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EFFECTS OF CULTURE ON
BUSINESS
What is culture?
Culture is the characteristics and
knowledge of a particular group of
people, defined by everything from
language, religion, cuisine, social
habits, music and arts.
Effects of culture on business
Impact of Language on Business
• Culture is the characteristics and knowledge
of a particular group of people, defined by
everything from language, religion, cuisine,
social habits, music and arts.
Impact of Language on Business
• One of the first barriers that companies face
on the path of internationalisation is
differences in natural languages.
Effects of culture on business
Impact of Language on Business
• The language diversity has created problems
for companies in integrating their workforces
and marketing products on a truly national
level.
Impact of Language on Business
• When a new product or service enters
another language area, it may take on an
Anglicized name. For example, Russians call
tight denim pants dzhinsi (pronounced
“jeansy”) the French call a self-service
restaurant le self.
Impact of Language on Business
• In Taiwan, the translation of
the Pepsi slogan “Come alive
with the Pepsi Generation“ is
changed as “Pepsi will bring
your ancestors back from the
dead“.
Impact of Language on Business
• In China,the name Coca-Cola was first
rendered as Ke-kou-ke-
la.Unfortunately, the Coke company
did not discover until after thousands
of signs had been printed that the
phrase means “bite the wax tadpole”
or “female horse stuffed with wax”
depending on the dialect.
• Coke then researched 40,000 Chinese
characters and found a close phonetic
equivalent, “ko-kou-ko-le“, which can
be loosely translated as “happiness in
the mouth“.
Impact of Language on Business
Impact of Language on Business
Culture is the characteristics and knowledge of a
particular group of people, defined by everything
from language, religion, cuisine, social habits,
music and arts.
Music and Arts
Music and Arts
• One of the easiest way to reach people is music and
arts-especially tv series.When you reach people,your
job is pretty easier for business and marketing.
Music and Arts
• Some countries have realized the
greatiest impact of tv series,music and
different arts on business.
Music and Arts
KOREA
Music and Arts
Korean Hallyu Wave
The Korean wave(Hallyu) refers to
the phenomenon of Korean
entertainment and popular culture
rolling over the world with pop
music, TV dramas, and movies. The
Hallyu, meaning Korean Wave, has
been described by the newspaper
the Korea Times, as the 21st Century
version of the Silk Road which once
served as a conduit for trade and
cultural exchanges between the East
and the West.
Music and Arts
• First major wave of Hallyu was driven by
Korean TV dramas within the Asian continent.
In 1998 President Kim Dae-Jung introduced a
Cultural Industry Policy with a special focus on
TV drama.
The new wave of Korean pop music, referred
to as K-pop, has now spread beyond Asia,
reaching as far as Latin America, Africa, and
the Middle East.
Music and Arts
• The booming presence and
enjoyment of Korean
popular culture has also
transformed into preference
for other Korean products
and lifestyles alike, leading
to an increase in Korean
product sales overseas. The
growing interest in Korean
culture has further triggered
a rise in inbound foreign
tourists.
Music and Arts
Music and Arts
• The country last year raked in $5 billion from
its pop-culture exports, and the government
aims to double this figure by 2017.
Meanwhile, inbound tourist arrivals jumped
8.3 percent on year to a record 12.2 million
visitors in 2013, statistics from the Korea
Tourism Organization.
Music and Arts
Music and Arts
İstanbul-Gyeongju 2013 Dünya Kültür Expo
Music and Arts
• İstanbul-Gyeongju
2013 World Culture
Expo was prepared for
making the cultural
relationship stronger
between Turkey and
Korea.Besides that,
Kadir Topbaş
implements,Silk Road
is invigorated by Expo
and this event made a
major contribution to
tourism and econmy.
Music and Arts
• Turkish Tv Series also have a wide audience in
the world.
Music and Arts
• TV dramas have emerged as Turkey’s most
popular cultural export in the past decade. The
export revenues for broadcast rights of TV
dramas increased from 1 million dollars in 2007
to $130 million in 2012. International interest in
Turkish TV dramas started in the Middle East
nearly a decade ago when millions of Arab TV
viewers were captivated by “Gümüş” (Noor in
Arabic). Now the geographic reach of Turkish TV
dramas has expanded from Pakistan to Eastern
Europe, with market expansion continuing.
Music and Arts
Effects of culture on business
Religion
• Culture is the characteristics and
knowledge of a particular group
of people, defined by everything
from language, religion, cuisine,
social habits, music and arts.
Religion
• Religion is a strong shaper of values.
Religion of a nation has influence on the
way firms are doing business like working
hours, holidays, preferences and tastes.
Religion
• For example, McDonald’s agreed not to serve
beef in India because of criticism from Hindus,
the Israeli national airline, does not fly on
Saturday, the holiday in Judaism.
Religion
• But not all nations that practice the same
religion have the same constraints on
business. For example, Friday is normally not a
workday in predominantly Muslim countries
because it is a day of worship; however,
Turkey is a secular Muslim country that
adheres to the Christian work calendar to be
more productive in business dealings with
Europe.
Mc-Donald’s
McDonald's dispensed with its most prominent ingredient
in order to respect, and to please, its Indian customers.
Many Indians eat no beef or pork, or any meat at all.
According to Vikram Bakshi, managing director of
McDonald's India North, it was necessary to adapt the
company's offerings while keeping the core brand values
consistent across cultures.
Religion
Religion
• "The menu has evolved over the
years according to customers'
needs," says Bakshi. "Local creations
like McAloo Tikki Burger, Curry Pans,
Wraps Pizza McPuff, and McVeggie
are established.Today 70 percent of
our menu is ‘Indianized', and the
McAloo Tikki burger is our highest
selling product. "
Religion
• Mc Donald’s also has
operations in Turkey and
take into consideration of
our local tastes and food
habits means that Mc
Donald’s is also adapting
to Turkish culture. The
product it serves us is
McTurko beyond its other
classical products.
Social Habits
• Culture is the characteristics and
knowledge of a particular group
of people, defined by everything
from language, religion, cuisine,
social habits, music and arts.
Social Habits
• Avoid doing the things below when making
business with Japanese people;
• Do not blow your nose in a public place (including
meeting rooms).
• Do not grab your host's hand in meetings.
• Never pat a Japanese man on the back or
shoulder.
• Always smile, be pleasant, be willing to learn, ask
a lot of questions about your customer's company
(and none about his/her private life).
Social Habits
Social Habits
• Avoid doing the things below when making
business with Italian people;
• Avoid talking about religion, politics, mafia and
World War II. Good conversational topics include
Italian culture, art, food, wine, family, and films.
• Don’t expect the meeting to start on time.
Social Habits
Social Habits
• Other Tips for Meetings
• France;Wear an offical dress.
• Saudi Arabia;During the greetings kiss three
time(never ever try to kiss a women).
• Germany;Be there on time.
• Culture is the characteristics and
knowledge of a particular group
of people, defined by everything
from language, religion, cuisine,
social habits, music and arts.
Cuisine
Cuisine
Preferences and tastes may be different for
each individual, it also differs among different
cultures. For example, Japan people dislike sour
tastes like lemon, and colors that is reminder of
sour (yellow). Because of this perception, firms
using yellow packages on their product have
faced a decrease in their sales.
Cuisine
Kellogg’s
Kellogg's set up a branch in India and started selling
Corn Flakes. What they didn't realize was that Indians
think that to start the day with something cold -- like
cold milk on their cereal -- is a shock to the system.
And if they pour warm milk on Kellogg's Corn Flakes,
they instantly turn into wet paper.
In business studies, when you look at a market, you
have to know something about its anthropology and
its cultural rituals. What Kellogg’s ignored was that
the Indians dislike cold breakfast.
Comments on Managing With Cultural
Differences
• Although there are cultural differences between different
companies belonging to the different nations, these
differences are not necessarily a handicap. There is a
need for understanding between the firms in the
different cultures. The parties must learn how to cope
with the cultural differences that exist. In order to
manage these cultural differences, first of all we must
admit that there exist cultural differences in different
nations. So, if multinational firms want to be successful in
different markets, they must be flexible and respond the
local preferences, tastes and perceptions which are
different from their home country.
THANK YOU
FOR
LISTENING
References
• http://www.hurriyetdailynews.com/turkeys-tv-
drama-industry-deserves-more-
attention.aspx?pageID=449&nID=78068&NewsCa
tID=396
• http://www.slideshare.net/UmutKeklik/culture-
effects-international-business
• Assoc. Prof. Mahmut ARSLAN, A STUDY ON THE
EFFECT OF CULTURAL DIFFERENCES AND
SIMILARITIES ON MNCs WITH ILLUSTRATIVE
CASES

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Effects of culture on business

  • 1. EFFECTS OF CULTURE ON BUSINESS
  • 3. Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts.
  • 5. Impact of Language on Business • Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts.
  • 6. Impact of Language on Business • One of the first barriers that companies face on the path of internationalisation is differences in natural languages.
  • 8. Impact of Language on Business • The language diversity has created problems for companies in integrating their workforces and marketing products on a truly national level.
  • 9. Impact of Language on Business • When a new product or service enters another language area, it may take on an Anglicized name. For example, Russians call tight denim pants dzhinsi (pronounced “jeansy”) the French call a self-service restaurant le self.
  • 10. Impact of Language on Business • In Taiwan, the translation of the Pepsi slogan “Come alive with the Pepsi Generation“ is changed as “Pepsi will bring your ancestors back from the dead“.
  • 11. Impact of Language on Business • In China,the name Coca-Cola was first rendered as Ke-kou-ke- la.Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means “bite the wax tadpole” or “female horse stuffed with wax” depending on the dialect. • Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, “ko-kou-ko-le“, which can be loosely translated as “happiness in the mouth“.
  • 12. Impact of Language on Business
  • 13. Impact of Language on Business
  • 14. Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts. Music and Arts
  • 15. Music and Arts • One of the easiest way to reach people is music and arts-especially tv series.When you reach people,your job is pretty easier for business and marketing.
  • 16. Music and Arts • Some countries have realized the greatiest impact of tv series,music and different arts on business.
  • 18. Music and Arts Korean Hallyu Wave The Korean wave(Hallyu) refers to the phenomenon of Korean entertainment and popular culture rolling over the world with pop music, TV dramas, and movies. The Hallyu, meaning Korean Wave, has been described by the newspaper the Korea Times, as the 21st Century version of the Silk Road which once served as a conduit for trade and cultural exchanges between the East and the West.
  • 19. Music and Arts • First major wave of Hallyu was driven by Korean TV dramas within the Asian continent. In 1998 President Kim Dae-Jung introduced a Cultural Industry Policy with a special focus on TV drama. The new wave of Korean pop music, referred to as K-pop, has now spread beyond Asia, reaching as far as Latin America, Africa, and the Middle East.
  • 20. Music and Arts • The booming presence and enjoyment of Korean popular culture has also transformed into preference for other Korean products and lifestyles alike, leading to an increase in Korean product sales overseas. The growing interest in Korean culture has further triggered a rise in inbound foreign tourists.
  • 22. Music and Arts • The country last year raked in $5 billion from its pop-culture exports, and the government aims to double this figure by 2017. Meanwhile, inbound tourist arrivals jumped 8.3 percent on year to a record 12.2 million visitors in 2013, statistics from the Korea Tourism Organization.
  • 24. Music and Arts İstanbul-Gyeongju 2013 Dünya Kültür Expo
  • 25. Music and Arts • İstanbul-Gyeongju 2013 World Culture Expo was prepared for making the cultural relationship stronger between Turkey and Korea.Besides that, Kadir Topbaş implements,Silk Road is invigorated by Expo and this event made a major contribution to tourism and econmy.
  • 26. Music and Arts • Turkish Tv Series also have a wide audience in the world.
  • 27. Music and Arts • TV dramas have emerged as Turkey’s most popular cultural export in the past decade. The export revenues for broadcast rights of TV dramas increased from 1 million dollars in 2007 to $130 million in 2012. International interest in Turkish TV dramas started in the Middle East nearly a decade ago when millions of Arab TV viewers were captivated by “Gümüş” (Noor in Arabic). Now the geographic reach of Turkish TV dramas has expanded from Pakistan to Eastern Europe, with market expansion continuing.
  • 30. Religion • Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts.
  • 31. Religion • Religion is a strong shaper of values. Religion of a nation has influence on the way firms are doing business like working hours, holidays, preferences and tastes.
  • 32. Religion • For example, McDonald’s agreed not to serve beef in India because of criticism from Hindus, the Israeli national airline, does not fly on Saturday, the holiday in Judaism.
  • 33. Religion • But not all nations that practice the same religion have the same constraints on business. For example, Friday is normally not a workday in predominantly Muslim countries because it is a day of worship; however, Turkey is a secular Muslim country that adheres to the Christian work calendar to be more productive in business dealings with Europe.
  • 34. Mc-Donald’s McDonald's dispensed with its most prominent ingredient in order to respect, and to please, its Indian customers. Many Indians eat no beef or pork, or any meat at all. According to Vikram Bakshi, managing director of McDonald's India North, it was necessary to adapt the company's offerings while keeping the core brand values consistent across cultures. Religion
  • 35. Religion • "The menu has evolved over the years according to customers' needs," says Bakshi. "Local creations like McAloo Tikki Burger, Curry Pans, Wraps Pizza McPuff, and McVeggie are established.Today 70 percent of our menu is ‘Indianized', and the McAloo Tikki burger is our highest selling product. "
  • 36. Religion • Mc Donald’s also has operations in Turkey and take into consideration of our local tastes and food habits means that Mc Donald’s is also adapting to Turkish culture. The product it serves us is McTurko beyond its other classical products.
  • 37. Social Habits • Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts.
  • 38. Social Habits • Avoid doing the things below when making business with Japanese people; • Do not blow your nose in a public place (including meeting rooms). • Do not grab your host's hand in meetings. • Never pat a Japanese man on the back or shoulder. • Always smile, be pleasant, be willing to learn, ask a lot of questions about your customer's company (and none about his/her private life).
  • 40. Social Habits • Avoid doing the things below when making business with Italian people; • Avoid talking about religion, politics, mafia and World War II. Good conversational topics include Italian culture, art, food, wine, family, and films. • Don’t expect the meeting to start on time.
  • 42. Social Habits • Other Tips for Meetings • France;Wear an offical dress. • Saudi Arabia;During the greetings kiss three time(never ever try to kiss a women). • Germany;Be there on time.
  • 43. • Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts. Cuisine
  • 44. Cuisine Preferences and tastes may be different for each individual, it also differs among different cultures. For example, Japan people dislike sour tastes like lemon, and colors that is reminder of sour (yellow). Because of this perception, firms using yellow packages on their product have faced a decrease in their sales.
  • 45. Cuisine Kellogg’s Kellogg's set up a branch in India and started selling Corn Flakes. What they didn't realize was that Indians think that to start the day with something cold -- like cold milk on their cereal -- is a shock to the system. And if they pour warm milk on Kellogg's Corn Flakes, they instantly turn into wet paper. In business studies, when you look at a market, you have to know something about its anthropology and its cultural rituals. What Kellogg’s ignored was that the Indians dislike cold breakfast.
  • 46. Comments on Managing With Cultural Differences • Although there are cultural differences between different companies belonging to the different nations, these differences are not necessarily a handicap. There is a need for understanding between the firms in the different cultures. The parties must learn how to cope with the cultural differences that exist. In order to manage these cultural differences, first of all we must admit that there exist cultural differences in different nations. So, if multinational firms want to be successful in different markets, they must be flexible and respond the local preferences, tastes and perceptions which are different from their home country.