CULTURAL ASPECTS AND CHALLENGES TO GLOBAL BUSINESS Unit 6

CULTURAL ASPECTS AND CHALLENGES TO GLOBAL

BUSINESSUnit 6

What is culture?A CULTURE IS A SYSTEM OF LEARNED,

SHARED, UNIFYING AND INTERRELATED BELIEFS, VALUES, ASSUMPTIONS AND PRACTICES.

A CULTURE IS THE SUM OF A GROUP’S WAY OF LIFE AND IS LEARNED:

IN HOMES;SCHOOLS;RELIGIOUS INSTITUTIONS;WORKPLACE;THROUGH PEERS;ETC.A CULTURE IS LIKE AN ICEBERG;THE TIP CAN BE EASILY SEEN BUT MOST LIES

BENEATH THE SURFACE.

CULTURAL INFLUENCES:

1) FAMILY UNITS :◦NUCLEAR VERSUS EXTENDED FAMILIES.

 2) FAMILY- WORK RELATIONSHIPS:◦IN MANY CULTURES, LINK IS WEAK AND KEPT

SEPARATE.

IN OTHER COUNTRIES, WORK-FAMILY LINK VERY STRONG (E.G., SOUTH AMERICA, MOST OF ASIA, MIDDLE EAST).

CULTURAL INFLUENCES:

3) EDUCATION: ◦ AS A PRIORITY TO THE CULTURE?;◦ WHO PARTICIPATES?◦ WHO TEACHES? (SCHOOL, RELIGIOUS INSTITUTION)◦ WHAT IS TAUGHT?

 4) GENDER ROLES:◦ PERCEPTION OF MALES AND FEMALES AND THEIR PLACE IN THE

CULTURE AND BUSINESS (E.G., WOMEN IN CANADA, JAPAN, LIBYA, MEXICO).

◦ CULTURES CAN BE MORE MASCULINE OR FEMININE DEPENDING A WHETHER THE SOCIETY VALUES ASSERTIVENESS AND MATERIAL SUCCESS VERSUS FEELINGS AND CONCERN FOR RELATIONSHIPS.

CULTURAL INFLUENCES:

5) MOBILITY:◦SIGNIFICANCE AND ATTACHMENT TO COUNTRY AND

BIRTHPLACE. SOME CULTURES ENCOURAGE MOVEMENT LOOKING FOR OPPORTUNITIES.

 6) CLASS SYSTEM:◦A CLASS SYSTEM DIVIDES MEMBERS OF A

SOCIETY/CULTURE INTO DIFFERENT LEVELS.◦LEVELS CAN BE BASED ON:

EDUCATION; OCCUPATION; INHERITED STATUS; INCOME.

Class systemIN SOME CULTURES, CLASS SYSTEM IS

WEAK AND INDIVIDUALS CAN MOVE FROM ONE LEVEL TO ANOTHER.

CULTURAL INFLUENCES:7) PERCEPTION OF TIME:

◦DIFFERENT CULTURES PERCEIVE TIME AND ITS IMPORTANCE DIFFERENTLY 

◦THE WESTERN VIEW SEES TIME IN NANOSECONDS;

◦ABORGINAL NATIVES SEE TIME IN SEASONS.◦ALSO THE ISSUE OF COMING ON TIME TO

MEETINGS OR SOCIAL EVENTS (SOUTH ASIANS).

CULTURAL DIMENSIONS:

1) INDIVIDUALISM VERSUS COLLECTIVISM◦SOME CULTURES (E.G., U.S.A.) FOCUS ON AND

VALUE SELF-RELIANCE, INDEPENDENCE AND INDIVIDUAL FREEDOM.

◦OTHER CULTURES (E.G., JAPAN) HAVE A STRONG COLLECTIVE ORIENTATION WITH THE GROUP BEING MORE IMPORTANT THAN THE INDIVIDUAL.

◦“THE NAIL THAT STANDS OUT IS SOON POUNDED DOWN”.

CULTURAL DIMENSIONS:

2)  VIEW OF TECHNOLOGY:◦MANY CULTURES IMBRACE TECHNOLOGY;◦WITH OTHER CULTURES, THE PERCEPTION IS

MORE MIXED OR DISTRUSTING (LUDDITES).

CULTURAL DIMENSIONS:

3) LEADERSHIP, POWER AND AUTHORITY:◦CULTURES VIEW MANAGERS DIFFERENTLY

FROM ALMOST CO-EQUALS TO PILLARS OF AUTHORITY.

◦RELATEDLY IS THE DIMENSION OF CENTRALIZED VERSUS DE-CENTRALIZED POWER.

CULTURAL DIMENSIONS:

4) ROLE AND SIGNIFICANCE OF RELIGION:◦RELIGIOUS BELIEFS MAY “REGULATE” AND GUIDE THE

BEHAVIOURS OF CULTURAL GROUPS, INCLUDING BUSINESS ORGANIZATIONS (E.G., CHARGING INTEREST ON LOANS).

◦TO FUNCTION AND CARRY OUT BUSINESS IN OTHER COUNTRIES, ADJUSTMENTS MUST BE MADE.

◦AVOID “ETHNOCENTRISM”!◦WHICH IS THE BELIEF THAT ONE’S CULTURE IS

SUPERIOR TO OTHER CULTURES.IT IS A MAJOR OBSTACLE TO CONDUCTING SUCCESSFUL INTERNATIONAL BUSINESS.

Culture ShockCULTURE SHOCK IS A NORMAL RESPONSE

AND REACTION TO ALL THE DIFFERENCES BEING EXPERIENCED WITH THE OTHER CULTURE

Stages of Culture Shock

CONFUSION (ANXIOUS, UNCOMFORTABLE AND NEEDING INFORMATION);

SMALL VICTORIES (FINDING YOUR WAY, SAYING HELLO, ORDERING COFFEE); 

THE HONEYMOON (“GOING NATIVE”);IRRITATION AND ANGER (GETTING TIRED OF RICE;

PEOPLE BEING LATE, ETC);REALITY (ENJOYING CULTURE AND ACCOMMODATING

LESS DESIRABLE ELEMENTS). AFTER A WHILE, RETURNING TO ONE’S HOME COUNTRY,

“REVERSE CULTURE SHOCK” MAY BE EXPERIENCED.

FOR EXAMPLE:

RETURNING TO CANADA AFTER BEING IN ENGLAND FOR 5 YEARS.

MAY NOTE THAT: ◦EXCESSES: ROOMS BIGGER, , WARMER, MORE

BRIGHTLY LIT;◦PEOPLE SPEAK HARSHER AND MORE STRAIGHT

FORWARD (“LOW CONTEXT);◦GREATER VARIETY AND MORE OPTIONS AT

STORES;◦WEATHER DIFFERENT; ◦AND THE SPACE!!!!

COMMUNICATION ACROSS CULTURESENGLISH IS CONSIDERED TO BE THE

UNOFFICIAL LANGUAGE OF INTERNATIONAL BUSINESS.

MANDARIN CHINESE, HOWEVER IS THE MOST WIDELY SPOKEN.

ADVANTAGES OF ENGLISH:

HAS MANY WORDS DRAWN FROM DIFFERENT LANGUAGES; IDEAS/CONCEPTS CAN BE EXPRESSED IN DIFFERENT WAYS

(PARAPHRASING); MANY BUSINESS RELATED TERMS COMMONLY USED

(PROFIT, ASSET, IN THE BLACK, ETC); IS MORE CONCISE AND PRECISE (NEEDS FEWER WORDS TO

GET MESSAGE ACROSS AS COMPARED TO FRENCH OR RUSSIAN, FOR EXAMPLE).

ALSO, DOES NOT HAVE A “HIGH” LANGUAGE (FRENCH, GERMAN, SLAVIC).

BUT, PEOPLE PREFER TO TRANSACT BUSINESS IN THEIR OWN LANGUAGE.

OTHER USEFUL LANGUAGES (U.S.A. RANKED):

JAPANESE;FRENCH;SPANISH;GERMAN;CHINESE;RUSSIAN;ARABIC;PORTUGUESE;ITALIANKOREAN.ONE NOTED FEATURE THAT DIFFERS ACROSS

LANGUAGES IS THE “DEGREE OF DIRECTNESS”.

REFERRED TO AS CONTEXTING.

LOW CONTEXT: VERY DIRECT, LESS SUBTLE SUCH AS GERMAN AND AMERICAN ENGLISH;

HIGH CONTEXT: VERY INDIRECT, NOT CONFRONTATIONAL. JAPAN HAS NO WORD FOR NO, AS A RESULT, BODY LANGUAGE IS CAREFULLY WATCHED.

NONVERBAL COMMUNICATION:

THERE ARE A NUMBER OF WAYS TO COMMUNICATE WITHOUT WORDS OR WRITING.◦BODY LANGUAGE INCLUDING FACIAL

EXPRESSIONS, BODY MOVEMENT AND GESTURES.

◦APPEARANCE: CLOTHING, FLESH SHOWING, TATTOOS AND PIERCINGS;

◦EYE CONTACT: DIRECT EYE CONTACT (U.S.A.) VERSUS LOOKING AWAY (MEXICO).

NONVERBAL COMMUNICATION:

TOUCHING: HARD VERSUS SOFT HANDSHAKES; HUGGING AND KISSING; HOLDING HANDS;

PERSONAL SPACE WHICH WILL VARY ACROSS COUNTRIES; 

USE OF COLOUR;USE OF NUMBERS (E.G., 4 AND 13);USE OF EMBLEMS (EAGLES APPEAR

POPULAR);

THOUGHTS ON BUSINESS PROTOCOL

PROTOCOL: “RULES” OF BEHAVIOUR TO FOLLOW IN BUSINESS NEGOTIATIONS AND DISCUSSIONS.

GIFT GIVING:◦AN EXPECTATION IN CERTAIN CULTURES

(JAPAN);HOWEVER, IN OTHER COUNTRIES MAY BE

SEEN AS A BRIBE (EUROPE)

PUNCTUALITY: 

COMING ON TIME IF NOT EARLIER, A SIGN OF RESPECT AND PROPER BUSINESS BEHAVIOUR (GERMANY).

HOWEVER, OTHER CULTURES MAY NOT VALUE PROMPTNESS AND SEE NOTHING WRONG WITH BEING AN HOUR LATE (BRAZIL).

BUSINESS ENTERTAINING:

A NUMBER OF COUNTRIES ENJOY MIXING BUSINESS AND PLEASURE AND CONDUCT NEGOTIATIONS.

CHINESE BUSINESSMEN EXPECT AT LEAST TWO LARGE DINNERS.

IN NOTH AMERICA, BUSINESS REGULARLY CONDUCTED DURING BREAKFAST, LUNCH AND DINNER (COCKTAILS?).

OTHER CULTURES HOWEVER, KEEP SEPARATE SOCIAL INTERACTIONS AND BUSINESS.

SCHEDULING OF MEETINGS:

IN AUGUST, MOST FRENCH BUSINESSES CLOSED FOR VACATION;

IN GREAT BRITAIN, FACTORY TOWNS CLOSE FOR HALF-DAYS;

MUSLIM BUSINESSES PROVIDE TWO PRAYER BREAKS DURING THE WORK DAY;

ALL COUNTRIES HAVE NATIONAL AND RELIGIOUS HOLIDAYS;

SCHEDULING OF MEETINGS:

 A NUMBER OF COUNTRIES HAVE

EXTENDED LUNCHES (SIESTAS) OWING TO THE NOON HEAT. E.G., MEXICO HAS LUNCH BETWEEN 2:00

PM AND 5:00 PM BUT WORK UNTIL 7:00PM.

IN GREECE, LUNCH IS BETWEEN 2:00PM AND 4:00PM.

FORIEGN EMPLOYER MANAGEMENT OF LOCAL EMPLOYEES.

WHAT IS THE ROLE OF THE MANAGER? IS POWER CENTRAILZED OR DE-CENTRALIZED. WHO MAKES THE DECISIONS?

FORIEGN OWNERS MUST ALSO TAKE INTO ACCOUNT LOCAL LAWS REGARDING BUSINESS PRACTICES AND TREATMENT OF EMPLOYEES.

LOCAL LABOUR LAWS OFTEN PROTECT THE EMPLOYEE.

 IN MEXICO FOR EXAMPLE, IT IS VERY

DIFFICULT FOR A FORIEGN EMPLOYER TO FIRE A LOCAL EMPLOYEE.

Assignment Food assignment