University Of Finance & Administration Pavla Břečková [Ing., Ph.D.] INTERNATIONAL BUSINESS RELATIONS [BA_IBR] Pavla Břečková [Ing., Ph.D.] pavla.breckova@vsfs.cz

INTERNATIONAL BUSINESS RELATIONS – main areas Full-time course = 12 lectures per 90 mins. INTERNATIONAL BUSINESS [IB], characteristics, indicators. WORLD BUSINESS TERRITORIES, challenges, integration, main trading blocks [TRIAD, BRIC] GLOBAL BUSINESS ENVIRONMENT. EMERGING MARKETS, characteristics, features, selected markets in detail BRICS Doing business in ASIA Foreign market analysis PREDISPOSITIONS for working in IB, expatriation and HR in IB  

12 lectures (per 90 mins) - Finished by: exam EXAM terms BA_IBR 12 lectures (per 90 mins) - Finished by: exam Completion CONDITIONS = min. 12 points out of 30 Active participation in the lectures [active listening, discussing, reading, analyzing & interpreting of economic articles or case study results, presence at lectures – 50%] Case study elaboration & it’s active professional prezentation Knowledge test ALL BASED ON POINTS AS FOLLOW 5 points = 3/5 presence (if less = 0 points) up to 10 points = success at CASE study & its prezentation up to 15 points = TEST TOTAL max 30 12 – 14 points = E 15 – 17 = D 18 – 20 = C 21 - 23 = B 24 – 30 = A

CASE study / team project CASE study on one of these topics: 1. BUSINESS RELATIONS … worldwide. The world economy structuring nowadays, may be compared with the past / possible prospects for future. Examples of certain (political) decisions => concrete influence on business or business relations. 2. SMEs (Small & Medium Enterprises) and their role in a globalizing world Companies up to 250 employees (acc.to European definition), their specifics, positives x negatives, could contain some statistics or comparison in various countries. Their major role in society, comparison of views on them in various countries or contexts. 3. FAMILY BUSINESS …and their role in global business, positives x negatives, examples, specifics, problem of handing over to next generations, comparisons in various countries etc. 4. PRODUCT PLACEMENT – market study Placing of a product into a foreign market, including product description + argument why it is suitable for export, analyses of the preferential market (why this market, structure and potential of the target group), mapping competition, potentials + risks, argument why you think your product will succeed. 5. NOT WIDELY KNOWN (UNUSUAL INFORMATION) about BRICS / EU / ASEAN or another international trade grouping

CASE study - elaboration CASE study on one of these topics: 1. Business Relations 2. SMEs and their role in a globalizing world 3. Family Business 4. PRODUCT placement – market study 5. Not widely known information about an international grouping ELABORATION: Elaboration in teams per up to 8 people Presentation of the results - ppt possible, cca 10 min., structured way, clear outcomes (solutions, results) PREZENTATION: - up to 10 min. / all the team members should be involved 5

Team projects presentation - schedule 6/10/2014 introductory lesson, setting the teams, choosing topics 20/10/2014 guest lecture - Ananta Giri: Rethinking Economics: With and Beyond Globalization and Towards Planetary Realizations / consulting on the team projects 3/11/2014 lecture / consulting on the team projects 17/11/2014 Czech bank holidays 1/12/2014 presentation of teams 1 + 2 15/12/2014 presentation of teams 3 + 4, concluding the course

LITERATURE SOURCES Povinná literatura / Mandatory reading: Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011   Doporučená literatura / Recommended reading: Allan Sitkin, Nick Bowen: International Business, January 2010. Stuart Wall, Dr. Bronwen Rees: International Business: A First Course, September 2009. Wild, J., Wild, K., Han, J.: International business: the challenges of globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-0-13-174743-6. Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0-333-75979-6. Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN: 0-13-233532-8

-> this impact is much > than differences coming out from: RACE CULTURE DIFFERENCES = impact of culture on relationship, employees approach to work, business management and negotiations -> this impact is much > than differences coming out from: RACE SEX specialization [PROFESSION] POSITION 8. 8

CULTURE and it’s elements = characteristic way of living = based on ACQUIRED models of behaviour (i.e. learnt, not inborn) Culture ELEMENTS ABSTRACT (values, approaches, opinions, religion – from generation to generation) MATERIAL (stage of development and types of: technology, structure of consumption in a country / society ) 9. 9

CULTURE – abstract elements - impact AESTETICS Opinion on what is „nice“ (symbols of countries, black-white perception, ideal of woman’s beauty etc.) RELIGION Hinduismus – way of living: cast system, common households, worshipping/cult of animals… Islam Christianity Way of DOING BUSINESS length of meeting, outcomes business card handling 10. 10

CULTURE – abstract elements - impact EDUCATION characteristics and way of thinking of the consumers/ customers in a territory (illiteracy – promotion, packaging, marking…) LANGUAGE impossibility to pronounce undesirable meaning 11. 11

Basic elements of Culture Language Communi-cation Religion Values & Attitudes Social structure 12. 12

Individuals, Families, Groups SOCIAL structure = determines the roles of individuals within the society, indiv.mobility within society, stratification of the society Individuals, Families, Groups Social attitudes influence / Business: US descourage nepotism Arab countries: family ties crucial Importance of INDIVIDUAL to the group: Europe culture promotes individualism (PAY = merit based) group focused societies (collectivism) = the IND role is to SERVE the group (PAY = seniority-oriented, group success) Social STRATIFICATION Social MOBILITY ability of IND to MOVE within stratums of society 13. 13

= identified > 3.000 languages worldwide Business language Form of language Competitive weapon Translations Meaning YES / NO 14. 14

Gestures & their impact on business Role of silence Role of eyes COMMUNICATION = VERBAL x NON-VERBAL Contact zone Gestures & their impact on business Role of silence Role of eyes Gift giving & hospitality Business practice Role of education in a society 15. 15

Ad COMMUNICATION - other culture aspects Time perception Contact zone Role of eyes Timing accuracy Politeness cca 80 cm in Europe cca 30 cm in e.g. Arabic countries Importance in Europe X could be perceived as a sign of agression in other parts of world (Asia, Japan) 16. 16

men preference in business RELIGION Christianity European traditions Hinduismus way of living (life style): castes (privileged groups of society), common household of a few families, worship (cult) of cow Islam men preference in business 17. 17

Characteristics of Culture [relevant to IB] Culture = collection of values, beliefs, behaviors, customs and attitudes that distinguish one society from another society culture determines how firms operates in the society Transmission from one member of society to another Culture reflects LEARNED behavior e.g.: hierarchical society => stress on loyalty & harmony => results in life-time employment & minimal job switching (Japan) Elements of culture are INTERRELATED Because cultural is LEARNED behavior, it’s ADAPTIVE i.e. culture change in response to external forces that affects society Behavior is ADAPTIVE Defines the membership of the society i.e. who shares the culture ‘proves’ to be a member / who does not => outside of boundaries of society Culture is SHARED 18. 18

Hofstede’s 5 dimensions of cult.differencies Person’s beliefs about the relative importance of the individual & groups to which that person belongs INDIVIDUALISM x COLLECTIVISM SOCIAL orientation Power RESPECT x TOLERANCE POWER orientation Uncertainty ACCEPTANCE x AVOIDANCE UNCERTAINTY orientation AGGRESSIVE x PASSIVE goal behavior GOAL orientation (Masculinity x Femininity) LONG-TERM x SHORT-TERM outlook TIME orientation 19. 19

Hofstede’s 5 dimensions SOCIAL ORIENTATION = person’s beliefs about the relative importance of the individual & groups to which that person belongs INDIVIDUALISM Cultural belief that the person comes first Key values: high degree of self-respect & independence COLLECTIVISM Belief that group comes first Typically: well-defined social networks, extended families, tribes, co-workers 20. 20

Hofstede’s 5 dimensions POWER ORIENTATION = refers to beliefs that people in a culture hold about the appropriateness of power and authority dif. in hierarchies RESPECT People tend to accept the power & authority of superiors People at all levels in firm accept decisions of superiors TOLERANCE People are more willing to question / refuse a decision or mandate from sb at a higher position 21. 21

Hofstede’s 5 dimensions UNCERTAINTY ORIENTATION = is the feeling people have regarding uncertain an ambiguous situations ACCEPTANCE Stimulated by change and thrive on new opportunities Ambiguity is seen as a context one can grow, develop, carve out new opp. Positive response to change AVOIDANCE People dislike ambiguity and will avid it whenever possible Amb. & change seen as undesirable Preference of routine, structured & consistent ways of doing 22. 22

Hofstede’s 5 dimensions GOAL ORIENTATION / Masculine x Feminine = is manner in which people are motivated to work toward different kinds of goals AGGRESSIVE g.behavior (Masculinity) People tend to place a high premium on material possessions, money & assertiveness PASSIVE g. behavior (Femininity) People place a higher value on social relationships, quality of life and concern for others 23. 23

Masculinity x Femininity (VALUES & ATTITUDES) Ad GOAL ORIENTATION Masculinity x Femininity (VALUES & ATTITUDES) MASCULINITY x FEMININITY (Hofstede’s 1 of 5 dimensions): = is manner in which people are motivated to work toward different kinds of goals Masculinity People tend to place a high premium on material possessions, money & assertiveness The cultures that are more masculine, such as Japan, value competitiveness, assertiveness, ambition, and the accumulation of wealth. Femininity People place a higher value on social relationships, quality of life and concern for others On the other hand, feminine cultures, such as Sweden, place more emphasis on relationships, compassion, and the general quality of life. 24. 24

Hofstede’s 5 dimensions TIME ORIENTATION = is extent to which members of a culture adopt a long-term vs. short-term outlook on work, life etc. LONG-term outlook Value: dedication, hard work, and thrift SHORT-term outlook Value: traditions, social obligations 25. 25

Basic elements of Culture Language Communi-cation Religion Values & Attitudes Social structure 26. 26

Social stratification KEY terms Culture and its impact on International Business and Relations Characteristics of culture Five dimensions of culture differences Social orientation (individualism x collectivism) Power orientation Uncertainty orientation Goal orientation (masculine x feminine) Time orientation Social stratification Communication: verbal x non-verbal Other culture aspects [time perception, contact zone, role of eyes, gift-giving, hospitality]

Thank you for your attention INTERNATIONAL BUSINESS RELATIONS Thank you for your attention Ing. Pavla Břečková, Ph.D. pavla.breckova@vsfs.cz