Seminar: Global business environment and culture

Topic Number: 13

Principles of Business

2

OverviewYou have successfully expanded your business globally however you have noticed that there are a variety of subcultures that have arisen in a number of different countries in which you operate. Furthermore, you have noticed that the operating environment is fundamentally different from one country to the other and it is hampering the way your company operates.

In this seminar you will look at the role of national culture in shaping the business culture. You are tasked with choosing two countries in which your business operates and using Hofestede’s cultural dimensions explain the differences in national culture. Thereafter, explain the differences in legal environments between the countries that you have chosen.

Finally, you will evaluate and highlight the type of organisation structure that would best suit the environments in which you operate.

3

Learning outcomes of this seminar

• Determine and demonstrate how you can use Hofstede’s Cultural dimensions in the context of your own business

• Be able to explain differences in global legal environments

• Critically evaluate and highlight the steps you would take to protect your business against the counterfeit market

• Be able to explain the main organisation structures of firms in a global environment

Agenda for this seminar

Explain the difference in legal environment in those countries

What organisation structure would you opt for?

Consider the different ways you could internationalise your company and some of the barriers

Use Hofstede’s Cultural Dimensions to explain two national cultures in which your business operates

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

Use Hofstede’s Cultural Dimensions

to explain two national cultures in which your business

operates

Hofstede Explained

View video: https://www.youtube.com/watch?v=6gJzRS0I7tA

A few country comparisons

A few country comparisons

A few country comparisons

The Myth of Culture

View video: https://www.youtube.com/watch?v=u_l84Dj2eXY

Consider the different ways you could

internationalise your company and some

of the barriers

A re-cap: Global Business Model to Market

Source: Daniels et al, 2013

Forms of International Business Activity

ImportingPurchasing goods or services from another country

and bringing them into one’s own

country

ExportingSelling and

shipping goods or services to

another country

LicensingAgreement to

produce and market another company’s

product in exchange for a royalty or fee

Foreign Direct InvestmentInvestment of

money by foreign companies in

domestic business enterprises

Multinational Corporations

Companies with operations in

more than one country

Consider how you can take advantage of the system

Illustration: Nicolsoncartoons.com

Trade barriers can get in the way

Source: Cato.org

Explain the difference in the legal

environment in those countries

Consider these elements

• The legal system is the mechanism for creating, interpreting, and enforcing the laws in a specified jurisdiction

Source: Daniels et al, 2013

• What is the basis of rule in a country?

– The rule of man• legal rights derive from the individual who

commands the power to impose them • associated with a totalitarian system

– The rule of law• systematic and objective laws applied by

public officials who are held accountable for their administration

• associated with a democratic system

Consider these elements

The Worldwide Practice of the Rule of Law

Source: Daniels et al, 2013

Consider these elements

What organisation structure would you

opt for?

Choosing the right structure

Tailor structure to your business

Most efficient management structure

Level of control/empowerment

Extent of hierarchy

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013