Week2 do

International Cultural Environment

• Definitions of Culture:

  • Distinct set of knowledge, beliefs, art, morals, customs.
  • Learned norms based on values, attitudes, beliefs.
  • Collective mental programming.

• Key Characteristics of Culture:

  • Shared, collective, relative (not right/wrong).
  • Influenced by group membership (ascribed vs acquired).

• Cultural Frameworks:

  • Iceberg Model: Visible behaviors vs invisible values, beliefs, assumptions.

• Management Orientations:

  • Ethnocentrism: Home culture superior to local culture.
  • Geocentrism: Global mindset transcending borders.
  • Polycentrism: Affinity for host country culture.

• Cultural Dimensions (Hofstede):

  • Individualism vs Collectivism
  • Power Distance
  • Uncertainty Avoidance
  • Masculinity vs Femininity
  • Long-term vs Short-term Orientation

• International Business Etiquette:

  • Importance of personal relationships (e.g., Guanxi in China).
  • Cultural embedded social networks affect business practices.

• Cross-Cultural Risks:

  • Cultural distance impacts market selection.
  • Need for product/service adaptation based on local customs.

• Examples of Cultural Missteps:

  • Marketing failures due to cultural insensitivity (e.g., Pepsi campaign in Germany).

• References:

  • Cavusgil et al. (2017), Daniels et al. (2015).