Organizational structure

http://www.rikkinyman.com/training/japanese_b

usiness/index.htm

Strict & hierarchical Interdependence Participative management Long-term planning Vertical society Private decision making

Strict & hierarchical

One's place in the hierarchy determines the degree of deference one must show to those above and the degree of deferen expect from those below.

The Japanese believe that one should never do anything above their status, that one should not infringe on anyone elses

that one should not cut across hierarchical boundaries. The Japanese dont want repeated change and disruptions. Loyalt company is for a lifetime.

In the West, we approach another person with the attitude that "You and I are equals." In Japan, the polite approach is "I a inferior."

Interdependence

In Japanese companies there is much cohesion within each group but between groups there is much competition. Consen groups is necessary but can be difficult to achieve.

This results in interminable meetings, arduous decision making, sharing of blame as well as credit, keeping everyone in th informed of everything, and open office plans.

Each group has specific rights and responsibilities and it is not advisable to try to get individual Japanese to do something

persons ability. The Japanese dislike direct, specific work orders but prefer being given general goals and directions.

Participative management

Seeking group consent is a key characteristic of the Japanese style of conducting business. No one person is in charge w

make it difficult to determine who makes the final decision. Relationships need to be established with each level of Japane management. Decisions will be arrived at more slowly. However, this creates harmony.

Decisions are made from the bottom up; everyone is consulted regardless of their rank. Therefore, the agreement reached whole group made the decision.

team is one to which all members are committed. The whole group is accountable for the success or failure of a decision s

Long-term planning

The Japanese are interested in long term planning and also tend to be good tactical planners. A plan, a contract, or the content of a tran very flexible to the Japanese. Personal relationships are more important to them than the details of a contract.

Vertical society

Japanese society has traditionally been hierarchical. The rules of status in Japan are important. Classes, groups, nobility a

meaningful concepts. The foreigners who through manner, education or accomplishments can present themselves as upp receive more respect.

Since the foreigner has no designated position in the hierarchy, that person is often excluded from the decision-making pr out of the information circle of a Japanese company.

Private decision making

The Japanese dont discuss, argue, or express opinions openly at meetings. Decisions are made quietly and slowly by bui consensus outside of meetings.
Japanese culture is group oriented. People often work for the same company throughout their careers. In return for this loyalty and hard way it does. All members are heavily invested in the stability and well being of the company.

company takes care of its employees. Think of a Japanese company as a family with a strong parent, and youll get a sense of why busin

Business Culture
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usiness/index.htm

Japan is a vertical society. The Japanese do not have the same concept of equality as Americans. Relationships in Japan tend to be superior/subordinate. Employers are seen as parents, employees as children. Loyalty to superiors and to the company is seen as a great virtue. Japanese companies have a atmosphere of strict discipline in which rank and seniority are the foundation of all relationships. The Japanese need to determine your rank before they know how to relate to you. Business cards can provide this information. Give them out before performing greetings.

Harmony
The Japanese believe very strongly in avoiding

Relationship Building
The Japanese system of doing business is intensely

confrontation; they use compromise and conciliation. personal. Human relationships are seen as more They also believe in collective responsibility for important than logic. The Japanese believe it is very decisions as well as results. The Japanese will often important to develop a relationship of trust and this can not tell their true feelings in order to maintain take years to develop. harmony.
The Japanese like emotional appeals as well as logical or rational ones. They also tend to feel uncomfortable with strangers.

Business Etiquette

No successful company in the U.S. would attempt to do business with another company within the U.S. without researching their culture and needs and then adapting their image to meet the customer's comfort level. It's the same when doing business with another country. Learning the business protocol and practices of the country where you want to do business can give you great leverage. The more you know about the people you do business with, the more successful you can be.

General rules of etiquette

Seating
Strict protocol - seated according to rank Both formal meetings and informal business entertaining Allow a Japanese colleague to direct you to your seat. The person of the hightest rank sits in the place of honor - furtherest from the door or at the head of the table. When hosting a meeting or social event, seat the guests on the side that faces the door. The host group should sit with their backs to the door. When you are riding in a chauffeur driven car, the highest ranking Japanese executive should be the first to enter and the last to exit. He should also be given the seat beside the driver. The visitor is the one who offers gigts at the first meeting. The host may give your team gifts st the end of your series of meetings. You should give and receive gifts with both hand. Present your gift humbly. Carefully select your gifts and have them wrapped appropriately.

Punctuality
How do you feel about the concept of time? Indicate if you

agree or disagree with the following statements.

Agree
1. If a business meeting starts at 9, I should be there at 9. 2. If a dinner party starts at 7:30, everyone should be there at 7:30. 3. . If I have a business appointment at 9, the other person should be ready for me at 9. 4. If I have scheduled a meeting with a business colleague for 2 pm, I should make sure to arrive on time.

Disagree

Organizational structure of Business

http://iml.jou.ufl.edu/projects/Spring01/Newsome/structure.html
The business world of Japan has its own set of values and behavioral patterns. In public relations, these modes of behavior must be taken into account when working with Japanese business partners. In Japan, there is a concept known as amae. In the workplace, the boss owes a certain amount of protection to the employee, and the boss assumes a direct responsibility for the welfare of his employees. (7).The longer an employee has worked for a company, the higher his or her pay. The protection also comes in the form of this increased salary, as well as in the form of benefits, which sometimes include company housing in the town. Housing in urban areas of Japan is known for its extremely steep costs(1).

The longer an employee has worked for an organization, the more overall benefits he or she shall receive. In return, the employee is very loyal to his or her company. Some aspects to this "loyalty," are rather unfavorable. The employee will passively accept transfers to undesirable locations, and sometimes not take advantage of holiday entitlements(1).

Mid-life career changes are seldom heard of. Another aspect of the company loyalty is an expectation that the employee will put in long upaid hours, often well into the night, in social business settings. Nomunication is a buzzword that is a combination of communication, which is very important in any business setting, Japan or otherwise, and "nomu, which means "to drink." This refers to the common business practice of socializing after hours with business co-workers to establish a credibility and friendship, in order to increase business profitability(7). However, this "lifetime employment" concept refers mostly to male executives in corporate white-collar positions at large companies. Blue-collar workers often change jobs in pursuit of higher wages and better conditions. Relatively few women benefit from lifetime employment and most smaller enterprises do not offer the same long-term job security and benefits as major companies(1). Most organizations hire their employees straight from school. Many new emplyoyees are hired on the basis of general educational level, including what school the potential employee went to. Also, companies prefer to hire fresh members of the workforce over those with previous work experience, since they like to mold the new employees into their organizational culture(1). Japan is often portrayed as having a highly industrialized economy that is based upon large faceless organizations that are comprised of robotlike workers. But Japan is by no means constructed of workaholics with no passion for life or personal fulfillment. The stereotyped "robot worker" is rare, many Japanese workers are skeptical about their companies' paternalistic hierarchies and do not benefit from "lifetime employment." The truth of the matter is that although the corporate world does play a role in the nation's economy, most of Japan's industry relies on small to medium-sized companies with limited operations(1).

The best-known examples of Japanese business giants are the "Big Six": Daiichi Kangyo, Fuji, Mitsubishi, Mitsui, Sanwa, Sumitomo. These large businesses deal with each other on a regular basis by ordering products and services from one another and by consulting on strategy and collaborative endeavors(1). An interesting practice that is present in Japanese companies is collective decision-making. One example of this is what is called ringi-sei, or the circulation of consultative memorandums around a company in order to achieve consensus. There are also systems where workers are encouraged to make suggestion to upper-level management and propose improvements ideas which are considered. However, most companies still are based on a top-down hierarchy in the management system, and all final decisions are ultimately made by a single individual(1).

It is important that a public relations practitioner in Japan, or any other foreign nation, pay attention to and realize the importance of these conditions. Each foreign nation can be expected to base the media, organizations, and overall society on different principles than our own. Altering the message and media strategy to the shape of the nation in which the campaign is based is important to a succesful campaign. In Japan, the aspects of the business world can make or break a campaign.

Corporate Structure
http://www.onken.com/classroom/internationalmanagement/Japan/Corp orateStructure.html
Japan has a structure, which is referred to as Japans integrated national system. This system brings together the following forces: a unique management style; advanced technology; abundant capital; supportive government; an international network for intelligence and coordinated action; effective vertical and horizontal links among companies; and a strong sense of national mission. Japanese management system plays a big role in the nations powerful integrated national system. Japanese management is known for lifetime employment, seniority-based wages and promotions, consensus decision-making, and enterprise unions. These factors are important for Japans integrated national system and make the system what it is today.

Technology also plays a role in the INS. It has been said that the Japanese are not creative but rather imitators, however, this is false considering that Japan has expanded its recent technological developments. With these recent technological developments in Japan, it can be said that technology qualifies as an important part of Japans integrated national system. Another big role of Japans INS is its capital. Japan is now the worlds largest creditor nation, which has invested much of surplus abroad. Japan has come to play a foremost role as a supplier of funds for international financing. The big surplus of capital in Japan comes not only from selling more to the world than it buys but also the result of the high tendency among the people to save.

Another factor that plays into Japans INS is a close relationship between business and government. The Japanese government has been perceived as a source of guidance and encouragement. There is a high level of cooperation between Japanese business and government.

The international network is also another key element in Japans integrated national system. It may be the most important component. Japanese representatives live and work in other business centers in the world. They are there for an extended period of time and also during that time they learn the language, culture and customs of the host country. This is important because those representatives are able to pass on economic and political intelligence back home and into the offices of Japan.

The next factor that is important to Japans integrated national system is the horizontal and vertical organization. Horizontal meaning big companies are linked with other big companies and vertical

meaning large companies are closely tied with many small companies. These groups are tied together by horizontal and vertical links and grouped together to fit into a solid national pattern.

Lastly, the powerful sense of national mission plays an important component of Japans integrated national system. This sense of national pride has motivated Japan to dedicate such goals as restructuring the industry and assume the responsibilities as well as the rewards of true internationalization.

http://www.mitsubishicorp.com/jp/en/about/org/

Chapter 3: The Cultural Environment

http://www.fao.org/docrep/W5973E/w5973e07.htm
Chapter Objectives Structure Of The Chapter What is culture The elements of culture Chapter Summary Key Terms Review Questions Review Question Answers References

Social and cultural aspects of a society form its very nature. As "culture" is the essence of a society, this chapter will concentrate on a discussion of it only. Of all the so called "environmental uncontrollables", culture, or at least the study of it, is one of the most difficult to comprehend, take account of and harness to advantage. This is particularly so when the product or service is "culture bound". Such products and services include those which are generally indigenous by nature and/or of relatively small value and very common. This is particularly true of foodstuffs. Sadza in Zimbabwe, a staple food made from maize meal, would not go down well in Beverley Hills, California. Neither would Middle Eastern sheeps eyes menus. Products of a more technical nature, like computers, on the other hand, have a universal appeal. However there is plenty of evidence to suggest that, with shrinking communications and with more people than ever travelling, even the most culture bound product or service can, and is, finding a world market niche. So even the infamous Veldschoen footwear of the South African pioneers has found its way into most corners of the world.

Chapter Objectives
The objectives of this chapter are: To describe what is meant by "culture" and the numerous ways which have been devised to study it To give an understanding of how "culture" effects global marketing planning

 To show why the study of "culture" is important to marketers.

Structure Of The Chapter

The chapter begins by defining culture and its constituent elements. The chapter then goes on to describe the various approaches to the study of culture and culminates with a study conducted by Hofstede which is one man's way of looking at culture's consequences. The chapter emphasizes the need to study culture carefully as it can be a major source of failure in global marketing, if hot taken into account.

What is culture
Much has been written on the subject of culture and its consequences. Whilst on the surface most countries of the world demonstrate cultural similarities, there are many differences, hidden below the surface. One can talk about "the West", but Italians and English, both belonging to the so called "West", are very different in outlook when one looks below the surface. The task of the global marketer is to find the similarities and differences in culture and account for these in designing and developing marketing plans. Failure to do so can be disasterous. Terpstran9 (1987) has defined culture as follows: "The integrated sum total of learned behavioral traits that are manifest and shared by members of society" Culture, therefore, according to this definition, is not transmitted genealogically. It is not, also innate, but learned. Facets of culture are interrelated and it is shared by members of a group who define the boundaries. Often different cultures exist side by side within countries, especially in Africa. It is not uncommon to have a European culture, alongside an indigenous culture, say, for example, Shona, in Zimbabwe. Culture also reveals itself in many ways and in preferences for colours, styles, religion, family ties and so on. The colour red is very popular in the west, but not popular in Islamic countries, where sober colours like black are preferred. Much argument in the study of culture has revolved around the "standardisation" versus "adaption" question. In the search for standardisation certain "universals" can be identified. Murdock7 (1954) suggested a list, including age grading, religious rituals and athletic sport. Levitt5 (1982) suggested that traditional differences in task and doing business were breaking down and this meant that standardisation rather than adaption is becoming increasingly prevalent. Culture, alongside economic factors, is probably one of the most important environmental variables to consider in global marketing. Culture is very often hidden from view and can be easily overlooked. Similarly, the need to overcome cultural myopia is paramount.

Approaches to the study of culture Keegan3 (1989) suggested a number of approaches to the study of culture including the anthropological approach, Maslow's approach, the Self- Reference Criterion (SRC), diffusion theory, high and low context cultures and perception. There are briefly reviewed here. Anthropological approach Culture can be deep seated and, to the untrained can appear bizarre. The Moslem culture of covering the female form may be alien, to those cultures which openly flaunt the female form. The anthropologist, though a time consuming process, considers behaviour in the light of experiencing it at first hand. In order to understand beliefs, motives and values, the anthropologist studies the country in question anthropology and unearths the reasons for what, apparently, appears bizarre. Maslow approach In searching for culture universals, Maslow's6 (1964) hierarchy of needs gives a useful analytical framework. Maslow hypothesised that people's desires can be arranged into a hierarchy of needs of relative potency. As soon as the "lower" needs are filled, other and higher needs emerge immediately to dominate the individual. When these higher needs are fulfilled, other new and still higher needs emerge. The hierarchy is illustrated in figure 3.1. Figure 3.1 Maslow hierarchy of needs Physiological needs are at the bottom of the hierarchy. These are basic needs to be satisfied like food, water, air, comfort. The next need is safety - a feeling of well being. Social needs are those related to developing love and relationships. Once these lower needs are fulfilled "higher" needs emerge like esteem - self respect - and the need for status improving goods. The highest order is self actualisation where one can now afford to express oneself as all other needs have been met. Whilst the hypothesis is simplistic it does give an insight into universal truisms. In Africa, for example, in food marketing, emphasis may be laid on the three lower level needs, whereas in the developed countries, whilst still applicable, food may be bought to meet higher needs. For example, the purchase of champagne or caviar may relate to esteem needs.
Case 3.1 The Case Of Maize Meat In Africa Introduced by the white settler, maize meat is the staple diet of the population of countries in Eastern and Southern Africa, Zambia, for example is capable of producing over 30 million x 90Kgs bags with a marketable surplus of 20 million x 90Kg bags, most of which goes to feed the urban population. For a lot

of people, unable to improve their lot, this remains as the staple diet throughout their lives. However, many Africans who are able to improve their lot, progress on to other forms of nourishment -fish. potatoes, good meat cuts and even fast foods, some of this brought about by social interaction. Interestingly enough, maize is still often eaten despite the social and economic progression that an individual may make.

The self reference criterion (SRC) Perception of market needs can be blocked by one's own cultural experience. Lee (1965)4 suggested a way, whereby one could systematically reduce this perception. He suggested a four point approach. a) Define the problem or goal in terms of home country traits, habits and norms. b) Define the problem or goal in terms of the foreign culture traits, habits and norms. c) Isolate the SRC influence in the problem and examine it carefully to see how it complicates the pattern. d) Redefine the problem without the SRC influence and solve for the foreign market situation. The problem with this approach is that, as stated earlier, culture may be hidden or non apparent. Uneartherning the factors in b) may, therefore, be difficult. Nonetheless, the approach gives useful guidelines on the extent for the need of standardisation or adaption in marketing planning. Diffusion theory Many studies have been made since the 1930's to assess how new innovations are diffused in a society. One of the most prolific writers was Everett Rogers8. In his book, "Diffusion of Innovations" (1962) he suggested that adoption was a social phenomenon, characterised by a normal distribution. See figure 3.2. Figure 3.2 Adopter categories

In this case the innovators are a small percentage who like to be seen to lead, then the others, increasingly more conservative, take the innovation on. The adoption process itself is done in a series of stages from awareness of the product, through to interest, evaluation, trial and either adoption or rejection (in the case of non adopters). The speed of the adoption process depends on the relative advantage provided by the product, how compatible or not it is with current values or experiences, its complexity, divisibility (how quickly it can be tried) and how quickly it can be communicated to the potential market. In international marketing an assessment of the product or service in terms of these latter factors is very useful to the speed of its adoption. Most horticultural products, for example, have no problem in transfer from one culture to another, however specific types may have. It is unlikely that produce like "squash" would sell well in Europe, but it does in Zimbabwe. High and low context cultures Hall2 (1977) has suggested the concept of high and low context cultures as a way of understanding different cultural orientations. In low context cultures messages have to be explicit, in high context cultures less information is required in the verbal message. In low context cultures, for example like Northern Europe, a person's word is not to be relied on, things must be written. On the other hand, in high context cultures, like Japan and the Middle East, a person's word is their bond. It is primarily a question of trust. Perception Perception is the ability to see what is in culture. The SRC can be a very powerful negative force. High perceptual skills need to be developed so that no one misperceive a situation, which could lead to negative consequences

Many of these theories and approaches have been "borrowed" from other contexts themselves, but they do give a useful insight into how one might avoid a number of pitfalls of culture in doing business overseas. Consumer products are likely to be more culturally sensitive than business to business products, primarily because technology can be universally learned. However there are dangers in over generalisations. For example, drink can be very universal and yet culture bound. Whilst appealing to a very universal physiological need - thirst - different drink can satiate the same need. Tea is a very English habit, coffee American but neither are universals in African culture. However, Coca Cola may be acceptable in all three cultures, with even the same advertising appeal. Nationalism Nationalism is a cultural trait which is increasingly surfacing. The break-up of Yugoslavia and the USSR are witness to the fact. In Western, developed countries a high degree of interdependence exists, so it is not so easy to be all that independent. In fact, blocs like NAFTA and the EU are, if anything, becoming more economically independent. However, less developed countries do not yet have the same interdependence in general, and so organisations need to reassess their contribution to the development of nations to make sure that they are not holding them "to hostage". Culture is a very powerful variable and cannot be ignored. Whilst "universals" are sought there is still a need to understand local customs and attitudes. These are usually no better understood than by the making use of in country personnel.

The elements of culture

The major elements of culture are material culture, language, aesthetics, education, religion, attitudes and values and social organisation. Material culture Material culture refers to tools, artifacts and technology. Before marketing in a foreign culture it is important to assess the material culture like transportation, power, communications and so on. Input-output tables may be useful in assessing this. All aspects of marketing are affected by material culture like sources of power for products, media availability and distribution. For example, refrigerated transport does not exist in many African countries. Material culture introductions into a country may bring about cultural changes which may or may not be desirable. (see case)
Case 3.2 Canned Drinks In Zimbabwe

Until the early 1990s, Zimbabwe did not allow both alcoholic and non alcoholic beverages to be packed in cans. There were both economic and environmental reasons for this. Economically, Zimbabwe did not have the production facility for canning. Environ mentally, Zimbabwe had seen the litter in Botswana, caused by discarded empty cans. By putting a deposit on glass containers they ensured the empties were returned to the retailer, thus avoiding a litter problem. However, with the advent of trade liberalisation under the Structural Reform Program, the Government of Zimbabwe decided to allow the import of some 4 million cans as an experiment, after which it would assess the environmental impact. The result was a huge influx of canned alcoholic and other beverages not just from nearby Botswana and South Africa but from Australia, USA and Europe

Language Language reflects the nature and values of society. There may be many sub-cultural languages like dialects which may have to be accounted for. Some countries have two or three languages. In Zimbabwe there are three languages - English, Shona and Ndebele with numerous dialects. In Nigeria, some linguistic groups have engaged in hostile activities. Language can cause communication problems - especially in the use of media or written material. It is best to learn the language or engage someone who understands it well. Aesthetics Aesthetics refer to the ideas in a culture concerning beauty and good taste as expressed in the arts -music, art, drama and dancing and the particular appreciation of colour and form. African music is different in form to Western music. Aesthetic differences affect design, colours, packaging, brand names and media messages. For example, unless explained, the brand name FAVCO would mean nothing to Western importers, in Zimbabwe most people would instantly recognise FAVCO as the brand of horticultural produce. Education Education refers to the transmission of skills, ideas and attitudes as well as training in particular disciplines. Education can transmit cultural ideas or be used for change, for example the local university can build up an economy's performance. The UN agency UNESCO gathers data on education information. For example it shows in Ethiopia only 12% of the viable age group enrol at secondary school, but the figure is 97% in the USA. Education levels, or lack of it, affect marketers in a number of ways: advertising programmes and labelling girls and women excluded from formal education (literacy rates)

 conducting market research complex products with instructions relations with distributors and, support sources - finance, advancing agencies etc. Religion Religion provides the best insight into a society's behaviour and helps answer the question why people behave rather than how they behave. A survey in the early 1980s revealed the following religious groupings (see table 3.1)3. Table 3.1 Religious groupings
Groups Animism Buddhism Million 300 280

Christianity 1500 Hinduism Islam Shinto 600 800 120

Religion can affect marketing in a number of ways: religious holidays - Ramadan cannot get access to consumers as shops are closed. consumption patterns - fish for Catholics on Friday economic role of women - Islam caste systems - difficulty in getting to different costs for segmentation/niche marketing joint and extended families - Hinduism and organizational structures; institution of the church - Iran and its effect on advertising, "Western" images market segments - Maylasia - Malay, Chinese and Indian cultures making market segmentation ensitivity is needed to be alert to religious differences. Attitudes and values Values often have a religious foundation, and attitudes relate to economic activities. It is essential to ascertain attitudes towards marketing activities which lead to wealth or material gain, for example, in Buddhist society these may not be relevant.

Also "change" may not be needed, or even wanted, and it may be better to relate products to traditional values rather than just new ones. Many African societies are risk averse, therefore, entrepreneurialism may not always be relevant. Attitudes are always precursors of human behaviour and so it is essential that research is done carefully on these. Social organisation Refers to the way people relate to each other, for example, extended families, units, kinship. In some countries kinship may be a tribe and so segmentation may have to be based on this. Other forms of groups may be religious or political, age, caste and so on. All these groups may affect the marketer in his planning. There are other aspects of culture, but the above covers the main ingredients. In one form or another these have to be taken account of when marketing internationally. Hofstede's contribution One of the most prolific writers on culture is Hofstede, a Dutchman. Working with two colleagues Franke and Bond1 (1991) he sought to explain why "culture" could be a better discriminator than "material" or "structural conditions" in explaining why some countries gain a competitive advantage and others do not. They noted that in Michael Porter's 1990 book on the "Competitive Advantage of Nations" he popularized the idea that nations have competitive advantage over others. Unfortunately he stopped short of the key question as to why certain nations develop competitive advantage and others do not. In their study Hofstede, Franke and Bond sought to answer that question in research entitled "Cultural Roots of Economic Performance". They hypothesized that differences in cultural values, rather than in material and structural conditions (the private and state control) are ultimate determinants of human organization and behaviour, and thus of economic growth. They took two examples of 18 and 20 nations, comparing rich countries like the USA, UK, Canada and Australia, to poor countries like India, Pakistan and Thailand and those on the rich/poor dividing line like Hong Kong, Taiwan and Singapore. Nigeria and Zimbabwe were in the study. In order to understand the results a word of explanation is needed on what the authors mean by "cultural variables". There are as follows: "Power distance" - Society's endorsement of inequality, and its inverse as the expectation of relative equality in organizations and institutions

 "Individualism" - The tendency of individuals primarily to look after themselves and their immediate families and its inverse is the integration of people into cohesive groups "Masculinity" - An assertive or competitive orientation, as well as sex role distribution and its inverse is a more modest and caring attitude towards others "Uncertainty Avoidance" - Taps a feeling of discomfort in unstructured or unusual circumstances whilst the inverse show tolerance of new or ambiguous circumstances "Confucian Dynamism" - Is an acceptance of the legitimacy of hierarchy and the valuing of perseverance and thrift, all without undue emphasis on tradition and social obligations which could impede business initiative. "Integration" - Degree of tolerance, harmony and friendship a society endorses, at the expense of competitiveness: it has a "broadly integrative, socially stabilizing emphasis" "Human Heartedness" - Open-hearted patience, courtesy and kindness. "Moral Discipline" - Rigid distancing from affairs of the world. In the research work these variables were called "constructs" or "indices". Now, the results of the research have a revealing, and sobering effect on economies seeking economic growth via structural or material changes viz: a) "Confucian dynamism" is the most consistent explanation for the difference between different countries' economic growth. This index appears to explain the relative success of East Asian economies over the past quarter century. b) "Individualism" is the next best explanatory index. This is a liability in a world in which group cohesion appears to be a key requirement for collective economic effectiveness. c) In extrapolations on the data after 1980 economic growth seems to be aided by relative equality of power among people in organizations (lower power distance) and by a tendency towards competitiveness at the expense of friendship and harmony (lower integration). In conclusion, therefore, "better" economic growth can be explained more by culture than structural or material changes. Economic power, from this study, comes from "dynamism" - the acceptance of the legitimacy of hierarchy and the valuing of perseverance and thrift, all without undue emphasis on tradition and social obligations which could impede business initiative; "individualism" - the tendency of individuals primarily to look after themselves and their immediate families (its inverse is the integration of people into cohesive groups) and finally a tendency towards competitiveness at the expense of friendship and harmony.

Whilst debatable, this research may attempt to explain why the Far East, as compared to say Africa, has prospered so remarkably in the last ten years. The cultural values of the populations of the East may be very different to those of Africa. However, further evidence is required before generalisation can be made. Culture has both a pervasive and changing influence on each national market environment. Marketers must either respond or change to it. Whilst internationalism in itself may go some way to changing cultural values, it will not change values to such a degree that true international standardisation can exist. The world would be a poorer place if it ever happened.

Social and Cultural Environment http://www.citeman.com/12810-social-andcultural-environment.html

The social factors that affect a firm include the values, attitudes beliefs, opinions and lifestyles of persons in the firms external environment as developed from demographic cultural, religious, educational and ethnic conditioning. Like other forces in the external environment social factors change continually . As social attitudes, beliefs and values change, so does the demand for various types of dresses, books, leisure activities etc. Lets examine these factors in greater detail. Demographic Factors: Demographic characteristics such as population, age, distribution, religious composition, literacy levels, inter state migration, rural urban mobility, income distribution, etc. influence a firms strategic plans significantly . The entry of women into the labor market has, in recent times affected the hiring and compensation policies of their employers. This has also expanded the market for a wide range of products and services necessitated by their absence from their homes (such as convenience foods, microwave ovens, day care centers etc). The shifts in age distribution caused by improved birth control methods have literally compelled producers to go after youth oriented goods (beauty products , hair, and skin care preparations fitness equipment etc). The growing number of senior citizens has made many a government to pay more attention to tax exemptions, social security benefits etc. Another important concern is the desire for a better quality of work life. Employees expect more from organizations

than simply a pay cheque. They want cleaner air and water as well as more leisure time to enjoy life more fully. Labor mobility across different occupations and regions in recent times has cut down wage differentials greatly. If labor is heterogeneous as is the case in India, managing people becomes a tough and demanding task. The Explosive population growth during the last decade has serious implications for the Indian government which is wanting to go after sophisticated technologies and discarding the traditional. Labor intensive methods: The presence of a large number of English speaking engineers, at the same time, has encouraged many software giants to set up shop in India. Cheap labor, rise in income levels, favorable governmental initiatives have made the Indian market more attractive to multinationals in recent times. Cultural factors: Social attitudes values, customs, beliefs, rituals and practices also influence business practices in a major way. Christmas offers great financial opportunities for card companies, toy retailers, tree growers, mail order catalogue firms and other related businesses. Social values refer to abstract thinking about what is good, right and desirable. Beliefs on the other hand reflect the characteristics of physical and social phenomena. We may believe for example that a high fat diet causes cancer or that chocolate causes acne. Beliefs are important (whether right or wrong) in that they affect how we may behave and what we buy. For example, McDonalds does not serve the beef burgers in India because Indians consider the cow as a sacred animal (Hindu traditions prohibit the consumption of beef in any form). Values and beliefs vary from culture to culture and before going ahead in a big way, companies must study the sociocultural environment of a country thoroughly to avoid costly mistakes. To market soup in Japan the manager / marketer must realize that soup is regarded as a breakfast drink in Japan rather than as a dish served with lunch or dinner. The loyalty shown by Japanese workers towards their employees to take another example is far greater than that shown by Indian workers for their employers The distinction obviously can be traced back to their respective socio-cultural. Most Indians still believe in work, in getting married, in offering prayers to God daily, in giving to charity and in being honest .These core values are passed on from parents to children and are reinforced by major social institutions such as schools, temples, churches, government etc. Increasing pressure from social activists has forced the government to ban cow slaughter in India. Rural women likewise joined hands in getting certain evil habits (drinking, gutka, drugs) rooted out of villages and educational institutions. Marketers should respect the core values of a society and respond in an appropriate manner.