Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

2-1

International Business

Environments & Operations

14e

Daniels ● Radebaugh ● Sullivan


2-2

Chapter 2

The Cultural Environments

Facing Business


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Learning Objectives To understand methods for learning about

cultural environments To analyze the major causes of cultural

difference and change To discuss behavioral factors influencing

countries’ business practices To understand guidelines for cultural

adjustment


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IntroductionLearning Objective 1: To understand methods for learning about cultural environments


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Introduction Culture refers to the learned norms based

on values, attitudes, and beliefs of a group of people

Culture is an integral part of a nation’s operating environment every business function is subject to potential

cultural differences


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IntroductionCultural Factors Affecting International Business Operations


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Introduction Companies need to decide when to make

cultural adjustments Fostering cultural diversity can allow a

company to gain a global competitive advantage by bringing together people of diverse backgrounds and experience


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Introduction But, cultural collision can occur when a

company implements practices that are less effective or when employees encounter distress because of difficulty in accepting or adjusting to foreign behaviors


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Cultural Awareness Problem areas that can hinder managers’

cultural awareness… Subconscious reactions to circumstances The assumption that all societal subgroups are

similar Managers that educate themselves about

other cultures have a greater chance of succeeding abroad


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Culture and the Nation-State

The nation is a useful definition of society because similarity among people is a cause and an effect of national boundaries laws apply primarily along national lines language and values are shared within borders rites and symbols are shared along national

lines


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Culture and the Nation-State

Country-by-country analysis can be difficult because subcultures exist within nations similarities link groups from different countries

Need to focus on relevant groups


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How Cultures Form and Change

Learning Objective 2: To analyze the major causes of cultural difference and change


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How Cultures Form and Change

Cultural value systems are established early in life but may change through choice or imposition

cultural imperialism

contact with other cultures cultural diffusion creolization


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Language: Cultural Diffuser and

Stabilizer A common language within a country is a

unifying force A shared language between nations

facilitates international business Native English speaking countries account for a

third of the world’s production English is the international language of

business


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StabilizerDistribution Of The World’s Major Languages


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StabilizerMajor Language Groups: Population and Output


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Religion: Cultural Stabilizer

Religion impacts almost every business function

Centuries of profound religious influence continue to play a major role in shaping cultural values and behavior many strong values are the result of a

dominant religion


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Religion: Cultural Stabilizer

Distribution Of The World’s Major Religions


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Behavioral Practices Affecting Business

Learning Objective 3:To discuss behavioral factors influencing countries’ business practices


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Social Stratification Social ranking is determined by

an individual’s achievements and qualifications

an individual’s affiliation with, or membership in, certain groups


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Social Stratification Group affiliations can be

Ascribed group memberships based on gender, family, age, caste, and

ethnic, racial, or national origin Acquired group memberships

based on religion, political affiliation, professional association

Two other factors that are important education and social connections


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Work Motivation The motivation to work differs across

cultures Studies show

the desire for material wealth is a prime motivation to work

promotes economic development people are more eager to work when the

rewards for success are high masculinity-femininity index

high masculinity score prefers “to live to work” than “to work to live”


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Work Motivation Hierarchy of needs theory

fill lower-level needs before moving to higher level needs

The ranking of needs differs among cultures


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Work MotivationThe Hierarchy of Needs and Need-Hierarchy Comparisons


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Relationship Preferences Relationship preferences differ by culture Power distance

high power distance implies little superior-subordinate interaction

autocratic or paternalistic management style low power distance implies consultative style

Individualism versus collectivism high individualism – welcome challenges high collectivism – prefer safe work environment


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Risk Taking Behavior Risk taking behavior differs across cultures

Uncertainty avoidance handling uncertainty

Trust degree of trust among people

Future orientation delaying gratification

Fatalism attitudes of self-determination


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Information and Task Processing

Cultures handle information in different ways Perception of cues Obtaining information

low context versus high context cultures Information processing Monochronic versus polychronic cultures Idealism versus pragmatism


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Communications Cross border communications do not

always translate as intended Spoken and written language Silent language

Color Distance Time and punctuality Body language Prestige


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CommunicationsBody Language Is Not A Universal Language


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Dealing with Cultural Differences

Learning Objective 4:To understand guidelines for cultural adjustment


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Do managers have to alter their customary practices to succeed in countries with different cultures?

Must consider Host society acceptance Degree of cultural differences

cultural distance Ability to adjust

culture shock and reverse culture shock Company and management orientation


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Three company and management orientations Polycentrism

business units abroad should act like local companies

Ethnocentism home culture is superior to local culture overlook national differences

Geocentrism integrate home and host practices


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Strategies for Instituting Change

Value Systems Cost-Benefit Analysis of change Resistance to too much change Participation Reward Sharing Opinion Leadership Timing Learning Abroad


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The Future of National Cultures

Scenario 1: New hybrid cultures will develop and personal horizons

will broaden Scenario 2:

Outward expressions of national culture will continue to become homogeneous while distinct values will remain stable

Scenario 3: Nationalism will continue to reinforce cultural identity

Scenario 4: Existing national borders will shift to accommodate

ethnic differences


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Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan