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Read to Learn Describe the effect of culture on doing business globally. Describe how corporate cultures differ among businesses.

The Main Idea A company’s culture is its shared values, beliefs, and goals that affect the way its management and employees interact. It also impacts the way it works with people in other countries with which it does business.

Key Concepts Culture in a Global Economy Corporate Culture

Key Term culture business etiquette the beliefs, customs, and attitudes of a distinct group of people a conduct that is considered socially acceptable in business

Key Term corporate culture hierarchy shared values, beliefs, and goals chain of command

Key Term bureaucracy several levels of management

Culture in a Global Economy A group’s culture is often considered in terms of its dress, food, language, and art. Yet it is more complicated than that. culture the beliefs, customs, and attitudes of a distinct group of people

Graphic Organizer What Is Culture? Dress Food Language Art History Geography Religious beliefs An entire country An ethnic group Specific social group An institution

Culture in a Global Economy The global economy creates a diverse culture for business. Properly approaching people from various cultures can give them a better impression of you.

Culture in a Global Economy In business, culture has two meanings. The customs of other countries with which companies do business. The standards of a particular company. 12 Failure to understand the culture of another country can ruin a deal or lead to a marketing disaster.

Marketing Abroad Before a company markets a product in a country, certain things must be researched. Languages Customs Tastes When Pillsbury ® translated “Jolly Green Giant” into Arabic, the phrase became “Intimidating Green Ogre.” Coca-Cola ® changes the amount of carbonation and sugar in its products to suit the tastes of different countries.

Doing Business Abroad Companies doing business in other countries must be aware of cultural differences that affect the workplace. When Euro Disney opened, French workers objected to certain practices that were typical at Disney’s U.S. theme parks. Three thousand workers quit.

Business Etiquette Business etiquette differs from country to country. business etiquette conduct that is considered socially acceptable in business Many companies hire local managers in other countries to help avoid etiquette problems.

Graphic Organizer Giving a potential business partner a gift might be seen as a bribe. Giving a potential business partner a gift is seen as customary. In the United StatesIn Japan

Corporate Culture A company’s corporate culture can be defined formally through a company code of ethics and the orientation process. corporate culture shared values, beliefs, and goals

Corporate Culture Corporate culture can be defined informally through a company’s dress code, work habits, and social activities. A corporate culture can be influenced by a company’s founder.

A Culture of Social Responsibility Some corporations work hard to contribute to their communities. Outdoor apparel maker Patagonia uses organic cotton in its products to avoid chemicals that harm the environment.

Formal Culture A formal business culture may have a strict hierarchy. hierarchy chain of command A hierarchy usually has one person at the top who makes all the decisions.

Formal Culture Making changes or passing down decisions can be complicated in a bureaucracy. bureaucracy several levels of management

Graphic Organizer Characteristics of a Formal Corporate Culture Strict hierarchy Making changes or passing down decisions can be complicated Job titles are indicators of power and status Dress codes are strictly enforced Work hours are strictly enforced

Informal Culture At a company with an informal culture, employees are encouraged to make decisions on their own. Few companies have a culture that is entirely formal or informal.

Graphic Organizer Characteristics of an Informal Corporate Culture Flexible dress code Flexible work hours Option to work from home Job titles are not as important as creativity and teamwork

1.Why should businesses involved in global trade be aware of cultural differences? Properly approaching people from different cultures gives a better impression of the business.

1.How is a company’s corporate culture defined? Formally, through a company code of ethics, a written manual, and the orientation process. It is defined informally through dress codes, work habits, and social activities.

1.What are some characteristics of a formal corporate culture? Some characteristics are a strict chain of command or hierarchy, several levels of management or a bureaucracy, importance of job titles, and strict dress codes and work hours.

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