THE CULTURAL ENVIRONMENT FACING BUSINESS

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THE CULTURAL ENVIRONMENTFACING BUSINESS
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Case Parris-Rogers International (PRI)

• The ensuing lack of understanding between the
  Arab states and PRI and PRIs failure to adapt to
  a different culture contributed directly to the
  companys failure.
• Approach moving aggressively, having undivided
  attention of potential clients, and restricting
  most conversations to the specifics of the
  business transaction.
• Angela Clark, compromises with Arab customs.
• Middle East is going through a period of
  substantial economic and social transformation

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• I - INTRODUCTION

• When doing business abroad, a company first
  should determine whether a usual business
  practice in a foreign country differs from its
  home-country experience.
• Understanding the cultures of groups of people is
  useful because business employs, sells to, buys
  from, is regulated by, and is owned by people.

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• II - THE CONCEPT OF CULTURE

Culture consists of specific learned norms based
on attitudes, values, and beliefs, all of which
exist in every society. Culture cannot easily
be isolated from such factors as economic and
political conditions. Isolation tends to
stabilize a culture, whereas contact tends to
create cultural borrowing Change by Imposition
Cultural Imperialism.
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III - BEHAVIORAL PRACTICES AFFECTING BUSINESS
A Group Affiliation a persons affiliations
reflecting class or status. B Role of
Competence rewarded highly in some societies.
Seniority in Japan C Gender Based Groups
there are strong country-specific differences in
attitudes towards males and females. D
Age-Based Groups many cultures assume that age
and wisdom are correlated E Family-Based
Groups
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F Importance of Work protestant ethic, belief
in success and reward work as a habit, high-need
achiever. G Need Hierarchy people try to
fulfill lower-order needs sufficiently before
moving on to higher ones. The hierarchy of needs
theory is helpful for differentiating the reward
preferences of employees. H Importance of
Occupation The importance of business as a
profession I Self-Reliance uncertainty
avoidance, trust, fatalism, individual versus
group J Preference for Autocratic versus
Consultative Management
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IV - LANGUAGE
Language all languages are complex and
reflective of Environment Translating one
language into another. Silent Languages color
associations, sense of appropriate distance,
time, body language. Low-Context cultures,
High-context cultures Monochronic versus
Polychronic
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V - RECONCILIATION OF INTERNATIONAL DIFFERENCES
Stereotypes Cultural Shock Polycentrism Ethnoce
ntrism Geocentrism