cross-cultural business copyright © 2014 pearson education, inc. 2
TRANSCRIPT
Cross-CulturalCross-CulturalBusinessBusiness
Copyright © 2014 Pearson Education, Inc.
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Copyright © 2014 Pearson Education, Inc.
Chapter ObjectivesChapter Objectives
• Describe culture and explain the significance of both national
culture and subcultures
• Identify the components of culture and describe their impact
on international business
• Describe cultural change and explain how companies and
culture affect each other
• Explain how the physical environment and technology
influence culture
• Describe two frameworks used to classify cultures and explain
their practical use
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HariboHaribo
• Problem: Not serving $2 billion subculture• Culprit: Pork-based gelatin in the candies• Solution: New bacteria-based compound
• Problem: Not serving $2 billion subculture• Culprit: Pork-based gelatin in the candies• Solution: New bacteria-based compound
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Copyright © 2014 Pearson Education, Inc.
What is Culture?What is Culture?
Set of values, beliefs, rules, and institutions held by a specific group of people
Cultural literacyDetailed knowledge of a culture that enables a person to function
happily and effectively within it √√
EthnocentricityBelief that one’s own
ethnic group or culture is superior to
that of others
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Culture Matters:Culture Matters:Creating a Global MindsetCreating a Global Mindset
CulturalAdaptability
CulturalAdaptability
Bridgingthe GapBridgingthe Gap
FlexibilityIs Key
FlexibilityIs Key
BuildingGlobal Mentality
BuildingGlobal Mentality
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National CultureNational Culture
Nation states build museums and monuments to preserve the legacies of important events and people
Filmmakingand
Broadcasting
Filmmakingand
Broadcasting
Guggenheimand
Hong Kong Disney
Guggenheimand
Hong Kong Disney
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SubcultureSubculture
People who share a unique way of life within a larger culture (language, race, lifestyle, attitudes, etc.)
EXAMPLES
Goth, Punk, Emo
China’s Dialects
Groups in U.S.
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Discussion QuestionDiscussion Question
Why should business people try to avoid ethnocentricity and develop cultural literacy?
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Answer to Discussion QuestionAnswer to Discussion Question
Ethnocentricity distorts our view of other cultures and causes us to overlook important human and environmental differences among cultures.
Cultural literacy improves the ability of managers to manage employees, develop and market products, and conduct negotiations in local markets.
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Components of CultureComponents of Culture
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Physicalenvironments
Education
Personalcommunication
Religion
Social structure
Manners &customs
Values &attitudes
Aesthetics
CultureCulture
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AestheticsAesthetics
Music
Painting
Dance
Drama
Architecture
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Values and AttitudesValues and Attitudes
ValuesValuesValuesValues AttitudesAttitudesAttitudesAttitudes
Positive or negative Positive or negative evaluations, feelings, and evaluations, feelings, and tendencies people hold tendencies people hold
toward objects or conceptstoward objects or concepts
Ideas, beliefs, and Ideas, beliefs, and customs to which customs to which
people are emotionally people are emotionally attachedattached
• FreedomFreedom• ResponsibilityResponsibility• HonestyHonesty
• TimeTime• WorkWork• Cultural changeCultural change
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Cultural DiffusionCultural Diffusion
Spread of cultural traits across cultures causes much cultural change
Spread of cultural traits across cultures causes much cultural change
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Manners and CustomsManners and Customs
Manners
Appropriate behavior, speech, and dressing
in general
Customs
Traditional ways or behavior in specific
circumstances
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CustomsCustoms
Gift GivingGift Giving
FolkFolk
PopularPopular
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Discussion QuestionDiscussion Question
Customs differ from _______ in that they define appropriate ways or behaviors in specific situations.
a. Values
b. Attitudes
c. Manners
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Answer to Discussion QuestionAnswer to Discussion Question
Customs differ from _______ in that they define appropriate ways or behaviors in specific situations.
a. Values
b. Attitudes
c. Manners
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Manager’s Briefcase:Manager’s Briefcase:
A Globetrotter’s Guide to A Globetrotter’s Guide to MeetingsMeetings
Familiarity
Personal Space
Religious Values
Business Cards
Comedy
Body Language
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Copyright © 2014 Pearson Education, Inc.
Social StructureSocial Structure
Social groupTwo or more people who identify and
interact with each other
Social stratificationProcess of ranking people into social layers
Social mobilityEase of moving up or down a culture's
"social ladder"
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World ReligionsWorld Religions
Christianity
Islam
Hinduism
Buddhism
Confucianism
Judaism
Shinto
Origin ofHuman Values
Origin ofHuman Values
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Modernization andModernization andTraditional BeliefsTraditional Beliefs
Does globalization endanger traditional beliefs, such as living a life void of
materialistic ambitions?
Does globalization endanger traditional beliefs, such as living a life void of
materialistic ambitions?
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Language BlundersLanguage Blunders
Japanese knife manufacturer labeled its exports to the United States
with “Caution: Blade extremely sharp! Keep out of children.”
English sign in a Moscow hotel read, “You are welcome to visit the
cemetery where famous Russians are buried daily, except Thursday.”
Sign for non-Japanese-speaking guests in a Tokyo hotel read, “You
are respectfully requested to take advantage of the chambermaids.”
Sign in English at Copenhagen ticket office read, “We take your bags
and send them in all directions.”
Braniff Airlines’ English-language slogan “Fly in Leather” was
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• Many endangered languages
• Yet English, Mandarin, and Spanish are expanding
• Lost languages means lost knowledge
• Linguists are recording most threatened languages
Global Sustainability:Global Sustainability:
Speaking in Fewer TonguesSpeaking in Fewer Tongues
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Lingua FrancaLingua Franca
¿Hola? Guten Tag?
Hello??
Ni Hao? Bonjour?
Hello!!!
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Mixed SignalsMixed Signals
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Discussion QuestionDiscussion Question
How does an understanding of the spoken, written, and body language in a market abroad contribute to business success?
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Answer to Discussion QuestionAnswer to Discussion Question
Knowledge of a culture’s spoken, written, and body language gives international managers insight into why people think and act the way they do.
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EducationEducation
Cultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc.
Education level
Well-educated attract high-paying jobs, while poorly educated attract low-paying manufacturing jobs
Brain drain
Departure of highly educated people from one profession, geographic region or nation to another
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Problem of IlliteracyProblem of Illiteracy
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Physical and Material CulturePhysical and Material CulturePhysical and Material CulturePhysical and Material Culture
These influence a culture’s development and pace of changeThese influence a culture’s development and pace of change
TopographyPhysical features characterizing the surface of a geographic region
TopographyPhysical features characterizing the surface of a geographic region
ClimateWeather conditions of a geographic region
ClimateWeather conditions of a geographic region
Material CultureTechnology used to manufacture goods and provide services
Material CultureTechnology used to manufacture goods and provide services
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Kluckhohn-Strodtbeck Kluckhohn-Strodtbeck FrameworkFramework
Relation to nature
Time orientation
Trust and control
Material or spiritual
Responsibility to others
View of personal space
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Hofstede FrameworkHofstede Framework
Individualism Individualism vs. collectivismvs. collectivismIndividualism Individualism
vs. collectivismvs. collectivismPowerPower
distancedistancePowerPower
distancedistance
MasculinityMasculinityvs. femininityvs. femininity
MasculinityMasculinityvs. femininityvs. femininity
UncertaintyUncertaintyavoidanceavoidance
UncertaintyUncertaintyavoidanceavoidance
Long-termLong-termorientationorientationLong-termLong-termorientationorientation
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Power Distance &Power Distance &Individualism vs. CollectivismIndividualism vs. Collectivism
Source: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p. 82.
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Power Distance &Power Distance &Uncertainty AvoidanceUncertainty Avoidance
Source: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p. 84.
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Discussion QuestionDiscussion Question
Cultures with small ____________ tend to display greater equality and a more equal distribution of rewards.
a. Individualism
b. Power distance
c. Uncertainty avoidance
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Answer to Discussion QuestionAnswer to Discussion Question
Cultures with small ____________ tend to display greater equality and a more equal distribution of rewards.
a. Individualism
b. Power distance
c. Uncertainty avoidance
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