Cross culture management lao

Laos Cross-Culture Management

Lao

Fuyuan Ou562391

Profile

• Lao People's Democratic Republic• Population: 6,803,699• Land area: 236,800 sq km• Official language: Lao or Laotian• President of laos: Choummaly Sayasone• Climate: tropical monsoon

– rainy season (May to November)– dry season (December to April)

Map of Laos

Flag

• A horizontal triband of red, blue (double height) and red

• Charged with a white circle in the centre (the diameter of white circle is four-fifths the height of blue band)

National anthem of Lao

• Video– https://www.youtube.com/watch?v=0r5Mb3Ztz

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Religions of Lao

Laos Costume

“Sinh” and “Salong”

National Dress

Local Food

Larb (Laap, Larp or Lahb)

Or Lam (Stew) Ping Kai (Grilled Chicken)

Kor Moo Yung

Laos Language

• Video– https://www.youtube.com/watch?v=lrXkc9No7

MY

Laos Letters

National Animal and Flower

Indian Elephant Dok Champa (The frangipani)

Laos Festivals

• Lao New Year (Pi Mai)

Lao New Year (Pi Mai)

• Video

Laos Festivals

• Boun That Luang – Though celebrated at many temples around the count

ry– is traditionally centered at That Luang in Vientiane.

Currency of Laos

1USD= 8124.98 Kip

1RMB=1253.87 Kip

Culture of Laos

• Religion– Theravada Buddhism is central to Lao cultural

identity– Buddhism culture has influenced Laos

Culture of Laos

• Social Rules– The Lao people greet each other with a

prayer-like gesture called a nod

Business and Trade

Local ProductsAgriculture – Products

Sweet potatoes Coffee Sugarcane

Tobacco Cotton Cassava

Import and Export

Exports

Top Export Products

• Exports - Commodities: wood products, coffee, electricity, tin, copper, gold, cassava

Imports

Top Import Products

• Imports - Commodities: machinery and equipment, vehicles, fuel

Imports and Exports Partner

• Exports - partners: Thailand 34%, China 21.5%, Vietnam 12.2% (2012)

• Imports - partners: Thailand 62.1%, China 16.2%, Vietnam 7.3% (2012)

Tips for Doing Business in Lao


• Tip 1– Do many researches when you are going to

do business in Lao• Unemployment rate 1.9%• GDP growth 8.3%


• Tip 2– Bargain, but do it gently

• The locals are familiar with haggling, and indeed expect it for most commercial transactions – but they’re gentle in their approach.


• Tip 3– Names

• Laos are addressed by their first name, preceded by their title such as Mr or Madame.

• If they occupy a senior position, you can use ‘Than’ to show respect.


• Tip 4– Local worker

• Requiring to hire Laos employees will help company fast achieve goal

• Tip 5– Opportunity

• Agribusiness is a emerging industry

Tips for Doing Business in Laos

• Tip 6 – Laos people only accepted shake hands, not

allow body touch or kiss face

• Tip 7– Normally, the people of Lao are family with

hierarchical structure


• Tip 8– Choose your business partners carefully and

build relationships with them


• Tip 9– It’s important to build relationships with the

various government departments and officials relating to your business

• Tip 10– Thai investor are easier to fit in and doing

business in Lao

Challenges of doing business in Laos

1. Finding local staff– There’s a limited pool of skills available, and

few people speak languages other than Lao

2. Limited infrastructure and transport– There’s a marked lack of infrastructure

3. Uncertainty in laws and regulations – The government is continually evolving its

laws and regulations

Challenges of doing business in Laos

4. A lack of cold storage– Laos has only limited cold storage facilities

5. Build strong relationships with government officials

6. Support from foreign direct investment (FDI)

– Neighboring countries such as Vietnam, China and Thailand are strong sources of FDI for local ventures.

Differences in the Chinese Culture and Laos


Laos Wedding dress

Chinese Wedding dress


• Monk Culture


• Chinese religion– Buddhist 18.2% – Folk religion 21.9%

• Laos religion– Buddhist 67% – Satsana Phi 31%


• Chinese people are more focus on long term strategy

• Lao people prefer to focus on short term strategy

Applying Cross-Culture Management Concepts in Lao


• Southern Asia– different religions and ethnic groups living in

peaceful co-existence– share similarities in relationship management

• concern for respect and harmony– embrace the principles of the Buddhist religion


• ‘Karma capitalism’:– corporations being able to create value and social

justice simultaneously. – capitalism which ‘puts the individual at the center

of the universe’.• Laos Buddhist economic model:

– Avoidance of extremes– Create sustainable profit.

Time focus and management tasks

Monochromic cultures1. Making schedules2. Linear and task-focused3. Concerns focused on shorter term4. Distribution of detailed information5. Use control systems and strict deadlines

Time orientation and management tasks

Past-oriented cultures1. Building in long-term time frames2. Past goals guide the process3. Slower in adapting criteria by selection 4. Continuation of the company’s values5. Develop performance in keeping customary

goals

Power and management tasks

Hierarchy1. More autocratic or paternalistic planning2. Organisational structure is tightly controlled3. Subordinates expect bosses to take initiatives4. Employees like being closely supervised5. Employees prefer the personal control of

superiors

Competition and management tasks

Co-operative1. Maintaining relationships in

plan implementation.2. Managers have more of a facilitating role. 3. Employees elected on ability

to work well in groups. 4. The leader’s role is to facilitate relationships. 5. Task performance is recognised as a standard for

success.

Action and management tasks

Being cultures1. Strong focus on the vision.2. Based on common vision and personal trust. 3. Career development based on personal or

social criteria.4. Personal philosophy, values and style.5. Management of performance measurement

less systematic.

Communication and context

Low context1. Plans are explicit, detailed, quantifiable, info-

based. 2. Explicit, detailed guidelines for task responsibilities

via verbal/written instruction. 3. Detailed employment contracts and explicit

performance appraisals. 4. Managers outline specific (path to) goals.

Instructions specific, conflict depersonalised. 5. Control more task-driven: monitoring used to

ensure objectives.

Space and management tasks

Public1. Group-oriented or authoritative forms.2. Relationship-centred approaches.3. Implicit information. 4. Size of the place where an employee

works does not reflect the person’s rank.5. Informal checks on performance.

Structure and business activities

Collectivism1. Plans developed within shared values used for

measuring and justifying activities.2. Emphasis on the group: the team is assigned tasks and

resources. 3. Promotion based on seniority. Managers evaluated on

their conformity to org./group norms. 4. Leaders expect loyalty in exchange for protection;

group/top-down control. 5. Deviation from standards and expectations discouraged

through group-oriented pressure.

Laos

• Young entrepreneurs in Laos share their innovative business ideas

• Video– https://www.youtube.com/watch?v=6BalSOv9

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How to travel Laos

• Video– https://www.youtube.com/watch?v=p0BmwQ_

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Conclusion

• Most of cultures are similar to Thailand• Laos is an agriculture nation• Buddhism has effective impact to Laos• People are more focusing on hierarchical

structure• Laos focuses on short-term strategy

Quiz time

Hand up and answer

1. Which one is the capital of Laos?– 1. Vientiane 2. Vietnam 3. Laos

2. What is the color of circle in the middle of flag?– 1. Blue 2. Red 3. White

3. Which is not Laos local food?– 1. Larb 2. Chicken rice 3. Kor Moo Yung

Hand up and answer

4. Which country has the closest export and import relationship with Laos?– 1. China 2. Vietnam 3. Thailand

5. What is the national animal of Laos?– 1. Indian Elephant 2. Tiger 3. White Elephant

Right or Wrong1. Laos is high context country2. Laos is prefer to long-term strategy3. Buddhism has completely impact to Laos4. The people of Laos are individualism in most of time5. Laos doesn’t believe that making good relationship is

important6. Organization in Laos have believed that equality is more

significant than hierarchy7. The monk of Laos and Chinese have same functions8. The agriculture of Laos are undeveloped

Thank you

Education

Cross culture management lao