University Of Finance & Administration INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D.

2.2. INTERNATIONAL BUSINESS Full-time course = 12 lectures (summer term 2010) 1-2 What is international business. Comparative advantage. Protectionism x Liberalism. 3-4 Internationalisation and Globalisation. Foreign expansion. Entry modes. 5-6 Culture and its role in IB. Culture differences. Negotiation and presentation of business results. 7-8 CASE Study elaborated in teams (no regular lecture held at VSFS, April 1 st, 2010) 9-10 Czech IB. European Union. International market research (analysis). Data collection International trade barriers. Economic integration. Personal preconditions for working in IB. SWOT of Czech companies. Within each lecture: - practical discussions on topical economical issues - article: reading + analyses - team knowledge competition INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

3.3. CREDIT conditions B_IB Full-time course = 12 sessions (summer term 2010) INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / CONDITIONS: PRESENCE at IB lectures: 50% short TEAM PRESENTATION - preparation at home: min. presentation on international business issue lecture marks based on active PARTICIPATION: communication, reading and discussing topical economic issues / team knowledge COMPETITION If unfulfilled: 1. knowledge test / 2. semester elaborated paper + test PLEASE NOTE: April 1 st, 2010 lecture will not be held at VSFS – instead: YOU ARE SUPPOSED TO WORK ON CASE STUDY (in teams) + to present your RESULTS on regular lecture April 15 th, 2010

4.4. TEAM PREZENTATION mins. team presentation (normally in ppt, each team member talks/presents, preparation at home necessary) Following topics: Globalisation: influence on business, examples CSR (Corporate Social Responsibility): opportunity or necessity, examples EU (European Union): influence on Czech businesses, examples Personal preconditions for working in IB (International Business) INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

5.5. Common session STRUCTURE  IB NEWS – small talk / discussion – topical business issues  LECTURE  READING – analyzing – interpretation of an article (team work) / Prezentation of the materials prepared at home  Team PRESENTATION + audience evaluation  Quick team knowledge COMPETITION INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

6.6. Lecture TODAY  IB news  Lecture on CULTURE in business  Case Study setting (case study to be processed in teams instead of regular lecture on April 1 st, 2010)  Team presentation & audience evaluation  Reading & interpreting economic articles  Knowledge competition INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

7.7. CULTURE DIFFERENCES = impact of culture on relationship, employees approach to work, business management and negotiations -> this impact is much > than differences coming out from: o RACE o SEX o specialization [PROFESSION] o POSITION INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

8.8. CULTURE and it’s elements CULTURE = characteristic way of living = based on ACQUIRED models of behaviour (i.e. learnt, not inborn) Culture ELEMENTS  ABSTRACT (values, approaches, opinions, religion – from generation to generation)  MATERIAL (stage of development and types of: technology, structure of consumption in a country / society ) INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

9.9. Basic elements of Culture CULTURE Language Communi -cation Religion Values & Attitudes Social structure INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

10. SOCIAL structure = determines the roles of individuals within the society, indiv.mobility within society, stratification of the society  Individuals, Families, Groups Social attitudes influence / Business: US descourage nepotism Arab countries: family ties crucial Importance of INDIVIDUAL to the group: Europe culture promotes individualism (PAY = merit based) group focused societies = the IND role is to SERVE the group (PAY = seniority-oriented, group success) Social STRATIFICATION Social MOBILITY ability of IND to MOVE within stratums of society INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

11. LANGUAGE = identified > languages worldwide Business language Form of language Competitive weapon Translations Meaning YES / NO INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

12. COMMUNICATION = VERBAL x NON-VERBAL Contact zone Gestures & their impact on business Role of silence Role of eyes Gift giving & hospitality Business practice Role of education in a society INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

13. RELIGION Christianity European traditions Hinduismus way of living (life style): castes (privileged groups of society), common household of a few families, worship (cult) of cow Islam men preference in business INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

14. VALUES & ATTITUDES MASCULINITY x FEMININITY (Hofstede’s 1 of 5 dimensions): = is manner in which people are motivated to work toward different kinds of goals Masculinity People tend to place a high premium on material possessions, money & assertiveness The cultures that are more masculine, such as Japan, value competitiveness, assertiveness, ambition, and the accumulation of wealth. Femininity People place a higher value on social relationships, quality of life and concern for others On the other hand, feminine cultures, such as Sweden, place more emphasis on relationships, compassion, and the general quality of life. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

15. Other culture aspects Time perception Contact zone Role of eyes Timing accuracy Politeness cca 80 cm in Europe cca 30 cm in e.g. Arabic countries Importance in Europe X could be perceived as a sign of agression in other parts of world (Asia, Japan) INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

Transmission from one member of society to another Culture reflects LEARNED behavior e.g.: hierarchical society => stress on loyalty & harmony => results in life-time employment & minimal job switching (Japan) Elements of culture are INTERRELATED Because cultural is LEARNED behavior, it’s ADAPTIVE i.e. culture change in response to external forces that affects society Behavior is ADAPTIVE Defines the membership of the society i.e. who shares the culture ‘proves’ to be a member / who does not => outside of boundaries of society Culture is SHARED 16. Characteristics of Culture [relevant to IB] Culture = collection of values, beliefs, behaviors, customs and attitudes that distinguish one society from another  society culture determines how firms operates in the society INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

Person’s beliefs about the relative importance of the individual & groups to which that person belongs INDIVIDUALISM x COLLECTIVISM SOCIAL orientation Power RESPECT x TOLERANCE POWER orientation Uncertainty ACCEPTANCE x AVOIDANCE UNCERTAINTY orientation AGGRESSIVE x PASSIVE goal behavior GOAL orientation (Masculinity x Femininity) LONG-TERM x SHORT-TERM outlook TIME orientation 17. Hofstede’s 5 dimensions of cult.differencies INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

18. Hofstede’s 5 dimensions SOCIAL ORIENTATION INDIVIDUALISM Cultural belief that the person comes first Key values: high degree of self-respect & independence COLLECTIVISM Belief that group comes first Typically: well-defined social networks, extended families, tribes, co- workers = person’s beliefs about the relative importance of the individual & groups to which that person belongs INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

19. Hofstede’s 5 dimensions POWER ORIENTATION RESPECT People tend to accept the power & authority of superiors People at all levels in firm accept decisions of superiors TOLERANCE People are more willing to question / refuse a decision or mandate from sb at a higher position = refers to beliefs that people in a culture hold about the appropriateness of power and authority dif. in hierarchies INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

20. Hofstede’s 5 dimensions UNCERTAINTY ORIENTATION ACCEPTANCE Stimulated by change and thrive on new opportunities Ambiguity is seen as a context one can grow, develop, carve out new opp. Positive response to change AVOIDANCE People dislike ambiguity and will avid it whenever possible Amb. & change seen as undesirable Preference of routine, structured & consistent ways of doing = is the feeling people have regarding uncertain an ambiguous situations INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

21. Hofstede’s 5 dimensions GOAL ORIENTATION / Masculine x Feminine AGGRESSIVE g.behavior (Masculinity) People tend to place a high premium on material possessions, money & assertiveness PASSIVE g. behavior (Femininity) People place a higher value on social relationships, quality of life and concern for others = is manner in which people are motivated to work toward different kinds of goals INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

22. Hofstede’s 5 dimensions TIME ORIENTATION LONG-term outlook Value: dedication, hard work, and thrift SHORT-term outlook Value: traditions, social obligations = is extent to which members of a culture adopt a long- term vs. short-term outlook on work, life etc. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

23. Basic elements of Culture CULTURE Language Communi -cation Religion Values & Attitudes Social structure INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

-Culture and its impact on International Business -Characteristics of culture -Five dimensions of culture differences -Social orientation (individualism x collectivism) -Power orientation -Uncertainty orientation -Goal orientation (masculine x feminine) -Time orientation -Social stratification -Communication: verbal x non-verbal -Other culture aspects [time perception, contact zone, role of eyes, gift-giving, hospitality] 24. KEY terms INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

25. Thank you for your attention Ing. Pavla Břečková, Ph.D. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /