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Implementing PRO Systems Across the Globe: Overcoming Cross Cultural Barriers
Mehran FarahmandMay 10, 2001
Agenda
What is culture? How do people from different cultures behave? Why do we (should we) care? Q & A
3
What is Pricing and Revenue Optimization (PRO)?
It is a disciplined process of determining: what products and services should be offered to
which customers, at what prices,
through which channels in order to maximize profits and win the business.
It is a disciplined process of determining: what products and services should be offered to
which customers, at what prices,
through which channels in order to maximize profits and win the business.
4
World According to AGIFORS
•Singapore
•UK
•Japan
•USA
•New Zealand
•Canada
•Thailand
France•
•Iran
•Brazil
•Mexico
•Chile
•Israel
•Finland
Ireland •
•Switzerland•Spain
•Germany•Netherlands
•Italy
•Denmark
•Hong Kong
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Cultural Influences
Business
Business
Processes
Processes
Peo
ple
Peo
ple
Information Information SystemsSystems
PRO Themes
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“Culture is Communication &
Communication is Culture”
Edward T. Hall“The Silent Language”
What is Culture?
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Country Culture Impacts Organizations
• Think of it as the soul of the organization– Identify the symbols– Determine what people value most– Listen to the “stories”– Recognize the unwritten rules
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Your “Position” in the Society
• How you are addressed• How you address others• Where you are invited to sit• Where you sit• Walking in front of others• Greetings and show of affection
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Communication/Gestures
• “Aizushi”• Paying attention in a meeting• Looking in the eye• Other gestures
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Eating/Drinking
• Honto • Drinking sake in Japan• Passing the sake cup in Korea• Not drinking and driving in America• Sharing food• Hygienic Sushi
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Space
• Your office• Showing home to the guest• Saving the best room for the guest• The comfort zone
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Questions
• What is the biggest misconception of your country (culture)?
• Pick any other country and write it down.
• Mention the first image or thought that comes to your mind you think of the culture or people of this country.
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Any Thoughts?
• Who picked India as his/her country?
• Who picked Mexico as his/her country?
• Who picked New Zealand as his/her country?
• Who picked Denmark as his/her country?
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Any Thoughts?
• Who picked America as the other country?
• Who picked Belgium as the other country?
• Who picked China as the other country?
• Who picked Iran as the other country?
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Hofstede’s Model
• Explanations of cultural differences bases on 4 criteria– Power distance (PDI)– Uncertainty avoidance (UAI)– Individualism vs. collectivism (IDV)– Masculinity vs. femininity (MAS)
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Power Distance• Distribution of power in the group and the tolerance /
expectation of inequalityPDI Low High
Inequality Bad Expected
Hierarchy Rough Smooth
Management Available Inaccessible
Superiors Equal On a pedestal
Change Evolution Revolution
ExamplesAustralia, Israel,
New ZealandPhilippines, Mexico,
India
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Uncertainty Avoidance• Avoidance of unknown, embracing the familiar
UAI Low High
Procedures Adhoc Formal
Rules Limited Lots
Feelings Shown Less Shown More
Competition Fair Unfair
Disagreements Normal Unusual
Risk Embrace Avoid
Judgement Facts, Data Intangible
Examples Singapore, Denmark, Sweden
Greece, Japan, France
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Individualism vs. Collectivism:
• “I” versus “We”
IND Low High
Interest in Self Group
Values Same for all Different for in and out groups
Examples Venezuela, Mexico, Japan
U.S., Australia, U.K., Netherlands
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Masculinity vs. Femininity• Hard core success vs. soft-core caring
MAS Masculine Feminine
Value Achievement Quality of Life
Success Tangible Intangible
Examples Japan, Mexico, U.K. Sweden, Norway, Netherlands
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Culture
• Processes
• Organization
• Decision Making
People• Tools & Systems
• Leadership
•Jobs Perform
Vision
Strategy
Plan
• Performance Measurement & Feedback System
Cultures Impact All Aspects of the Organization
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Money ….Yes….but…...
• Decrease cost• Increase revenue• Serve the nation• Make employees happy• Reduce workload
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Revenue Management Processes
Develop Product
Promote Product
Manage Supply
Manage Demand
Deliver Product
MaintainDistribution
Channel
Sell Product
Organization Structure
Information Technology
Cultures Impact our Work Processes
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Great Sources Used Here
• Greet Hofstede – “Culture’s Consequences:International – Differences in Work-related values”
• Edward T. Hall – “The Silent Language”
• Albert Camus– “L’etranger”
• Mehran Farahmand– “The Shadow: Running Circles Around the Past” 【 Work in progress 】