1. The International Business Environment

3. Culture and Cultural Change

4. 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

5. 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.

6. “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).

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

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

18. 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

19. 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

20. 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.

21. 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

22. 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

23. 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

24. 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

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