Matakuliah : J0474 International Marketing Tahun : 2009 Aspects of the Global Marketing Environment : Cultural Dynamics, Management Style, and Business Systems Chapter 4

Definitions and Origins of Culture. Learning Outcome Definitions and Origins of Culture. Elements of Culture Cultural Knowledge. Cultural Change. Management Styles around the World. Gender Bias in International Business. Business Ethics. Culture’s Influence on Strategic Thinking. Bina Nusantara University

Definitions and Origins of Culture Dutch management Professor Geert Hofstede argues that culture provides a guide for humans on how to think and behave, Culture is a problem solving tool. Anthropologist and business consultant Edward Hall comments that cultural differences are often invisible, and that marketers who ignore them often hurt both their companies and careers Culture is the sum of the values, rituals, symbols, beliefs and thought processes that are learned, shared by a group of people, and transmitted from generation to generation. Bina Nusantara University

Definitions and Origins of Culture The best international marketers will not only appreciate the cultural differences pertinent to their business, they will also understand the origins of these differences. Deeper knowledge will help marketers notice cultural differences in new markets and forecast change in current markets of operation. Bina Nusantara University

Origins, Elements and Consequences of Culture Geography ( climate, topography, flora, fauna, microbiology) A D P T I O N History Technology and political economy Social institutions (family, religion, school, media, government, corporations) Element of culture (values, rituals, symbols, beliefs) Peers Bina Nusantara University

Origins, Elements and Consequences of Culture continue…. Element of culture (values, rituals, symbols, beliefs, Thought processes) imitation Peers A P L I C T O N consequences Consumption decisions and behaviors Management style Bina Nusantara University

Cultural Knowledge Factual versus Interpretive Knowledge There are two kinds of knowledge about cultures, One is factual knowledge about a culture; it is usually obvious and must be learned. The other is interpretive knowledge- an ability to understand and to appreciate fully the nuances of different cultural traits and patterns. Bina Nusantara University

Cultural Change The change is a result of a society seeking ways to solve the problems created by changes in its environment. In other words, culture is the means used in adjusting to the environmental and historical components of human existence. Bina Nusantara University

Cultural Change Cultural Borrowing Similarities : an Illusion Resistance to change Planned and Unplanned Cultural Change Consequences of Innovation Bina Nusantara University

Management Styles Around the World Knowledge of the management style- that is, the business culture, management values, and business methods and behaviors- existing in a country and a willingness to accommodate the different are important to success in an international market. Authority and decision Making Management Objectives and Aspirations Communication Styles Formality and Tempo P-Time versus M-Time Negotiations Emphasis Bina Nusantara University

Gender Bias in International Business Tells one American executive, It is one thing to see a woman at the negotiation table, but to see a woman who happens to be blonde, young…. leading the discussions was more than most of the Japanese men could handle. Bina Nusantara University

Summary A complete and thorough appreciation of the origins (geography, history, political economy, technology and social institutions) and elements ( cultural values, rituals, symbols, beliefs) of culture may well be the single most important gain to a foreign marketers in the preparation of marketing plans and strategies Management styles differ around the World. Some cultures appear to emphasize the importance of information and competition while others focus more on relationships and transaction cost reductions. Understanding the culture you are entering is the only sound basis for planning. Bina Nusantara University