What is Culture???

DR. R. N. KAR

Some Cultural Scenarios

China

India

Mexico

JAPAN
To help her American Company establish a presence in Japan, Mrs. Torres wants to hire a local interpreter who can advise her on business customs. Ms. Tomari has superb qualifications on paper, but when Mrs. Torres tries to probe about her experience, Ms. Tomari just says, I will do my best. I will try very hard. She never gives details about any of the previous positions she has held. Mrs. Torres begins to wonder if Ms. Tomari's rsum is inflated.

CHINA
Stan Williams wants to negotiate a joint venture between his American firm and a Beijing-based company. He asks Tung-Sen Lee if the Chinese people have enough discretionary income to afford his product. Mr. Lee is silent for a time, and then says, Your product is good. People in the West must like it. Stan smiles, pleased that Mr. Lee recognizes the quality of his product, and he leaves a contract for Mr. Lee to sign. Weeks later, Stan still hasnt heard anything. If China is going to be so inefficient, he wonders if his company should try to do business there.

Gloria Johnson is proud of her participatory management style. Assigned in Bombay on behalf of her U.S.-based company, she is careful not to give orders but to ask for suggestions. But the employees rarely suggest anything. Even a formal suggestion system she established does not work. Worse still, she doesnt sense the respect and camaraderie that she felt at the plant she managed in Texas. Perhaps the people in India just are not ready for a woman boss.

INDIA

MEXICO
Alan Caldwell is a U.S. sales representative in Mexico City. He makes appointments with Senr Lopez and is careful to be on time, but his host is frequently late. To save time, Alan tries to get right to business, his host wants to talk about sightseeing and about Alans family. Even worse, the meetings are interrupted constantly with phone calls, long conversations with other people, and even customers children who come into the office. Alans first report to his home office is very negative. He hasnt yet made a sale. Perhaps Mexico just isnt the right place to do business.

How to Win, Achieve and Implement

STRATEGY FOR MANAGING ACROSS CULTURES

As MNCs become more transnational, their strategies must Focus on cultural similarities & differences Example Renault sold its products in France Limited geographic market & quality related problems compounded difficulties Renault made a number of strategic changes that dramatically changed the way it did business

 bought controlling stakes in Nissan, Samsung, Dacia, the Romanian auto maker built a $1 billion factory in Brazil to produce Sedan acquired an idle factory in Russia to cater eastern Europe ..
Today, Renault is successfully operating in four continents By adopting the following strategies integrated its own sales organisation with Nissan in Europe Producing Nissan models in Brazilian plant to cater South American market efficiently Long run goal to have 10 common platforms to built Renaults, Nissans while maintaining the look and feel of separate brands

STRATEGIC PREDISPOSITIONS
Most MNCs have cultural strategic orientation towards doing Things in a particular way This orientation /predisposition helps to determine the specific steps the MNC would take Ethnocentric

Polycentric
Regiocentric

Geocentric

Ethnocentric Allows the values and interests of the parent company To guide strategic decisions Polycentric Strategic decisions tailor made to suit the cultures of the Countries where the MNC operates

Regiocentric Tries to blend its own interest with those of its Subsidiaries on a regional basis
Geocentric Tries to integrate a global system approach to decision making

Orientation of the Firm

Mission Ethnocentric Profitability (viability) Polycentric Public acceptance (legitimacy) Regiocentric Both profitability and public acceptance (viability and legitimacy) Mutually negotiated between region and its subsidiaries Regional integration and national responsiveness Product and regional organization tied through a matrix Regional Flexible manufacturing Standardize within region, but not across regoins Geocentric Same as regiocentric

Governance Top-down

Bottom -up (each subsidiary decides on local objectives) National responsiveness

Mutually negotiated at all levels of the corporation Global integration and national responsiveness A network of organizations (including some stakeholders and competitor organizations) Global Flexible manufacturign Global product, with local variatons

Strategy

Global integration

Structure

Hierarchical product division

Hierarchical area divisions, with autonomous national units Host country Batch production Local product development based on local needs.

Culture Home country Technology Mass production Marketing Product development determined primarily by the needs of home country customers.

Finance

Repatriation of profits to home country

Prople of home country developed for key positions everywhere in the world

Retention of profits in host country

People of local nationality developed for key positions in their own country

Redistribution with in region

Regional people development for key positions anywhere in the region

Redistribution globally

Personnel Practices

Best people everywhere in the world developed for key positions every where in the world

Meeting the Challenges

It becomes more difficult as different cultures tend to View emotions, enjoyment, humour, rules, status Differently Germans want advertising that is factual and rational; The typical German spot features the standard family of Two parents, two children and grand mother The French avoid reasoning It is based on emotional, dramatic and symbolic gestures The British value laughter above all else The typical British commercial amuses by mocking both the Advertiser and consumer

High- versus Low-Context Cultures

High-context culture
Relationships between people are long lasting and deep personal involvement what is not being said can carry more meaning than what is said Agreements tend to be spoken rather than written focuses on group development Japan and Saudi Arabia are examples

Low-context culture
Relationships are relatively short in duration and deep personal involvement is not valued greatly what is said is more important than what is not said Agreements tend to be in writing rather than spoken focuses on individual development The U.S. is an example

14

Cultural Differences in Selected Countries

When I was growing up, my parents told me, "Finish your dinner. People in China and India are starving."

Thomas L. Friedman New York Times Columnist Author The World is Flat

Today I tell my daughters, "Finish your homework. People in India and China are starving for your job."

KOREAN EXAMPLE Consider the example of Korean Airs high incidence of plane crashes between 1970 and 2000. As an analysis of conversations recorded in the black boxes of the crashed planes revealed, the co-pilots and flight engineers in all-Korean cockpits were too deferential to their captains. Even in the advent of a possible crash, Korean Air co-pilots and flight engineers rarely suggested actions that would contradict the judgments of their captains. Challenging ones superior in Korea was considered culturally inadequate behavior

The Korean Air example is particularly noteworthy for two reasons. First, if national culture can have significant not to say existential consequences among people of the same cultural origin, we need to be very cautious in how we deal with national cultural differences in cross-border interactions. Second, it is interesting to note that the attitudes and behaviors revealed by Korean Air co-pilots and flight engineers persisted in such a highly regulated environment like commercial aviation. National culture shapes behavior and this influence reaches beyond administrative attributes such as governmental policies, laws and public institutions.

AUSTRALIA
I was invited to a dinner party my second week in Australia. And the note said it was a Bring a Plate. The Australian slang book gives us the explanation of these phrases. Perhaps because it starts with b or it relates to food, they are important words you should be wary of. BYO Bring your own could refer to drinks, food or dessert. And Bring your plate your hosts will definitely give you the plates, mostly paper plates saving hours of cleaning and washing. But you carry a dish for the others to eat. But nowhere did it specify that you should cook this delicacy. I got take-away from the nearest Indian restaurant, hoping it would make up for my ineptitude in the kitchen

It was a choice between that or the instant masalas available for exorbitant prices. As I drove to the party I wondered how people would react in India if I invited them to a party and said oh could you also bring something to eat? India prides itself on its motto Athithi Devobhava meaning The guest is a God. As a host, you ensure that your guests every wish, whim and need is fulfilled. We are known for our hospitality across the world. I do not remember a single occasion when my grandmother ever asked the guest to bring anything to a party. They had to bring themselves and the more they ate AND the more they drank, the hosts were happier.

My mother, though, carried a bottle of wine or a basket of fruits as a gift to her host. But when she threw a party, she cooked for every man, woman and child invited, irrespective of the number.

But I rather liked the bring a plate concept. It saved me from hours of shopping and cooking. It helped add variety. And it also stopped the hosts from stressing out over their guests food habits. Nobody had to sacrifice their diet, religious beliefs or other quirks. And people constantly discovered new flavors. But it had been ingrained into me that it was shameful to ask your guest to aid you in treating them right

I wondered between the concepts of an easy culture that allowed me to socialize and maintain my friendships and relationships and the concept of a traditional culture I had grown up in, which stressed on the importance of being a good host and serving the right food, making the guest feel valued and welcomed and treasured. But would asking your guest to bring a dish make them feel unwelcome? It is food. We need to experiment, diversify and discover new flavors

ASSIGNMENT
1. Give a brief account of Cultural Differences in Countries of your Choice and its managerial implications.