1. Cultural and social influences
UNIT 7.2
INTRO TO BUSINESS
Cultural and social influences

2. Section 2.1 understanding Culture

3. culture Learned norms based on values,
attitudes, and beliefs of a group of
people

4. Values – strongly held concepts that are present in a culture
Values – strongly held concepts that are present in a culture. Values are connected to powerful emotions
Ex: In the US, many people value freedom
Norms – are social rules that affect behaviors and actions, and represent culture values.
Values & Norms

5. Examples of Cultural Values
United States
Japan
Arab Countries
Family security
Family harmony
Parental guidance
Age
Authority
Compromise
Devotion
Patience
Indirectness
Hospitality
Belonging
Group harmony
Collectiveness
Age/seniority
Group consensus
Cooperation
Quality
Patience
Indirectness
Go-between
Freedom
Independence
Self-reliance
Equality
Individualism
Competition
Efficiency
Time
Directness
Openness
Examples of Cultural Values

6. Folkways ad mores – are cultural customs that dictate how people act socially.
USA you are invited to a dinner at 7PM and it is normal to show up on time or a few minute early
In Great Britain that same invite for 7PM your guest will show up between 7:30 and 8:00PM
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7. Things that shape your Role:
ROLE - is the part a person plays in social institutions.
Things that shape your Role:
Norms
Values
Education
Religion
Gender Roles
Class
Customs
Folkways and Mores
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8. value Dimensions of culture
Power distance
Individualism or collectivism
Gender differentiation
Uncertainty avoidance
Short-term and long-term orientation

9. Power distance
The extent to which less powerful members of institutions and organizations accept that power is distributed unequally
High power distance countries: people may blindly obey the orders of their superiors and are less likely to question authority. Companies tend to use centralized decision-making and tall organization structures (many levels of management)
Low power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors. Employees are more likely to question their bosses. Participative management may be used.

10. Individualism and Collectivism
Individualism: Tendency of people to look after themselves and their immediate family only
Countries high in individualism: High individual initiative. Promotions are based on achievement. Salaries are based on market value.
Collectivism: Tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty
Countries high in collectivism: Low individual initiative. Salaries and promotions may be based on seniority

11. Gender differentiation
Masculinity: the dominant social values are success, money and things
Countries high in masculinity: People place great importance on earnings, recognition, advancement, challenge, and wealth. High job stress.
Femininity: the dominant social values are caring for others and the quality of life
Countries high in femininity: great importance on cooperation, friendly atmosphere, employment security, and the natural environment. Low job stress.

12. Uncertainty Avoidance
Uncertainty avoidance: Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations
High uncertainty avoidance countries: less willing to take risks
Low uncertainty avoidance countries: more willing to accept risk, which could lead to success

13. Short-term and long-term orientation
Short-term Results: emphasis on high sales that provide immediate benefits
Long-term Results: focus on factors such as customer loyalty (relationship based)

14. Sub-cultures
Groups within a culture may be part of a sub- culture that varies in some ways from the national culture.
Ex: suburban men who enjoy football or golf
People who have worked outside their own country or have friends from other cultures may pick up some attitudes or behaviors from the other culture.

15. Section 2.2 participating IN CULTURE
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16. Religious Organizations
Social institutions
Organizations that represent the patterns of activity
that express the culture of a country
Educational Systems
Religious Organizations
Gender Roles
Class Systems
Degrees of Mobility

17. Culture shock A reaction that newcomers to a culture may experience
3 Road Blocks to adjusting to a new culture:
Culture baggage - your beliefs, values, and assumptions that people carry
Culture bias - a preconceived attitude of favoring or disliking a particular culture
Stereotyping - the practice of identifying a person or group by a single trait

18. Cultural diversity
A means of gaining global competitive advantage by bringing together people of diverse backgrounds and experience

19. Impact of Cultural Differences
International trade depends on our response to and acceptance of cultural differences. Culture is the sum of a country’s way of life, beliefs, and customs.
IMPACT OF CULTUREAL DIFFERENCES
Culture influences what can and can not be done, of what is acceptable and unacceptable.
Culture can be learned.
Operating in different cultures requires research that looks at important social and environmental issues and demographic characteristics that shape the market.
Greetings
Handshakes are common in most countries, but they are not all done the same way.
A single shake in France is acceptable.
Eye contact is polite in most cultures, in some however averting your eyes is a sign of respect.

20. Dealing with People
Conducting successful business in foreign countries involves learning what is important to their populations as well as its cultural nuances.
Punctuality
The value of punctuality depends on the cultures: some cultures value timeliness, some do not. It is important to understand this before visiting foreign countries. Other characteristics to recognize are working at an acceptable pace, having good manners, and learning to avoid waits and disappointments.

21. Good Manners
In the United States, and some European countries, business is completed at a quick and efficient pace. Most other countries prefer to get to know people before any business is done.
Decision Making
In North America, decision making is typically top-down. In other cultures, decisions are made from the bottom up.