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Culture, Management Style,
and Business Systems
Question to be answered?
What is the inf luence of culture on
international marketing?
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Culture 3 Perspectives
National culture
Sub-culture a distinct section of the community
Corporate culture
You are not born with a culture, it is learned.
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National Culture
Sub Culture
Corporate Culture
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Culture includes all that we havelearned in relation to:
Values and normsCustoms and traditions
Beliefs and religions
Rituals and Artifacts(i.e. tangible symbols of a culture, such as BOOST! or the Great Wall of
China)
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3 Types of Customs1. Cultural Imperatives
Business customs and expectations that MUSTbe met in order to conduct successful businesstransactions in other countries/cultures
2. Cultural Electives
Business customs and expectations that are
OPTIONAL, but is not required. May help to establish rapport and respect
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Types of Customs3. Cultural Exclusives
Customs that are reserved exclusively for the
locals, where foreign participation is EXCLUDED
Example:
Foreign business people criticizing local politicians,
business practices where it is acceptable for the localto do so
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The Impact of American Culture
on Management StyleMost widely accepted views regardingU.S. culture:
Master of destiny viewpoint
Reward based on merit
Decisions based on objective analysis
Wide sharing in decision makingNever-ending quest for improvement
Competition yielding efficiency
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Management Styles around the
WorldTypes of Decision Making Approaches
1. The authoritative approach
Top level management decision making is usually foundin smaller businesses
2. The delegated approach (U.S.) Allows executives at different levels to exercise
authority over their own functions3. The committee approach
Decisions are made by consensus or in a group (Japan)
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Communication Styles
- HighContext Cultures!Middle East, Asia, Africa, and South America
emphasize interpersonal relationships and trust.
Collectivist culture, preferring group harmony andconsensus to individual achievement.
less governed by reason than by intuition or feelings.
Context over words: speakers tone of voice, facial
expression, gestures, postureand even the personsfamily history and status.
Flowery language, humility, and elaborate apologies aretypical.
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Low Context Culture(North America and much of Western Europe)
logical, linear, individualistic, and action-oriented. DIRECT Solving a problem means lining up the facts and evaluating
one after another. Discussions end with actions Decisions are based on fact rather than intuition. . And communicators are expected to be straightforward,
concise, and efficient in telling what action is expected. To be absolutely clear, they strive to use precise words and
intend them to be taken literally.
Explicit contracts conclude negotiations. High-context business people may even distrust contracts
and be offended by the lack of trust they suggest.
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Relationship-Oriented vs.
Information-Oriented CulturesRelationship Orientation
Japan and other Asian countries
Information Orientation
U.S., Great Britain
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Importance of Communication when
adapting to business customs
Communication
Translation and interpretation
P-time vs. M-time
M-time (monochronic) concentrate on onething at a time
P-time (polychronic) completion of atransaction is more important than sticking to aschedule
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Business EthicsBribery & Extortion
Bribery
Voluntary payment offered by individual(s) seeking anunlawful advantage SEC regulates U.S. Companies domestically and
internationally
Transparency International organization dedicated tocurbing corruptions worldwide
Extortion Payments are extracted under duress by someone in an
authoritative position (host country)
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Business EthicsSubordination & Lubrication
Subordination
Involves giving large sums of money
Lubrication
Involves giving small amounts of money, or gifts
Foreign Corrupt Practices Act (FCPA) Important act that prohibits U.S. businesses from paying
bribes openly or using middlemen or agents to bribe onbehalf of the U.S. business
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Business Customs on the InternetPoints to be aware of:
A message on a companys website is viewed as
an extension of that companyMajority of websites are seen worldwide andtranslation can often convey incorrect meaning oroffend other cultures
Approximately 78% of website is written in EnglishCompanies must pay attention to symbols, iconsor any non-verbal messages on their websites