Business Culture Biz Cul BUSINESS CULTURE By Tran Minh Hoang, Mr PhD Candidate, UEB - VNU

Business Culture Biz Cul >> Learning Business Culture (Business Culture) to: - Raise awareness about roles of Culture in Business activities. - Improve understanding about human behavior across culture and predict course of action in a different culture - Build up necessary skills to apply Culture factors into the economic and business activities. - Be able to adapt to international cultural difference or culture shock SUBJECT INTRODUCTION BUSINESS CULTURE

Business Culture Biz Cul SUBJECT STRUCTURE Chapter 1: General view of Business Culture Chapter 2: Expressions / Factors of Business Culture Chapter 3: Vietnamese Business Culture Chapter 4: International Business Culture Chapter 5: Business Culture cases

Business Culture Biz Cul CHAPTER 1 GENERAL VIEW OF BUSINESS CULTURE Chapter goals: Understanding general and basic knowledge of Culture and Business Culture; forming the overview about Culture and Business Culture which is the key to study next chapters. Chapter structure 1. BASIC OF CULTURE 1.1 Culture concept 1.2 Culture factors 1.3 Roles and Function of Culture 2. BASIC OF BUSINESS CULTURE 2.1 Business Culture concept 2.2 Characteristics of Business Culture 2.3 Influencing factors of Business Culture 2.4 Roles of Business Culture. 2.5 The necessity of “Business Culture” subject

Business Culture Biz Cul Vietnam 2006  Area: km²  Popularity: 84,1558 million  GDP: 61 billion USD Germany 2006  Area: km²  Popularity: 82,03 million  GDP: billion USD FUN FACTS Why is there such a big gap between Vietnam and Germany’s GDP?

Business Culture Biz Cul Time is ticking, everything can be lost “Culture is what remains when everything else has forgotten, what is still missing when all has learned" - E.Herriot - GENERAL VIEW OF BUSINESS CULTURE CULTURE CONCEPT

Business Culture Biz Cul GENERAL VIEW OF BUSINESS CULTURE CULTURE CONCEPT For survival as well as purposes of life, mankind created and invented language, writing, ethics, law, science, religion, literature, art, tools for daily activities related to clothes, food, shelter and means and working methods. Ho Chi Minh => All those creativities and inventions are culture.

Business Culture Biz Cul + Broad sense: Culture is an complex overall includes knowledge, belief, art, morals, law, customs and all abilities, habits and practices that people achieve as a member of a society. Culture is an organic system of material ​​ and spirit values that human created and accumulated over the course of practical activity, in human interaction with the natural environment and their society. GENERAL VIEW OF BUSINESS CULTURE CULTURE CONCEPT

Business Culture Biz Cul Cultural Heritage different from Natural Heritage at what point? GENERAL VIEW OF BUSINESS CULTURE CULTURE CONCEPT

Business Culture Biz Cul >> Culture includes all of human creative values that was expressed, crystallized in the material wealth created by man. >> Culture includes mental products that individuals or communities created in the history. GENERAL VIEW OF BUSINESS CULTURE CULTURE CONCEPT

Business Culture Biz Cul GENERAL VIEW OF BUSINESS CULTURE CULTURE CHARACTERISTICS Customary Communal Ethnic Subjective Objective Inherited Learnable Evolutionary  Approach to business activities are diverse and plentiful.

Business Culture Biz Cul Lan- guages Religion and beliefs Values and attitudes Customs Habits and behavior s Aes- thetics Edu- cation Material aspects GENERAL VIEW OF BUSINESS CULTURE CULTURE FACTORS

Business Culture Biz Cul Habits and behaviors Material aspects Values and attitudes Customs Language s Regions and beliefs Aes- thetics Education GENERAL VIEW OF BUSINESS CULTURE CULTURE FACTORS

Business Culture Biz Cul Culture value priority of USA- JAPAN – ARAB SAUDI No.USAJapanArab Saudi 1 LibertyDuty with owner/workSafety in family 2 IndependenceGroup harmonyFamily harmony 3 AutonomyCollectivenessParental orientation 4 EqualityRanking/age/level orderAge 5 PersonalityGroup unanimityPower 6 CompetitivenessCooperationCompromise 7 EfficiencyQualityDedication 8 TimePatient 9 Straightforward ness Mediation 10 OpennessNegotiationFriendliness

Business Culture Biz Cul GENERAL VIEW OF BUSINESS CULTURE Why do we need Culture?

Business Culture Biz Cul GENERAL VIEW OF BUSINESS CULTURE Roles and functions of Culture toward Social Development Functions Educational function Aware function Aesthetic function Entertainment function Roles Culture is the goal of the social development Culture is the motivation of the social development Culture is the soul and regulatory system of the social development

Business Culture Biz Cul Business culture is a system of values ​​, norms, perceptions and behaviors created by business entities during business process, are expressed in their behaviors with social, natural in a community or region. Business Culture: Is the use of cultural factors in business Is doing business culturally Is mentioning about the Profit, the True, the Good with the Fair. Business Culture = Profit + (True + Good + Fair) GENERAL VIEW OF BUSINESS CULTURE BUSINESS CULTURE CONCEPT

Business Culture Biz Cul Business Culture Business philosophy thoughts that guide business operations. Business philosophy thoughts that guide business operations. Business ethic the principles and standards that adjust, evaluate, guild and control business behavior. Business ethic the principles and standards that adjust, evaluate, guild and control business behavior. Entrepreneurial culture The values ​​, norms, perceptions and behaviors of entrepreneurs in the process of leadership and business management. Entrepreneurial culture The values ​​, norms, perceptions and behaviors of entrepreneurs in the process of leadership and business management. Corporate Culture The values ​​, norms, perceptions and behaviors of the enterprise, dominant the operation of all members in the enterprise and create an identity for the enterprise Corporate Culture The values ​​, norms, perceptions and behaviors of the enterprise, dominant the operation of all members in the enterprise and create an identity for the enterprise Behaving Culture The responses, behaviors that is expressed by attitude, actions, gestures, words with customers, partners, superiors, subordinates, colleagues and the public Behaving Culture The responses, behaviors that is expressed by attitude, actions, gestures, words with customers, partners, superiors, subordinates, colleagues and the public GENERAL VIEW OF BUSINESS CULTURE BUSINESS CULTURE FACTORS

Business Culture Biz Cul Behaving culture Corporate culture Entrepreneurial culture Business ethics Business philosophy GENERAL VIEW OF BUSINESS CULTURE BUSINESS CULTURE FACTORS

Business Culture Biz Cul 2. Business ethics 3. Entrepreneuri al culture 4. Enterprise culture 5. Behaving culture 1. Business philosophy GENERAL VIEW OF BUSINESS CULTURE BUSINESS CULTURE FACTORS

Business Culture Biz Cul  Customary  Cultural Integration  Communal  Cultural Adaptation  Ethnic  Cultural difference  Subjective  Cultural difference  Objective  Cultural Acceptance  Inherited  Cultural Enrichment  Learnable  Cultural Study  Evolutionary  Cultural Exchange Integration GENERAL VIEW OF BUSINESS CULTURE CHARACTERISTIC OF BUSINESS CULTURE

Business Culture Biz Cul Example  When doing business in Thailand, you should avoid wearing purple clothes, because it is the color of royalty and Thai revered the tyranny monarchy, so wearing the colors of the Royal is a disrespect.  When Chinese partners invite you come home for dinner, you should avoid dropping chopsticks because Chinese think that dropped chopsticks is bad luck. In addition, you should not place chopsticks parallel on the bowl when you finished it. About the munching, as in Japan and South Korea, it is the expression that you enjoyed that meal. In addition, the Chinese also like to try alcohol tolerance of others. Therefore, in China, if you are a bit drunk, it is okay. In Chinese business people often do what they said GENERAL VIEW OF BUSINESS CULTURE CHARACTERISTIC OF BUSINESS CULTURE

Business Culture Biz Cul External factors 1.Sociocultural 2.Social institutions 3.The difference and the cultural exchange 4.The process of globalization 5.Customers Enterprises internal factors 1.Exemplary, Compliance, Enterprise Leaders' Communications 2.The individual Values of the employees 3.The history and tradition of the company 4.Field lines 5.The ​​ learned values GENERAL VIEW OF BUSINESS CULTURE INFLUENCING FACTORS OF BUSINESS CULTURE

Business Culture Biz Cul 4 aspects of Social Culture 1.Individualism/socialism 2.Power distance 3.Masculinity/Femininity 4.Uncertainty Avoidance GENERAL VIEW OF BUSINESS CULTURE INFLUENCING FACTORS OF BUSINESS CULTURE

Business Culture Biz Cul By empirical methods, survey, meticulously quantitative analysis ( with over 116,000 questionnaires were obtained from 53 different countries ) GeertHofstede, a Dutch researcher has drawn 5 cultural aspects / 5 " variable " key exists in all ethnic cultures to explain the similarities and differences between national cultures in the world. - Power distance (PDI) - Individualism (IDV) - Masculinity (MAS) - Uncertainty Avoidance (UAI) Long -term orientation / direction to the future (LTO) After Professor Hofstede introduce four culture dimensions above, Michael Harris Bond and his colleagues in Hong Kong found that, if only based on 4 -way above, it is difficult to assess the cultural differences between Europe and Asia. They suggest the fifth dimension, initially called the "Confucius motivation“ dimension ( Confucian dynamism ). Professor Hofstede later added this dimension in his original study as The future dimension: GENERAL VIEW OF BUSINESS CULTURE GEERT HOFSTEDE APPROACH

Business Culture Biz Cul Culture five dimensions score of some countries included Vietnam Nation Power distance IndividualismMasculinity Uncertainty avoidance Long-term Orientation Vietnam China Japan Thailand USA Denmark Unavailable (source:

Business Culture Biz Cul What is the motivation for entrepreneurs to developing Business Culture? GENERAL VIEW OF BUSINESS CULTURE ROLES OF BUSINESS CULTURE

Business Culture Biz Cul BUSINESS CULTURE Is a method to develop business firmly Is a source of business developing Is a condition to promote International business GENERAL VIEW OF BUSINESS CULTURE ROLES OF BUSINESS CULTURE

Business Culture Biz Cul VIETNAMESE CULTURE

Business Culture Biz Cul JAPANESE CULTURE 30

Business Culture Biz Cul USA CULTURE