Cultural Dynamics

Class 4

Some Cultural Facts

• An American firm lost floor wax sales in Brazil because a change in the formula made the product less effective as a lighter fluid to ignite Sunday Barbecues.

• Germans prefer salad dressing in a tube.

• Kellogg’s Pop Tart failed in Europe, as many homes do not have toasters.

•Mountain Dew soft drink in difficult to pronounce in Portuguese, and sales have been slow in these markets.

• Two-liter pop bottle failed in Spain because of small refrigerators

• Although 89% of Americans agree that everyone should use deodorant, only 53% of Australians agree with this statement

I was meeting with a group of Japanese businessmen in Tokyo, and our morningdiscussions had not gone well. For lunch my hosts rented a private room in arestaurant. As is the custom, they took off their shoes. I was wearing my dresscowboy boots and removed them. No sooner had we sat cross-legged on the dining mats than I began to receive the first smiles and laughter of the day. I was puzzled until one man said, "Mickey Mouse," pointing to my socks. My children had packed this footwear, which they had given me for my birthday. Not realizing I would be taking off my boots, I wore the socks. That moment in the restaurant was the turning point of the trip, and before I left Japan we had an agreement.

Take off the shoes to win

National Differences in Culture

What is CULTURE?– shared system of values and norms that offer a

design for living Values: abstract ideas about what is good, right and

desirable Norms: social rules and guidelines that prescribe

appropriate behavior in particular situations

Self-Reference Criterion

An unconscious reference to one’s own cultural values, experiences and knowledge as a basis for decisions.

Theoretical Frameworks to Understand Culture

I. High and Low Context Cultures

High Context Cultures (Japan, Saudi Arabia)– Meaning of individual behavior and speed

changes depending on the situation

– Nonverbal messages full of important and intended meanings, subtle

– Important to “read between the lines”

I. High and Low Context Cultures

Low Context Cultures (USA)– Intentions are expressed verbally, directly

– Situation is not allowed to change the meaning of words and behavior

– Straight talk

Factors/Dimensions

High Context Low Context

Lawyers Less Important Very Important

A Person’s word Is his or her bond Is not be relied upon,“get it in writing”

Responsibility fororganizational error

Taken by highest level Pushed to lowest level

Space People breathe on eachother

People carry a bubbleof private space withthem

Time Polycronic – everythingin life must be dealtwith in term of its owntime

Monocronic – time ismoney

Negotiations Are lengthy – knoweach other first

Proceed quickly

Country Examples Japan, Middle East Canada, U.S., NorthernEurope

Silent Languages

Five different silent languages– Time– Space– Material possessions– Friendship patterns (reciprocity)– Agreements (emphasis on legal contracts)

All have important economic implications

II. Hofstede’s Model

Power Distance: tolerance of inequalities of intellectual and physical capabilities

Individualism versus collectivism: relationship between individual and his or her fellows

II. Hofstede’s Model

Uncertainty avoidance: acceptance of ambiguous situations and tolerance of uncertainty.

Masculinity versus femininity: identification of gender and work roles (Japan - HI; Sweden - LO)

Confucian Dynamics: long term vs short term orientation

Hofstede’s Classification of Triad CountriesHofstede’s Classification of Triad Countries

Japan North America W. Europe (Canada, USA, Great Britain) Northern Continent

Individualism low high high low

Power distance

high low low high

Masculinity high high low high

Risk tolerance low high high low

Context high low high low

Cultural Issues Technological and Material Culture Communication and Language Aesthetics Education Religion Attitudes and Values Social Organization

Determinants of Culture

Norms/ Values

Social Structure•Group and individual•Social classes and mobility

Language•Spoken and silent

ReligionPolitical

Philosophy

Economic Philosophy

Education

Technological and Material Culture

Material Culture - tools and artifacts (physical things) in a society, excluding those physical things found in nature unless they undergo some technological change e.g. tree to Christmas tree or orchard

Technology - Techniques to make and use those things.

Communication and Language

Language as a Communication Tool

Verbal or Nonverbal Communication Nonverbal

Religion

Holidays

Taboos and Consumption Patterns

Economic Development and Materialism

Values and Attitudes

Marketing Activities Wealth, Material Gain, and Acquisition Work Ethic Change Risk Taking Competitiveness Status Symbols Nationalism

Aesthetics

Design Color Music Choice of brand names, packaging etc.

Education

Levels of Participation

Literacy Rates

Emphasis on Specific Subjects

Social Organization

Family Unit

Peer Groups

Role models

Implications for Business Need to develop cross-cultural literacy:

– adaptation– the dangers of ethnocentrism

Culture impacts cost of doing business & competitiveness– Class structure in UK leads to industrial disruption as against

Japan’s group identification– Hinduism’s ascetic ethics vs Protestant work orientation– Islamic Banking laws

Implications for:– understanding competition– which market to locate production facilities– which market to enter; developing marketing programs

Comparisons & ContrastsJapan USA

Japan USA

Individual With a Skill

OrganizationManView of Self

IndependenceInterdependenceAssumptions

CompetitionCooperationStyle

RightsObligationsEmphasis

Self-ExpressionIndependence

Self-DenialDependenceAttitude

GroupMyth / HeroEmphasis Individual

Comparisons & ContrastsJapan USA

Production / Financial Return

Quality / Customer ValueOrganization Goal 3

National MarketsWorld MarketsOrganization Goal 2

Share of MarketOrganization Goal 1(Jobs / Employment)

Profitability,Financial Success

"Not Invented Here"Syndrome

Willing To Borrow/Adopt/AdaptCultural Attitude 2

Everyone IsJust Like UsWe Are UniqueCultural Attitude 1

Japan USA

Comparisons & ContrastsJapan USA

Japan USA

FreedomSuccessWinning

PerfectionHarmony

ConsensusKey Values & Goals

StockholdersEmployeesKey Stakeholder

40 : 6080 : 20Financial Structure(Debt : Equity)

SeparationCooperationGovernmentalBusiness Relations

ThinkingFeelingTrust In

GeneralistManagement

Craft / FunctionCompanyWorkerIdentification

Specialist