EFFECTS OF CULTURE ON

BUSINESS

What is culture?

Culture is the characteristics and

knowledge of a particular group of

people, defined by everything from

language, religion, cuisine, social

habits, music and arts.

Impact of Language on Business

• Culture is the characteristics and knowledge

of a particular group of people, defined by

everything from language, religion, cuisine,

social habits, music and arts.

Impact of Language on Business

• One of the first barriers that companies face on the path of internationalisation is differences in natural languages.

Impact of Language on Business

• The language diversity has created problems for companies in integrating their workforces and marketing products on a truly national level.

Impact of Language on Business

• When a new product or service enters another language area, it may take on an Anglicized name. For example, Russians call tight denim pants dzhinsi (pronounced “jeansy”) the French call a self-service restaurant le self.

Impact of Language on Business

• In Taiwan, the translation of the Pepsi slogan “Come alive with the Pepsi Generation“ is changed as “Pepsi will bring your ancestors back from the dead“.

Impact of Language on Business

• In China,the name Coca-Cola was first rendered as Ke-kou-ke-la.Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means “bite the wax tadpole” or “female horse stuffed with wax” depending on the dialect.

• Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, “ko-kou-ko-le“, which can be loosely translated as “happiness in the mouth“.

Impact of Language on Business

Impact of Language on Business

Culture is the characteristics and knowledge of a

particular group of people, defined by everything

from language, religion, cuisine, social habits,

music and arts.

Music and Arts

Music and Arts• One of the easiest way to reach people is music and

arts-especially tv series.When you reach people,yourjob is pretty easier for business and marketing.

Music and Arts

• Some countries have realized thegreatiest impact of tv series,music anddifferent arts on business.

Music and Arts

KOREA

Music and ArtsKorean Hallyu Wave

The Korean wave(Hallyu) refers to the phenomenon of Korean entertainment and popular culture rolling over the world with pop music, TV dramas, and movies. The Hallyu, meaning Korean Wave, has been described by the newspaper the Korea Times, as the 21st Century version of the Silk Road which once served as a conduit for trade and cultural exchanges between the East and the West.

Music and Arts

• First major wave of Hallyu was driven by Korean TV dramas within the Asian continent.In 1998 President Kim Dae-Jung introduced a Cultural Industry Policy with a special focus on TV drama. The new wave of Korean pop music, referred to as K-pop, has now spread beyond Asia, reaching as far as Latin America, Africa, and the Middle East.

Music and Arts

• The booming presence and enjoyment of Korean popular culture has also transformed into preference for other Korean products and lifestyles alike, leading to an increase in Korean product sales overseas. The growing interest in Korean culture has further triggered a rise in inbound foreign tourists.

Music and Arts

Music and Arts

• The country last year raked in $5 billion from its pop-culture exports, and the government aims to double this figure by 2017. Meanwhile, inbound tourist arrivals jumped 8.3 percent on year to a record 12.2 million visitors in 2013, statistics from the Korea Tourism Organization.

Music and Arts

Music and Arts

İstanbul-Gyeongju 2013 Dünya Kültür Expo

Music and Arts

• İstanbul-Gyeongju2013 World Culture

Expo was prepared formaking the cultural

relationship strongerbetween Turkey andKorea.Besides that,

Kadir Topbaş implements,Silk Road is invigorated by Expo and this event made a major contribution totourism and econmy.

Music and Arts

• Turkish Tv Series also have a wide audience in the world.

Music and Arts

• TV dramas have emerged as Turkey’s most popular cultural export in the past decade. The export revenues for broadcast rights of TV dramas increased from 1 million dollars in 2007 to $130 million in 2012. International interest in Turkish TV dramas started in the Middle East nearly a decade ago when millions of Arab TV viewers were captivated by “Gümüş” (Noor in Arabic). Now the geographic reach of Turkish TV dramas has expanded from Pakistan to Eastern Europe, with market expansion continuing.

Music and Arts

Religion

• Culture is the characteristics and

knowledge of a particular group

of people, defined by everything

from language, religion, cuisine,

social habits, music and arts.

Religion

• Religion is a strong shaper of values. Religion of a nation has influence on the way firms are doing business like working hours, holidays, preferences and tastes.

Religion• For example, McDonald’s agreed not to serve

beef in India because of criticism from Hindus, the Israeli national airline, does not fly on Saturday, the holiday in Judaism.

Religion• But not all nations that practice the same

religion have the same constraints on business. For example, Friday is normally not a workday in predominantly Muslim countries because it is a day of worship; however, Turkey is a secular Muslim country that adheres to the Christian work calendar to be more productive in business dealings with Europe.

Mc-Donald’s

McDonald's dispensed with its most prominent ingredient

in order to respect, and to please, its Indian customers.

Many Indians eat no beef or pork, or any meat at all.

According to Vikram Bakshi, managing director of

McDonald's India North, it was necessary to adapt the

company's offerings while keeping the core brand values

consistent across cultures.

Religion

Religion• "The menu has evolved over the

years according to customers'

needs," says Bakshi. "Local creations

like McAloo Tikki Burger, Curry Pans,

Wraps Pizza McPuff, and McVeggie

are established.Today 70 percent of

our menu is ‘Indianized', and the

McAloo Tikki burger is our highest

selling product. "

Religion• Mc Donald’s also has

operations in Turkey and

take into consideration of

our local tastes and food

habits means that Mc

Donald’s is also adapting

to Turkish culture. The

product it serves us is

McTurko beyond its other

classical products.

Social Habits

• Culture is the characteristics and

knowledge of a particular group

of people, defined by everything

from language, religion, cuisine,

social habits, music and arts.

Social Habits• Avoid doing the things below when making

business with Japanese people;• Do not blow your nose in a public place (including

meeting rooms).

• Do not grab your host's hand in meetings.

• Never pat a Japanese man on the back or shoulder.

• Always smile, be pleasant, be willing to learn, ask a lot of questions about your customer's company (and none about his/her private life).

Social Habits

Social Habits• Avoid doing the things below when making

business with Italian people;

• Avoid talking about religion, politics, mafia and World War II. Good conversational topics include Italian culture, art, food, wine, family, and films.

• Don’t expect the meeting to start on time.

Social Habits

Social Habits• Other Tips for Meetings

• France;Wear an offical dress.

• Saudi Arabia;During the greetings kiss threetime(never ever try to kiss a women).

• Germany;Be there on time.

• Culture is the characteristics and

knowledge of a particular group

of people, defined by everything

from language, religion, cuisine,

social habits, music and arts.

Cuisine

Cuisine

Preferences and tastes may be different for each individual, it also differs among different cultures. For example, Japan people dislike sour tastes like lemon, and colors that is reminder of sour (yellow). Because of this perception, firms using yellow packages on their product have faced a decrease in their sales.

CuisineKellogg’s

Kellogg's set up a branch in India and started selling Corn Flakes. What they didn't realize was that Indians think that to start the day with something cold -- like cold milk on their cereal -- is a shock to the system. And if they pour warm milk on Kellogg's Corn Flakes, they instantly turn into wet paper.

In business studies, when you look at a market, you have to know something about its anthropology and its cultural rituals. What Kellogg’s ignored was that the Indians dislike cold breakfast.

Comments on Managing With Cultural Differences

• Although there are cultural differences between different companies belonging to the different nations, these differences are not necessarily a handicap. There is a need for understanding between the firms in the different cultures. The parties must learn how to cope with the cultural differences that exist. In order to manage these cultural differences, first of all we must admit that there exist cultural differences in different nations. So, if multinational firms want to be successful in different markets, they must be flexible and respond the local preferences, tastes and perceptions which are different from their home country.

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References

• http://www.hurriyetdailynews.com/turkeys-tv-drama-industry-deserves-more-attention.aspx?pageID=449&nID=78068&NewsCatID=396

• http://www.slideshare.net/UmutKeklik/culture-effects-international-business

• Assoc. Prof. Mahmut ARSLAN, A STUDY ON THE EFFECT OF CULTURAL DIFFERENCES AND SIMILARITIES ON MNCs WITH ILLUSTRATIVE CASES