The document discusses the social, technological, and environmental factors that influence business operations internationally. It covers various cultural elements like diversity, language, religion, and behavioral practices. It also addresses how culture is formed and changes over time. Communication differences between cultures are examined, including how information is processed and the importance of body language and appropriate physical distance. The document provides strategies for companies to manage cultural differences and implement necessary changes when operating abroad. Technological infrastructure and environmental considerations that affect business are also reviewed.

1. Theme 2: The market’s
environment
framework
Theme 2.3. Social, technological and environmental
environment

2. Class objective
• Learning Labor cultural environment
• Major causes of cultural differences and change
• Behavioral factors influencing countries business practices
• Cultural guidelines for companies that operate internationally
• Main technological elements to consider
• Environment influence on business

3. 2.3.1. Social and cultural elements
influencing business
• The people factor
• Cultural diversity: good competitive advantage
• Cultural collision: choc between cultures when they come in
contact. Implementation of practice less effective, difficulty in
accepting or adjusting to foreign behavior.
• Sensitivity and adjustment: which business practices differ from
host country and decide necessary adjustments to take

4. 2.3.1. Social and cultural elements
influencing business
• Cultural awareness: daily routine, social relation
codes, language, etc.
• The idea of a Nation: delineating cultures.
• Point of reference: similarity among people is often the cause and
effect of national borders.
• Within borders: share of values, language, race. National identity
through flag, monuments, museums, common perception of
history…
• Subcultures in nations: flexibility to accommodate diversity
• Different nations can have close characteristics more than groups
in a given nation.

5. 2.3.1. Social and cultural elements
influencing business
• Formation and change of culture: by age 10 most have
acquired their basic value systems.
• Formation: transmission from parents, teacher, social
leaders, peer to peer, etc.
• Source of change
• Choice: may occur in reaction to social and economic situations that
present the person with alternatives
• Imposition: imposition of culture from alien nation, force by law by
occupying country…
• Protection from government but communication and travel makes it
difficult to maintain pure local culture

6. 2.3.1. Social and cultural elements
influencing business
• Language
• Obstacle worse than boundaries and geographic limitations.
• Culture is transmitted better in an area where there is the same
language spoken
• Cultural homogeneity: English-speaking countries, French-
speaking countries, Spanish-speaking countries, etc.

7. 2.3.1. Social and cultural elements
influencing business
• Language (suite)
• Languages with wide spread of acceptance
• English: 44 countries, French: 27, Spanish: 20
• Native speakers of those three languages don't feel the need to
learn other language
• Why English is dominant language? English-speaking count for
40% of world production. Also non English-speaking companies
decide to use English as business language

8. 2.3.1. Social and cultural elements
influencing business
• Religion
• Declination of religious practice in the world
• Cultural stabilizer and shaper of values and behavior
• Some religions can still affect business practice today
• Ex: sale of alcohol in Islamic countries, schedule and days of
work, etc.
• But there is Muslim countries that accepted Christian work calendar
to make easier business like Turkey

9. 2.3.1. Social and cultural elements
influencing business
• Behavioral practices affecting business
• Social stratification: person class or status within a culture.
• Ascribed: by birth like
gender, family, age, caste, ethnic, racial, nation, etc.
• Acquired: by religion, political affiliation and professional reputation
• Affect marketing and employment practices

10. 2.3.1. Social and cultural elements
influencing business
• Social ranking in the world
• Performance orientation: person eligibility on competence
• Open and closed societies
• Gender based groups
• Family based groups

11. 2.3.1. Social and cultural elements
influencing business
• Information and task processing
• Perception of cues: variety of vocabulary in a language
• Obtaining information
• Low-context culture
• High-context culture
• Information processing: different ways of organizing information

12. 2.3.1. Social and cultural elements
influencing business
• Communication
• Spoken and written language: Some words in a language don't
have direct translation. Also be careful with words that can be
insulting or other connotation.
• France: Please leave your values at the desk
• Mexico: The manager has personally passed all the water served
here
• Japan: You are invited to take advantage of the chambermaid

13. 2.3.1. Social and cultural elements
influencing business
• Communication (suite)
• Rules to make accurate translation
• Get references for people who will do translating
• Make sure know technical vocabulary of business
• Back translation
• Use simple words
• Avoid slang
• Clarify communication in several ways

14. 2.3.1. Social and cultural elements
influencing business
• Communication (suite 2)
• Silent language
• Distance: appropriate distance people maintain during conversation
• Time and punctuality: perception of time and punctuality may differ
between culture
• Body language
• Prestige

15. 2.3.1. Social and cultural elements
influencing business
• Manage cultural differences
• Degree of adjustment evaluation
• Host country acceptance
• Degree of cultural differences
• Cultural distance
• Cultural friction
• The ability of individuals to adjust to what they find in foreign
cultures
• General management orientation in foreign culture

16. 2.3.1. Social and cultural elements
influencing business
• Strategies for instituting change
• Develop new product
• Adjust operating methods (standards of
production, distribution, marketing, etc.)
• implementation of change agents:
• Value systems
• Cost-benefit analysis of change
• Resistance to too much change
• Participation
• Reward sharing
• Opinion leadership
• Learning abroad

17. 2.3.2. Technology and environment
factors
• Technological
• Communication technologies
• Internet
• Telecommunications
• Infrastructures
• Roads, ports, airports,
• Distribution facilities
• Customs border organization

18. 2.3.2. Technology and environment
factors
• Environmental
• Country climate
• Climate changes
• Environmental norms national and international

19. Thank You! Questions?