Chapter 4 - Culture in Business

Culture

Culture encompasses the knowledge, experience, beliefs, values, attitudes, religion, arts, symbols, and possessions acquired by a group of people over time.

Subculture

A cultural group within a larger or predominant culture is distinguished from it by factors such as class, ethnic background, religion, or lifestyle.

Counterculture

A culture that has values or lifestyles that oppose mainstream values and attitudes, usually to influence change, and openly rejects established cultural values.

Cultural Determinants

Geography, Climate, History, and Religion

Cultural intelligence

the capability to adapt, relate, and work effectively across various cultures.

Factors that shape cultures in different countries

Religion, Politics, Topography, Climate, and History

Factors That Affect Doing Business Internationally

Control, extent, number, and degree of foriegn opperations

Control of Foreign Operations

How much care and attention would need to be given to a foreign operation.

The Extent of Foreign Operations

How much does a company need to know about a country's culture, ex. commodities such as silver, gold, gas, etc. require less cultural knowledge than others.

Number of Foreign Operations

The more operations you have in the world the greater need for cultural knowledge.

Degree of Cultural Difference

Examining cultural differences and how much adaptation is needed if moved to another country, ex. Tims moves to USA, smaller degree, Tims moves to Spain, larger degre.

When entering the international market understand

Time Perception, spacial perception, non-verbal communication, and business ettiqute.

Monochronic

time is linear, sequential.

Polychronic

many things happening simultaneously

Hofstede’s Six Cultural Dimensions

1. Power Distance Index (PDI)
2. Uncertainty Avoidance Index (UAI)
3. Long-term vs. Short-term Orientation (LTO)
4. Individualism vs. Colletivisim (IDV)
5. Masculinity vs. Femininity (MAS)
6. Indulgence vs. Restraint (IND)

Power Distance Index (PDI)

How society handles inequalities among people.

Uncertainty Avoidance Index (UAI)

How society deals with unknown futures.

Long-term vs. Short-term Orientation (LTO)

Time orientation.

Individualism vs. Collectivism (IDV)

An “I” or “we” society

Masculinity vs. Femininity (MAS)

Competitive or cooperative.

Indulgence vs. Restraint (IND)

Optimistic or pessimistic.