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    Culture Analysis

    Since culture differs from country to country, MNCs need tocarry out culture analysis to understand its nuances. Cultureanalysis involves two divergent themes:

    Culture Universals : There are certain common culturalpractices and values across the world. We understand them as

    . .

    Culture Differentials: Most values and practices, however,differ across the world. It is these cultural differentials that

    - .cross-cultural evaluation e.g. communication style, behaviour,societal traditions.

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    Culture Analysis

    practices and values across the world. We understand them aswe grow and learn about our surroundings e.g. expressions of

    , , ,

    events like Christmas, New year etc.Universals are characteristics that are used to identify,

    , .practices found in every culture.

    The only difference is that each culture expresses each customor practice quite differently. Thus, despite being universals,variations may exist even in these cultural symbols.

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    Culture Analysis

    B as i c Ne eds : All cultures have the basic needs for survival: food,shelter, clothing.Co m m u n i ca t i o n & Ed u c at i o n : All cultures develop ways tocommunicate in order to pass on valuable information.Fa m i l y St r u ct u r e s : All cultures develop a family or kinship

    .Bel ie f i n t h e Un k n ow n : Cultures create religions, rituals, andstories to explain life, death and creationAr t i s t i c Ex p r e ss i on & Lei su r e : Cultures develop music, dance,ritua s an artistic representationsGov e r n m en t : As cultures and tribes get larger, a system of governance is created and monitored.Tr a d e an d Eco n o m : Ultimatel as a culture creates abundance of a resource they seek out ways to trade with other cultures for itemsthey need to improve the quality of life.

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    Culture Analysis

    , ,differ across the world. It is these differentials that complicatedecision-making for MNCs. Differentials involve cross-cultural

    .

    dimensions:Cultural M ix: The extent of homogeneity-heterogeneity

    - .degree of diversity and differences existing within a culture.

    Cultura l Complexity: The extent of simplicity-complexitywithin a culture. The amount of background and contextualinformation that is required to understand a given situationindicates the complexity of a culture.

    Cultural Mix and Cultural Complexity are interrelated. Themore heterogeneous the culture is, the more will be itscomplexity too.

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    Cultural Mix

    -culture. Cultural mix is evaluated along a continuum of heterogeneity and homogeneity. Some countries have

    .

    Heterogeneous cultures may involve:Dominant National Culture : Expresses the core values that

    .country has its own dominant national values and practices.

    Subcultures: There could be sub-cultures, regional or mini-cultures within a country.

    In homogenous cultures there is little difference in nationaland sub-culture. In hetero eneous countries like Indiadiversity is high-there is a wide gap between national andregional or sub-cultures, thus making it difficult to analyze andinterpret

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    Cultural Complex ity

    A. Edw ard Halls High-Context (VS) Low -Context Cultures

    B. Hofstedes Framew ork of N ational Cultures

    Individualism (VS) Collectivism Power Distance

    Uncertainty Avoidance

    Achievement /Masculinity

    -

    C. Deal-Oriented (VS) Relationship Oriented Cultures

    Deal Oriented Cultures Relationship Oriented Cultures

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    Halls High-Context (V.S) Low-Context Cultures: High context refers to societies wherepeople have close connections over a long period of time. Many aspects of cultural behavior

    of interaction with each other. Low context refers to societies where people tend to havemany connections but of shorter duration or for some specific reason . In these societies,cultural behavior and beliefs may need to be spelled out explicitly so that those coming intothe cultural environment know how to behave.

    High ContextLess verbally explicit communication, less written/formal informationMore internalized understandings of what is communicatedMultiple cross-cutting ties and intersections with others

    Long term relationships - Decisions and activities focus around personal face-to-facerelationships, often around a central person who has authority.

    Low ContextRule oriented, people play by external rulesMore knowledge is codified, public, external, and accessible.Se uencin se aration-of time of s ace of activities of relationshi s More interpersonal connections of shorter duration

    Decisions and activities focus on business

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    High and Low Context

    ays a g an ow on ex erThe Structure of RelationshipsHigh Context: Dense, intersecting networks, long termrelationships, strong boundaries, relationship more important thantask

    compartmentalized relationships, task more important than

    relationship

    Type of Cultural KnowledgeHigh Context: More knowledge is below the waterline--implicit,

    covert, patterns that are not fully visible, hard to explainLow Context: More knowledge is above the waterline--explicit,overt consciousl or anized and visible

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    Hofstedes Framew ork of Values and Cultures

    .Low Vs High P ow er Distance: The extent to which peopleaccept that power is distributed equally (low) or not (high).

    prefer to act as individuals rather than in groups.Achievement Vs Nurturing (Masculine or Feminine):

    , ,(achievement/masculine) or relationships, welfare, care and

    concern (nurturing/feminine).

    people prefer structured situations (high) over unstructuredsituations (low).

    approach vs. emphasizing short termed objectives.

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    Deal Oriented/ Relationship Oriented Cultures

    Deal/task Oriented Cultures Relationship Oriented Cultures

    Engineering culture

    Entrepreneur culture-

    Somewhat risk adverse Tend to react to changes

    Risk takers Want to drive changes

    rocesses r ve emp oyees Tend to lack commitment Based on facts and data

    mp oyee empowerment Strive on organization commitment Based on trust and faith

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    Cultural Difference betw een Japanese andAmerican Lifestyles

    American

    Japanese

    - u ure o e res ra n

    Clear expression of Joy Ambiguous expressionand sorrow o oy an sorrow

    Unequivocal expression Equivocal expressionof Yes/No. of Yes/No.

    Strong self-assertion Weak self-assertion

    High on aggression Low on aggression

    Excellent negotiating skill Poor negotiating skill

    Priority of self-interest,individual

    Priority of harmonywith others, groups

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    Cultural Differences betw een J apanese and American

    American Business Japanese Business

    Game concept: Business is agame in pursuit of profits under

    Mutual trust-oriented business:business is based on trusting

    Efficiency-oriented and

    than the rules of game

    Highly precision-oriented andperfectionism-high dependency on

    approx ma e accuracy

    Quantity-oriented

    Short-term performance

    human awareness

    Quality-oriented

    Mid-to-long term evaluations

    evaluationEasy layoffs, dismissals of employees, and selling of businesses

    Job security and committment

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    Cultural Differences betw een J apanese and American

    American Business Japanese Business

    Top down management

    Low mutual dependence between

    Heavy dependence on humanresources bottom-up management

    High mutual dependence betweenemp oyers an emp oyees

    Control of business by stockholders

    and the management

    emp oyers an emp oyees

    Joint management of business by

    Employees and Employees

    Heavy dependence on machinery andtechnology, vs. Light dependence onhuman resources

    Heavy dependence on human skills andcore competence

    Strong loyalty and motivationLimited loyalty and work ethics

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    Cultural Aw areness and Business Etiquette

    Forms of AddressUse of Business Cards

    Gift Giving and Receiving

    Meetings and AppointmentsTimingAppearance

    Decision-making

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    Cultural Aw areness and Business Etiquette

    Appointment times, date, annotation and measurements can varycons era y. meet ng n t e n te tates can e put at :O clock, while other countries would clock 13:00. The USrequires 08/12/2008 or August 12, 2008 for the 12/8/2008. Themeasurements in U.S. are gallons and meters, while many othercountries use liters and feet. This may seem like small details,

    .

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    Greetings and Introductions

    Kiss, Bow or HandshakeIn Germany, US and UK always shake hands, firmly butbriefl . In Ja an reet with a lim hand shake.

    In most of Europe, you must shake hands with everyone in theparty upon arriving and leaving--do not simply wave hello or- .

    In Italy, Mexico, Latin America and in Spain, women may kiss

    on both cheeks after knowing you awhile.In the Middle East, men often embrace or kiss on the cheeksbut maintain distance with women. Arab men and women donot shake hands with each other.In Asia, a man should usually wait for the woman to act beforehe extends a hand.

    , ,

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    Greetings and Introductions

    Kiss, Bow or HandshakeIn the United States, incorporating a kiss on the cheek or hug as aform of greeting usually only happens between good friends, andrarely between two men.

    In Latin America, you may encounter "the abrazo," a full embracewith pats on the back.You also ma be kissed and hu ed in Russia. In the United ArabEmirates, men will kiss other men three to four times on the cheeks.In France, you might see people kissing alternate cheeks (actually,rubbin cheeks and kissin the air . Generall in Euro e kissinoccurs only after the relationship has become somewhat morepersonal. As the foreigner, it is a safe bet not to initiate the practicebut let the other person initiate.

    The bow is part of the ritual greeting in Japan. The Chinese may nodor use a slight bow. A slight bow also is used in Indonesia, Malaysia,Singapore and South Korea. While handshakes are used in most of these locations, adopting the local custom of making a bow shows

    respect for the individual and the culture.In Thailand, the wai combines a bow with a sort of salute.

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    Forms of Address

    n apan or na never use rst names. urnames are pre erre .The Japanese often use professional titles in the place of actualnames, as an acknowledgment of a person's status e.g. Mr CEO.n ermany, ex co, a ways use pro ess ona t t es a ter r. or rs.

    An individual with a Ph.D. should be addressed as Doctor Professorin Germany, France and most European countries.

    a ame s a as c e o cour esy or a women, as s"Monsieur" for men in France. The French will sometimes introduce

    themselves by first saying their surname, followed by first name.uss ans ave ree names. e rs name s a g ven name, w e

    the last name is the father's name. The middle name is known as apatronymic. Mr or Mrs before last name is best form of address.

    n , or us ra a, a ng rs name s . eop e a so aveabridged names like Bill for Williams.

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    Business Cards

    In Japan business cards are extremely important. Present yourcard with both hands. When you receive a business card spend

    pocket in the presence of the giver.Have one side of your business card translated into Chinese ingo n . o e car n o an s w en o er ng , neseside facing the recipient.

    In many parts of the Middle East, you should never use your lefthand when giving your business card.When in France, have the other side of your business cardtranslated into French. French business cards are often a bitlarger than in many other countries.In US or Europe, business cards are professional and have little

    Print your business card in English on one side, and in thelanguage of your host on the other.

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    Art of Gift Giving and Receiving

    In France, suggested gifts are books and music, as they demonstrate interest inintellectual a nd aesthetic pursuits. Gifts reflect ones taste.Russians take pleasure in giving and receiving costly gifts that symbolize statusand they are generally not wrapped.In China, it is wise to demonstrate an appreciation of Chinese culture by giftingitems such as ink paintings or tea pots. Chinese philosophy stresses harmonyand balance, so give in pairs.Gift-giving is a central part of Japanese business etiquette. The correct etiquetteis to present/receive gifts with both hands. Before accepting a gift it is polite torefuse at least once or twice before accepting. Gifts in pairs are appreciated.In Gulf countries, gifts should only be given to the most intimate of friends.Gifts should be of the highest quality. Always give/receive gifts with the righthand. Saudis enjoy wearing perfumes.

    In the US and most parts of Europe, gifts are usually not given in formal settingsBe particular about the color of gifts-auspicious in different cultures.

    , , ,in certain other cultures may be rude and impolite.Keep the traditions and religious sentiments of people in mind.

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    Meetings and Appointments

    Chronemics/Sense of Timing: The concept of time differs fromculture to culture. People attach different meanings to time.Monochronic vs. Polychronic- Monochronic cultures like to do just onething at a time. They value a certain orderliness and sense of there being anappropriate time and place for everything. They do not value interruptions.Polychronic cultures like to do multiple things at the same time. Amanager's office in a polychronic culture typically has an open door, aringing phone and a meeting all going on at the same time.Polychronic cultures include the French and the Americans. The Germanstend to be monochronic.

    Im lications: Interactions between t es can be roblematic. Germanbusinessman cannot understand why the person he is meeting is sointerruptible by phone calls and people stopping by. Is it meant to insulthim? When do the et down to business? Similarl the Americanemployee of a German company is disturbed by all the closed doors -- it

    seems cold and unfriendly.

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    Meetings and Appointments

    Future vs Present vs Past OrientationPast-oriented societies are concerned with traditional values. They tend tobe conservative in management and slow to change those things that aretied to past. Past-oriented societies include India, China, Britain, Japan andmost spanish-speaking Latin American countries.Present-oriented societies include the rest of the Spanish-speaking LatinAmerican countries. They see the past as passed and the future asuncertain. They prefer short-term benefits.Future-oriented societies have a great deal of optimism about the future.They think they understand it and can shape it through their actions. Theyview management as a matter of planning, doing and controlling (aso osed to oin with the flow, lettin thin s ha en . The US, German ,and, increasingly, Brazil, are examples of future-oriented societies.

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    Meetings and Appointments

    Quantity of Time: In some cultures, time is seen as being a limitedresource which is constantly being used up. In other cultures, time is moreplentiful, if not infinite. In old agricultural societies, time was often seen ascircular, renewing itself each year.In societies where time is limited, punctuality becomes a virtue. It isinsulting to waste someone's time. Time is money. In cultures where timeis plentiful, like India or Latin American, there is no problem with makingpeople wait all day, and then tell them to come back the next day.Time-plentiful cultures tend to rely on trust to do business. Time-limitedcultures don't have time to develop trust and so create other mechanisms toreplace trust (such as rules, laws).Punctualit is ex ected in Switzerland, the Netherlands, Ja an, China andBelgium but you better be fashionably late in Latin America, Brazil.Punctuality is treated casually in France.

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    Concept of Time

    6

    4

    5

    s

    2

    3 W e e

    64

    01

    New York Geneva So Africa Japan

    1

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    Meetings and Appointments

    Appearance:The French are very conscious of their appearance. One should dress in well-

    tailored professional/formal attire.In Japan, men should wear dark conservative business suits. No fashionable

    pants- Japanese men find it offensive. Women should dress conservatively,minimal accessories and low heels.

    American or British dressing is more informal. Sweatshirts and T-shirts arepopular business dress in Canada, but are a no-no in Australia, China or many

    countries in South and South East Asia. Casual clothing is considered more formaln raz an n o er coun r es.In Latin America, Europe and the US, a well-cut, fitted suit together will be

    appropriate for women. It is also generally expected that women should look , .

    Different colors have different meanings. While, in Russia, red means beautiful,in South Africa red is the color of mourning. In China, red is the color of goodluck. In Greece Scotland reen s mbolizes victor or honor. In Thailand ur leis worn by a widow mourning her husband's death. In Egypt and Burma, yellow

    signifies mourning. White means mourning in China and Japan.

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    Negotiations

    famous Japanese writer describes United States negotiators as hard tounderstand. Americans describe Japanese negotiators as finicky.

    Negotiators from polychronic cultures tend to :start and end meetings at flexible times,take breaks when it seems a ro riate,be comfortable with a high flow of information,expect to read each others' thoughts and minds,

    sometimes overlap talk,view start times as flexible and not take lateness personally.

    Negotiators from monochronic cultures tend to:prefer prompt beginnings and endings,sc e u e rea s,deal with one agenda item at a time,rely on specific, detailed, and explicit communication,

    ,view lateness as devaluing or evidence of lack of respect.

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    Negotiations

    ,present, or future. Cultures like Iran, India, and the Far East are categorizedby Carbaugh as past-oriented. The United States, he indicates, tends to beoriented to the resent and the near-future. Latin America leans toward bothpresent and past orientations. Indigenous people in North America combine apast- and future-oriented approach to time that stretches seven generationsforward and back. Negotiators focused on the present should be mindful thatothers may see the past or the distant future as part of the present. Negotiatorsfor whom time stretches into the past or the future may need to remember that

    a present orientation can bring about needed change.

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    Negotiations

    Timing of stages of negotiations: Some people spend lot of time on non-task activities while some prefer getting straight to the point.-

    In lot of cultures, like Japan, china, India, significant time and energy is spenton preliminary introductions, ice-breaking, getting to know the other party and

    . - . .comfortable dealing with a stranger so they spend lot of time asking personalquestions and getting familiar. Many a times, the entire outcome of the

    -In America or Europe people come directly to business. No personal questionsasked, no elaborate exchange of greetings.

    While in Japan, a lot of time is spent on finalizing a deal, Americans are farquicker.

    e s y es o nego a on, me a en an process o owe -a er romculture to culture.

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    NegotiationsLocation of stages

    Formal vs. informal locations: While some cultures (USA, European) preferformal locations e.g. office, meeting rooms etc. for a deal, in certain cultureslike India it is common to have deals over informal tea, lunch/dinnersome mes even a ome o e os

    Number of locations: Americans prefer one or few number of meetings hencenumber of locations are also one or few. Indians or Japanese spend lot of timeon ce- rea ng e c. so mu p e mee ngs a mu p e oca ons are common.Participants

    Type of participants: The leader or head may himself prefer to close deals insome cu tures, whi e in some p aces it may be de egated to representatives.Number of participants: Few in western cultures, several in case of India orJapan

    Influence tacticsAggression: Generally Americans or Europeans are more aggressive thanIndians, Japanese or Chinese. Japanese and Chinese are however, consideredmore shrewd negotiators.

    Power play: Political pressure, lobbying, canvassing etc for business iscommon practice in US and is gradually getting common elsewhere too

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    Decision-MakingSpeed of decisions: Quick vs. slow

    Timing of decisions: polychronic vs. monochronic, past, present or futureorientedTime horizon: Long vs short term decisionsInfo-processing: Objective (data-based) vs. subjective (relationship-based)Risk propensity: High vs low (ambiguity tolerance)St le of decision-makin : Rational vs. intuitive

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    Styles of Communication

    You can buy in any language, but to sell you have to speak their language Language can be obstacle in business. Just because someone speaks English, oneshould remember it never is spoken nor understood quite same way as in U.S.A.

    Verbal communicationLanguageDialectAccent

    Choice of wordsn ona on, p c , mo u a on, requencySpeed and fluency

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    Non Verbal Communication

    Clothes & bodily characteristics: Elements such as physique, height,

    weight, hair, skin color, gender, odors, and clothing send nonverbalmessages during interaction.

    Physical environment: Environmental factors such as furniture,architectural style, interior decorating, lighting , colors, temperature,

    music also convey meanings.

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    Non Verbal Communication

    Proxemics: The study of how eo le use and erceive the hysical s acearound them. The space between the sender and the receiver of a messageinfluences the way the message is interpreted. Space may be divided into fourcategories: intimate, personal, social and public space. The term Proxemicswas developed by Edward T. Hall during the 1950s. The term territoriality is

    used in proxemics to explain human behavior regarding personal space.Space orientations differ across cultures . They have to do with territory,

    v s ons etween pr vate an pu c, com orta e persona stance, com ortor lack of comfort with physical touch and contact, and expectations aboutwhere and how contact will take place. In Northern European countries,

    .German or a Swedish person, for example, the Italians or the Greeks get tooclose. An American etiquette manual advises this about personal space :"When ou meet someone don't stand too close. Likewise seatin

    arrangements for meetings/negotiations should take norms for space intoaccount. In general, Americans tend to talk with people seated opposite them,or at an angle. For the Chinese, these arrangements may lead them to feelalienated and uneasy. They may prefer to converse while sitting side by side.

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    Non Verbal Communication

    Haptics: the study of touch e.g. handshake, holding hands, kissing,slapping , patting. Touching of oneself e.g. licking, holding, and

    .

    the context and relationship between communicators. Certain cultures,including Mediterranean, Arab, and Latin American, are more tactile. , , ,

    U.S. cultures tend to discourage touching outside of intimate situations.Certain cultures allow cross-gender touching, including the UnitedStates, while same-gender touching is less acce table. These ruleschange in Japan, where women are frequently seen holding hands, butnot men. In the Mediterranean, it is common to see men holding handsor touching in public, but not women. Greeting rituals fit with these

    patterns, so awareness of local norms is important for negotiators.

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    Non Verbal Communication

    Oculesics: the role of eyes in nonverbal communication. It can indicateinterest, attention, and involvement. Gaze is comprised of the actions of

    , , ,

    frequency of glances, fixation, pupil dilation, and blink rate. Space alsorelates to comfort with eye contact and attributions related to eye.

    culture settings as well as many Arab cultures, eye contact is taken as asign of reliability and trustworthiness. In North American indigenoussettings, eye contact may be seen as disres ectful and ina ro riate.Similarly, in Asian settings, looking down is usually interpreted as asign of respect. In Central America, a slight movement of the eyes mayindicate embarrassment, showing respect, or disagreement."

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    Non Verbal Communication

    Kinesics: It is the study of body language. It was developed byanthropologist Ray L. Birdwhistell in the 1950s. Kinesic include

    ac a xpress on: ac a express on nc u es ace movements, sm e,

    frown, etc.Posture: The style of sitting, standing, direction of lean, body orientation,

    arm pos t on, an o y openness. tu es nvest gat ng t e mpact oposture on interpersonal relationships suggest that mirror-imagecongruent postures, lead to favorable perception of communicators

    es ure: gesture s a o y movement nten e to express mean ng.They may be articulated with the hands, arms or body, and also includemovements of the head, face and eyes. Speech-independent gestures are

    verbal translation e.g. a wave hello or a peace sign. Speech relatedgestures are used in parallel with verbal speech to emphasize orsu lement the messa e e. . ointin to an ob ect.

    Different cultures attach different meanings to Kinesics. That is why

    Kinesics are most frequently misunderstood