>Ethical standards are not well defined or always clear </li></ul><ul><li>Value judgements vary from country to country </li></ul><ul><li>Sobornation, Extortion and Lubrication Practices </li></ul><ul><li>There are agreement s against corruption!!!! </li></ul><ul><li>OAS, TI (Transparency International) created the corruption perception Index (CPI). FCPA (Foreigns Corrupt Practices Act). </li></ul>
  16. 16. Challenges of ethics!!!!!! <ul><li>Not breaking the law </li></ul><ul><li>Harming the environment </li></ul><ul><li>Denying someone´s rights </li></ul><ul><li>Taking unfair advantage </li></ul><ul><li>Bodily harm or damage. </li></ul><ul><li>But………..Marketer has to respond to to sundry situations such as: </li></ul><ul><li>Lack of laws, local practices condone certain situations, company willing to do «what is necessary» is favored. </li></ul><ul><li>Being socially responsible and ethically correct is not a simple task!!!!!!!!! </li></ul>
  17. 17. <ul><li>And…. where do difficulties arise????? </li></ul><ul><li>5 Areas of operations: </li></ul><ul><li>Employment practices and policies </li></ul><ul><li>Consumer protection </li></ul><ul><li>Environmental protection </li></ul><ul><li>Political payments and involvement in political affairs </li></ul><ul><li>Basic human rights and fundamental freedoms </li></ul>
  18. 18. <ul><li>So…. What is right or wrong???????? </li></ul><ul><li>Principles: </li></ul><ul><li>Utilitarian ethics: Does the action optimize the «common good» of all constituencies? </li></ul><ul><li>Rights of the parties: Does the action respect the rights of the individuals involved? </li></ul><ul><li>Justice or fairness: Does the action respect the cannons of justice or fairness to all parties involved </li></ul>

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