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Culture, Management Styles and Business
SystemsINTERNATIONAL MARKETING
“They are just like us”
Knowledge of management styles
Be flexible by accepting differences in basic patterns of thinking, religion, politic and economic structures
Recognize the differences of the counterpart
• Lack of empathy • Frustration • Miscommunication• Failed business opportunities
Required adaptationAdaptation or accommodation Tolerance
Affirmative acceptance/ Open tolerance
Empathy
Basic criteria for adaptation1. Open tolerance
2. Flexibility
3. Humility
4. Justice
5. Adjust to tempo
6. Curiosity
7. Knowledge of the country
8. Liking for others
9. Ability to command respect
10. Ability to integrate oneself
Degree of adaptationIt’s not about changing executives’
ways to local customs
Being aware of local customs and accommodate them.
SRC
Not to evaluate counterparts’ behavior but to understand it
Business customs
• Imperatives• Electives• Exclusives
Cultural imperatives
Business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.
GuanxiCompadre!
Level of trust
Cultural electives
Customs that cultural aliens may wish to conform to or
participate in but that are not required.
Not important but permissible
Cultural exclusives
They are those customs or behavior patterns reserved
exclusively for the locals and from which the foreigner is
barred.
Business is conducted in different ways due to diverse structure,
management values, and behaviors that vary among countries.
Management styles around the world
http://www.kwintessential.co.uk/intercultural/management/guide.html
Authority and decision making
Top level management decisions
• Close ownership• Absolute control • Centralized and small
Decentralized decisions
• Authority at different levels
Committee decisions
• By group or consensus.
• Centralized/Decentralized
High PDI
Low PDI
Management objectives and aspirations
Human motivation
Security & Mobility
Priorities
Personal life Work for (firm)
Work as (Position)
Social acceptance Money or
power?Political leaders
Power & Achievement
Communication stylesFace to face communication
Not about translate.
Internet communicationCan be read everywhere at
any time
Silent languageMuch more than words
Symbolic meanings of time, space, things, friendships.
Formality and tempo
Multiple meetings before an agreement
Call people by
their first
names
M-Time versus P-TimeMonochronic Time
• One thing at a time.• Almost tangible.• Time is money.
Polychronic Time
• Many things at the same time.
• Great involvement with people.
• Time is not to be spent.
Gender bias in international business
Against female managers in some countries.
Inability for women to succeed abroad.
Be careful with male-dominated societies where women are not in managerial positions.
Women need a title that give them credibility.
Business ethics
Complex process even within a country
What’s appropriate?What’s
right? What is corruption?
Definition that varies around the world
BriberyBribery
Voluntary payment for seeking unlawful advantage.
ExtortionPayment demanded by an authority.
LubricationSmall sum of cash, gift or service given to a low ranking official to speed up the process.
SubornationLarge sums of money designed to entice an official to commit an illegal act.
Agent’s feesPayment to a person hired for representing the company.
Ethical and socially responsible decision
Law
Empl
oym
ent
prac
tices
and
po
licie
s
Cons
umer
pr
otec
tion
Envir
onm
enta
l pr
otec
tion
Politi
cal
paym
ents
Hum
an ri
ghts
Ethical principles
Utilitarian Ethics• Does the action optimize the
“common good” or benefits of all constituencies?
Rights of the Parties• Does the action respect the
rights of the individuals involved?
Justice or Fairness• Does the action respect the
canons of justice or fairness to all parties involved?
Sources: http://www.cpj.ca/content/promoting-common-good, http://www.feasta.org/wp-content/uploads/2014/01/, https://www.humanitarian.com/site-human-rights.html
Relationship – Oriented vs. Information – Oriented
Cultures
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.