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The Impact of Cultural Differences on Global Business
This document discusses the impact of cultural differences on global business. It begins by outlining the objectives of raising awareness of how culture and cultural differences affect international business. It then defines culture as the ideas, values and assumptions that guide behaviors. The document emphasizes that most cultural differences lie below the surface and are not immediately visible. It highlights some key below-surface differences that can impact work, such as communication styles and decision-making processes. The document also notes several areas of business that are affected by cultural differences, such as relationship building, communication styles, and working in international teams. It concludes by offering six practical steps for working more effectively across cultures, such as being flexible, understanding deep and surface culture, and choosing the best communication
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Introduction to cultural differences and their importance in international business.
Explaining what culture is, its definitions, and its significance in global business contexts.
Visualizing culture as an iceberg; discussing underlying cultural challenges and differences.
Exploring why culture is important, its challenges in business, and its impact on global operations.
Key challenges in Western and Asia-Pac interactions; differences in relationship and communication styles.
Practical steps and strategies for improving effectiveness in cross-cultural communication and collaboration.
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The Impact of Cultural Differences on Global Business
- 1. The Impact ofCultural Differences on Global Business Culturewise Limited 1 Culturewise Ltd 2015
- 2. Objectives and agenda •To raise awareness of the impact of culture and cultural differences on international business • To reflect on practical on strategies for working more effectively with colleagues from different cultural backgrounds • About Culturewise • Four key questions… 1. What is culture? 2. Why is culture important in business? 3. Where does culture impact on business? 4. How can we work more effectively across cultures? 2 Culturewise Ltd 2015
- 3. About Culturewise • Culturewiseprovides cultural awareness training and coaching for clients from every major business sector • Context is ‘Globalisation’ – just like every of aspect of global business, cross-cultural issues need to be managed effectively • Three key training areas – Country-specific (i.e. China, India, Middle East, etc.) – Role-specific (i.e. Global Team Leaders, International Assignees, etc.) – Sector-specific (i.e. Retail, Financial Services, Law, etc.) 3 Culturewise Ltd 2015
- 4. What is culture? 4Culturewise Ltd 2015
- 5. A definition ofculture Which definition of culture do you prefer? Why? 1. “The way in which a group of people solves problems and recognises dilemmas” 2. “Ideas, values and assumptions about life that guide specific behaviours” 3. “The way we do things in our business” 5 Culturewise Ltd 2015
- 6. Thinking about culture …asan Iceberg 20% Visible 80% Invisible Listening styles Beliefs about silence Basic truths Communication styles Beliefs about formality Values Beliefs about hierarchy Language and non-verbal communication Rituals and symbols Culturewise Ltd 20156
- 7. ...many of thechallenges in working with people from different cultures are below the cultural surface Culturewise Ltd 20157
- 8. Key ‘below thesurface’ cultural differences at work Rely on leader for decisions? Rely on self for decisions? Communicate implicitly? Communicate directly? Ask Qs? Who do you need to know? What do you need to know? As long as it takes? Time is money? Follow formality / protocol? Informal and casual? Follow the rules? Respond flexibly to each situation 8 Culturewise Ltd 2015
- 9. Why is cultureimportant in business? 9 Culturewise Ltd 2015
- 10. The importance ofculture for individuals and organisations Challenges... • A source of uncertainty • Cultural mistakes and ‘faux pas’ cause tensions and misunderstandings • Tendency to see simplistic (stereotypical) explanations of other behaviours • Mindsets of cultural superiority - “win-lose“ and “us-and-them“ thinking Challenges... • Different answers to key questions – What is ethical? – What is important? – What is worthwhile? – What is urgent and should have priority? – What is ‘reasonable’ and ‘unreasonable’? 10 Culturewise Ltd 2015
- 11. Challenges of globalisation for international & virtual teams Different countries, cultures, languages Different heritageand functions Matrix working and team dynamics Technology Utility, access and training Trust ‘Us’ versus ‘Them’, magnified by distance Communication Electronic ‘body language’ Team complexity Geography and isolation out of sight, out of mind 11 © Culturewise Ltd 2015
- 12. Where does cultureimpact on business? 12 Culturewise Ltd 2015
- 13. Key challenges inWestern / Asia- Pac business interactions 13 Culturewise Ltd 2015
- 14.
- 15. Low-Context Communication (i.e. Germany,Netherlands) High-Context Communication (i.e. Japan, China) Words WordsContent Context Facial expressions Gestures Facial expressions Gestures Relative status Relationship Tone of voice ‘Face’ considerations Content Context British English Direct versus Indirect communication 15 Culturewise Ltd 2015
- 16. • More orless OK • A little disappointing • Let’s talk about something else. • I do not like your idea at all. • Very interesting... • Your idea is rubbish. • We won’t take this idea any further. • Maybe we could consider some other options. • Do it or else….• Perhaps you might like to think about… • I am annoyed • I completely disagree with you • I am a bit disappointed… • With respect… • Not bad • Quite good British indirectness? 16 Culturewise Ltd 2015
- 17. How can wework more effectively across cultures? 17 Culturewise Ltd 2015
- 18. Stereotypes and generalisations •Definition: Stereotype – A fixed, unvarying idea about something or someone – Believing that people of a certain group, race or religion are all the same • ‘Danger’ words – Always, never, all, none, only – ‘You know what they’re like’ • Definition: Generalisation – A principle, statement or idea having general application • Selective descriptions – Some, often, seldom, may, could, possibly, generally – ‘In certain circumstances’ Culturewise Ltd 201518
- 19. Effective cross-cultural communication Consider whoyou are talking to. • What are their expectations and assumptions? Consider your own communication style. • Are you being clear enough? • How do you come across? Consider your listening style. • Are they really saying what you think they are saying? Consider your language. • Can you say it more effectively? Consider whether you are understanding everything correctly. • Are you asking for enough clarification? 19 Culturewise Ltd 2015
- 20. Six practical stepsto global business effectiveness 1. Be aware of difference and be flexible 2. Learn to tolerate uncertainty as a continuous process 3. Understand “surface” culture and “deep” culture – Look for non-verbal cues – Recognise our own “Cultural lens” 4. Choose the best communication style for each situation 5. Be aware of individual differences 6. And remember some things you will never understand 20 Culturewise Ltd 2015