Different in Culture

Chapter Preview Describe culture, and explain the significance of both national culture and subcultures. Identify the components of culture, and describe their impact on business activities around the world. Describe cultural change, and explain how companies and culture affect one another. Explain how the physical environment and technology influence culture. Describe the two main frameworks used to classify cultures and explain their practical use.

X √ What is Culture? Cultural literacy Ethnocentricity Set of values, beliefs, rules and institutions held by a specific group of people Cultural literacy Detailed knowledge of a culture that enables a person to function effectively within it √ Ethnocentricity Belief that one’s own ethnic group or culture is superior to that of others X

Nations and Culture National culture Subculture Nation states build museums and monuments to preserve the legacies of important events and people Subculture Group of people that share a unique way of life within a larger culture (language, race, lifestyle, attitudes, etc.)

Personal communication Components of Culture Physical environments Education Personal communication Religion Social structure Manners & customs Values & attitudes Aesthetics Culture

Aesthetics Music Painting Dance Drama Architecture

Values and Attitudes Values Attitudes Freedom Responsibility Honesty Positive or negative evaluations, feelings and tendencies people hold toward objects or concepts The Ideas, beliefs and customs to which people are emotionally attached Freedom Responsibility Honesty Time Work Cultural change

Manners and Customs Manners Customs Appropriate behavior, speech and dressing in general Customs Traditional ways or behavior in specific circumstances

Social Structure Social structure Culture’s groups, institutions, social positions and resource distribution Social stratification Process of ranking people into social layers Social mobility Ease of moving up or down a culture's "social ladder"

World Religions Origin of Human Values Christianity Islam Hinduism Buddhism Confucianism Judaism Shinto

Language Blunders Braniff Airlines’ English-language slogan “Fly in Leather” was translated into “Fly Naked” in Spanish. Sign in English on a Majorcan storefront read, “English well-talking” and “Here speeching American.” Sign for non-Japanese-speaking guests in a Tokyo hotel read, “You are respectfully requested to take advantage of the chambermaids.” English sign in a Moscow hotel read, “If this is your first visit to the USSR, you are welcome to it.” Japanese knife manufacturer labeled its exports to the United States with “Caution: Blade extremely sharp! Keep out of children.”

Mixed Signals "Crazy" "Vulgar gesture" "Very clever" "Okay" "It's a secret" "Crazy" "Vulgar gesture" "Very nosey" "Very clever"

Education Education level Brain drain Cultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc. Education level Well-educated attract high-paying jobs, while poorly educated attract low-paying manufacturing jobs Brain drain Departure of highly educated people from one profession, geographic region or nation to another

Problem of Illiteracy

Physical and Material Culture These influence a culture’s development and pace of change Topography Physical features characterizing the surface of a geographic region Climate Weather conditions of a geographic region Material Culture Technology used to manufacture goods and provide services

Kluckhohn-Strodtbeck Framework Relation to nature Time orientation Trust and control Material or spiritual Responsibility to others View of personal space

Hofstede Framework Individualism vs. collectivism Power distance Uncertainty avoidance Achievement vs. nurturing

Power Distance & Individualism

Power Distance & Uncertainty Avoidance

Chapter Summary This chapter explains the significance of culture to international business. Culture is one of the most challenging elements that managers face in international business. Managers must have cultural literacy, or detailed knowledge about a culture that enables people to live and work within it. The main components of culture are aesthetics, values and attitudes, manners and customs, social structure, religion, personal communication, education, and physical and material environments. A culture’s aesthetics is important to formulating strategies, as are people’s values because they influence attitudes toward time, work, achievement, and cultural change. Knowledge of manners and customs is necessary for avoiding offensive behavior. Knowing the basics of other religions helps managers understand people’s behavior. The ability to speak the local language and understand unspoken language allows managers to understand a people. A culture’s educational aspects are important to a company, as is its material culture. Two tools to analyze and classify cultures include the Hofstede framework and the Kluckhohn-Strodtbeck framework.