Country And Cultural

Differences

By, Advaith N

Aida Ann Issac

What is Culture? Culture is a system of values and

norms that are shared among a group of people and that when taken together constitute a design for living.

How culture relates to International Business

Customs Basic customs, mannerisms and gestures Better liked by the customer

Language Barriers Speaking in a neutral tone and making a

conscious effort to be considerate of others' input, can help foster effective business communication

Target Audience: Presenting a campaign that is not in line with specific

cultural norms can insult the target audience and greatly hinder the campaign.

Technology: Technology enables people to easily connect with

people around the world in a moment's notice, but there are a few rules to remember before doing so. If making an international phone or video conferencing call, be conscious of the time zone differences and make sure to set a reasonable time for all involved parties to interact.

Politics: Some cultures have a very strong sense of

nationalism and government pride, and therefore, are more comfortable and willing to purchase from companies with some sort of government backing.

Dr. Gerard Hofstede Born in Netherlands in 1928 Social Psychologist Demonstrated that there are national

and regional cultural groups that influence the behaviour of societies and organisations.

1960-1970 Developed Cross cultural communication model

Hofstede’s Cultural Dimension ModelFive Cultural Dimension models Power Distance Uncertainty Avoidance Individualism v/s Collectivism Masculinity v/s Femininity Long v/s Short term orientation

POWER DISTANCE : The extent to which people accept inequality within society High Power

distance

Centralized authority

Hierarchical

Low power distance

Decentralized authority

Fewer Layers of management

UNCERTAINTY AVOIDANCE Society’s tolerance for uncertainty and ambiguity  Countries exhibiting strong UA maintain rigid

codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas.

ex: Greece, France, Japan Weak UA societies maintain a more relaxed

attitude in which practice counts more than principles.

ex: Singapore, India, USA.

INDIVIDUALISM VS COLLECTIVISM How independent are the members of a society Individualism: Preference for a loosely-knit social

framework in which individuals are expected to take care of only themselves and their immediate families.

Collectivism: Preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty.

A society's position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.”

MASCULINITY V/S FEMINITY Masculinity represents a preference in society for

achievement, heroism, assertiveness and material rewards for success. Society at large is more competitive and hierarchal.

Femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented.

In the business context Masculinity versus Femininity is sometimes also related to as "tough versus tender" cultures.

LONG V/S SHORT TERM ORIENTATION How much society values long lasting and

sustainable as opposed to short term traditions, values and goals.

NEED FOR INTER CULTURAL AWARENESS IN BUSINESS

“WHEN IN ROME , DO AS THE ROMANS DO”

Cultural Diversity

For a business to develop, the cultural diversity must be respected and managers should be aware of it.

Role Of language in Intercultural

Business Communication

Language and culture are intertwined and shape each other.

Different culture has different meaning for identical words.

English is currently the leading language for business interactions in the world.

Examples Coca cola was named ke-kou-ke-la in

China which translates in mandarin to “Bite the wax tadpole”. Subsequently coke also found a phonetic equivalent ko-kou-ko-le which translates into “Happiness in the mouth”.

The Swedish vacuum cleaner manufacturer Electrolux introduced the same print advertisement which was successful in Britain in the US market with the tag line “Nothing sucks like an Electrolux” and it turned out as a disaster.

Non Verbal Languages Non verbal communication cause

interpretation problems. Body language, clothing choices, eye

contact, touching behaviour, and conceptions of personal space etc communicate information in all cultures.

Facial Expressions A smile is one of the most common

examples of a facial expression in different cultures. While Americans smile freely at strangers, in Russia this is considered strange and at times as impolite. 

Hand and Arm Gestures While in some cases a particular gesture

means nothing to a representative of another culture, in other cases it is may be offensive. Example: Western “Thumbs Up” gesture or the “OK sign” have vulgar meanings in Iran and Latin America, respectively. Yet in other countries the “OK" sign means just “zero”, which is not offensive.

Physical Postures The most common example is the habit of

many American executives to rest their feet on the desk, which in Asia, the Middle East, and Europe is considered highly offensive.

Physical Distance In Latin America and the Middle East the

acceptable distance is much shorter than what most Europeans and Americans feel comfortable with.

Determinants of Culture

How does religion influence the value and norms found within a given country's culture?

What is Religion? How does Religion influence culture? Implication for business?

Religion

Religion is a set of beliefs and practices generally agreed upon by a number of persons.

Knowing the business partner's religious beliefs well will help to achieve good outcomes

For example, particular foods are forbidden for some communities like Beef for Hindus.

How does Religion influence culture? Religion can shape behaviour and set

certain values and rule that individual can follow.

Major religions in the world

Christianity Christianity is a monotheistic

abrahamic religion. Christianity is the most widely

practiced religion and is common throughout Europe, the Americas, and other countries which were colonized by Europeans.

Primarily consists of Roman Catholic, Protestant and Eastern Orthodox churches.

Economic implications of Christianity Economic views can vary according to the

church and region. Most Christian populations today support

free trade and globalization.

Perceived Economic implications of Protestant Christianity in the West

Protestant work ethic

Hardwork,

Wealth creation

& Frugality

Capitalism

Islam Islam is the second largest religion with

respect to adherents and is also a monotheistic religion which traces its origins to tradition of Abraham.

Major sects are Sunni and Shia. The primary schools of fiqh (jurisprudence)

amoung Sunnis are Hanafi, Malliki, Shafii, Hanbali and Zahiri.

The schools of jurisprudence of Shia’s include Jafari, Usuli and Ismaili.

Economic implications of Islam

Islam is supportive of business enterprises and trade.

Islam is prescriptive with respect to the way in which business is practiced.

Businesses that are perceived to be making a profit through the exploitation of others, by deception, or by breaking contractual obligations are penalized.

Hinduism(Sanatana Dharma) Practiced primarily in the Indian sub-continent. Emphasizes sustenance and achieving of balance between spiritual and worldly aspects of human life. Include interconnected sects like Shaivism, Vaishnavism, Shaktism and Smarthism. Includes various Margas(“Ways”). Hinduism encompasses various philosophical schools like Samkhya, Yoga, Nyaya, Vedanta, Mimamsa, Vaishesika.

Economic implications of Hinduism Hinduism places utmost importance on

Karma which is a Purusharta and duties of each person.

Promote various ethics such as honesty, sharing and importance of saving money, attaining education and family values.

Emphasizes spiritual equality and considers worldly equality to be impossible to attain and if attained as unsustainable.

Importance of Religions in India Religion is considered an important

aspect of life in India by most people. Religion influences the business ethics

and practices enormously. Hinduism, Islam , Christianity, Sikhism,

Jainism , Zoroastrianism and Buddhism are the major religions in India along with various smaller religions.

When doing business in China... Reputation/Face Patience Physical Contact Body language Meetings Values

Cultural Issues Malabar Gold – Pakistan Issue

An advertisement related to Pakistan Independence Day celebrations in FB page, a million likes

Claim: International agency handles their marketing

Cultural Issues

IMPLICATIONS FOR MANAGERSDifferences In Culture Imply That

1. There is a need for managers to develop cross-cultural literacy.

2. There is a connection between culture and national competitive advantage.

3. There is a connection between culture and ethics in decision making.

BUSINESS CULTURE IN DIFFERENT COUNTRIESGERMANY When you meet exchange business cards without any

ritual.

Do’s Don'ts* Give a quick handshake * be unpunctual* Use titles and surname

COMMUNICATION Germans are direct Firm, brief handshake at the time of arrival and departure

are standard in both business and social relationships

Do’s Don'ts* Be calm and collected * enter a closed door without

knocking

NEGOTIATION Meetings follow strict agendas Germany is heavily regulated and bureaucratic Business is hierarchical, decision making is made at the

top of the company A made decision will not be changed

Do’s Don'ts * Follow contracts strictly * Sit before invited and told to sit

THANK YOU!!!