1. Cultural Dynamics Class 4

2. Some Cultural Facts An American firm lost floor wax sales in Brazil because a change in the formula made the product less effective as a lighter fluid to ignite Sunday Barbecues. Germans prefer salad dressing in a tube. Kellogg’s Pop Tart failed in Europe, as many homes do not have toasters. Mountain Dew soft drink in difficult to pronounce in Portuguese, and sales have been slow in these markets. Two-liter pop bottle failed in Spain because of small refrigerators Although 89% of Americans agree that everyone should use deodorant, only 53% of Australians agree with this statement

3. I was meeting with a group of Japanese businessmen in Tokyo, and our morning discussions had not gone well. For lunch my hosts rented a private room in a restaurant. As is the custom, they took off their shoes. I was wearing my dress cowboy boots and removed them. No sooner had we sat cross-legged on the dining mats than I began to receive the first smiles and laughter of the day. I was puzzled until one man said, "Mickey Mouse," pointing to my socks. My children had packed this footwear, which they had given me for my birthday. Not realizing I would be taking off my boots, I wore the socks. That moment in the restaurant was the turning point of the trip, and before I left Japan we had an agreement. Take off the shoes to win

4. National Differences in Culture F What is CULTURE? –shared system of values and norms that offer a design for living u Values: abstract ideas about what is good, right and desirable u Norms: social rules and guidelines that prescribe appropriate behavior in particular situations

5. Self-Reference Criterion F An unconscious reference to one’s own cultural values, experiences and knowledge as a basis for decisions.

6. Theoretical Frameworks to Understand Culture

7. I. High and Low Context Cultures F High Context Cultures (Japan, Saudi Arabia) –Meaning of individual behavior and speed changes depending on the situation –Nonverbal messages full of important and intended meanings, subtle –Important to “read between the lines”

8. I. High and Low Context Cultures F Low Context Cultures (USA) –Intentions are expressed verbally, directly –Situation is not allowed to change the meaning of words and behavior –Straight talk

10. Silent Languages F Five different silent languages –Time –Space –Material possessions –Friendship patterns (reciprocity) –Agreements (emphasis on legal contracts) F All have important economic implications

11. II. Hofstede’s Model F Power Distance: tolerance of inequalities of intellectual and physical capabilities F Individualism versus collectivism: relationship between individual and his or her fellows

12. II. Hofstede’s Model F Uncertainty avoidance: acceptance of ambiguous situations and tolerance of uncertainty. F Masculinity versus femininity: identification of gender and work roles (Japan - HI; Sweden - LO) F Confucian Dynamics: long term vs short term orientation

13. Hofstede’s Classification of Triad Countries

14. Cultural Issues ¶ Technological and Material Culture · Communication and Language ¸ Aesthetics ¹ Education º Religion » Attitudes and Values ¼ Social Organization

15. Determinants of Culture Norms/ Values Social Structure Group and individual Social classes and mobility Language Spoken and silent Religion Political Philosophy Economic Philosophy Education

16. Technological and Material Culture J Material Culture - tools and artifacts (physical things) in a society, excluding those physical things found in nature unless they undergo some technological change e.g. tree to Christmas tree or orchard J Technology - Techniques to make and use those things.

17. Communication and Language Language as a Communication Tool J Verbal or Nonverbal Communication J Nonverbal

18. Religion J Holidays J Taboos and Consumption Patterns J Economic Development and Materialism

19. Values and Attitudes J Marketing Activities J Wealth, Material Gain, and Acquisition J Work Ethic J Change J Risk Taking J Competitiveness J Status Symbols J Nationalism

20. Aesthetics J Design J Color J Music J Choice of brand names, packaging etc.

21. Education J Levels of Participation J Literacy Rates J Emphasis on Specific Subjects

22. Social Organization J Family Unit J Peer Groups J Role models

23. Implications for Business F Need to develop cross-cultural literacy: –adaptation –the dangers of ethnocentrism F Culture impacts cost of doing business & competitiveness –Class structure in UK leads to industrial disruption as against Japan’s group identification –Hinduism’s ascetic ethics vs Protestant work orientation –Islamic Banking laws F Implications for: –understanding competition –which market to locate production facilities –which market to enter; developing marketing programs

24. Comparisons & Contrasts Japan USA JapanUSA Individual With a Skill Organization Man View of Self IndependenceInterdependenceAssumptions CompetitionCooperationStyle RightsObligationsEmphasis Self-Expression Independence Self-Denial Dependence Attitude Group Myth / Hero Emphasis Individual 

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

26. Comparisons & Contrasts Japan USA JapanUSA Freedom Success Winning Perfection Harmony Consensus Key Values & Goals StockholdersEmployeesKey Stakeholder 40 : 6080 : 20 Financial Structure (Debt : Equity) SeparationCooperation Governmental Business Relations ThinkingFeelingTrust In GeneralistManagement Craft / FunctionCompany Worker Identification Specialist 