International Culture and Management Style

7/28/2019 International Culture and Management Style

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Culture, Management Style,

and Business Systems

Question to be answered?

What is the inf luence of culture on

international marketing?


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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 havelearned in relation to:

Values and normsCustoms 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 Customs1. Cultural Imperatives

Business customs and expectations that MUSTbe met in order to conduct successful businesstransactions 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 Customs3. 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 localto do so


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The Impact of American Culture

on Management StyleMost widely accepted views regardingU.S. culture:

Master of destiny viewpoint

Reward based on merit

Decisions based on objective analysis

Wide sharing in decision makingNever-ending quest for improvement

Competition yielding efficiency


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Management Styles around the

WorldTypes of Decision Making Approaches

1. The authoritative approach

Top level management decision making is usually foundin smaller businesses

2. The delegated approach (U.S.) Allows executives at different levels to exercise

authority over their own functions3. The committee approach

Decisions are made by consensus or in a group (Japan)


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Communication Styles

- HighContext Cultures!Middle East, Asia, Africa, and South America

emphasize interpersonal relationships and trust.

Collectivist culture, preferring group harmony andconsensus 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 personsfamily history and status.

Flowery language, humility, and elaborate apologies aretypical.


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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 CulturesRelationship 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 onething at a time

P-time (polychronic) completion of atransaction is more important than sticking to aschedule


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Business EthicsBribery & Extortion

Bribery

Voluntary payment offered by individual(s) seeking anunlawful advantage SEC regulates U.S. Companies domestically and

internationally

Transparency International organization dedicated tocurbing corruptions worldwide

Extortion Payments are extracted under duress by someone in an

authoritative position (host country)


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Business EthicsSubordination & 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 onbehalf of the U.S. business


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Business Customs on the InternetPoints to be aware of:

A message on a companys website is viewed as

an extension of that companyMajority of websites are seen worldwide andtranslation can often convey incorrect meaning oroffend other cultures

Approximately 78% of website is written in EnglishCompanies must pay attention to symbols, iconsor any non-verbal messages on their websites

International Culture and Management Style

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