8Culture & Global Business Customs
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Transcript of 8Culture & Global Business Customs
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FOUNDATION OFCULTURE
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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?
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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.
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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.
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Culture
Culture is the collective programming of the mind which distinguishes the members of one category of people from another.
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Rules
Conformity to good or established usage. Well regulated condition, conduct, a principle, a standard.
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Values
Moral principles, standards.
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Belief
It is a descriptive image or thought that an individual holds about something.
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Behavior
Conduct, manner, mode of action, response to stimulus. Behavior is an outcome of psychological and sociological make-up.
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Attitude
A set of consistent reactions to an idea, situation, thought, object, place or being.
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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.
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Concept of Culture and sub-culture.
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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.
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Geert Hofstedes Big Four
Power DistanceIndividualism vs CollectivismMasculinity vs FeminityUncertainty Avoidance
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Its not just important to understand the cultural differences between cultures but it is also important to understand why.
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Factors that influence cultureThe WHY!
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GeographyClimateHumidityTemperatureRain
TopographyAltitude
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Water BodiesRiversOceansLakesDeserts (Hot and cold)
Resources
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History
The colonizers and the coloniesThe invaders and the invadedThe oppressors and the oppressedThe ArmiesThe EducatorsThe Politicians and the Businessmen
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The chronicles of the World The Civilizations
Indus Valley CivilizationMesopotamian CivilizationNile River CivilizationRiver Hwang Ho Civilization
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The colonial rulers
EnglandBritainFranceJapanSpainUSA
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The Colonization of the American continent04-07-1776- The declaration of Independence1782-The Crown retreats
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The Industrial Revolution
The Industrialization of the West
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1857-The first revolution for Independence India
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The World War - I 1914 1918
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1930 The Great Depression
Henry Ford
Adolf Hitler
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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
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15-08-1947 India and Pakistan gain Independence separately
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Industrialization of the East
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The Circle of Wealth
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Those who dont learn from their history, repeat it!
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Dynamics of Global Population TrendsControlling population growth
Rural/Urban Migration
Population Decline and Aging
Worker shortage and immigration
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World Trade Routes
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Communication Links
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Political Economy
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Political Systems:
Fascism
Communism
Democracy
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The Political environmentA critical concern
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The Sovereignty of Nations
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Stability of Government policies
Political Parties
Nationalism
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Economic Systems:
Socialist
Capitalist
Mixed
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Technology
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Social Institutions
FamilyReligionSchoolThe MediaGovernment Corporates
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Global Business Customs
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Management styles around the World
Authority and decision makingManagement objectives and aspirations-Security and mobility-Work life-Affiliation and social acceptance-Power and achievement
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Management styles around the World
Communication styles-Face to face communication-Internet communications-Formality and tempo-P-time versus M-time-Negotiations emphasis
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Gender bias in International business
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Business EthicsCorruptionBribery-Bribery and extortion-Subordination and lubrication-Agents feesEthically and socially responsible decisions
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Cultures Influence on Strategic Thinking
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Required AdaptationOpen toleranceFlexibilityHumilityJustice/fairnessAbility to adjust to varying temposCuriosity/interestKnowledge of the countryLiking for othersAbility to command respectAbility to integrate oneself into the environment
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Required Adaptation
Degree of Adaptation
Imperatives, Electives and Exclusives
Pre and post departure trainings
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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
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Thank You