1 / 14

Cultural Issues in International Business

Cultural Issues in International Business. Opening case on EuroDisney Wine at the parks Peak days Length of stay Lunch and Breakfast Work policy..especially lunch hours. Why Culture is Important!. United Airlines in Asia US Japan Differences Other cultural Differences

alexischang
Download Presentation

Cultural Issues in International Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Cultural Issues in International Business • Opening case on EuroDisney • Wine at the parks • Peak days • Length of stay • Lunch and Breakfast • Work policy..especially lunch hours

  2. Why Culture is Important! • United Airlines in Asia • US Japan Differences • Other cultural Differences • A house should be dusted and polished three times a week • Everyone should use a deodorant • There is too much emphasis on sex nowadays • I attend church regularly

  3. Cultural Issues in International Marketing • Access • Income distribution and affordability • Physical access- trade barriers, distribution and infrastructure • Buying Decision • Perceptions - Country of Origin • Brand equity • Price-Quality • Consumption Characteristics • Product Disposal

  4. What is Culture Culture is learned, shared, compelling, interrelated set of symbols whose meaning provide a set of orientation for members of a society. Key words: learned, shared and interrelated.

  5. The Determinants of Culture Religion Political philosophy Social Structure Culture Norms and value systems Economic philosophy Language Education

  6. Values • Values are the bedrock of a cultture • Includes society’s attitudes towards: • individual freedom • democracy • truth • honesty • role of women • Love, sex, and marriage • weather • death • Time (mono and Polychronic)

  7. Norms • Folkways: • routine everyday conventions • time for a date at 8PM • time for dinner at 8 PM • Mores • More serious crimes • theft and adultery • most countries have laws against breaking Mores • drinking in Saudi Arabia and drugs in Singapore

  8. Social Stratification • Social Mobility refers to the extent by which individuals can move out of the stratum into which they are born • A Caste System: a closed system of stratification • mobility is limited to your birth • occupation decided at birth • Class System: A more open system • upper, upper-middle, lower-middle, lower • Mobility still depends on the country (e.g., low mobility in the U.K., Italy; higher in the U.S.) • Implications for relationships between management and labor. • Implications for extended, nuclear families, and reference groups

  9. World’s Major Religions (Millions of Adherents) Figure 3.2

  10. Language • Although English is the business language some local language can be quite critical • Hotel signs in world hotels • Chinese Brand Names • An Electrolux Ad. • Unspoken Language • Thumb and finger • talking distance

  11. Material Life and Education • Material Life • Infrastructure • Technology and large vs. small • Education • public vs private • scientists and engineers vs non • Math and science vs well rounded • High school and Higher Ed. (homework)

  12. Cross-Cultural Comparison • High- versus Low- Context Cultures • High context • Word is important • relationship between the sender and the receiver • trust before business • Low Context • legal and written word • more mono-chronic • bids are important

  13. Individualism and Power Distance Power Distance Index (PDI) GUA EQA COL PAN VEN PAK IDO Large power distance Low individualism COS Small power distance Low individualism 12 18 24 30 36 42 48 54 60 66 72 79 85 91 PER SAL TAL SIN KOR THA WAF CHL HOK PHL YUG MAL POR EAF MEX PHI GRE TUR URU ARA BRA JAM ira ARG JPN IND AUT ISR SPA FIN GER SAF NOR SWI FRA SWE IRE BEL DEN ITA CAN NZL Large power distance High individualism NET USA GBR Small power distance High individualism AUL 11 28 44 61 77 94 111 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89.

  14. Uncertainty Avoidance and Masculinity Masculinity Index (MAS) Weak uncertainty avoidance Feminine Weak uncertainty avoidance Masculine 8 16 24 32 40 48 56 64 72 80 88 96 104 110 SIN JAM DEN HOK GBR SWE IRE MAL IND PHI USA CAN NOR IDO SAF NET NZL AUL EAF WAF IRA FIN SWI ARA THA GER TAI AUT PAK BRA ITA VEN COS ISR FRA CHL COL TUR SPA MEX PAN ARG KOR YUG PER SAL BEL JPN URU GUA POR Strong uncertainty avoidance Masculine Strong uncertainty avoidance Feminine GRE 5 23 41 59 77 95 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89.

More Related