8Culture & Global Business Customs

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FOUNDATION OF CULTURE

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Transcript of 8Culture & Global Business Customs

  • FOUNDATION OFCULTURE

  • What did you eat for breakfast?Can you get any kind of hair-do that you want?Did you think about giving up education after higher secondary?What is religion for you?

  • Culture

    A set of rules, values, beliefs, behaviour and concepts that is common to and binds together the members of a society, passed on from one generation to another.

  • Culture

    The sum of the values, rituals, symbols, beliefs, attitudes and thought processes that are learned, shared by a group of people, and transmitted from generation to generation.

  • Culture

    Culture is the collective programming of the mind which distinguishes the members of one category of people from another.

  • Rules

    Conformity to good or established usage. Well regulated condition, conduct, a principle, a standard.

  • Values

    Moral principles, standards.

  • Belief

    It is a descriptive image or thought that an individual holds about something.

  • Behavior

    Conduct, manner, mode of action, response to stimulus. Behavior is an outcome of psychological and sociological make-up.

  • Attitude

    A set of consistent reactions to an idea, situation, thought, object, place or being.

  • Cultural Group

    A group of people demonstrating same culture is called a cultural group. Cultural groups can span over nations, regions, cities, corporates, family and individual.However, the greatest cultural divide is based on gender.

  • Concept of Culture and sub-culture.

  • Across the World cultures are classified under three categories:Linear-actives- The planners. The one time-one task people. German and Swiss.Multi-actives- The non-planners. Adventurers. Loquacious. Italians and Arabs.Reactives- People with courtesy and respect. They listen quietly and calmly and react carefully. Chinese, Japanese and Finns.

  • Geert Hofstedes Big Four

    Power DistanceIndividualism vs CollectivismMasculinity vs FeminityUncertainty Avoidance

  • Its not just important to understand the cultural differences between cultures but it is also important to understand why.

  • Factors that influence cultureThe WHY!

  • GeographyClimateHumidityTemperatureRain

    TopographyAltitude

  • Water BodiesRiversOceansLakesDeserts (Hot and cold)

    Resources

  • History

    The colonizers and the coloniesThe invaders and the invadedThe oppressors and the oppressedThe ArmiesThe EducatorsThe Politicians and the Businessmen

  • The chronicles of the World The Civilizations

    Indus Valley CivilizationMesopotamian CivilizationNile River CivilizationRiver Hwang Ho Civilization

  • The colonial rulers

    EnglandBritainFranceJapanSpainUSA

  • The Colonization of the American continent04-07-1776- The declaration of Independence1782-The Crown retreats

  • The Industrial Revolution

    The Industrialization of the West

  • 1857-The first revolution for Independence India

  • The World War - I 1914 1918

  • 1930 The Great Depression

    Henry Ford

    Adolf Hitler

  • World War II - 1939 1945

    06-06-1944 - The most important day in the history of man-kind

    Birth of the Nuclear age

    Birth of a Cultural Stance

  • 15-08-1947 India and Pakistan gain Independence separately

  • Industrialization of the East

  • The Circle of Wealth

  • Those who dont learn from their history, repeat it!

  • Dynamics of Global Population TrendsControlling population growth

    Rural/Urban Migration

    Population Decline and Aging

    Worker shortage and immigration

  • World Trade Routes

  • Communication Links

  • Political Economy

  • Political Systems:

    Fascism

    Communism

    Democracy

  • The Political environmentA critical concern

  • The Sovereignty of Nations

  • Stability of Government policies

    Political Parties

    Nationalism

  • Economic Systems:

    Socialist

    Capitalist

    Mixed

  • Technology

  • Social Institutions

    FamilyReligionSchoolThe MediaGovernment Corporates

  • Global Business Customs

  • Management styles around the World

    Authority and decision makingManagement objectives and aspirations-Security and mobility-Work life-Affiliation and social acceptance-Power and achievement

  • Management styles around the World

    Communication styles-Face to face communication-Internet communications-Formality and tempo-P-time versus M-time-Negotiations emphasis

  • Gender bias in International business

  • Business EthicsCorruptionBribery-Bribery and extortion-Subordination and lubrication-Agents feesEthically and socially responsible decisions

  • Cultures Influence on Strategic Thinking

  • Required AdaptationOpen toleranceFlexibilityHumilityJustice/fairnessAbility to adjust to varying temposCuriosity/interestKnowledge of the countryLiking for othersAbility to command respectAbility to integrate oneself into the environment

  • Required Adaptation

    Degree of Adaptation

    Imperatives, Electives and Exclusives

    Pre and post departure trainings

  • Relationship Oriented versus Information oriented culturesInformation-oriented culturesLow-contextIndividualismLow-power distanceBribery less commonLow distance from EnglishLinguistic directnessMonochronic timeInternetForegroundCompetition

    Relationship-oriented culturesHigh-contextCollectivismHigh power distance (including gender)Bribery more commonHigh distance from EnglishLinguistic indirectnessPolychronic timeFace-to-faceBackgroundReduce transaction costs

  • Thank You