Cross-Cultural Evangelism: The Challenge Facing Adventism ...
Cultural environment facing business
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Transcript of Cultural environment facing business
Cultural EnvironmentFacing Business
ObjectivesTo relate the problems and methods of learning about
cultural environmentsTo explain the major causes of cultural difference and
changeTo examine behavioral factors influencing countries’
business practicesTo examine cultural guidelines for companies that operate
internationally
IntroductionCulture
• The specific learned norms based on attitudes, values, and beliefs that exist in every nation
• An integral part of external environmentsProblems of cultural collision occur when
• Company practices work less well than intended• Employees’ are unable to accept or adjust to
foreign environmentEvery business function subject to cultural problems
Cultural Influences on International Business
EXTERNAL INFLUENCES
COMPETITIVE ENVIRONMENT
PHYSICAL AND SOCIETAL FACTORS• Political policies and legal practices• Cultural factors• Economic forces• Geographical influences
OPERATIONS
OBJECTIVES
MEANS
STRATEGY• Cultural awareness• Identification and dynamics of cultures• Behavioral practices affecting business• Strategies for dealing with cultural differences
Cultural AwarenessProblems that hinder cultural awareness
• Subconscious reactions to circumstances• Assumption that all societal subgroups are similar
Cultural awareness can be improved• Research descriptions of specific cultures• Observe behavior or respected foreign nationals• Study foreign market directly
Company’s need for cultural knowledge increases as it• Moves from one to multiple foreign functions• Increases the number of countries in which it operates• Moves from similar to dissimilar foreign environments• Converts from external to internal handling of
international operations
Identification and Dynamics of CulturesThe nation as a point of reference
• Each nation has certain human, demographic, and behavioral Characteristics that give it a national identity
– people share values, language, and race• Laws governing business apply along national lines• Problems using a country-by-country approach
– individual differences within a country– similarities link groups from different countries
Cultural formation and dynamics• Value systems set early in life, but may change• Values may change due to choice or imposition
– cultural imperialism • IB increases change in cultures and governments
Identification and Dynamics of Cultures (cont.)Language as a cultural stabilizer
• Culture spreads rapidly when people from different areas speak the same language
• Stronger adherence to a culture if it does not share its language with other peoples
• English, French, and Spanish are widespread– most of IB conducted in English
Religion as a cultural stabilizer• Religion has a strong influence on values• Specific beliefs may affect business
– not all nations that practice the same religion have the same constraints on business
– where rival religions vie for political control, resulting strife may disrupt business
Behavioral Practices Affecting BusinessSocial stratification systems
• Every culture values some people more than others, thereby dictating social class or status
• Ascribed group membership based on:– gender, family, age, and caste– ethnic, racial, or national origin
• Acquired group membership based on – religion, political affiliation, and professional and
other associations• Characteristics that affect status differently from country
to country include– Competence—competition versus cooperation– gender-based groups– age-based groups– family-based groups– occupation
Behavioral Practices Affecting Business (cont.)Motivation—countries differ in how much people are motivated
to work and why• Materialism and leisure
– countries differ in emphasis on materialism– Protestant ethic—work a means to salvation– most people consider economic achievement to be
commendable, regardless of culture• Expectation of success and reward— people are more
eager to work if:– rewards for success are high
» same tasks performed in different countries may have different rewards for success and consequences of failure
– there is some uncertainty of success» same task performed in different countries may
have different probabilities of success
Behavioral Practices Affecting Business (cont.)Masculinity index—degree of admiration for success, sympathy
for unfortunate, preference for being better than others• High masculinity cultures
– roles differentiated by gender– men should dominate
• Low masculinity culture– need for smooth social relationships– employee and social welfare has higher priority than
growth and efficiencyNeed hierarchy—lower-order needs must be fulfilled prior to
higher-order needs• Workers in poor countries motivated by lower-order
needs• People from different countries may rank needs
differently
Relationship PreferencesPower distance—describes relationship between superiors and
subordinates• High—people prefer little consultation
– autocratic or paternalistic management• Low—consultative styles preferred
– easier to implement worker participationIndividualism versus collectivism
• Individualism—low dependence on organization and desire for personal time, freedom, and challenge
– self-actualization a prime motivator• Collectivism—dependence on organization
– value secure physical and social environments• Influences how employees interact with their colleagues• Influences marketing strategies
Risk-Taking BehaviorUncertainty avoidance
• High—prefer set rules and lifetime employment– supervisors need to be precise when issuing
directives– customers less willing to try new products
Trust• Leads to lower cost of doing business
Fatalism—belief in inevitability of events rather than self-determination
• High fatalism—people plan less for contingencies
Information and Task ProcessingPerception of cues
• Cues perceived selectively• Each culture is able to perceive some subjects more
precisely than other cultures perceive themObtaining information
• Low-context culture—focuses on firsthand information that bears directly on issues to be decided
• High-context culture—focuses on information peripheral to the issue to be decided
Information processing• All cultures have ordering and classifying systems
– Monochronic—preference for sequential work– Polychronic—comfortable working on several tasks
simultaneously• Idealism versus pragmatism
Strategies for Dealing with Cultural DifferencesMaking little or no adjustment
• Host cultures do not always expect foreigners to adjust to them
• Less adjustment necessary when moving to a country with a similar culture
CommunicationsSpoken and written language
• Difficult to directly translate one language into anotherSilent language
• Color associations, sense of appropriate distance, time and status cues, and body language (kinesics)
Culture Shock Frustration from having to learn to cope with new cultural cues
and expectations
Months Living in New Culture1 2 3 4 5 6
Acc
epta
nce
of N
ew C
ultu
re
High
Low
Frustration
Understanding
Elation
Stages of Culture Shock
Company and Management OrientationsPolycentrism
• Overly cautious response to cultural variety– imitation of local practices
• Decentralized structure– home office may lose control over local operations
Ethnocentrism• Belief that home-country practices and objectives should
prevail• Ignores important local factors• Believes that change is not difficult
Geocentrism• Between polycentrism and ethnocentrism• Based on informed knowledge of home- and host-country
needs, capabilities, and constraints• Preferred approach to IB
Strategies for Instituting ChangeValue system
• The more a change upsets important values, the more resistance it will engender
Cost benefit of change• Company must consider the expected cost-benefit
relationship of any adjustments it makes abroadResistance to too much change
• Resistance to change may be lower if the number of changes is not great
• Make fewer demands at one time and phase in other policies more slowly
Participation• Discussing proposed change with stakeholders in
advance may reduce resistance• Participation must not violate prevailing value system
Strategies for Instituting Change (cont.)Reward sharing
• Employees are more apt to support change when they expect personal or group rewards
Opinion leaders• Should be convinced first about benefits of change• Can help speed up the acceptance of change
Timing• Change should be timed to occur when resistance is likely
to be low• Must attend to attitudes and needs of culture
Learning abroad• International companies should learn things abroad that
they can apply at home