Culture refers to the beliefs, customs, and attitudes of a group of people. It includes values, norms, roles, folkways, and dimensions like power distance, individualism vs collectivism, gender differentiation, uncertainty avoidance, and short vs long term orientation. To succeed in business, one must understand, prepare for, and participate in the culture of the people or country.

1. Understanding Culture
Chapter 2

2. Culture
 Culture can apply to an entire country or part of
a country, city, or business.
 Culture: is the set of beliefs, customs, and
attitudes of a distinct group of people.
 To succeed in business you need to:
 Understand culture
 Prepare and adjust to culture
 Participate in culture

3. Elements of Culture
 Values: strongly held concepts that are
present in culture. Evokes strong emotion.
 Ex. U.S. and freedom.
 Norms: social rules that affect behaviors
and actions, and represent cultural values.
 Ex. Married women walking steps behind
husband in India.

4. Elements of Culture
 Folkways & Mores: cultural customs that
dictate how people act socially.
 Ex. Dinner invite asking you to arrive at 7 pm.
 Roles: the part a person plays in a social
situation.
 Ex. Police officers role in U.S. vs. Mexico.

5. Dimensions of Culture
 Power Distance:
 Large power distance - the supervisors
are always right, less rights for citizens,
large rich and poor gap.
 Low power distance – citizens have
more rights, managers use
collaboration, employees are “partners”

6. Dimensions of Culture
 Individualism or Collectivism: how
people value the individual vs. group.
 Ex. U.S. very individualized, you take
care of yourself & your family 1st.
 Ex. Japan very collectivist, focus on
being apart of something larger (family
group, religion, employer, etc.)

7. Dimensions of Culture
 Gender Differentiation: extent to which
culture values assertiveness, acquisition
of $ and status, and achievement.
 Ex. Middle East has high G.D., men
tend to dominate society.
 Ex. U.S. has low G.D., less gender
discrimination.

8. Dimensions of Culture
 Uncertainty Avoidance: in high-risk
avoidance countries, manager less willing
to take risks.
 Ex. Mexico, Japan focuses on stability vs.
U.S. taking risks leads to success.
 Short vs. Long Term Orientation: how
businesses value short term vs. long term
results.
 Which is U.S.?