Click here to advance to the next slide.

Read to Learn

• Describe the effect of culture on doing business globally.

• Describe how corporate cultures differ among businesses.

The Main Idea

A company’s culture is its shared values, beliefs, and goals that affect the way its management and employees interact. It also impacts the way it works with people in other countries with which it does business.

Key Concepts

• Culture in a Global Economy• Corporate Culture

Key Term

culture

businessetiquette

the beliefs, customs, and attitudes of a distinct group of people

a conduct that is considered socially acceptable in business

Key Term

corporateculture

hierarchy

shared values, beliefs, and goals

chain of command

Key Term

bureaucracy several levels of management

Culture in a Global Economy

A group’s culture is often considered in terms of its dress, food, language, and art. Yet it is more complicated than that.

culturethe beliefs, customs, and attitudes of a distinct group of people

Graphic Organizer

What Is Culture?

Dress

Food

Language

Art

History

GeographyReligiousbeliefs

An entirecountry

An ethnic group

Specificsocial group

An institution

Culture in a Global Economy

The global economy creates a diverse culture for business.Properly approaching people from various cultures can give them a better impression of you.

Culture in a Global Economy

In business, culture has two meanings.

The customs of other countries with which

companies do business.

The standards of a particular company.

1 2

Failure to understand the culture of another country can ruin a deal or lead to a marketing disaster.

Marketing Abroad

Before a company markets a product in a country, certain things must be researched.

Languages

Customs

Tastes

When Pillsbury® translated “Jolly Green Giant” into Arabic, the phrase became “Intimidating Green Ogre.”

Coca-Cola® changes the amount of carbonation and sugar in its products to suit the tastes of different countries.

Doing Business Abroad

Companies doing business in other countries must be aware of cultural differences that affect the workplace.

When Euro Disney opened, French workers objected to certain practices that were typical at Disney’s U.S. theme parks. Three thousand workers quit.

Business Etiquette

Business etiquette differs from country to country.

business etiquetteconduct that is considered socially acceptable in business

Many companies hire local managers in other countries to help avoid etiquette problems.

Graphic Organizer

Giving a potential business partner a gift might be seen

as a bribe.

Giving a potential business partner a gift is seen as

customary.

In the United States In Japan

Corporate Culture

A company’s corporate culture can be defined formally through a company code of ethics and the orientation process.

corporate cultureshared values, beliefs, and goals

Corporate Culture

• Corporate culture can be defined informally through a company’s dress code, work habits, and social activities.

• A corporate culture can be influenced by a company’s founder.

A Culture of SocialResponsibility

Some corporations work hard to contribute to their communities. Outdoor apparel maker Patagonia uses organic cotton in its products to avoid chemicals that harm the environment.

Formal Culture

A formal business culture may have a strict hierarchy.

hierarchychain of command

A hierarchy usually has one person at the top who makes all the decisions.

Formal Culture

Making changes or passing down decisions can be complicated in a bureaucracy.

bureaucracyseveral levels of management

Graphic Organizer

Characteristics of a Formal Corporate Culture

Strict hierarchy

Making changes or passing down decisions can be complicated

Job titles are indicators of power and status

Dress codes are strictly enforced

Work hours are strictly enforced

Informal Culture

At a company with an informal culture, employees are encouraged to make decisions on their own.Few companies have a culture that is entirely formal or informal.

Graphic Organizer

Characteristics of an Informal Corporate Culture

Flexible dress code

Flexible work hours

Option to work from home

Job titles are not as important as creativity and teamwork

1. Why should businesses involved in global trade be aware of cultural differences?

Properly approaching people from different cultures gives a better impression of the business.

1. How is a company’s corporate culture defined?

Formally, through a company code of ethics, a written manual, and the orientation process. It is defined informally through dress codes, work habits, and social activities.

1. What are some characteristics of a formal corporate culture?

Some characteristics are a strict chain of command or hierarchy, several levels of management or a bureaucracy, importance of job titles, and strict dress codes and work hours.

End of