The International Business Environment

Culture and Cultural Change

Learning Outcomes Define culture and its effects on members Define key variables of culture Describe difference between high and low context cultures Understand cross-cultural skills Learn guidelines for managing cultural change Use a procedure to reduce the influence of our cultural values

We are unaware of our conditioning. Culture What we are as a group Learn it Share it Compelled to behave Values, behaviors, assumptions are all related. We are unaware of our conditioning.

“Hai” in Japanese English Translation: “Yes” What does it mean In Japanese? - Hai means the other person had heard you and is contemplating a reply. Is there a ‘yes’ in Japanese that corresponds to the Western ‘yes’? - Yes, when Hai is accompanied by ‘sodesu’ (it is so) and ‘soshimasu’ (I will do so).

Cultural Factors  Never touch the head of a Thai or Pass an object over it  The head is considered sacred in Thailand.  Avoid using triangular shapes in Hong Kong, Korea, and Taiwan.  The triangle is considered a negative shape  The number 7 is considered bad luck in Kenya and good luck in the Czech Republic and Magical connotation in Benin, Africa  The number 10 is bad luck in Korea.  The number 4 means death in Japan  Red represents witchcraft and death in many African countries  Red is a positive color in Denmark SOURCE: Business America, July 12, 1993

Elements of Culture  Material Culture Technology Economics  Social Institutions  Social Organization  Education  Political Structures  Man and the Universe Belief Systems  Aesthetics  Graphic and Plastic Arts  Folklore  Music, Drama, and Dance  Language

Key Cultural Variables Context Importance Individualism vs. Collectivism Time Work and Achievement Relationship to Nature Youth orientation Informality Competition Status of Women and Men

Contextual Background of Various Countries Japanese High Context Implicit Arabian Latin American Spanish Italian English (UK) French North American (US) Scandinavian German Low Context Explicit Swiss

High and Low Context Cultures Factors / Dimensions High Context Low Context Lawyers A person’s word Responsibility for organizational error Negotiations Examples: Less important Is his or her bond Taken by top level Lengthy Japan Middle East Very important Get it in writing Pushed to lowest level Proceed quickly U.S.A. Northern Europe

Comparisons & Contrasts Japan USA  Japan USA Myth / Hero Emphasis Group Individual Self-Denial Dependence Self-Expression Independence Attitude Emphasis Obligations Rights Style Cooperation Competition Assumptions Interdependence Independence Organization Man Individual With a Skill View of Self

Comparisons & Contrasts Japan USA  Japan USA Everyone Is Just Like Us Cultural Attitude 1 We Are Unique Willing To Borrow/Adopt/Adapt "Not Invented Here" Syndrome Cultural Attitude 2 Organization Goal 1 (Jobs / Employment) Profitability, Financial Success Share of Market Organization Goal 2 World Markets National Markets Quality / Customer Value Production / Financial Return Organization Goal 3

Comparisons & Contrasts Japan USA  Japan USA Worker Identification Company Craft / Function Management Generalist Specialist Trust In Feeling Thinking Governmental Business Relations Cooperation Separation Financial Structure (Debt : Equity) 80 : 20 40 : 60 Key Stakeholder Employees Stockholders Perfection Harmony Consensus Freedom Success Winning Key Values & Goals

Managing Our Values Define problem in terms of our culture Define problem in terms of their culture Isolate and analyze the self-reference criteria Redefine problem without our self-reference criteria

Managing Cultural Change Identify deterrents to proposed change Evaluate looking for modifications/adaptations Test and evaluate in the host culture Demonstrate the effectiveness locally Remember technical changes are easier than social or political changes

Cultural Diversity: How To Succeed in a World of Differences 1: Why People Fail Ethnocentric Orientation Ignorance Arrogance Time Factor

Cultural Diversity: How To Succeed in a World of Differences 2: Success Factors Geocentric Orientation Respect Learning Language Personal Attitude: Humility and Pride Personal Qualities: Adaptability and Flexibility

Cultural Diversity: How To Succeed in a World of Differences 3: How To Be Successful Study and Preparation Awareness of Cultural Differences Commitment To Learn Do The Work

Culture Quiz 1.Which European city is a favorite locale for test marketing? A. Madrid B. Brussels C. Rome 2.High-pressure sales and hype are counter-productive in many countries. True or false: Australians tend to fiercely resist pressure tactics.

Culture Quiz 3.Radio and television commercials are often more effective than newspaper advertisements in: A. Sweden B. Hawaii C. Bolivia 4.German and Brazilian consumers' tastes in ads are opposite, because Germans generally like what in their ads? A. Lots of data B. Fewer facts and more sex C. Hysterically manic imagery

Culture Quiz 5.True or false: Advertising in many Central American newspapers is tantamount to taking a political stand. 6.Why hasn't mail-order shopping caught on in Chile? A. It is too impersonal. B. Chileans tend to distrust the warranty and service guarantees. C. Chileans enjoy window-shopping and comparison pricing. D. All of the above

Culture Quiz 7.True or false: Direct-mail marketing is difficult in Costa Rica because many residences do not have street addresses. 8.Marketing in Saudi Arabia must abide by local traditions. This precludes: A. Using children in advertisements B. Depicting a dog in an ad C. Direct marketing

Culture Quiz 9.Successful toothpaste sales in Canada depend on your target market and pitch. True or false: Promote the cavity-fighting aspects to Canadians of French descent, and the breath-enhancing capabilities to English-Canadian consumers. 10.Local representatives can be invaluable, but local laws often protect them from being terminated. Which country won't penalize you for changing your local agent? A. Japan B. UAE C. Ecuador D. USA

Building Cross-Cultural Skills Tolerate ambiguity Develop flexibility and patience Display empathy Personalize observations Show respect Be nonjudgemental