Doing Business Internationally


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Summary from the book "Doing business internationally" from Danielle Walker, Thomas Walker & Joerg Schmitz.

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Doing Business Internationally

  1. 1. Danielle Walker, Thomas Walker & Joerg Schmitz Doing Business Internationally Tracey Chen & Xui Sinyuan
  2. 2. Contents 1 The Global Environment Backgrounds --Shirley 2 Culture 3 Culture Orientation Model Theories --Tracey 4 Culture Orientation in Communication 5 Cultural Competence In Marketing And Sales Application --Shirley
  3. 3. The Global Environment Definition: increasingly complex The terrorism interdependencies attacks of and the blurring of traditional boundaries September and divisions. 11.2001, on think globally, act the US. locally Globalization
  4. 4. The Global Environment Forces Behind Globalization Competition Technology Markets Government Customers Two major issues The need to both globally integrated &locally responsive Develop an organization that is capable of transferring knowledge & learning throughout the word
  5. 5. Changing Business Forms Global Domestic Multinational Transnational Export International The six principal types of organizational business models
  6. 6. The Key To Success: Developing a Global Mindset General perspective Organization al life Work style View of change Learning Tr ad itio na l l Global mindset Globa Local mindset
  7. 7. Culture Open Attitude Culture Self- Competence Cross-culture Awareness Skills Other- Cultural Awareness Knowledge
  8. 8. Understanding culture Axiom 3 Culture Is a Shared Pattern of Ideas, Emotions, and Culture Reflect Distinctive Behaviors Value Orientations at Various Axiom 2 Levels Cultural Boundaries Are Not National Axiom Boundaries 1
  9. 9. Culture Orientation Model 7.  Individualism Individualis.c/ Collec.vis.c Universalis.c/ Par.cularis.c
  10. 10. Stereotype & Generalization Stereotype Generalization A belief about a person or group A principle, statement, or idea having considered to typify or confirm to one general, not specific application. When pattern, lacking any individuality. applied to individuals, a generalization serves as a hypothesis to be tested and observed. • Contradictory information is rejected • All data are included and analyzed • Contradictory information is amplified • Hypotheses are constantly tested and refined
  11. 11. Culture Orientation Model(1)  Environment •  Three  orienta+ons  of  this  dimension  give  us  a  way  in  which  to  view  and  relate        to  the  people,  objects,  and  issues  in  our  sphere  of  influence.  Through  this        dimension  we  can  understand  a  basic  rela+onship  to  the  world  at  large. •  Control/Harmony/Constraint  Time •  Time  is  a  key  element  of  human  existence.  The  use  and  views  of  +me  convey        powerful  messages  about  what  they  value  and  how  we  relate  to  one  another        and  to  the  world  around  us. •  Single-­‐Focused/Mul+-­‐Focused,  Fix-­‐Time/Fluid-­‐Time,  Past/Present/Future
  12. 12. Culture Orientation Model(2)  Action •  The  ac+on  dimension  focuses  on  the  view  of  ac+ons  and  interac+ons  with      people  and  ideas  that  tends  to  be  expected,  reinforced,  and  rewarded  in        a  given  cultural  environment. •  Doing/Being  Communication •  The  communica+on  dimension  recognizes  the  different  formats  for  expression        and  informa+on  exchange. •  High-­‐Context/Low-­‐Context,  Direct/Indirect,  Express/Instrumental,        Formal/Informal  
  13. 13. Culture Orientation Model(3)  Space •  Cultures  can  be  categorized  according  to  the  dis+nc+ons  they  make  in  their        use  and  demarca+on  of  space,  especially  psychological  space. •  Private/Public  Power •  Hierarchy-­‐Oriented  Cultures  value  social  stra+fica+on  and  accept  differing      degrees  of  power,  status,  and  authority. •  Equality-­‐Oriented  cultures  encourages  individual  autonomy  and      responsibility.
  14. 14. Culture Orientation Model(4)  Individualism •  Individualism  cultures  tend  to  focus  on  the  individual  person  and  his  or  her      achievements.  Social  bonds  between  people  are  rela+vely  loose  and  flexible. •  Collec9vist  culture  expect,  reinforce,  and  reward  the  subordina+on  of      individual  interests  to  those  of  the  group. •  Universalis9c/Par9cularis9c  Competitiveness •  This  dimension  of  compe++veness  addresses  key  cultural  differences  in        mo+va+on,  which  refers  to  deep  drivers  of  ac+ons,  choices,  decisions,        and  customs. •  Compe++ve/  Coopera+ve
  15. 15. Culture Orientation Model(5)  Structure •  This  dimension  of  structure  recognizes  different  perspec+ves  and  aOtudes        toward  change,  risk,  ambiguity,  and  uncertainty. •  Order/Flexibility  Thinking •  Thinking  as  a  cultural  dimension  concerns  the  culture’s  propensi+es( )  for        conceptualiza+on. •  Deduc+ve/Induc+ve,  Linear/Systemic
  16. 16. Cultural Orientations In Communication Why do we mention this issue? COM Communication • Cultural level • Individual level • General framework • Apply to groups in a given society • High-level generalizations about social difference
  17. 17. Cultural Orientations In Communication Where is Culture? What is it’s function? The Ideal Communication and Interaction Process
  18. 18. Cultural Orientation In Communication Ethnocentrism False attribution Stereotype Cultural frame s Etiquette and Cultural frame nonverbal sender behaviors Reciever Time and place Cultural Topic frame Cultural Status and frame power Style Language
  19. 19. Important Concepts In the Model Culture Frame Culture gap Cu am e • perceptual window • Incongruence between frames Fr ltur ltu e G ra Cu ap l Text Et hn ta l oc is ia e D Soc en nc Ethnocentrism tri Social Distance sm • Evaluation of another culture • Expectations of our own • Dissatisfaction & discomfort cultures
  20. 20. Escalation Box
  21. 21. Developing Your Cultural Skill Set · Cultural due diligence is the ability to                 adequately assess and plan for the possible effects of culture in interactions. Three interrelated • Style switching is the adaption of your skills behaviors to another culture. •Cultural due diligence • Negotiable/Nonnegotiable •Style switching •Cultural dialogue • Cultural dialogue is the ability to find the fundamental part of two cultures, close cultural gap and create cultural synergy through conversation
  22. 22. A Model Emerges For Global, Multicultural Marketing & Sales Phase 3 Phase 2 Global implement Phase 1 Analyzing ation marketing Global strategy marketing environment • The sales process: management • The sales process: selling Market segmentation • Demographics • Developing marketing strategies and partnerships • Understanding the global • Product decision: marketing environment Global standards versus customization • Analyzing opportunities • Pricing strategies for marketing • Distribution channels for marketing • Marketing communication: global advertising and promotion
  23. 23. Designing and managing the sales force Objectives and strategy Structure and size Designing and Compensation managing Recruitment and selection the sales Managing& improving sales training force Directing& motivating the sales force Evaluating the sales force
  24. 24. Improving the sales mix 1 identifying needs & prospecting 2 approaching the customer & building relationships making the sales presentation & 3 relating benefits 4 managing resistance, handling objections, and providing feedback 5 using influence & negotiation styles 6 understanding the techniques & methods that gain commitment 7 maintaining relationship established with the customer during the sale
  25. 25. Thanks You Any comments & questions are welcome Contact me at @ Tjitra, 2010 25