Intercultural business communication: an overview Gary Walder Lecturer, Munich Business School

Intercultural understanding

It’s more than food

The world is shrinking  More people travelling 898 million international tourism arrivals in 2007; 6% increase over 2006 (UNWTO World Tourism Barometer, January 2008)  Growth in international trade increasing dramatically: $136bn in 1960 $9 trillion beginning 2000 (Saee, 2007)  Cultural diversity within organisations is increasing: Intel Munich: only 40% Germans IBM: 375,000 people on six continents Globalisation: fuelling the need for intercultural communication

Intercultural communication— differing views Culture can be a barrier: “Despite popular beliefs to the contrary, the single greatest barrier to business success is the one erected by culture." Edward T. Hall and Mildred Reed Hall e.g. Daimler Chrysler Merger Wal Mart Germany

Intercultural communication— differing views Culture can be an opportunity: “Diversity...will be the engine that drives the corporation of the 21st Century. Successful global managers will be able to manage this diversity for the innovative and competitive edge of their corporations." Stephen H. Rhinesmith, A Manager's Guide to Globalization e.g. Nestle’

To understand culture, we need to be able define it. “culture definition” = 24,000,000 entries Culture-what is it?

Ways of looking at culture Meanings Beliefs Attitudes values Behaviour Clothing food Behaviour Clothing food Meanings Beliefs Attitudes values Cultural roots Behaviour Clothing food Meanings Beliefs Attitudes values

Culture: …is behaviour patterns, values, assumptions, and shared common experiences. …defines social structure, decision-making practices, and communication styles....dictates behavior, etiquette, and protocol. …is something we learn. It impacts everyone, and influences how we act and respond. …is communication. It is a way people create, send, process and interpret information.

Intercultural communication Surely it’s enough that everyone speaks English……  “Most transnational organisations have a lingua fanca that enables managers, irrespective of cultural background, to communicate with each other, usually English.” (Jacob, 2003)  Largest number of coutnries use English as the prevalent language:  Predominant language in over 44 countries  Unofficial lingua franca in several Asian / African countries  Gaining importance in emerging market countries e.g. Vietnam  Business Schools in Europe increasingly offer courses in English

Intercultural communication English is the predominant language of international business, but proficiency varies across countries “While an organisation’s tendency to focus on language training to remedy communication problems is laudable in itself, it is only a partial solution………..it is a false assumption that communication between cultures is solely based on linguistic competence.” (Saee, 2007)

Lost in translation  In Italy, a campaign for Schweppes Tonic Water translated the name into "Schweppes Toilet Water.“  KFC’s ‘finger lickin’ good’ slogan is used the world over to highlight the tastiness of the product. However, when the phrase was translated into Chinese for the Hong Kong market, it came out as ‘eat your fingers off’. Needless to say, most customers opted for the fries instead.

Intercultural branding failures Clairol’s ‘Mist stick’ in Germany When Clairol launched its ‘Mist Stick’ curling iron in Germany, the company apparently had no idea that ‘Mist’ was a slang term for manure. The company discovered that few women were crying out for a manure stick.

Intercultural branding failures Ikea’s ‘Gutvik’ bed, Germany Ikea names its furniture and furnishing after a range of things. Bedding is named after flowers while beds are named after Norwegian cities. It was unfortunate then that the hugely popular child's bed 'Gutvik' amused/riled customers in Germany due to its similarity to a German phrase meaning 'good f**k?'. Australian Ikea stores recently renamed the desk called 'Jerker' but outrage about the bench called 'Fartful' is yet to be ignited. Source: cockups-ten-costly-gaffes html?action=Gallery&ino=4http:// cockups-ten-costly-gaffes html?action=Gallery&ino=4

Lost in translation…but some are not so funny The Editors of the MaxPlanckForschung journal had hoped to find an elegant Chinese poem to grace the cover of a special issue, focusing on China, but instead of poetry they ran a text effectively proclaiming "Hot Housewives in action!" on the front of the third-quarter edition. Lesson: Be cautious about translations..... “Chinese 'classical poem' was brothel ad” Science journal mistakenly uses flyer for Macau brothel to illustrate report on China (The Independent, 9 December 2008)

Marketing and advertising across cultures: content Chairman Mao, Chinese Communist Party leader, Who is likely to be offended by this advert? Why? Message: Use a condom, and be sure you're not bringing the next Mao Zedong into the world. (Client: Doc Morris condoms. Agency: Grey Group Germany).

Marketing and advertising across cultures: content Grey Begs Bloggers to Stop Posting Mao Condom Ads; Grovels to "Offended" Chinese Officials. “Recently an ad execution from Grey Germany, which has never appeared in any paid media, found its way onto internet websites devoted to showcasing advertising. We have asked that the ad be taken down immediately. “We understand that the ad offended the sensibilities of people in China for its visual reference to Chairman Mao. Grey has offered a heartfelt apology and formally contacted the Chinese embassy in Germany to assure them that this ad will never run. We have the utmost respect for China, its people, culture and institutions. “ (April 2009)

Client: Doc Morris condoms. Agency: Grey Group, Germany Marketing and advertising across cultures: content Who is likely to be offended by this advert? Why?

Marketing and advertising across cultures: content Client: Anti-smoking campaign. “Smoking kills more.” Agency: F/Nazca Saatchi & Saatchi, Brazil Client: Anti-smoking campaign. “Smoking kills more.” Agency: F/Nazca Saatchi & Saatchi, Brazil This one is not so funny.

Adverts using culture