Culture, Management Style, and Business Systems Question to

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Culture, Management Style, and Business Systems
Question to be answered? What is the influence
of culture on international marketing?
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• Culture is the way that we do things around here.

Wheres here, Miss. Williams?
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Culture 3 Perspectives

• National culture
• Sub-culture a distinct section of the community
• Corporate culture
• You are not born with a culture, it is learned.

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• National Culture
• Sub Culture
• Corporate Culture

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• 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)

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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

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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

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The Impact of American Culture on Management Style

• Most widely accepted views regarding U.S.
  culture
• 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

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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)

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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.

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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.

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Relationship-Oriented vs. Information-Oriented
Cultures

• Relationship Orientation
• Japan and other Asian countries
• Information Orientation
• U.S., Great Britain

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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

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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)

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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

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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