This document discusses how cultural differences can impact business operations internationally. It analyzes how cultural attributes like language, religion, and behavioral practices shape societal norms and influence areas like managing workforces, marketing, and dealing with regulations. The document emphasizes that while nationality provides a basis for analyzing cultural differences, one must also consider variations within countries as well as similarities between different groups. Understanding these cultural factors is crucial for businesses to predict relationships and adjust their strategies in other nations.

1. CULTURAL ENVIRONMENT
INTERNATIONAL BUSINESS II

2. BUSINESS FUNCTIONS VS CULTURE
Managing
Workforce
Cultural
Problems
Marketing
Output
Purchasing
Supplies
Securing
Funds
Dealing
with
regulators

3. CULTURAL ANALYSIS
Understanding the cultures & physical characteristics of
groups of people is useful because
• business employs, sells to, buys from, is regulated and is
owned by people.
• An international company must consider these
differences in order to predict & control its relationships
& operations.
• A company first should determine differences in business
practices  adjustments necessary.

4. THE NATION AS A DEFINITION OF SOCIETY
• Similarity among people is a cause & effect of national
boundaries. (sense of belonging )
• Nations include subcultures, ethnic groups, races, classes.
(Challenge Segmentation)
• National Identity (certain characteristics physical,
demographic & behavioural norms that may affect a
company’s methods of conducting business)

5. THE NATION AS A DEFINITION OF SOCIETY
• Nationality is not the only basis on which to group
people . Everyone belongs to various other groups based
on profession, age, religion, and place of residence.
• Country-by-country analysis has limitations because:
– Not everyone in a country is alike.
– Variations within some countries are great.
– Similarities link groups from different countries
– Data bases are scarce- Non-reliable-Outdated.

6. PHYSICAL ATTRIBUTES
• Physical differences can affect business decisions such as
whether & how to change a product, how high to place
production machinery, & which advertising message to
use. (Images-Frequency-Comparative Ads)
• (Ready to serve food, Cleaning, Shampoo, Packing, Sizing,
Digital, Fool-Proof, Organic, Friendly Products)
• Physical attributes to take into account:
– An individual’s size.
– Age distribution.

7. THE CONCEPT OF CULTURE
Culture consists of specific learned norms based on
attitudes, values & beliefs, all of which exist in every
society.
• It can’t be easily isolated from such factors as economic
& political conditions & institutions.
• Cultural value systems are set early in life & are difficult
to change, but change may come through:
– Choice or imposition.
– Contact with other cultures.

8. MAIN CULTURAL DIFFERENCES
Language: When people from different areas speak the
same language, culture is transmitted more easily.
Factors to take into account:
(Negotiation-Promoting-Advertising)
◦ Spoken language.
◦ Silent language.
Religion: Is a strong moulder of values. When a religion is
dominant in an area, it is apt to have great political, legal
& economic influence. It is also apt to limit acceptance of
products or business practices.
◦ Christian - Hindu – Judaic – Muslim - Buddhist.

9. LANGUAGES OF THE WORLD
English
Spanish
French
Chinese
Malaysian
Portuguese
Russian
Arabic
Other

10. RELIGIONS OF THE WORLD

11. BEHAVIORAL PRACTICES AFFECTING BUSINESS
• Group Affiliations: Populations are subdivided into
groups.
– Ascribed: Determined by birth. Gender, age, family, caste
& ethnic, racial or national origin.
– Acquired: Include those based on religion, political
affiliation, profession and other associations. Reflect
status, class.
• Role of competence: In some societies, a person’s
acceptability for jobs & promotion is based primarily on
competence. Prevention of discrimination is important.

12. BEHAVIORAL PRACTICES AFFECTING BUSINESS
• Importance of different group membership: Country by
country attitudes vary toward:
– Gender based groups  Male & female roles.
– Age based groups  Respect for age.
– Family based groups  Family ties.
• Importance of Work: Explained by the interrelationship
of the cultural & economic environments of the
particular country.
The motives for working are different in different places.

13. MOTIVATION
•A fulfilled need is no longer a motivator.
•Materialism leads to work.
•Work leads to productivity and economic growth.

14. BEHAVIORAL PRACTICES AFFECTING BUSINESS
• Importance of Work:
Attitudes toward work may change as economic gains are
achieved.
– Protestant Ethic Work viewed as a means of salvation.
– Belief in success & reward.
– Work as a habit  Problems with free time.
– High need achievement  Material or career success.
– Lower need achievement  Prefer social relations.
The ranking of needs differs among countries.