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CULTURE: - is learned thru’ experience and not inherited. - people believe that certain responses are successful enough to teach them and to to others the underlying values and assumptions. - they become shared among other members of the group because particular responses can be successful. And finally….. The key factor that allows culture to be transferred from one generation to another or shared within a family , community, region or country is – ‘THE The International Business Environment:

CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

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Page 1: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

CULTURE: - is learned thru’ experience and not inherited.- people believe that certain responses are successful

enough to teach them and to to others the underlying values and assumptions.

- they become shared among other members of the group because particular responses can be successful.

And finally…..The key factor that allows culture to be transferred from

one generation to another or shared within a family , community, region or country is – ‘THE HUMAN CAPACITY FOR SYMBOLIC REPRESENTATION AND COMMUNICATION.”

The International Business Environment:

Page 2: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

what makes a marketers difficult is:

- TO UNDERSTAND THE EXTENT TO WHICH THEY ARE WIDELY SHARED AMONG GROUP MEMBERS

- AND- THE EXTENT TO WHICH THEY ARE DEEPLY HELD.

Generally the impact on managerial behavior is on the following:

A] communicationB] negotiationC] decision making

The International Business Environment:

Page 3: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

Characteristics……..

A] PRESCRIPTIVE: as it prescribes behavior which is acceptable to the society. [wine consumption – not acceptable in Saudi Arabia]

B] SOCIALLY SHARED: based on social interaction and creation of needs. [earlier times – Indian teenage girls and child marriage, Sati etc.]

C] FACILITATES COMMUNICATION: brings common habits of though and feeling among people.

D] CUMULATIVE and DYNAMIC.

The International Business Environment:

Page 4: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

E] LEARNED: is acquired thru learning but not inherited generically. Learned culture is called SOCIALISATION or ENCULTURATION.

F] SUBJECTIVE: people of different cultures have different ideas about the same objects.

G] ENDURING: case in point: Spend yesterdays income today in India whereas spend tomorrow’s income today in the USA has been enduring.

The International Business Environment:

Page 5: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

CULTURE: The Silent Language of International Business.

Cultural differences - A navigation problem – attempt to map a route through complex and unknown terrain, yet only there are two points of reference.

- THE MARKET PLACE- THE BRAND.

The absence of a third point – gives rise to the inability to triangulate.

The International Business Environment:

Page 6: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

For which we need a robust and reliable aerial view of theconsumer terrain in addition to exploring the groundrealities of the market on foot.

The Satellite available to help us – is calledCULTURE MAPPING:

Culture Mapping through:

A] Geert Hofstede ModelB] Fons Trompenaars model.

The International Business Environment:

Page 7: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

A] Geert Hofstede ModelB] Fons Trompenaars model.

Both these models provide a set of cultural measuresw.r.t:

1] relationship to the environment2] time orientation3] nature of people4] activity orientation5] focus of responsibility6] conception if space.

The International Business Environment:

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HOFSTEDE 5-D MODEL: Which sheds light on themystery of diversity:

A] POWER DISTANCE: which measures how people within a culture handle the concept of inequality in society, in the work place etc.

B] UNCERTAINITY AVOIDANCE: which measures how threatened people feel by ambiguous or unfamiliar situations.

C] INDIVIDUALISM / COLLECTIVISM: which measures how much peoples loyalty and interest is limited to themselves and their immediate family, or extends towards larger groups or society itself.

The International Business Environment:

Page 9: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

D] MASCULINITY / FEMINITY: which measures the ratio between masculine values such as achievement and success and feminine values like quality of life.

E] LONG TERM ORIENTATION / CONFUCIAN DYNAMISM: which attempts to measure and compare (relatively) forward thinking versus short-termism.

The International Business Environment:

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Fons-Trompenaars model – a seven dimensionalcultural map.

A] UNIVERSALISM / PARTICULARISM: which deals with the degree of importance attached to the rights of friends as against the rights of society in general.

B] INDIVIDUALISM / COMMUNITATRIANISM: which corresponds to Hofstedes individualism / collectivism axis.

C] SPECIFIC / DIFFUSE: which deals with the expectations people have of relationships.

The International Business Environment:

Page 11: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

D] NEUTRAL / AFFECTIVE: The degree to which people feel happy about externalizing their feelings.

E] ACHIEVEMENT / ASCRIPTION: the degree to which status is achieved thru personal endeavor inherited by external circumstances – this dimension has something in common with Hofstede’s power-dimension axis.

F] TIME ORIENTATION: whether a society bases its future on its past or not, and how tasks are managed across time.

G] INTERNAL / EXTERNAL: which deals with a society’s view of the relationship between man and nature and consequent degree to which individuals will tend to believe what they control or are controlled by the environment.

The International Business Environment:

Page 12: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

The International Business Environment:

Value Dimension Value Description High Score Low Score

Power Distance Index (PDI)

The degree of equality, or inequality, between people in the country's society

Indicates that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens.

Indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed.

Individualism (IDV)

Degree to which a society reinforces individual or collective achievement and interpersonal relationships.

Indicates that individuality and individual rights are paramount within the society. Individuals may tend to form a larger number of looser relationships.

Typifies societies of a more collectivist nature with close ties between individuals. Reinforce extended families and collectives where everyone takes responsibility for fellow members of their group.

Page 13: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

The International Business Environment:

Value Dimension Value Description High Score Low Score

Masculinity (MAS)

Degree to which a society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power

Indicates the country experiences a high degree of gender differentiation. Males dominate a significant portion of the society and power structure, with females being controlled by male domination.

Indicates the country has a low level of differentiation and discrimination between genders. Females are treated equally to males in all aspects of the society.

Uncertainty Avoidance Index (UAI)

Level of tolerance for uncertainty and ambiguity. within the society - i.e. unstructured situations.

Indicates the country has a low tolerance for uncertainty and ambiguity Creates a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty.

Indicates the country has less concern about ambiguity and uncertainty and has more tolerance for a variety of opinions. Reflected in a society that is less rule-oriented, more readily accepts change, and takes more and greater

Page 14: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

The International Business Environment:

Value Dimension Value Description High Score Low Score

Long-Term Orientation (LTO)

Degree to which a society embraces, or does not embrace, long-term devotion to traditional, forward thinking values.

Indicates the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider".

Indicates the country does not reinforce the concept of long-term, traditional orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do not become impediments to change.

Page 15: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

The International Business Environment:

Page 16: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

CULTURE: DEGREES OF SENSITIVITY:

1] Ignorance and Intolerance….because you are a foreigner – I hate you and everything about your country.

2] Political Correctness ….because you area local-country individual, I have been programmed to respect you, whatever I may personally think about you, we will celebrate our differences in a joyful world community.

3] Tolerance…. We're certainly different from each other but that’s ok – we are both human beings and I guess its because we were brought up differently.

The International Business Environment:

Page 17: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

1] Cultural Sensitivity….. I want to find out more about you and tell you more about me so that we can understand ourselves better.

CS is different from being tolerant in ….that it being a condition of VIRTUOUS STRIVING.

Your CS is what defines whether your first contact withforeigners will do you and your brand good or do you bothharm.

The International Business Environment:

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Cultural Sensitivity…..WHY McDonalds IN PARIS OR TOKYO WILL TRADE ALONGSIDE A BRISTO OR A SUSHI BAR.

Doing business in your own country is like being permanent dressed in clothes which are the same color as your own wall paper- so you really cant see where you stop and where the background starts. The first time you stand in front of a different pattern, your own outline suddenly stands out as never b4.

Exposure to the global culture of Western brands can actually provide the catalyst for people to realize that their own culture is different and special & worth striving to PROTECT.

The International Business Environment:

Page 19: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

Thus WITH Cultural Sensitivity…..

While we strive to protect our own sensitivity we also

A] better understand our own product as [brand] wisdom is made of such experiences – of meeting and selling in other markets.

B] are able to reveal more features about a particular culture / tradition.

SEEING THE RIVER THAMES AS PAINTED BYTURNER OR SAY A KOKOSCHKA, OR A MONET,HELPS LONDENERS TO SEE THE TRUE ASPECT OFTHEIR OWN CITIES IN WAYS THEY COULD HAVENEVER DONE ON THEIR OWN.

The International Business Environment:

Page 20: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

Thus WITH Cultural Sensitivity…..

Opel Corsa – Acthung Baby ? – Not even the slightest resonance.

RR : Mist: Dung in German ??Matador – Killer in Spanish ??Pajero – Plumber and Liar in Spanish ??Focus – Faux Cul – Fake Ass in French ??

The International Business Environment:

Page 21: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

THE ICEBERG OF CULTURE:

ASL:ARTIFACTS: these are visible dimensions say like

behavior, art, building, clothing etc.

USL:VALUES: these are invisible rules just under the surface

that causes artifacts.

ASSUMPTIONS: these are well below the surface but cause values and artifacts and can ….SINK YOUR SHIP.

The International Business Environment:

Page 22: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

The Matrix of Culture.

NARROWLY SHARED DEEPLY HELD

- violations in this cell usually result in informal but sometimes significant punishments.

WIDELY SHARED DEEPLY HELD

- violations in this cell usually result in formal but significant punishments.

NARROWLY SHARED SHALLOWLY HELD

- violations in this cell usually do not result in uniform reactions but instead are more idiosyncratic.

WIDELY SHARED, SHALLOWLY HELD.

- violations in this cell usually result in minor punishments or sometimes second chances

Page 23: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

1] Communication: cip Japan 5 words for ‘you” depending on status.

2] Negotiation:identified similarities a well as differences. Similarities in planning, non-task time, exchanginginformation, attempt to influence the other, mutuallyacceptable solution.

3] Decision Making – Japan/Mexico/India – collectivist-oriented – team decision making versus Individualistic oriented in USA.

USA/Sweden – Rationality and Quantitative informationfor decision makingFrench / Italy – past experience and qualitative informationover quantitative data.

CULTURE: Its Impact on Managerial Behaviors :

Page 24: CULTURE: -is learned thru’ experience and not inherited. -people believe that certain responses are successful enough to teach them and to to others the

CULTURE: Its Impact on Managerial Behaviors:

Trait Country A Country B

Timing of Stages – non task time

Get straight to the point. Thus final contract is very detailed in terms of obligations and penalties for compliance/non-compliance.

Japan /Mexico – Build strong relationships first. Get to understand each better

Location of Stages

All stage - Very formally. Korea – final contract is signed in a public place.

Influence tactics

Brazilians are twice as likely as wither Americans or Japanese to begin talking before the other party has finished saying.

Participan-ts

Larger team can mean trying to intimidate. Responsibility and not position is considered.

India/Japan/Mexico – team members of equal status and size.