Informal Institutions

Understanding Institutions Formal Institutions Laws Regulatory bodies Rules Informal Institutions Norms Cultures Ethics

Culture’s Consequences Gerber selling baby food in Africa featured a baby on the label. Companies in Africa put pictures on the label of what’s inside, since most people can’t read. The Coca-Cola name in China was first read as “Ke-kou-ke-la”, meaning “female horse stuffed with wax”. Pepsi’s “Come alive with the Pepsi Generation” translates into “Pepsi brings your ancestors back from the grave” in Chinese. A US phone company tried to promote its services via an executive talking on the phone with his feet propped up on the desk. An Arab would never show the soles of their feet. A t-shirt maker in Miami printed shirts for the Spanish market that promoted the Pope’s visit as “I saw the potato” (la papa) instead of “I saw the Pope” (el papa).

Culture Culture reflects the collective programming of the mind which distinguishes the members of one group or category of people from another. What are the basic elements that define and determine culture?

Language & Culture Organizes thought patterns Filters observations Competitive determinant Translation Business Words carry meaning (sometimes unintended)

Communication & Culture Nonverbal communication Hospitality Gift Giving

Religion & Culture Christianity 1.7B Roman Catholic Protestant Eastern Orthodox Islam 1B Sunni Shiite Hindu 750M Buddhist 350M

Cultural Adjustment How can you ease cultural adjustment (living or visiting)?

What predicts cultural intelligence? Drive Knowledge Strategy Action