International Marketing, Culture, Management Styles and Business Systems.

1. Culture, Management Styles and
Business Systems

2. Objectives
• To determine the necessity for adapting to
cultural differences.
• To learn how and why management styles vary
around the world.
• To understand the extent and implications of
gender bias in other countries.
• To learn the importance of cultural differences in
Business Ethics.
• To understand the differences between
relationship-oriented and information-oriented
cultures.

3. Introduction
• Culture affects management styles and
business systems.
– Max Weber – 1930
• Lack of empathy for
and knowledge of
foreign business
Practices - Flexibility

4. Required Adaptation
1. Open
tolerance
2.
Flexibility
3.
Humility
4. Justice
/
Fairness
5. Adj. To
Varying
Tempos
6.
Curiosity
/ interest
7. Know.
Of the
Country
8. Liking
for
others
10. Ab.
To
integrate
in the
Env.
9. Ability
to
comm.
Respect

5. Cultural Imperatives
• Business customs and expectations that must
be met and conformed to or avoided if
relationships are to be successful.
Guanxi
Ningen kankei
Compadre

6. Chinese Hierarchy of Relationships
Strangers
Former
Classmates
Neighbors
Extended
Family
Family

7. Cultural Electives
• They relate to areas of behavior or to customs
that cultural aliens may wish to conform to or
participate in but that are not required.

8. Cultural Exclusives
• They are those customs or behavior patterns
reserved exclusively for the locals and from
which the foreigner is barred.

9. The American Management System
“Master of
Destiny”
Wide
sharing in
decision
making
Independent
Enterprise =
Social Action
Never-
ending
quest to
improve
Comp.
producing
efficiency
Personnel
Selection
and Reward
based on
Merit
Decisions
based on
objective
analysis

10. Management Styles Around The
World
• Brazil
• France
• Germany
• India
• Mexico
• Netherlands
• Russia
http://www.kwintessential.co.uk/intercultural
/management/guide.html

11. Elements
• IDV and PDI are relevant in this aspect.
Authority and
Decision Making
Management
Objectives and
Aspirations
Communication
Styles
Formality and
Tempo
P-Time vs. M-
Time
Negotiation
Emphasis
Marketing
Orientation

12. Authority and Decision Making
• Hierarchy
• Ranks
• Politicians ruling
public companies
• Commitees

13. Management Objectives and
Aspirations
Security and Mobility
•Long term position in the company
•Individual autonomy vs competent supervision
Personal Life
•Good family life and religious ethics
•Weekly working hours and free time
Affiliation and Social Acceptance
•Working for (a firm)
•Working as (a position)
Power and Achievement
•Money in the bank account
•High rank

14. Communication Styles
• Silent Language
• Face-to-face communication
• Internet communication

15. Formality and Tempo
• Call people by their first names.
• Multiple meetings before an agreement.

16. P-Time Vs. M-Time
Monochronic Time
• One thing at a time.
• Linear
• Almost tangible
Polychronic Time
• Many things at the same
time.
• Great envolvement with
people.

17. Negotiation Emphasis
• Know thyself first, then know your
counterpart.

18. Marketing Orientation
• Traditional approach: production - product –
selling.
• American modern way: everybody in the
organization has an involvement in the
marketing campaign.

19. Gender Bias
• Women are not sent abroad fearing for their
safety, or worse, they will not succeed at all in
their endeavors.

20. Business Ethics
• Definition of Corruption
• Bribery
– Bribery and extortion
– Lubrication and Subornation
– Agent’s Fees
More Info at:
http://www.transparency.org/country

21. Ethical and Socially Responsible
Decisions
1.
Employment
Practices
and Policies
2. Consumer
Protection
3.
Environment
Protection
4. Political
payments
and
involvement
in pol.
affairs
5. Basic
Human
Rights

22. Ethical Framework
Utilitarian
Ethics
• Does the action
optimize the
“common
good” or
benefits of all
constituencies?
And who are
the pertinent
constituencies?
Rights of the
Parties
• Does the
action
respect the
rights of the
individuals
involved?
Justice or
Fairness
• Does the
action
respect the
canons of
justice or
fairness to all
parties
involved?

23. Relationship Oriented Vs. Information
Oriented Cultures
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.