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How Does Culture Affect Business

Specific learned norms

Attitudes, values, beliefs, and customs of a

Cultural influences in business

Local customs and values

Foreign Customs
The aim of business is the same everywhere, but the way
to do it varies across countries

Global Managers must be able to handle Culture shock

Similar business situations in different countries does
not imply similar opportunities. Alcohol in Muslim world

Culture influences Management skills. So in a new
country, its Back-to-Basics....learning local culture
Cultural Awareness
Cross-cultural differences

Awareness of all those cultures

Differences and similarities

Dynamics, attitude and behavior may change
Important ways in which culture affect Business
The Concept of Time
Focus on relationships
Importance of contacts and referrals
Marriage and family systems
Managerial Skills
The Concept of Time
Value of time varies across different cultures
Affect on business
Two types
Relaxed towards time
Time as money

Focus on Relationship
In Pakistan focus is more on relationship
Face to face meetings
Strong expectations
Building relationships
Western culture is vice versa they use email, fax and
telephone etc

Importance of contacts and referrals
Contacts are very important here
To get things done
Good relationships, contacts and referrals
Egalitarian Business Culture
Small differences in status and less emphasis on respecting
the other person
Hierarchical business culture
Great importance given to relationships like in Pakistan

Marriage and Family System
Different concepts of family

It effects their job performance

In Pakistan concept of attending family functions is
considered very important

Religion and belief system have strong effects on
conduct of business

In Pakistan the concept of HALAL and HARAM is

Profit should be made through fair means rather
than fraud deceit and usury
Managerial Skills
Culture defines a set of acceptable & unacceptable
behaviours, which forms the basis of Way of doing
Managers learn how to do business. This process is
called En culturalization and Socialization How
consumers behave How to manage people, supplier
& subordinates What guides the consumer
Acceptable Behaviour in business is usually
acceptable behaviour in society