Culture - MBA 635 - Summer Term 2011

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CultureMary Ellen DeBardeleben

Eric Liddy Bradley NewcomerShelley Scarbrough

Katey Watkins

Culture

• What is culture?

Culture: acquired knowledge that people use to interpret experience and

generate social behavior

• Characteristics

• Importance of understanding culture

Hofstede’s Cultural Dimensions

• Power Distance

• Uncertainty Avoidance

• Individualism

• Masculinity

• Long term orientation (newest)

BRIC

Closer look

• Chinese and Arab culture

China

Chinese: Cultural Dimensions

Hofstede Scores- Power Distance

China80

USA40

World Avg.55

Chinese: Cultural Dimensions

Hofstede Scores- Uncertainty Avoidance

USA46

China40

World Avg.64

Chinese: Cultural Dimensions

Hofstede Scores- Masculinity

China66

USA62

World Avg.50

Chinese: Cultural Dimensions

Hofstede Scores: Individualism

USA91

China20

World Avg.64

Coca Cola Ads in China

Chinese Coca Cola TV Commercial

McDonalds Chinese TV Commercial

However, its not always this straight forward….

• In 2005, McDonalds had to withdraw a TV commercial in Shanghais following complaints that images attacked Chinese people’s dignity.

• The commercial showed a man kneeling before the clerk and begging for a discount at a local store. It then shifted its focus to McDonalds with the message that McDonalds offered cheap meals all year-round and there was no need to beg for coupons or discounts.

• In Chinese culture, begging is humiliating and many felt the commercial was offensive.

The Arab World

The Arab World: Cultural Dimensions

The Arab World: Cultural Dimensions

Hofstede Scores- Power Distance

Arab World

80

USA40

World Avg.55

The Arab World: Cultural Dimensions

Hofstede Scores- Uncertainty Avoidance

USA46

The Arab World: Cultural Dimensions

Hofstede Scores- Masculinity

The Arab World: Cultural Dimensions

Hofstede Scores: Individualism

Marketing to the Arab World

Marketing to the Arab World

Cultural Differences?

Quiz Time

Arab World Quiz Question

Poll: When formalizing a deal in the Middle Ea...

Questions

Resources

1. International Management; Culture, Strategy, and Behavior (Luthans and Doh), 7th edition.

2. http://www.cyborlink.com/besite/china.htm

3. http://www.geert-hofstede.com/geert_hofstede_resources.shtml

4. http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/

5. http://affiliate-marketing-forums.5staraffiliateprograms.com/marketing-jokes-cartoons-yuk-up/1401-advertising-bloopers-blunders.html

6. http://www.ad.nccu.edu.tw/ad_research_web/pdf/025-1.pdf

7. http://myasiancanadian.blogspot.com/2005/06/mcdonalds-ad-pulled-from-chinese-tv.html

8. http://www.youtube.com/watch?v=5Ith7KvAESI

9. http://www.fas.org/irp/agency/army/arabculture.pdf

10. http://www.geert-hofstede.com/hofstede_arab_world.shtml

11. http://en.wikipedia.org/wiki/McArabia

12. http://www.youtube.com/watch?v=TVoVZx0ded8

Arab World Quiz Question

When formalizing a deal in the Middle East, it is imperative to:

1. Determine that the contract is iron clad with strict attention to jurisdictional issues of international law to secure a just outcome should there be conflict

2. Solidify the interpersonal trust relationship as this rapport is critical both during the deal and if conflict develops

3. Retain legal counsel in the country in which the business undertakings will primarily take place and ensure that this attorney has a golfing relationship with most members of the judiciary.