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Chapter Three Cultural Foundations
Chapter Three Cultural Foundations
MKT568
Global Marketing Management
Dr. Fred Miller
3-1
Understanding Culture
Academic approaches How are cultures organized? What do they value?
HistoryAnthropologyGeographyHumanities
University Studies courses
Professional/pragmatic approachesHow should managers operate in multiple cultures?
Social and professional valuesSocial and professional behaviorIntercultural communication and negotiationMulticultural interpersonal interaction
International business, management, marketing courses
Sample Essay Question
Schmidt’s has chosen to enter the Thai market and is preparing to send a delegation to Bangkok to negotiate a sales contract with the largest Thai mass merchandise retailer. You must prepare a briefing on intercultural communication for this team.
Relative to Hofstede’s indexes, Thailand is classified as Feminine, Collectivist, Large Power Distance and High Uncertainty Avoidance. Select three topics from the Cultural Passport video and explain the importance for conducting international business. For each, describe the behavior patterns you would anticipate in Thailand based on the country’s Hofstede values. Explain your reasoning.
Culture Across Countries
High vs low context cultures
Silent languages
Hofstede’s cultural dimensions
Gannon’s metaphors
Rapaille’s Decoding Cultures
High vs Low Context CulturesHigh vs Low Context Cultures3-2
High Low Verbal Behavior Words chosen have
numerous possible interpretations; meaning is derived from matching words with non-verbal cues and the specific situation
High reliance on verbal communication to convey meaning; words are carefully selected to convey precise, specific meanings.
Nonverbal Behavior
High reliance on nonverbal behavior to convey meaning
Nonverbal aspects play secondary or confirming role
Societal Makeup Homogeneous Diverse
Ability to communicate relies heavily on similarity in communicants' backgrounds
yes no
Hall’s Silent Languages
Space
Possessions
Friendships
Agreements
Time
Gannon’s MetaphorsGannon’s Metaphors
1. American football: Individualism and competitive speculation; huddling; ceremonial celebration of perfection.
2. The British house: Laying the foundations; building the brick house; living in the brick house.
3. The German Symphony: 0rchestra; conductors; performance society; education, and politics.
4. The French wine: Purity; classification; composition; compatibility; maturation.5. The Italian family opera: Pageantry and spectacle; voice expression; chorus and
soloists.6. The Swedish summer house: Love of nature; individualism through self-
development; equality.7. The Japanese garden: Wa and shitaki, harmony and form; seishin, spirit of self-
discipline; combining droplets.8. The Chinese family altar: Confucianism and Taoism; roundness, harmony and
fluidity.9. India: cyclical Hindu philosophy: The cycle of life; the family cycle; the social
cycle; the work cycle.
3-7
Source: Martin Gannon, “Cultural Metaphors,” Understanding Global Cultures, pp. v-vii, ©1994 by Martin Gannon. Reprinted by permission of Sage Publications.
Hofstede Calculations and Matrix
8 56 112
Low Uncertainty Avoidance High
Low
Pow
er D
ista
nce
H
igh
11 4
4
9
4
Hofstede Calculations
Question PDI UAI Member PDI UAI1 5 5 1 55 50 High =2 2 2 2 58 67 Low =3 4 2 3 68 78 Contrary =4 4 5 4 42 705 1 1 Average 56 66
Score 55 50 US 40 46Midpoint 50 62
Power Distance and Individualism ScalesPower Distance and Individualism Scales-
ARG ArgentinaBRA BrazilCHL ChileCOL ColumbiaGRE GreeceHOK Hong KongIND IndiaIRA IranJAP JapanMEX MexicoPAK PakistanPER PeruPHI PhilippinesPOR PortugalSIN SingaporeTAI TaiwanTHA ThailandTUR TurkeyVEN VenezuelaYUG Yugoslavia
Small LargePower DistanceIn
divi
dua
lism
Col
lect
ivis
t
12
50
30
Small power distance collectivist
Large power distance
collectivist
Reprinted by permission of the author from Culture’s Consequences, published by Sage Publications. ©1990 by Gert Hofstede
•PAK •COL •VEN
•TAI •PER
•THA •SIN
•CHL•POR •HOK
•YUG•MEX •PHI
•GRE
•TUR
•BRA•IRA
•ARG •JAP
•IND+11 +28 +44 +64 +77 +94
Power Distance and Individualism ScalesPower Distance and Individualism Scales
AUL AustraliaAUT AustriaBEL BelgiumCAN CanadaDEN DenmarkFIN FinlandFRA FranceGER GermanyGBR Great BritainIRE IrelandISR IsraelITA ItalyNET NetherlandsNZL New ZealandNOR NorwaySAF South AfricaSPA SpainSWE SwedenSWI SwitzerlandUSA United States
Small LargePower DistanceIn
divi
dua
lism
Indi
vidu
alis
t
53
91
71
Small power distance
individualist
Large power distance
individualist
Reprinted by permission of the author from Culture’s Consequences, published by Sage Publications. ©1990 by Gert Hofstede
•SPA
•SAF
•FRA
•BEL•ITA
•AUT•ISR
•FIN
•GER•NOR•SWI
•SWE•IRE
•DEN
•NZL •CAN•NET
•GBRUSA
•AUL
•+11 +28 +44 +64 +77 +94
Academic/Pragmatic Integration?
In the Hofstede matrix using the IDV and PDI scales, how are each of the following groups of countries concentrated? What historical/cultural trends are consistent with these concentrations.
Former British Empire countries
Asian countries
Latin American countries
Northern European countries
Cross Cultural Management
Managing in a cross cultural environment
country cultural and business information
culture and managerial skills
managerial styles in the Triad
culture and negotiations
limits to adaptation
Hofstede’s Classification of Triad CountriesHofstede’s Classification of Triad Countries3-8
Japan North America W. Europe (Canada, USA,
Great Britain)
Northern Continent Greece
Individualism low high high high low
Power distance high low low high high
Masculinity high high low high high
Uncertainty avoidance
high low low high high
Context high low high low
Note: “Context” added.Source: Adapted from Hofstede, 1980
Exhibit 3.4
Cross Cultural Issues in Business
Which of the following patterns of business behavior would you expect in a Collectivist country with Large Power Distance?Decentralized organizations with autonomous unitsCentralized, hierarchical organizationsSubordinates who expect exact instructionsMultiple people and groups involved in decision makingConcentration of decision making in top managementMulti-track, manager to manager negotiating stylesDivision managers willing to make their own decisions
Cross Cultural Issues in Business
Which of the following patterns of business behavior would you expect in a Feminist country with Weak Uncertainty Avoidance?Willingness to undertake risky venturesEmphasis on reaching quantitative performance goalsA zero sum approach to negotiationsConcern for interpersonal environment of the firmIntegration of professional and personal goalsReluctance to try new approachesA win-win approach to negotiations
Four Stages of Business NegotiationsFour Stages of Business Negotiations3-9
Stage Japanese American
1. Nontask sounding
Considerable time and expense devoted to such efforts.
Relatively shorter periods are typical.
2. Task-related exchange of information
This is the most important step- high first offers with long explanations and in-depth clarifications.
Information is given briefly and directly. “Fair” first offers are typical.
3. Persuasion Persuasion is accomplished primarily behind the scenes.
The most important step: Minds are changed at the negotiation table and aggressive persuasive tactics are used.
4. Concessions and agreement
Concessions are made only towards the end of negotiations– a holistic approach to decision making.
Concessions and commitments are made throughout–a sequential approach to decision making.
Source: Adapted from John L. Graham, “A Hidden Cause of America’s Trade Deficit with Japan,” Columbia Journal of World Business, Fall 1981. p. 14.
Cultural Passport Video
Explain why each of the following components of the Cultural Passport are important for success in international business.Greeting and addressing peopleConversationBody languageSensitivityTable MannersGender AwarenessNegotiating stylesTimeContractsAttitudes and Values
Chapter Three Cultural Foundations
Chapter Three Cultural Foundations
MKT568
Global Marketing Management
Dr. Fred Miller
3-1
