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Cultures Impact on Business Practices

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E.g. eating with chopsticks, kissing a woman's hand ... Let's go to the beach and have a barbie.' Cuppa? ' What you need is a good cuppa.' Chips? ... – PowerPoint PPT presentation

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Title: Cultures Impact on Business Practices


1
Cultures Impact on Business Practices
2
Business Customs Data
  • CountryWatch Data Base
  • People
  • Cultural Etiquette
  • Travel Guide
  • globalEdge web site maintained by Michigan State
    University Ciber Center at http//globaledge.msu.e
    du
  • Click on culture
  • Click on Global Road Warrior for following info
  • Business Culture
  • The Businesswoman
  • Travel Essentials
  • Etc.

3
Business Customs Data (contd.)
  • globalEdge web site maintained by Michigan State
    University Ciber Center at http//globaledge.msu.e
    du
  • Click on culture
  • Click on Executive Planet for following info
  • Lets Make a Deal
  • Prosperous Entertaining
  • Appointment Alert
  • Gift Giving
  • First Name or Title
  • Public Behavior
  • Business Dress
  • Conversation

4
What is Adaptation?
  • Understanding of cultural differences and
    willingness to accommodate those can cause
    misunderstanding

5
Hierarchy of Dos Donts
  • Norms Rules that dictate what is right or
    wrong, acceptable or unacceptable in a society
  • Imperatives - Norms referring to what
    individuals must or must not do in a culture
  • Guanxi (China), Ningen Kankei (Japanese, Compadre
    (Latin America) Personal relationships key to
    successful business dealings
  • Germany, business relationships formal, address
    by title and last name

6
  • 2. Adiaphoras Customs that a foreign national
    may engage in but is not necessarily expected to
    do so
  • E.g. eating with chopsticks, kissing a womans
    hand

7
  • 3. Exclusives Norms that refer to activities
    that are appropriate only for locals from which
    individuals from a foreign country are excluded
  • Christian trying to act like a Muslim

8
Importance of Language
  • Explicit (words communicated)
  • Implicit (gestures, tones, unspoken, context)

9
What language do they speak in Australia? Or
maybe you should rent Crocodile Dundee
  • Footy?
  • Barbie? Lets go to the beach and have a
    barbie.
  • Cuppa? What you need is a good cuppa.
  • Chips?
  • Concession?
  • Chemist?
  • The Bush?
  • Fine?
  • Long black?

10
Context - Categorization of Culture
  • Low Context -
  • messages are explicit, verbally explicit
  • Gets down to business quickly
  • High Context
  • Communication depends on context, non-verbal
    cues, read between the lines
  • Persons word is his bond

11
Contextual Background of Various Countries
High Context Implicit
Japanese
Arabian
5-4
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian
German
Low Context Explicit
Swiss
Irwin/McGraw-Hill
12
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13
High and Low-Context Cultures
14
Importance of Time
  • Monochronic
  • One thing at a time
  • Promptness
  • Dont waste time
  • Never underestimate the importance of punctuality
    in German business culture. Arriving merely two
    or three minutes late is a grave insult,
    especially if you are a subordinate.Make your
    appointments well in advance. Give at least one
    or two weeks notice for an appointment made by
    telephone allow at least a month for an
    appointment made by mail. If you dont have much
    preparation time, it's sometimes possible to
    arrange for a brief, introductory meeting within
    a few days' notice.

15
Importance of Time
  • Polychronic time
  • More emphasis on building relationship than
    holding to a schedule
  • Greater flexibility in defining being late
  • Wait and see what develops

16
Italy Store Hours 7 a.m. 1 p.m. And 4 p.m.
8 p.m.
? 1 p.m. And 530 8 p.m.
17

18
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19
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20
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21
Business Ethics
  • Bribery
  • Extortion (Payments forced by someone in
    authority)
  • Subornation (Giving larger sums of money to
    entice an official to commit an illegal act)
  • Lubrication (Relatively small sums of cash, gift
    or service to a low-ranking official

22
U.S. Foreign Corrupt Practices ActWhen in
doubt, Dont.
  • US FCPA 1977 makes illegal for companies and
    their representatives to bribe government
    officials and other politicians or candidates to
    political office. The Act also prohibits payment
    to third parties when the company has good reason
    to assume that part of the payment is being used
    for bribery.

23
Omnibus Trade and Competitiveness Act 1988
  • OTCA Among other ways to make U.S. more
    competitive, small payments O.K. to encourage
    officials to complete routine government actions
    such as processing papers, stamping visas, and
    scheduling inspections.
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