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Business and Cultural Studies Notes

1: Introduction

  • The session begins with addressing 50 questions on a designated homework assignment.

  • The instructor emphasizes the importance of starting with homework due to a packed agenda.

Homework Discussion

  • Homework Number 6:

    • First question discussed is: Direct Foreign Investment (DFI).

    • Definition: DFI refers to a domestic company allowing a foreign company to sell its products, utilize its marketing terms, name, and manufacturing techniques in exchange for royalties.

    • Advantages of DFI include:

      • Increased market access and expansion; the potential for royalty income.

      • Hiring of local or expatriate workers for operations.

  • Quotas:

    • Quota is defined as a limit on the amount of products that can be imported or exported.

  • Tariffs:

    • Definition: Taxes imposed on imports and exports.

    • Two types discussed:

    • Revenue Tariff: Aimed at generating government revenue.

    • Protective Tariff: Protects domestic companies from foreign competition.

  • Infrastructure:

    • Defined as the basic physical and organizational structures needed for the operation of a society or enterprise, such as roads, power supplies, and military facilities.

  • Subsidy:

    • Government support that financially aids specific industries.

2: Know The Countries

  • Trade Agreements:

    • Trade agreements between countries are referred to as Economic Communities (EC).

    • Purpose of forming EC: To eliminate tariffs, quotas, and trade restrictions, allowing for free trade among member countries.

  • Examples of Economic Communities include:

    • European Union (EU): A group of European countries for economic cooperation.

    • Mercosur: A South American trade bloc aimed at promoting free trade.

  • Global Location Considerations:

    • Factors to assess include market potential (customer base) and political climate of the target country (developed vs. developing)

    • Note on market potential: Competition is higher in developed markets, whereas less competition can exist in underdeveloped countries.

    • Cultural implications: Cultural beliefs can significantly impact product acceptance, exemplified by the reception of Barbie dolls in the Middle East.

3: Cultural Differences and Power Orientation

  • Global Consistency vs. Local Adaptation:

    • Businesses entering foreign markets may need to adapt products to local cultures rather than enforcing a one-size-fits-all approach.

  • Cultural Sensitivity:

    • Overview of Power Orientation across cultures, particularly between countries that value authority versus those that promote questioning of leadership.

  • Individual vs. Group Orientation (Social Orientation):

    • Individualism: Focus on personal achievements.

    • Collectivism: Emphasis on group efforts and community.

  • Uncertainty Orientation:

    • Refers to how cultures handle risk:

    • Uncertainty Avoidance: Preference for structured, predictable environments, avoiding risks.

    • Uncertainty Acceptance: Openness to ambiguity and risk-taking.

  • Goal Orientation:

    • Aggressive: Focused on material gains.

    • Passive: Prioritizes quality of life and relationships over profits.

4: Foreign Company Considerations

  • Expatriate:

    • A representative from the home country (e.g., U.S.) working in a foreign country.

    • Advantages: Familiarity with the company's wishes and product understanding.

    • Disadvantages: Lack of knowledge about local culture and regulations.

  • Host:

    • Local staff from the foreign company; they possess knowledge of culture, regulations, and market forces.

  • Mention of Political Considerations: Hiring locals can alleviate political tensions.

5: Diversity and Workforce

  • Diversity vs. Multiculturalism:

    • Diversity: Differences among individuals based on various criteria (e.g., race, gender, socioeconomic status).

    • Multiculturalism: A subset of diversity focusing on coexistence of multiple cultures within a society.

  • Importance of diversity for business:

    • Improved decision-making, creativity, and market understanding due to diverse perspectives.

6: Generational Differences in the Workforce

  • Generational Cohorts:

    • War Generation (1900-1924): Known for high achievement, often seen as historical survivors.

    • Silent Generation (1925-1945): Experienced the Great Depression; often cautious and reserved.

    • Baby Boomers (1946-1964): Known for social activism and values around work and play.

    • Generation X (1965-1979): Marked by skepticism towards institutions and information overload.

    • Millennials (Generation Y) (1980-1999): Technology-savvy and socially responsible.

    • Generation Z (2000-2012): Known for being digitally native and focused on social justice.

  • Business Implications:

    • Understanding the values and motivations of different generations can enhance product development and marketing strategies.

7: Conclusion

  • Assignment Requirements:

    • A minimum of five typewritten pages on assigned case studies.

    • Format includes an executive summary, examples, strategies, and a conclusion addressing interpersonal relationship issues noted in the case.

    • Encouragement to include sections well-structured around the headings required, discussing interpersonal communication and training issues within the company.

  • Reflection on the importance of understanding these generational differences in making business decisions related to product offerings and marketing strategies based on customer demographics.