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Culture: the collection of values, beliefs,bhr, customs,& attitudes-distinguish 1 society fr another.

-foreign business customs, values, and definitions of ethical behavior differ vastly from domestic -A societys culture determines the rules -govern how firms operate in the society. -Rely on home culture to compete in a new market= jeopardize international success. Including contract negotiations, production operations, marketing decisions & HR mngtt policies (may be affected by cultural variations) Ie. MCD ad in June 2005 showed Chinese man kneeling bfr a mcd vendor & begging him to accept his expired discount coupon. The ad caused uproar over the fact- begging is considered a shameful, humiliating act in china culture. The act was pulled due to a lack of culture sensitivity on MCD behalf Ie. Womens groups r displeased over KFCs latest ad campaign. The co is recruiting college women to act as human billboards to hand out coupons for the Double Down sandwi ch while wearing sweatpants v the p logo emblazoned on the rear. President of the National Org for Women said: its so obnoxious to once again be using womens bodies to sell fundamentally unhealthy p Ie. Revlons expansion in Brazil (what is legal in one country may not be legal in another) They should hv avoided fr making the error bt learning the idea of Cultural Intelligence (CQ)= ability to adapt & work effectively & respectfully v ppl fr other culture, while simultaneously maintaining yr own identity. If Revlon practice the ideo of CQ, they will realize the dos & X of a culture & act accordingly. They will recognize the meaning bhd the Cameillia flower & perhaps launced other type of perfume. Doing business in China: the Dont 1. No surprises: make sure what is to be discussed is made clear bfrhand 2. X be late: Puntuality is considered a virtue 3. Numbers: 4 & 14 r vy bad & mean death 4. X interrupt: remember who hold the floor & X interrupt the speaker 5. Never put anyone on the spot: Always offer a way out so yr counterpart can preserve face The Dos: 1. Business cards: should be exchanged at the beginning of a business meeting 2. Colours: Red, suggests power, prosperity & Authority (preferred) 3. N: 3 means longevity & 8 means wealth & prosperity 4. Speaking: slowly & use short sentences 5. Let them smoke: many Chinese consider smoking is the right thing to do in a business env

1. Characteristics of culture #1 learned behavior :transmitted fr 1 member of a society to another. Some elements of culture are transmitted intergenerationally, as when parents teach their children table manners. Other elements are transmitted intragenerationally, as when seniors educate incoming freshmen about a schools traditions. #2 Interrelated element. ie, Japans group-oriented, hierarchical society stresses harmony and loyalty, which has historically translated into lifetime employment and minimal job switching. Bcs culture is learned behavior, it is #3 adaptive: culture changes in response to external forces that affect the society. Culture is shared by society members & defines the membership of the society. who share a culture are members of a society; those who do not are outside the boundaries of the society.

** intergenerationally: occurs btwn generations , ie parents and children. Occur in familial & non familial settings and involve interaction that demonstrates positive and negative interactions. ** intragenerationally occurs within a generation # Another important aspect to be considered is that transmission is selective depending on the content to be transmitted. It can be argued that values that are in line with the respective culturespecific developmental pathway are transmitted more effectively than other values (Greenfield et al., 2003; Rothbaum et al., 2000). Hoge, Petrillo and Smith (1982) state that values that are important for family life and for the family members are more effectively transmitted. Goodnow (1997) also assumes that in general, parents want to transmit those values that are important for them. Thus, parents personal values and their socialization values often are correlated (Whitbeck & Gecas, 1988). Some empirical findings support these ideas. For example, Schnpflug and Silbereisen (1992) found that those values which were held as more important by adolescents also showed a stronger similarity between parents and adolescents. Knafo and Schwartz (2001) found that parental values were perceived more accurately the more important these values were for the parents. Also the parents motivation to transmit certain values is important for their successful transmission. Schnpflug (2005, July) reports that the motivation of parents to transmit conservative values enhanced the success of transmission. However, some values (such as selftranscendence values) were transmitted even when there was no specific motivation of the parents. Family roles may also be transmitted from generation to generation. For example, Carolyn Rosenthal (1985) describes the roles of headship, kin keeper, confidante, and financial adviser as roles within families. This work documents how not only are these roles in themselves mechanisms for the transmission of information, advice, beliefs, values, and resources between generations, but that the roles are passed through the generations, in a form of generational succession. Rosenthal and Victor Marshall (1988) also examine the intergenerational transmission of ritual in families in a study across three generations of Canadian families. The concept of intergenerational transmission is also used by social scientists who conduct research on family violence. For example, Ann Duffy and Julianne Momirov (2000) utilize the concept of intergenerational transmission to explain the social learning of violence within families. In this context, intergenerational transmission refers to the socialization and social learning that helps to explain the ways in which children growing up in a violent family learn violent roles and, subsequently, may play out the roles of victim or victimizer in their own adult families. Family researchers have also studied the intergenerational transmission of difficult life course transitions like marital dissolution or divorce. In particular, studies in the United States have found that parental divorce increases the likelihood that adult children will experience separation or divorce (Glenn and Kramer 1987; Keith and Finlay 1988; Amato 1996). Even when factors such as the socioeconomic status of both parents and children are controlled for, Nicholas Wolfinger (2000) concludes that the children of parents who have had more than one marriage tend to replicate these patterns of marital instability. Multiple family structure transitions have a negative effect on children; that is, the experience of numerous parental relationship transitions is likely to result in the reproduction of these behaviors by adult children.# 2. Elements of culture #1 Social Structure : All human societies involve Individuals, family & groups. Societies differ, however, in the way they define family and in the relative importance they place on the individuals role within groups.

Nuclear family : a family group consisting of a pair of adults and their children (father, mother, and offspring) ie US Extended family: consists of non-nuclear/"non-immediate" family members living together with nuclear family.includes > relatives than a nuclear family ie Malaysia, Arabs; Clans:Somalia Ie. Anti- nepotism ie US; Nepotism ie Chinese and Arabs family bis Nuclear family = Extended family = Social mobility is a persons movement over time from one class to another. Social mobility can be up or down, although the American dream emphasizes upward movement. Mobility can also be either intergenerational, occurring between generations; or intragenerational, occurring within a generation. These differing social attitudes are reflected in the importance of the family to business. In the United States, firms discourage nepotism , and the competence of a man who married the bosss daughter is routinely questioned by co -workers. In Arab-owned firms, however, family ties are crucial, and hiring relatives is a common, accepted practice. Cultures also differ in the importance of the individual relative to the group. Societies differ in their degree of social stratification. All societies categorize people to some extent on the basis of their birth, occupation, educational achievements, or other attributes. However, the importance of these categories in defining how individuals interact with each other within and between these groups varies by society. Social mobility is the ability of individuals to move from one stratum of society to another. Social mobility tends to be higher in less stratified societies. Social mobility (or the lack thereof) often affects individuals attitudes and behaviors toward such factors as labor relations, human capital formation, risk taking, and entrepreneurship. Social mobility can be up or down, although the American dream emphasizes upward movement. Mobility can also be either intergenerational, occurring between generations; or intragenerational, occurring within a generation. Ie. In more socially mobile society ie US, Singapore & Canada individuals are motivated to pursue higher education. #2 Language: Most popular languages spoken worldwide (English is still the famously popular , lingua franca, for Business Language) 1. Mandarin Chinese - 882 million 2. Spanish - 325 million 3. English - 312-380 million 4. Arabic - 206-422 million 5. Hindi - 181 million -organizes the way members of a society think about the world. It filters observations and perceptions and thus affects unpredictably the messages that are sent when two individuals try to communicate. Language provides important clues about the cultural values of the society and aids acculturation.

The presence of more than one language group is an important signal about the diversity of a countrys population and suggests that there may also be differences in income, work ethic, and educational achievement. For instance, India recognizes 16 official languages, and approximately 3,000 dialects are spoken within its boundaries, a reflection of the heterogeneity of its society. Generally, countries dominated by one language group tend to have a homogeneous society, in which nationhood defines the society. Countries with multiple language groups tend to be heterogeneous, with language providing an important means of identifying cultural differences within the country. Coca-cola name in China was first read as kekoukela=Bite the Wax Tadpole/ Female Horse Stuffed v Wax, depending on the dialect. Coke then researched 40,000 characters to find a phonetic equivalent kokoukole, loosely translated into happiness in the mouth Pepsis new campaign in Argentina has been renamed Pecsi. When speaking Spanish, especially with an Argentine accent, 25% people tend to say Pecsi instead of Pepsi. They have said it like this for years, So BBDO Argentina (ad agency) came up with the idea of simply making Pecsi the spelling and launched an integrated campaign to support it. The motive = get closer to consumers, by including those who werent pronouncing the name of the brand correctly but also by focusing on saving and standing by consumers sides in a time of crisis. In Argentina, drinking a Pepsi costs one peso less than drinking a Coke. The message: If you drink Pepsi, you save. If you drink Pecsi, you save as well. -ie. Lichel Train co: moved its manufacturing facilities to Mexico to take adv of lower labor $, however- X find a bilanguage manager to manage the factory, Thus they have to move back their facilities to their origin country. - Linguistic ties often create important competitive advantages because the ability to communicate is so important in conducting business transactions. Commerce among Australia, Canada, New Zealand, the United Kingdom, and the United States is facilitated by their common use of English. To conduct business, international businesspeople must be able to communicate. As a result of British economic and military dominance in the nineteenth century and U.S. dominance since World War II, English has emerged as the predominant common language, or lingua franca, of international business. Most European and Japanese public school students study English for many years. Some countries that have many linguistic groups, such as India and Singapore, have adopted English as an official language to facilitate communication among the diverse groups. Similarly, firms with managers from many different countries may use English as the official corporate language. The linguistic legacy of colonialism also affects international business. - Some linguistic differences may be overcome through translation. The process, however, requires more than merely substituting words of one language for those of another. Translators must be sensitive to subtleties in the connotations of words and focus on translating ideas, not the words themselves. A classic mistake is KFCs initial translation of Finger Lickin Good into Chinese, which came out as the far less appetizing Eat Your Fingers Off.

Similarly, the original translation of Pillsburys Jolly Green Giant for the Saudi Arabian market was intimidating green ogrea very different image from what the firm intended (although it still might encourage children to eat their peas). Firms can reduce the chances that they are sending the wrong message to their customers by using a technique known as backtranslation. With backtranslation, one person translates a document, then a second person translates the translated version back into the original language. This technique provides a check that the intended message is actually being sent, thus avoiding communication mistakes. - Another cultural difficulty international businesspeople face is that words may have different meanings to persons with diverse cultural backgrounds. North Americans typically translate the Spanish word maana literally to mean tomorrow, but in parts of Latin America, the word is used to mean some other daynot today. Even the use of yes and no differs across cultures. In contract negotiations, Japanese businesspeople often use yes to mean Yes, I understand what is being said. Foreign negotiators often assume that their Japanese counterparts are using yes to mean Yes, I agree with you and are disappointed when the Japanese later fail to accept contract terms that the foreigners had assumed were agreed to. Misunderstandings can be compounded because directly uttering no is considered very impolite in Japan. #3 Communication Nonverbal Communication may account for 80-90% of all info transmitted among members of a culture. Members of a society communicate with each other using more than words. This nonverbal communication includes facial expressions, hand gestures, intonation, eye contact, body positioning, and body posture. Although most members of a society quickly understand nonverbal forms of communication common to their society, outsiders may find the nonverbal communication difficult to comprehend. Smell Forms of Nonverbal Communication: Hand gestures Speech rate, pitch, inflection, volume Facial expression Color symbolism Posture and stance Synchronization of speech and Clothing/hair style movement Walking behavior Taste, symbolism of food, oral Interpersonal distance gratification Cosmetics Touching Sound signals Eye contact Architecture/ interior design Time symbolism Artifacts and non-verbal symbols Timing and pauses Graphic symbols Silence Art and rhetorical forms - Gift-giving and hospitality are important means of communication in many business cultures. Japanese business etiquette requires solicitous hospitality. Elaborate meals and after-hours entertainment serve to build personal bonds and group harmony among the participants. These personal bonds are strengthened by the exchange of gifts, that vary according to the occasion and

the status of the giver and the recipient. However, business gifts are opened in private so as not to cause the giver to lose face should the gift be too expensive or too cheap relative to the gift offered in return. The business culture of Arab countries also includes gift-giving and elaborate and gracious hospitality as a means of assessing these qualities. Unlike in Japan, however, business gifts are opened in public so that all may be aware of the givers generosity. Norms of hospitality even affect the way bad news is delivered in various cultures. In the United States, bad news is typically delivered as soon as it is known. In Korea, it is delivered at days end so it will not ruin the recipients whole day. Further, in order not to disrupt personal relationships, the bad news is often only hinted at. In Japan, maintaining harmony among participants in a project is emphasized, so bad news often is communicated informally from a junior member of one negotiating team to a junior member of the other team. Even better, a third party may be used to deliver the message to preserve harmony within the group. #4 Religion Religions impose constraints on the roles of individuals in society. For example, the caste system of Hinduism traditionally has restricted the jobs individuals may perform, thereby affecting the labor market and foreclosing business opportunities. Countries dominated by strict adherents to Islam, such as Saudi Arabia and Iran, limit job opportunities for women, in the belief that their contact with adult males should be restricted to relatives. Religion also affects the types of products consumers may purchase as well as seasonal patterns of consumption. In most Christian countries, for example, the Christmas season represents an important time for gift-giving, yet very little business is done on Christmas Day itself. While consumption booms during the Christmas holidays, production plummets as employees take time off to visit friends and family. The impact of religion on international businesses varies from country to country, depending on the countrys legal system, its homogeneity of religious beliefs, and its toleration of oth er religious viewpoints. Consider Saudi Arabia, home of the holy city of Mecca, to which all Muslims are supposed to make a pilgrimage sometime in their lives. The teachings of the Koran form the basis of the countrys theocratic legal system, and 99 percent of the Saudi population is Muslim. Strong political pressure exists within the country to preserve its religious traditions. For example, work stops five times a day when the faithful are called to pray to Allah. - Religion is an important aspect of most societies. It affects the ways in which members of a society relate to each other and to outsiders. Approximately 85 percent of the worlds 6.3 billion people claim some religious affiliation. As reflected in Map 4.3, 74 percent of the worlds population adheres to one of four religions: Christianity, comprising Roman Catholic (17.4 percent), Protestant (12.3 percent), and Eastern Orthodox (3.6 percent); Islam (20.6 percent); Hinduism (14.3 percent); and Buddhism (6.0 percent). Map 4.3 is provided on the following slide. The Protestant ethic makes a virtue of high savings rates, constant striving for efficiency, and reinvestment of profits to improve future productivity, all of which are necessary for the smooth functioning of a capitalist economy. In contrast, Hinduism emphasizes spiritual accomplishment rather than economic success. The goal of a Hindu is to achieve union with Brahma, the universal spirit, by leading progressively more ascetic and pure lives as ones reincarnated soul goes through cycles of death and rebirth. The quest for material possessions may delay ones spiritual journey. Thus, Hinduism provides little support

for capitalistic activities such as investment, wealth accumulation, and the constant quest for higher productivity and efficiency. Islam, while supportive of capitalism, places more emphasis on the individuals obligation to society. According to Islam, profits earned in fair business dealings are justified, but a firms profits may not result from exploitation or deceit, for example, and all Muslims are expected to act charitably, justly, and humbly in their dealings with others. Artifacts: Physical structures/ symbols -building structure may shape & reflect culture -office design conveys cultural meaning: furniture. Office size, wall hangings - 2 million Muslims annually descend on the Grand Mosque in Mecca, Saudi Arabia as part of the Hajj. - Business in Saudi Arabia: Work stops 5 times a day for prayer &Muslims fast the whole month during Ramadhan -whn MCD printed Saudi Arabia flag (v sacred inscription) in takeout bags: caused an outrage How does religious affect business operation? -EIAI, Israel national airline, X fly on Sat (Jewish Sabbath) -Kedah & Kelantan : Friday is non-workday -Max building height in Bali can not be higher than 15meters (coconut trees) Maharja Mac (made of lamb/chicken meat) there is also a vegetarian burger, the McAloo Tikki. Japan totally reinvents MCDs v its Ebi Filet-O (shrimp burgers), karoke burger (mashed potato, cabbage & Katsu sauce), Ebi-Child (shrimp nuggets) & Green Tea-flavored milkshake Religion Sensitivity: -Y Halal logo is important for Muslims? -Does Halal logo hs any significant influence in Muslims purchasing bhr/ decision? #5 Values/attitudes Culture also affects and reflects the secular values and attitudes of the members of a society. Cultural values often stem from deep-seated beliefs about the individuals position in relation to his or her deity, the family, and the social hierarchy that we discussed earlier. Cultural attitudes toward such factors as time, age, education, and status reflect these values and in turn shape the behavior of and opportunities available to international businesses operating in a given culture.
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Culture also affects and reflects the secular values and attitudes of the members of a society. Cultural values often stem from deep-seated beliefs about the individuals position in relation to his or her deity, the family, and the social hierarchy that we discussed earlier. Cultural attitudes toward such factors as time, age, education, and status reflect these values and in turn shape the behavior of and opportunities available to international businesses operating in a given culture. Preserving Traditional Values in the cityscape of Kyoto (home to Imperial Palace) -Max building height is 45m (1973) to 33m (2007) -Impact on business: ad contracts dropped by 40% fr existing 400 rooftop adv - Attitudes about time differ dramatically across cultures. In Anglo-Saxon cultures, the prevailing attitude is time is money. In Latin American cultures, however, few participants would think it unusual if a meeting began 45 minutes after the appointed time. In Arab cultures, meetings not only often start later than the stated time, but they also may be interrupted by family and friends who wander in to exchange pleasantries. Important cultural differences exist in attitudes toward age. Youthfulness is considered a virtue in the United States. In Asian and Arab cultures, however, age is respec ted and a managers stature is correlated with age. Education: A countrys formal system of public and private education is an important transmitter and reflection of the cultural values of its society. The means by which status is achieved also vary across cultures. In some societies, status is inherited as a result of the wealth or rank of ones ancestors. In others, it is earned by the individual through personal accomplishments or professional achievements. " Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." ~Prof. Geert Hofstede, Emeritus Professor, Maastricht University The Cultural Cluster Approach An approach to understanding communication based on meaningful clusters of countries that share similar culture values 8 country clusters have been identified by researchers. Each cultural cluster comprises countries that share many cultural similarities, although differences do remain. Canadian firms are likely to expand into Britain via a joint venture with a British partner.. Japanese firms are likely to enter the market via a greenfield investment (a brand new one) because they are less comfortable working with British partners. Hofstedes Five Dimensions (most influential study by Geert Hofstede) Although Hofstedes work has been criticized for methodological weaknesses and his own cultural biases, it remains the largest and most comprehensive work of its kind. Hofstedes work identified five important dimensions along which people seem to differ across cultures. #1 Social Orientation: a persons beliefs about the relative importance of the individual and the groups to which that person belongs. The two extremes of social orientation are individualism and collectivism.

Individualism is the cultural belief that the person comes first. Key values of individualistic people include a high degree of self-respect and independence. These people often put their own career interests before the good of their organizations, and they tend to assess decisions in terms of how those decisions affect them as individuals. Hofstedes research suggested that people in the United States, the United Kingdom, Australia, Canada, New Zealand, and the Netherlands tend to be relatively individualistic. German = people stress on personal achievements and individual rights. USA = women and men compete in the workforce for jobs. Women are becoming more and more individualistic. Ie. Sexy work uniform at hooters? Inappropriately exploiting women? Short orange sports & white tank tops r too sexy? Tasteful adult entertainment? The co fired back defending: the uniform displayed by their Hooters Girls was no different than what u c from football teams cheerleaders/ model Collectivism, the opposite of individualism, is the belief that the group comes first. Societies that tend to be collectivistic are usually characterized by well-defined social networks, including extended families, tribes, and co-workers. People are expected to put the good of the group ahead of their own personal welfare, interests, or success. Individual behavior in such cultures is strongly influenced by the emotion of shame; when a group fails, its members take the failure very personally and experience shame. In addition, group members try to fit into their group harmoniously, with a minimum of conflict or tension. Hofstede found that people from Mexico, Greece, Hong Kong, Taiwan, Peru, Singapore, Colombia, and Pakistan tend to be relatively collectivistic in their values. China = it is out of question to disagree with someones opinion in public. Japan = frequent changing job = disloyalty.

#2 Power Orientation: the beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations. Some cultures are characterized by power respect. This means that people in a culture tend to accept the power and authority of their superiors simply on the basis of the superiors positions in the hierarchy. These same people also tend to respect the superiors right to that power. People at all levels in a firm accept the decisions and mandates of those above them because of the implicit belief that higherlevel positions carry the right to make decisions and issue mandates. Hofstede found people in France, Spain, Mexico, Japan, Brazil, Indonesia, and Singapore to be relatively power respecting. In family = children are encouraged to have a will of their own. At workplace = hierarchy means inequality of roles (hierarchy is established for convenience) At workplace = subordinates expect to be consulted In contrast, people in cultures characterized by power tolerance attach much less significance to a persons position in the hierarchy. These people are more willing to question a decision or mandate from someone at a higher level or perhaps even refuse to accept it. They are willing to follow a leader when that leader is perceived to be right or when it seems to be in their own self-interest to do so but not because of the leaders intangible right to issue orders. Hofstedes work suggested that people in the United States, Israel, Austria, Denmark, Ireland, Norway, Germany, and New Zealand tend to be more power tolerant.

In family = children are educated toward obedience to parents. At workplace = hierarchy means existential inequality. At workplace = subordinates expect to be told what to do. We can gain additional perspectives on Hofstedes dimensions by viewing them in combinations. For example, when social orientation and power orientation are superimposed, individualistic and power-tolerant countries seem to cluster, as do collectivistic and power-respecting countries. #3 Uncertainty orientation : feeling people have regarding uncertain and ambiguous situations. People in cultures characterized by uncertainty acceptance are stimulated by change and thrive on new opportunities. Ambiguity is seen as a context within which an individual can grow, develop, and carve out new opportunities. In these cultures, certainty carries with it a sense of monotony, routineness, and overbearing structure. Hofstede suggested that many people from the United States, Denmark, Sweden, Canada, Singapore, Hong Kong, and Australia are uncertainty accepting. In contrast, people in cultures characterized by uncertainty avoidance dislike ambiguity and will avoid it whenever possible. Ambiguity and change are seen as undesirable. These people tend to prefer a structured and routine, even bureaucratic, way of doing things. Hofstede found that many people in Israel, Austria, Japan, Italy, Colombia, France, Peru, and Germany tend to avoid uncertainty whenever possible. #4 Goal orientation= manner in which people are motivated to work toward different kinds of goals. One extreme on the goal orientation continuum is aggressive goal behavior. People who exhibit aggressive goal behavior tend to place a high premium on material possessions, money, and assertiveness. At the other extreme, people who adopt passive goal behavior place a higher value on social relationships, quality of life, and concern for others. According to Hofstede, cultures that value aggressive goal behavior also tend to define genderbased roles somewhat rigidly, whereas cultures that emphasize passive goal behavior do not. In cultures characterized by extremely aggressive goal behavior, men are expected to work and to focus their careers in traditionally male occupations; women are generally expected not to work outside the home and to focus on their families. If they do work outside the home, they are usually expected to pursue work in areas traditionally dominated by women. According to Hofstedes research, many people in Japan tend to exhibit relatively aggressive goal behavior, whereas many people in Germany, Mexico, Italy, and the United States exhibit moderately aggressive goal behavior. Men and women in passive goal behavior cultures are more likely to both pursue diverse careers and to be well represented within any given occupation. People from the Netherlands, Norway, Sweden, Denmark, and Finland tend to exhibit relatively passive goal behavior. #5 time orientation, is the extent to which members of a culture adopt a long-term versus a shortterm outlook on work, life, and other aspects of society. Some cultures, such as those of Japan, Hong Kong, Taiwan, and South Korea, have a long-term, future orientation that values dedication, hard work, perseverance, and thrift. Other cultures, including those of Pakistan and West Africa, tend to focus on the past and present, emphasizing respect for traditions and fulfillment of social obligations. Hofstedes work suggests that the United States and Germany tend to have an intermediate time orientation.

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