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7/29/2019 How Culture Affects Your Business
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2004 Czech Republic joined EU
Fiscal and monetary policy aims to align its macroeconomicconditions with the rest of the EU.
...
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1) The globalization of business,
2) Quantum advances in telecommunications and data
3) The formation of global alliances,
4) The growing diversity in the domestic workforce,
5) The increasing mobility of workforce worldwide.
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Culture is the collective programming of the mind which
distinguishes the members of one human group from
another
Culture is patterned ways of thinking, feeling and reacting,
acquired and transmitted mainly by symbols
Culture is the guider of selection of appropriate responses insocial situations, social interactions, business interactions
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A system of values and norms that are shared
among a group of people and that when taken
together constitute a design for living. Hofstede and Weber
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Values: Abstract ideas/assumptions about what a group believes to
be good, right and desirable
Norms: social rules and guidelines that prescribe appropriatebehavior in particular situations
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Social structure
Language
Education
Economic philosophy
Political philosophy
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Culture is not a constant - it evolves over time
Since 1960s American values toward the role of women are changing.
Japan moves toward greater individualism in the workplace
Effects of globalization
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Four dimensions of culture
1) Power Distance2) Individualism vs. Collectivism
3) Masculinity vs. Femininity
4) Uncertainty Avoidance
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Power distance
the extent to which members of a society accept the
unequal distribution of power among individuals
In large-power-distance societies employees believe their supervisors are right;
employees do not take any initiative in making non-
routine decisions
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Hierarchy
Centralization
Salary range
Participation Ideal Boss
Privilege & status symbols
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Collectivistic cultures
people integrated into strong, cohesive groups; protection
is exchanged for loyalty
Individualistic cultures
People look after only themselves and the immediate
family
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Employee-employer relationship
Hiring and promotion decisions
Task vs. relationship priority
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the degree to which the dominant values in a society emphasizeassertiveness, acquisition of money and status
Masculinity
Masculine societies: social gender roles are distinct (menfocus on material success; women on quality of life)
Femininity
emphasize relationships, concern for others, and the
overall quality of life
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Femininity: equality, solidarity, quality of work life
Masculinity: equity, compete, performance
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the extent to which the members of a culture feel
threatened by uncertain or unknown situations.
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Uncertainty avoidance
Degree to which members of a society feel threatened by
ambiguity and are rule-oriented
Employees in high uncertainty-avoidance cultures tend tostay with their organizations
Japan, Greece, and Portugal
Those from low uncertainty-avoidance nations are more
mobile
United States, Singapore, and Denmark
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Necessity of rules
Time orientation
Interpretation of What is different
Appropriateness of emotional displays
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Something similar is to find the answer on the question, if there is a
meaning of life or not, and if yes, what???
t epen s rom n v ua s, w at t ey t n , ecause eac person
has its own opinion.
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Common roots of national cultures in Europe:
1) Heritage of Greek Culture and Knowledge
oots n oman mp re
3) Christianity and its Religional Tradition
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Culture affects Consumer behavior
Local demand
Brand Image
Culture influences managerial styles and managementdecisions
Culture affects the nature of business negotiations
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Knowledge of native culture is useful when dealing with homemarkets but it has little value when dealing in foreign markets
Culture acts as a hidden entry barrier, but it can be overcomewith cultural sensitivity, hard work & quality
Managerial behavior is driven by his/her cultural knowledge
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Some countries are multicultural: India, China, US, Russia. Thesecountries have several sub-cultures.....51 nations in China!!!!
While many are monocultural: UK, France, Germany, Columbia,
Peru etc.
Culture is the Silent Language in International business
Relationship with Time & Space
High Context Low context cultures and direct, indirect behaving Body language
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- Nodding the head
- Yes in most societies
- No in some parts of Greece,Bulgaria
- Rocking head slowly, back and forth- yes, Im listening in most Asian cultures
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Face
Facial expressions reflect emotion, feelings and attitudes, but..
The Asians are sometimes known as
- emo on ess
- mixed-up emotion
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Managers face cultural dilemmas due to differences in cultures
Modenization versus westernization
Individualism Vs Collectivism in decision making
Specific Vs General
Attitudes towards Time
Attitudes towards Environment
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Kiss, Bow or Shake Hands !
Women and religion in muslim
Czech Republic
Number 8 in China - always and everywhere
Avoid using triangular shapes in Hong Kong, Korea and Taiwan.
It is considered as a negative shape.
The number 4 means Death in Japan and China
Gift giving - How to choose it !
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The aim of business is the same everywhere, but the way to do itvaries across countries
Global Managers must be able to handle Culture shock
Similar business situations in different countries does not implysimilar opportunities. Alcohol in muslim World,...........etc.
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Culture defines a set of acceptable & unacceptable behaviors, whichforms the basis of Way of doing Business
Managers learn how to do business. This process is calledncu ura za on an oc a za on
How consumers behave
How to manage people, supplier & subordinates
What guides the consumer behavior
Global business involves cross cultural negotiations, establishingrelationships with suppliers, customers, distributors & otherpartners
Acceptable Behavior in business is usually acceptable behavior insociety
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Establish the global firm as a dependable supplier operating in thelocal market
Understand buyers position
People who influence the buying decision
Role of the suppliers product/Service in the buyers business
success
This will make the local buyer treat the global supplier as a local firm.
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Culture defines The way to do Business
Learn & analyze local cultures before entry
Identify danger signals Know the strengths & weakness as perceived by the local culture
Establish trust & friendships
New Culture is an operational risk
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American Society Japanese Society
Dignity of Individuals In the same boat concept
Dignity of individuals Human relation oriented
Individuals work ethic Dependence on the group
Great individuals freedom Lack of individuals freedom
Respect for rules Low regard for rules
A open and transparentsociety
A close society, lacking intransparency
Multi-cultural society Mono-cultural society
A society excelling in creativity
and versatility
An orderly and uniform
society
Individual decisions over consensus Dependence on consensus
A society which pursue that ideal A society which pursue harmony
with reality
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Country CPI 1997 CPI 1998 Country CPI 1997 CPI 1998Denmark (1) 9.94 9.33 Italy (30) 5.03 3.42
Finland ((2) 9.48 9.05 S. Korea (34) 4.29 2.96
Norway (7) 8.92 8.87 Brazil (36) 3.56 2.96
Singapore (9) 8.66 8.8 China (41) 2.88 2.43
Switzerland (11) 8.61 8.76 India (45) 2.75 2.63
USA (16) 7.61 7.66 Mexico (47) 2.66 5.5
France (20) 6.66 6.96 Russia (49) 2.27 2.58
Czech Rep. (27) 5.2 5.37 Nigeria (52) 1.76 0.69
The ranking is based on 52 countries studied
The maximum 10 would be corrupt free country
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Area Briefing Books
Field Trips
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