Explain how the Kluckhohn–Strodtbeck and the Hofstede framework ca.docx

Explain how the Kluckhohn–Strodtbeck and
the Hofstede framework can be used to analyze a culture. Are
the Kluckhohn-Strodtbeck and Hofstede frameworks useful for
understanding subcultures? Why or why not?
If your international firm were doing business in Asia, is there
anything that your company could do to ease the tensions these
cultures are experiencing? Be specific.
In your opinion, is globalization among the causes of the
increasing incidence of divorce, crime, and drug abuse in Asia?
Why or why not?
Broadly defined, Asia comprises more than 60 percent of the
world’s population— a population that practices Buddhism,
Confucianism, Hinduism, Islam, and numerous other religions.
Thus, do you think it is possible to carry on a valid discussion
of “ Asian” values? Why or why not?
Consider the following statement: “ Economic development and
capitalism require a certain style of doing business in the
twenty- first century. The sooner Asian cultures adapt the
better.” Do you agree or disagree? Explain.
Cross-Cultural

Business
Copyright © 2014 Pearson Education, Inc.
2
*
Welcome to Chapter 2, Cross-Cultural Business.
Chapter Objectives
Describe culture and explain the significance of both national
culture and subcultures
Identify the components of culture and describe their impact on
international business
Describe cultural change and explain how companies and
culture affect each other
Explain how the physical environment and technology influence
culture
Describe two frameworks used to classify cultures and explain
their practical use
2 - *
*
In this chapter, you will come to understand the role of culture
in international business.
You will also:Learn the importance of national culture,
subculture, and how each component of culture affects business
activities.Understand how cultures and companies change each
other, and how the physical environment and technology

influence cultures.And acquaint yourself with two popular
frameworks used to classify cultures.
HariboProblem: Not serving $2 billion subcultureCulprit:
Pork-based gelatin in the candies
Solution
: New bacteria-based compound
2 - *
*Although Haribo was selling over 100 million gummi candies a
day worldwide, it was not meeting the needs of a global
subculture worth $2 billion a year.Muslims and Jews who
adhere to a strict religious diet could not eat the candies
because of the pork-based substance that gives the candy its
sticky, rubbery feel.So, Haribo developed a special candy for
this market by replacing the pork-based gelatin with a bacteria-
based compound found in salad dressings and sauces.Haribo
now has a Jewish rabbi and a Muslim cleric oversee production
to ensure that it adheres to their religious customs.

What is Culture?
Set of values, beliefs, rules, and institutions held by a specific
group of people
2 - *
Ethnocentricity
Belief that one’s own ethnic group or culture is superior to that
of others
X
Cultural literacy
Detailed knowledge of a culture that enables a person to
function happily and effectively within it
√
*
Why should we try to avoid ethnocentricity?

1. It causes us to view other cultures in terms of our own and,
therefore, overlook beneficial aspects of other cultures.
2. It also undermines our business projects if we are
insensitive to cultural nuances.
Why should we work to develop cultural literacy?
1. Detailed knowledge about another culture can enable us to
function happily and effectively within it.
2. It also brings companies closer to customers’ needs and can
increase business competitiveness.
Culture Matters:
Creating a Global Mindset
Cultural
Adaptability
Bridging
the Gap
Flexibility
Is Key
Building
Global Mentality

2 - *
*
We can develop a global mindset in several ways:Cultural
adaptability means that a manager must be knowledgeable of an
unfamiliar culture, then alter his or her behavior accordingly to
lead multicultural teams.Bridging the gap means employing
creativity when Western management ideas are applied in
Eastern cultures, and vice versa. For example, implementing
“collective leadership” practices in Asia can better suit Asian
values of group consensus.Building global mentality involves
developing openness and flexibility toward all things
unfamiliar, understanding global business principles, and
improving abilities to implement strategies.Flexibility is key
because the more behavioral the issue, the greater will be local
culture’s influence on that issue.
National Culture
Nation states build museums and monuments to preserve the

legacies of important events and people
Filmmaking
and
Broadcasting
Guggenheim
and
Hong Kong Disney
2 - *
*
National culture generalizes across groups living within a
nation. For example, British culture consists of English,
Scottish, and Welsh influences.Nations preserve the legacies of
key events and important people instrumental in their cultural
development.Nations also intervene in business to preserve their
cultures from being diluted by foreign influences.Companies get
involved in supporting culture, in part for the public relations
benefits it provides.

Subculture
People who share a unique way of life within a larger culture
(language, race, lifestyle, attitudes, etc.)
EXAMPLES
Goth, Punk, Emo
China’s Dialects
Groups in U.S.
2 - *
*
Subcultures can differ from the dominant culture in language,
race, lifestyle, values, attitudes, and so forth.Companies must
be mindful of subcultures when formulating business strategies.
For example, China has 50 ethnic groups within its
territory.Subcultures can also extend beyond national
borders.Decisions regarding product design, packaging, and
advertising must consider distinct subcultures so as to not
offend them.

Discussion Question
Why should business people try to avoid ethnocentricity and
develop cultural literacy?
2 - *
*
Why should business people try to avoid ethnocentricity and
develop cultural literacy?
Answer to Discussion Question
Ethnocentricity distorts our view of other cultures and causes us
to overlook important human and environmental differences
among cultures.
Cultural literacy improves the ability of managers to manage
employees, develop and market products, and conduct
negotiations in local markets.

2 - *
*
Answer:
Ethnocentricity distorts our view of other cultures and causes us
to overlook important human and environmental differences
among cultures. Cultural literacy improves the ability of
managers to manage employees, develop and market products,
and conduct negotiations in local markets.
Components of Culture
2 - *
Physical
environments
Education
Personal

communication
Religion
Social structure
Manners &
customs
Values &
attitudes
Aesthetics
Culture
*
Culture’s components include: aesthetics, values and attitudes,
manners and customs, social structure, religion, personal
communication, education, and physical and material
environments.

Aesthetics
2 - *

Architecture
*
We define aesthetics as all that a culture considers to be in
“good taste” in the arts, the imagery evoked by certain
expressions, and the symbolism of colors.In business, this
means choosing appropriate colors for advertising, product
packaging, and even work uniforms to improve the odds for
success.Blunders can result from selecting inappropriate colors
and symbols for advertising, product packaging, and
architecture.
Values and Attitudes
Values
Attitudes
Positive or negative evaluations, feelings, and tendencies people
hold toward objects or concepts
Ideas, beliefs, and customs to which people are emotionally
attached Freedom Responsibility Honesty Time Work

Cultural change
2 - *
*
The values that people hold dear affect their work ethic and
desire for material possessions.Attitudes are learned from role
models, formed within a cultural context, and are more flexible
than values.Latin American and Mediterranean cultures are
casual about time, whereas people in Japan and the United
States arrive promptly for meetings and keep tight
schedules.Likewise, some cultures have a strong work ethic
while others stress a balanced pace in work and leisure.
Cultural Diffusion
Spread of cultural traits across cultures causes much cultural
change
2 - *

*Cultural diffusion is the process whereby cultural traits spread
from one culture to another, thereby causing cultural change.Do
you think people in this village in northern Namibia view the
world any differently since they acquired satellite TV?
Manners and Customs
Manners
Appropriate behavior, speech, and dressing in general
Customs
Traditional ways or behavior in specific circumstances
2 - *
*
In-depth knowledge of manners and customs improve a
manager’s abilities and help avoid mistakes abroad.Manners are
generally acceptable ways of behaving, speaking, and
dressing.Customs are habits and behaviors in specific

circumstances and situations.
Customs
2 - *
Gift Giving
Folk
Popular
*
Managers do well to understand local customs where they
work.A folk custom dates back generations in a culture and is
practiced within a homogeneous group of people. Celebrating
the Dragon Boat Festival in China is a folk custom.A popular
custom is practiced by a heterogeneous group or by several
groups. The playing of golf worldwide is considered a popular
custom.Gift giving involves giving token gifts to business and

government associates, yet the proper type of gift can differ
across cultures.
Discussion Question
Customs differ from _______ in that they define appropriate
ways or behaviors in specific situations.
a. Values
b. Attitudes
c. Manners
2 - *
*
a. Values
b. Attitudes
c. Manners

a. Values
b. Attitudes
c. Manners
2 - *
*
The correct answer is c. Manners
Manager’s Briefcase:
A Globetrotter’s Guide to Meetings
Familiarity
Personal Space
Religious Values

Business Cards
Comedy
Body Language
2 - *

*
Successful business meetings in other cultures are often
correlated with displaying good manners in the local
culture:Managers should avoid the temptation to get too
familiar too quickly.They should respect how the local culture
treats personal space.They will want to be sure that their
behavior does not offend religious values.Business cards should
be given and received according to how it is done in the local
culture.Comedy must be used cautiously because it often does
not translate well across languages and cultures.Body language
can convey many unintended signals to people of other cultures.
Social Structure

2 - *
Social group
Two or more people who identify and interact with each other
Social stratification
Process of ranking people into social layers
Social mobility
Ease of moving up or down a culture's "social ladder"
*
Social groups contribute to an individual’s identity and self-
image.A nuclear family includes only immediate relatives,
including parents, brothers, and sisters.An extended family
includes grandparents, aunts, uncles, cousins, and relatives

through marriage.Gender refers to socially learned traits
associated with men or women. Cultures differ in their views of
gender equality at work.
Social stratification involves how a culture ranks people into
social layers according to family heritage, income, and
occupation.
Social mobility refers to the ease with which someone can move
up or down a culture’s “social ladder.”A caste system restricts
people to the social ranking into which they were born.A class
system lets personal ability and actions decide social status and
mobility.
World Religions
Christianity
Islam
Hinduism
Buddhism
Confucianism
Judaism
Shinto
2 - *

Origin of
Human Values
*Of the many denominations within Christianity, Roman

Catholics are expected to place God and people above material
ambitions. Protestants believe faith in God brings salvation and
that hard work glorifies God.The word Islam means “submission
to Allah.” For devout Muslims, religion determines acceptable
goods and services. Strict Muslims do not drink alcohol, eat
pork, or charge interest on money lent.In Hinduism, the caste
system influences people’s way of life and occupations. Strict
Hindus do not eat or harm living creatures because they believe
in reincarnation—rebirth of the human soul at the time of
death.Buddhism promotes a life centered on spiritual rather than
worldly matters. Buddhists seek nirvana (escape from
reincarnation) through charity, modesty, compassion,
nonviolence, and general self-control.A life focused on money,
above all else, violates strict beliefs in Confucianism.
Businesses in South Korea reflect Confucian thought in their
rigid organizational structure and reverence for authority.In
Judaism, fully observant Jews eat only “kosher” foods and do
not eat pork and shellfish. Work schedules might need
adjustment for key Jewish holidays and the Sabbath (from
sundown Friday to sundown Saturday).Shinto, the native
religion of Japan, teaches sincere and ethical behavior, loyalty
and respect toward others, and enjoyment of life. In the
workplace, Shinto fosters a loyal workforce and good labor–
management cooperation.

Modernization and
Traditional Beliefs
Does globalization endanger traditional beliefs, such as living a
life void of materialistic ambitions?
2 - *
*
Buddhism instructs its followers to live a simple life void of
materialistic ambitions.As globalization pries open Asian
markets, can cultures modernize and yet retain their traditional
values and beliefs?
Language Blunders
Japanese knife manufacturer labeled its exports to the United
States with “Caution: Blade extremely sharp! Keep out of
children.”
English sign in a Moscow hotel read, “You are welcome to visit

the cemetery where famous Russians are buried daily, except
Thursday.”
Sign for non-Japanese-speaking guests in a Tokyo hotel read,
“You are respectfully requested to take advantage of the
chambermaids.”
Sign in English at Copenhagen ticket office read, “We take your
bags and send them in all directions.”
Braniff Airlines’ English-language slogan “Fly in Leather” was
translated into “Fly Naked” in Spanish.
2 - *
*These are just a few of the many language blunders companies
have made in their international business dealings.Advertising
slogans and company documents should be carefully translated
so messages are received precisely as intended.
Many endangered languagesYet English, Mandarin, and Spanish
are expandingLost languages means lost knowledgeLinguists are
recording most threatened languages
Global Sustainability:

Speaking in Fewer Tongues
2 - *
As many as one-half of the world’s roughly 6,000 languages
may be gone by the end of this century.Meanwhile, English,
Mandarin, and Spanish are increasingly popular.A lost language
means the loss of cultural, spiritual, and intellectual
knowledge.Linguists are hurrying to make audio, video, and
written recordings of the most endangered languages.
Lingua Franca
¿Hola? Guten Tag? Hello??
Ni Hao? Bonjour? Hello!!!
2 - *
*A lingua franca is a third or “link” language that is understood
by two parties who speak different languages.Interestingly,
although only 5 percent of the world’s population speaks

English as a first language, it is the most common lingua franca
in international business.
Mixed Signals
2 - *
*Body Language is communicated through unspoken cues,
including hand gestures, facial expressions, physical greetings,
eye contact, and the manipulation of personal space.People use
it to communicate information and feelings and it differs
significantly among cultures.
Discussion Question
How does an understanding of the spoken, written, and body
language in a market abroad contribute to business success?
2 - *

*
How does an understanding of the spoken, written, and body
language in a market abroad contribute to business success?
Knowledge of a culture’s spoken, written, and body language
gives international managers insight into why people think and
act the way they do.
2 - *
*
Answer:
Knowledge of a culture’s spoken, written, and body language
gives international managers insight into why people think and
act the way they do.

Education
Cultures pass on traditions, customs, and values through
schooling, parenting, group memberships, etc.
2 - *
Education level
Well-educated attract high-paying jobs, while poorly educated
attract low-paying manufacturing jobs
Brain drain
Departure of highly educated people from one profession,
geographic region or nation to another
*An excellent education system attracts high-wage industries
that invest in training and result in increased productivity.A
skilled, well-educated workforce attracts high-paying jobs; a
poorly educated one attracts low-paying jobs.Brain drain refers
to the departure of highly educated people from one profession,
geographic region, or nation to another.Reverse brain drain is

when these highly educated individuals return to their
homelands.
Problem of Illiteracy
2 - *

*As we see in this table, some countries have a long way to go
in increasing their literacy rate.Worldwide, around 800 million
adults remain illiterate.
Physical and Material Culture
These influence a culture’s development and pace of change
Topography
Physical features characterizing the surface of a geographic
region
Climate
Weather conditions of a geographic region
Material Culture
Technology used to manufacture goods and provide services
2 - *

*Topography plays an important role in defining a culture.
Cultures isolated by mountains or water are less exposed to
other cultures’ traits and so change more slowly. Topography
affects people’s product needs and personal
communication.Climate affects where people settle and directs
systems of distribution to the most efficient routes. It defines
lifestyle, clothing, and work habits, such as organizing
production schedules for idled machines during certain seasons
of the year.Material culture can be used to measure a culture’s
technological advancement. Material culture often varies across
geography, markets, and industries. A company enters a market
when demand for its products has developed, or the market is
capable of supporting its production operations.
Kluckhohn-Strodtbeck Framework
2 - *
Relation to nature
Time orientation
Trust and control
Material or spiritual
Responsibility to others

View of personal space
*
This framework compares cultures by answering the following
six questions:
1. Do people believe that their environment controls them, that
they control the environment, or that they are part of nature?
2. Do people focus on past events, on the present, or on the
future implications of their actions?
3. Are people easily controlled and not to be trusted, or can
they be trusted to act freely and responsibly?
4. Do people desire accomplishments in life, carefree lives, or
spiritual and contemplative lives?
5. Do people believe that individuals or groups are responsible
for each person’s welfare?
6. Do people prefer to conduct most activities in private or in
public?
Hofstede Framework
Long-term

orientation
2 - *
Individualism
vs. collectivism
Power
distance
Masculinity
vs. femininity
Uncertainty
avoidance
*
This framework compares cultures along five dimensions:
Individualism versus Collectivism. Individualist cultures value
hard work, entrepreneurial risk-taking, and freedom to focus on
personal goals. Collectivist cultures emphasize a strong
association with family and work groups to maintain harmony
and to work toward collective goals.
Power Distance. Large power distance means greater inequality
between superiors and subordinates, more hierarchical
organizations, and power derives from prestige, force, and

inheritance. Small power distance implies more equally shared
prestige and rewards, and power derives from hard work and is
often considered more legitimate.
Uncertainty Avoidance. Cultures having large uncertainty
avoidance tend to value security, systems of rules and
procedures, low employee turnover, and relatively slower
change. Those with low uncertainty avoidance are more open to
change and new ideas.
Masculinity versus Femininity. Cultures with high masculinity
versus femininity scores emphasize assertiveness, the
accumulation of wealth, and an entrepreneurial drive. Cultures
rating low on masculinity versus femininity value relaxed
lifestyles and are more concerned for others than they are with
material gain.
Long-term Orientation. Cultures scoring high on long-term
orientation place value on respect for tradition, thrift,
perseverance, and a sense of personal shame. Cultures scoring
low on long-term orientation tend to value individual stability
and reputation, fulfilling social obligations, and reciprocation
of greetings and gifts.

Power Distance &
Individualism vs. Collectivism
Source: Geert Hofstede, “The Cultural Relativity of
Organizational Practices and Theories,” Journal of International
Business Studies, Fall 1983, p. 82.
2 - *
*This graph plots cultures according to the dimensions of power
distance and individualism versus collectivism.We see a tight
grouping of nations within the five clusters, with Costa Rica on
its own.Quadrant 1 includes cultures with larger power distance
and lower individualism. These nations are found in Africa,
Asia, Central and South America, and the Middle
East.Quadrants 2 and 3 include cultures having higher
individualism and smaller power distance scores. These are
Australia and countries in North America and Western Europe.

Power Distance &
Uncertainty Avoidance
Source: Geert Hofstede, “The Cultural Relativity of
Organizational Practices and Theories,” Journal of International
Business Studies, Fall 1983, p. 84.
2 - *
*This graph plots cultures according to the dimensions of power
distance and uncertainty avoidance.Quadrant 4 includes cultures
with small uncertainty avoidance and small power distance.
These are Australia, Canada, Jamaica, the United States, and
most nations in Western Europe.Quadrant 2 includes cultures
with large power distance and large uncertainty avoidance.
These are found in Asia, Central America, South America, and
the Middle East.
Discussion Question

Cultures with small ____________ tend to display greater
equality and a more equal distribution of rewards.
a. Individualism
b. Power distance
c. Uncertainty avoidance
2 - *
*
a. Individualism
b. Power distance
a. Individualism
b. Power distance

2 - *
*
The correct answer is b. Power distance
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of
the publisher. Printed in the United States of America.
2 - *
*

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