Culture, Management Style, and Business Systems

Question to be answered?

What is the influence of culture on international marketing?

Culture 3 Perspectives

National culture Sub-culture Corporate culture

a distinct section of the community

You are not born with a culture, it is learned.

National Culture Sub Culture Corporate Culture

Culture includes all that we have learned in relation to: Values and norms Customs and traditions Beliefs and religions Rituals and Artifacts
(i.e. tangible symbols of a culture, such as BOOST! or the Great Wall of China)

3 Types of Customs
1. Cultural Imperatives
Business customs and expectations that MUST be met in order to conduct successful business transactions in other countries/cultures

2. Cultural Electives
Business customs and expectations that are OPTIONAL, but is not required. May help to establish rapport and respect

Types of Customs
3. Cultural Exclusives
Customs that are reserved exclusively for the locals, where foreign participation is EXCLUDED
Example: Foreign business people criticizing local politicians, business practices where it is acceptable for the local to do so

The Impact of American Culture on Management Style

Master of destiny viewpoint Reward based on merit Decisions based on objective analysis Wide sharing in decision making Never-ending quest for improvement Competition yielding efficiency

Most widely accepted views regarding U.S. culture:

Management Styles around the World

Types of Decision Making Approaches
1. The authoritative approach
Top level management decision making is usually found in smaller businesses

2. The delegated approach

(U.S.) Allows executives at different levels to exercise authority over their own functions

3. The committee approach

Decisions are made by consensus or in a group (Japan)

Communication Styles - High Context Cultures!

Middle East, Asia, Africa, and South America
emphasize interpersonal relationships and trust. Collectivist culture, preferring group harmony and consensus to individual achievement. less governed by reason than by intuition or feelings. Context over words: speakers tone of voice, facial expression, gestures, postureand even the persons family history and status. Flowery language, humility, and elaborate apologies are typical.

Low Context Culture

(North America and much of Western Europe) logical, linear, individualistic, and action-oriented. DIRECT Solving a problem means lining up the facts and evaluating one after another. Discussions end with actions Decisions are based on fact rather than intuition. . And communicators are expected to be straightforward, concise, and efficient in telling what action is expected. To be absolutely clear, they strive to use precise words and intend them to be taken literally. Explicit contracts conclude negotiations. High-context business people may even distrust contracts and be offended by the lack of trust they suggest.

Relationship-Oriented vs. Information-Oriented Cultures

Relationship Orientation
Japan and other Asian countries

Information Orientation
U.S., Great Britain

Importance of Communication when adapting to business customs

Communication
Translation and interpretation P-time vs. M-time
M-time (monochronic) concentrate on one thing at a time P-time (polychronic) completion of a transaction is more important than sticking to a schedule

Business Ethics
Bribery & Extortion
Bribery
Voluntary payment offered by individual(s) seeking an unlawful advantage
SEC regulates U.S. Companies domestically and internationally Transparency International organization dedicated to curbing corruptions worldwide

Extortion
Payments are extracted under duress by someone in an authoritative position (host country)

Business Ethics
Subordination & Lubrication
Subordination
Involves giving large sums of money

Lubrication
Involves giving small amounts of money, or gifts

Foreign Corrupt Practices Act (FCPA)

Important act that prohibits U.S. businesses from paying bribes openly or using middlemen or agents to bribe on behalf of the U.S. business

Business Customs on the Internet

Points to be aware of:
A message on a companys website is viewed as an extension of that company Majority of websites are seen worldwide and translation can often convey incorrect meaning or offend other cultures
Approximately 78% of website is written in English

Companies must pay attention to symbols, icons or any non-verbal messages on their websites