Elements of Culture
Hofstede's Six dimensions
Individualism/Collectivism Index (IDV); focus on self-orientation
- Self-orientation - measures how personal needs and goals are prioritized vs the need and goals of the group, clan, or organization
- Individualism: everyone is expected to look after self and immediate family only
- Collectivism: individuals from birth onward are part of strong in-groups
Uncertainty Avoidance Index (UAI); focus on risk orientation
- Measures how much a people prefer known unchanging systems, or how comfortable hey are with changing the way they work or live
- Tendencies
- Avoidance of ambiguous or unknown situations
- Not to be confused with risk avoidance: take risks long as the risks are known and measurable
- Strong - precision and formulation with experts
- Weak - okay with chaos and minimum rules
Power Distance Index (PDI); focus on authority orientation
- The degree to which people defer to superiors, and how much they accept inequality in the distribution on power in business and society
- High - Centralization, supervision, status symbols
- Low - less supervision, same status
Indulgence vs. Restraint (IND)
- Measures allowance for basic drives related to enjoying life and having fun vs regulating it through strict social norms
- Indulgent - relatively free gratification of basic and natural human desires leading to enjoying life and having fun
- Restrained - suppress gratification of needs and regulate it by means of strict social norms
Masculinity/Femininity Index (MAS). focuses on assertiveness and achievement (change to Competition vs. Cooperation)
- The degree which a culture focuses on work competition vs cooperation and family
- Competitive - career advancement
- Cooperative - good relations
-
Long term Orientation (LTO)
- Measures time perspective, such as planning for the future and perseverance vs focus on the past and present
- Long term - towards the future - adapting to changes
- Short term - past and present, national pride, social obligations
2/10/2025
Power Distance - The degree to which people defer to superiors, and how much they accept inequality in the distribution on power in business and society.
Individualism vs Collectivism - same as before
Same notes as before essentially -
Chapter 5
Management Style around the World
Authority and Decision Making
Prominence of Status and position (Power Distance Index) influences approach to authority.
- High PDI - subordinates less likely to contradict bosses
- Low PDI- subordinates likely often challenge bosses
Three typical authority patterns in decision making:
1. Top level management decisions
2. Decentralized decisions
3. Committee or group decisions
Communication involves much more than just words
- Time. Space, things, friendship, and agreements
Management Objectives and Aspirations
Personal security and job mobility
- Cultures high in individualism make riskier R and D investments
Personal Life
- To Japanese, personal life is company life
Affiliation and social acceptance
Power and achievement
Formality and Tempo
Common mistakes North Americans make in business.
- To relaxed in formality; addressing clients and co-workers by first name.
- Too hasty and impatient in "getting down to business"
Tempo impacted by cultural view of time
- Monochromatic: linear view, time is important, promptness
- Polychronic: multi-tasking, involvement with individuals
2/14/2025
Culture and Business Systems
Culture profoundly impacts business
- Management style
Business culture, management values, business methods and behavior.
Established criteria for day-to-day business behavior
Forms general patterns of values and motivations
- Important for marketers to analyze to be successful
Cultural analysis and understanding gives competitive edge
Business etiquette is a crucial component.
The Use of Space in Office Settings
Notice the individualism reflected in the American cubicles and the collectivism demonstrated by the Japanese office organization
The Impact of American Culture on Management Style
Impact Of US culture on management style
- Master of destiny viewpoint vs set destiny
A master destiny viewpoint signifies a belief that individuals have the power to control their own lives and shape their future through their choices and actions, essentially being the architect of their own destiny.
A set destiny viewpoint suggests that a person's life path is predetermined by fate or external factors, leaving little room for personal agency to change the course of their life
- For Americans. Self-awareness will help adapt to working with associates in other cultures
- Some Japanese people believe in blood type compatibility and Koreans MBTI
Degree of Adaptation
Know local customs and accommodate differences
Evaluate which foreign customs should be adhered to
- Be aware of self-reference criterion (SRC)
- Own cultural background impacts understanding of other cultures
- Important of customs by country
Go local
- Establish local web presence with localized digital content
- Create local content
- Use local public relations
- Cultivate local influences ( contracts, trade shows)
- Learn about local culture as much as possible
Cultural adaptations
Enculturation - the process of learning the values, beliefs, and behaviors in our own culture
Acculturation - the learning that occurs when we travel to a new culture and learn that culture's value system and ways of doing things.
Required Adaptation
Cultural Imperatives - Business customs and expectations that must be met and conformed to or avoided
Cultural Electives - behavior or customs that cultural aliens may wish to conform to or participate in, but not required
Cultural Exclusives - customs or behaviors that foreigners are barred from and must not participate in
2/19/2025
Chapter 10
Multinational market Regions
Group of countries that
- Seek mutual economic benefits and associated peace
- Reduce interregional trade and tariff barriers
- Economic cooperative agreements
- If goods don't cross borders, soldiers will - Frederic Bastiat
- In 1940 the US told Japan to get out of China, and the ensuing of an embargo of gasoline and scrap metal, leading to directly to the Pearl Harbor attack
Free Trade is the ultimate goal
- Alliances concern some
- Fear of being excluded
- EU, NAFTA, formerly known as USMCA, ASEAN, APEC
Economic Factors
Every union shares development and enlargement of market opportunities as a basic orientation
- Preferential tariff treatment for participants
- Common tariff barriers against outsiders
- Stimulates internal economic development for all
Strong Unions can settle economic disputes
- Agreements and mechanisms must be in place
- Benefits must outweigh the cost of individual differences
Nations must give up party sovereignty
- Advantages of union must be clear-cut and significant
- Benefits must greatly outweigh the disadvantages
Political Factors
Equally important as economic factors
- Although economic factors are the basic catalyst for formation of union
Participating countries must be generally compatible
- Similar aspirations important
- Countries won't surrender part national sovereignty if not
Union typically formed in response to external threats
- Members must demonstrate "amenability" in ways that others can be conceived.
Patterns f Multinational Cooperation
Political Union
Most fully integrated form of regional cooperation
Complete economic and political integration
- Either voluntary or enforced
- If voluntary, the union is referred to as a commonwealth.
Commonwealth of Independent States CIS made up of former Soviet republics
European Union EU
- British exit in 2020 caused immediate delays, complications, and reductions in UK-EU trade
- Long-term economic consequences of "Brexit" unknown
Geographic and Temporal Proximity
Not imperative, but facilities functioning of market
- Transportation networks more developed n close countries
- European bullet trains
- Cheap labor
- Terrorism
Distance across time zones most important
- Trade tends to travel more easily in north-south directions than it did in ancient times
Issues of egal and illegal immigration important
- Promotes economic integration among closer countries
Cultural Factors
Cultural similarity eases shock of economic cooperation
- Members understand outlook and views of colleagues
- Agreements between similar countries most likely to succeed
Current agreements extend beyond cultural boundaries
- European Union very culturally diverse.
- Language not as much of a barrier as expected
- Religion still seems to be an issue
3/03/2025
Chapter 11 - The Asian Pacific Region
Dynamic Growth in the Asia Pacific Region
Asia has been the fastest growing region in the world for the past 3 decades
- 1996 financial crisis in leading Asian economies
- Tight monetary policy, appreciating dollar, deceleration of exports all contributed to downturn
- Followed by period of recovery and growth
Prospects for continued growth are excellent
- Source of new products, technologies, vast consumer markets
- 2020 Asian GDP at PPP, purchasing power parity, was higher than the rest of the world for the first time in 2 centuries.
- Hong Kong, South Korea, Singapore, and Taiwan
The People's Republic of China
China fast emerging as competitor in global markets
Must overcome issues to reach full potential
- Human rights and legal systems major issues in China
- Environmental decline associated with fast growth
- Demographic disaster associated with one-child policy
○ Policy ended in 2013, increased to 3 children in 2021
○ Reversal of policy has led to gender discrimination in the workplace
- Discrimination against those moving from rural to urban areas
Future potentials depend on-
- China's ability to deregulate industry, import modern technology, privatize overstaffed and inefficient State-owned enterprises, and attract foreign investments