Different in CultureDifferent in Culture

Chapter 3 - 2

Chapter PreviewChapter Preview

Describe culture, and explain the significance of both

national culture and subcultures.

Identify the components of culture, and describe their

impact on business activities around the world.

Describe cultural change, and explain how companies

and culture affect one another.

Explain how the physical environment and technology

influence culture.

Describe the two main frameworks used to classify

cultures and explain their practical use.

Chapter 3 - 3

What is Culture?What is Culture?

Set of values, beliefs, rules and institutions held by a specific group of people

Cultural literacyDetailed knowledge of a culture that enables a person to function effectively within it

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EthnocentricityBelief that one’s own

ethnic group or culture is superior to

that of others

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Chapter 3 - 4

Nations and CultureNations and Culture

National cultureNational culture

Nation states build museums and monuments to preserve the legacies of important events and people

SubcultureSubculture

Group of people that share a unique way of life within a larger culture

(language, race, lifestyle, attitudes, etc.)

Chapter 3 - 5

Components of CultureComponents of Culture

Physicalenvironments

Education

Personalcommunication

Religion

Social structure

Manners &customs

Values &attitudes

Aesthetics

CultureCulture

Chapter 3 - 6

AestheticsAesthetics

Music

Painting

Dance

Drama

Architecture

Chapter 3 - 7

Values and AttitudesValues and Attitudes

ValuesValuesValuesValues AttitudesAttitudesAttitudesAttitudes

Positive or negative Positive or negative evaluations, feelings and evaluations, feelings and tendencies people hold tendencies people hold toward objects or conceptstoward objects or concepts

The Ideas, beliefs and The Ideas, beliefs and customs to which customs to which people are emotionally people are emotionally attachedattached

• FreedomFreedom• ResponsibilityResponsibility• HonestyHonesty

• TimeTime• WorkWork• Cultural changeCultural change

Chapter 3 - 8

Manners and CustomsManners and Customs

Manners

Appropriate behavior, speech and dressing

in general

Customs

Traditional ways or behavior in specific

circumstances

Chapter 3 - 9

Social StructureSocial Structure

Social structureCulture’s groups, institutions, social

positions and resource distribution

Social stratificationProcess of ranking people into social layers

Social mobilityEase of moving up or down a culture's

"social ladder"

Chapter 3 - 10

World ReligionsWorld Religions

Christianity

Islam

Hinduism

Buddhism

Confucianism

Judaism

Shinto

Origin ofOrigin ofHuman ValuesHuman Values

Origin ofOrigin ofHuman ValuesHuman Values

Chapter 3 - 11

Language BlundersLanguage Blunders

Braniff Airlines’ English-language slogan “Fly in Leather” was

translated into “Fly Naked” in Spanish.

Sign in English on a Majorcan storefront read, “English well-talking”

and “Here speeching American.”

Sign for non-Japanese-speaking guests in a Tokyo hotel read, “You

are respectfully requested to take advantage of the chambermaids.”

English sign in a Moscow hotel read, “If this is your first visit to the

USSR, you are welcome to it.”

Japanese knife manufacturer labeled its exports to the United States

with “Caution: Blade extremely sharp! Keep out of children.”

Chapter 3 - 12

Mixed SignalsMixed Signals

"Okay"

"Vulgar gesture"

"It's a secret"

"Very nosey"

"Crazy"

"Very clever"

Chapter 3 - 13

EducationEducation

Cultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc.

Education level

Well-educated attract high-paying jobs, while poorly educated attract low-paying manufacturing jobs

Brain drain

Departure of highly educated people from one profession, geographic region or nation to another

Chapter 3 - 14

Problem of IlliteracyProblem of Illiteracy

Chapter 3 - 15

Physical and Material CulturePhysical and Material CulturePhysical and Material CulturePhysical and Material Culture

These influence a culture’s development and pace of changeThese influence a culture’s development and pace of change

TopographyPhysical features characterizing the surface of a geographic region

TopographyPhysical features characterizing the surface of a geographic region

ClimateWeather conditions of a geographic region

ClimateWeather conditions of a geographic region

Material CultureTechnology used to manufacture goods and provide services

Material CultureTechnology used to manufacture goods and provide services

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Kluckhohn-Strodtbeck Kluckhohn-Strodtbeck FrameworkFramework

Relation to natureRelation to nature

Time orientationTime orientation

Trust and controlTrust and control

Material or spiritualMaterial or spiritual

Responsibility to othersResponsibility to others

View of personal spaceView of personal space

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Hofstede FrameworkHofstede Framework

Individualism Individualism vs. collectivismvs. collectivismIndividualism Individualism

vs. collectivismvs. collectivismPowerPower

distancedistancePowerPower

distancedistance

UncertaintyUncertaintyavoidanceavoidance

UncertaintyUncertaintyavoidanceavoidance

AchievementAchievementvs. nurturingvs. nurturingAchievementAchievementvs. nurturingvs. nurturing

Chapter 3 - 18

Power Distance & Power Distance & IndividualismIndividualism

Chapter 3 - 19

Power Distance & Uncertainty Power Distance & Uncertainty AvoidanceAvoidance

Chapter 3 - 20

Chapter SummaryChapter Summary

• This chapter explains the significance of culture to international business. Culture is one of the most challenging elements that managers face in international business. Managers must have cultural literacy, or detailed knowledge about a culture that enables people to live and work within it. The main components of culture are aesthetics, values and attitudes, manners and customs, social structure, religion, personal communication, education, and physical and material environments. A culture’s aesthetics is important to formulating strategies, as are people’s values because they influence attitudes toward time, work, achievement, and cultural change. Knowledge of manners and customs is necessary for avoiding offensive behavior. Knowing the basics of other religions helps managers understand people’s behavior. The ability to speak the local language and understand unspoken language allows managers to understand a people. A culture’s educational aspects are important to a company, as is its material culture. Two tools to analyze and classify cultures include the Hofstede framework and the Kluckhohn-Strodtbeck framework.