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Global Marketing Management Culture

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Title: Global Marketing Management Culture


1
Global Marketing Management Culture
Management Style
  • MKTG 3215-001
  • Spring 2013
  • Mrs. Tamara L. Cohen

Class 5
2
Group Project
  • Project Proposal due on Wednesday, Feb.13
  • What do you need to do?
  • Choose your group
    5-6 students in each group
  • Choose your country
    1 group per country
  • Choose your product / brand
    - NOT marketed in that country
    yet - real or
    imagined
  • Let me know - your group, country, product /
    brand / service
  • Countries taken
  • BRAZIL

3
  • Case 1 Starbucks due Feb.4
  • HARD COPY of write-up due at beginning of class
    (no folders please)
  • Requirements for each Partnership Case Write-up
  • 4 - 6 pages, typed and double-spaced
  • Exhibits / Appendices / Resources in addition to
    4-6 pages
  • You and your partner should submit one write-up
    together.
  • Use the article (reading 11 in Course Pack),
    PLUS use other sources that you will find
    yourselves.
  • Your Case Write-up must include
  • Executive Summary (1 paragraph on 1st page)
  • Background (brief summary of case as you see it)
  • Problems (be incisive comprehensive)
  • Courses of action (address every problem
    identified)
  • Recommendations (most important problem(s)
    its/their solutions)
  • Conclusions (short sweet)
  • Exhibits / Appendices / Resources e.g. web sites,
    books, charts. Remember to acknowledge all
    sources, including reading 11.

4
Culture Management Style
  • Reading for this class
  • 3 Paul Midler Poorly Made in China
  • Homework
  • Summarize Poorly Made reading

5
KEY TERMS
  • Hofstedes dimensions of culture in international
    business
  • individualism vs collectivism
  • power distance
  • uncertainty avoidance
  • masculine vs feminine (achievement vs
    nurturing)
  • long-term orientation

6
KEY CONCEPTS
  • why accommodate cultural differences
  • how why management styles vary around the world
  • knowledge of prevailing management style in
    country business culture, management values,
    business methods behaviors, willingness to
    accommodate differences
  • a success in international market arena

7
What is CULTURE?
  • set of values, beliefs, rules, institutions
    held by a specific group of people
  • People are at center of all business activity.
  • People bring different backgrounds, assumptions,
    expectations, ways of communicating. This is
    CULTURE.

8
Global Perspective of CULTURE
  • Culture, including all its elements, profoundly
    affects management style overall business
    systems - Max Weber (1930)
  • Americans
  • individualists
  • Japanese
  • consensus-oriented committed to group
  • Central Southern Europeans
  • elitists rank conscious

9
Foundations for developing cultural awareness
  • GOOD
  • BAD
  • Cultural literacy
  • Detailed knowledge of a culture that enables a
    person to function effectively within it
  • Ethnocentricity
  • Belief that ones own ethnic group or culture is
    superior to that of others

X
v
10
Geert Hofstede
  • Culture is more often a source of conflict than
    of synergy. Cultural differences are a nuisance
    at best and often a disaster."  
  • Hofstede studied gt 110,000 people working in IBM
    subsidiaries in 40 countries
  • Framework examines cultural differences using 5
    dimensions
  • All aspects of consumer behavior are rooted in
    culture.
  •    

11
Hofstede Framework Dimensions
Individualism versus Collectivism
Power Distance
Long-Term Orientation
Uncertainty Avoidance
Achievement versus Nurturing
12
Individualism versus Collectivism
IDV
  • degree to which individuals are integrated into
    groups
  • Individualist societies
  • everyone expected to take care of him/herself
    his/her immediate family
  • value hard work, entrepreneurism, individual
    responsibility
  • Collectivist societies
  • cohesive groups often extended families
    protection loyalty
  • goal of group harmony in families
  • group responsibility for members, actions,
    success failure

13
Power Distance
PDI
  • extent to which less powerful members
    of society/institutions accept expect
    unequal distribution of power
  • represents inequality of members by members
  • accepting social inequality tantamount to
    endorsing it
  • high PDI means big gap between superiors
    subordinates more hierarchical management
  • low PDI suggests greater equality power from
    hard work, seen as more legitimate

14
Uncertainty avoidance
UAI
  • societys tolerance for uncertainty ambiguity
  • how comfortable are people with unfamiliar
    situations?
  • High UAI
  • spur people to minimize uncertainty by erecting
    strict laws, rules, consequences for
    deviation
  • often more emotional, anxious, fear change
  • Low UAI
  • societies more tolerant of different opinions
    practices
  • open to change, new ideas, more entrepreneurial

15
Achievement versus Nurturing
MAS
  • Masculinity (achievement) versus Femininity
    (nurturing)
  • distribution of roles between genders
  • values vary less among societies than
  • values range from assertive competitive to
    modest caring
  • cultures value of personal achievement
    materialism (often translating into
    entrepreneurial drive) versus relationships
    quality of life (usually more relaxed lifestyles)

16
Long-Term Orientation
LTO
  • societys time perspective
  • essence of differences between Eastern Western
    cultures
  • High LTO
  • tradition is adaptable cultural change is
    quicker because tradition commitment are not
    obstacles to change
  • save invest, thrift, perseverance, humility
  • strong work ethic due to expectation of pay-off
    from hard work
  • status upheld in relationships
  • Low LTO ( high SHORT-term orientation)
  • individual stability, protect reputation
  • high respect for tradition, fulfill social
    obligations
  • prefer quick results

17
Collect-ivism
4
Individualism versus Collectivism
LOW Power
HIGH Power
2
Power Distance
Individ-ualism
18
Uncertainty Avoidance
LOW Uncert-ainty
4
1
Power Distance
HIGH Power
LOW Power
2
HIGH Uncert-ainty
19
Brazil
  • UAI high
  • IDV higher than most Latin cultures

20
Switzerland
  • MAS is highest dimension
  • IDV is high too
  • PDI is low
  • UAI is low

21
China
  • PDI high
  • IDV very low
  • LTO very high

22
Adaptation is key!
  • Essential to effective adaptation
  • awareness of own culture
  • recognition that differences in others can cause
    anxiety, frustration misunderstanding of hosts
    intentions
  • Self-reference criterion (SRC) is especially
    operative in business customs
  • Key to adaptation is to remain true to oneself,
    but to develop understanding of willingness to
    accommodate differences

23
Business Customs
  • Cultural Imperatives Essential friendship or
    trusting relationship must be established before
    business can begin GUANXI ?? or ??, denotes
    relationships in the Chinese business world that
    may be leveraged regularly and voluntarily
    critical to successful business endeavors
    Japanese NINGEN KANKEI Latin American COMPADRE.
  • Cultural Electives Behaviors that can be
    conformed to, but are not absolutely required.
    e.g. gifts understand importance of banquets in
    China appreciate importance of Karaoke evenings
    in China greeting, eating, drinking, Japanese
    bowing, Arab coffee, Czech aperitif, Chinese
    drinking at banquets
  • Cultural Exclusives Foreigner must NEVER
    participate in these customs. customs only for
    locals, aliens barred, apologize if err, never
    joke about or criticize local customs. e.g. Paul
    Midlers referring to China as home non-Muslims
    never participate in Muslim prayer rituals

24
Trouble is (Paul Midlers) BusinessinThe China
Game
  • What importers needed to know before they moved
    their business to China was whether the economy
    was safe. One important contributing factor was a
    changing perception of China as a low-risk
    environment.
  • Quality fade
  • Manufacturers that engaged in the manipulation
    of quality knew that if they were caught, there
    was an inclination to work things out
  • the entire process of solving problems in China
    (is) itself an enigma

25
Business in China
  • Americans are accustomed to getting exactly what
    they order.
  • In Chinese manufacturing, the customers exact
    wishes matter only as far as necessary to capture
    the initial order.
  • Cultural origins of counterfeiting
  • No industrial revolution in China

26
ConfuciusStatus relationships in China
  • OBEDIENCE DEFERENCE to superiors strong
    values in China
  • Confuciuss teachings were foundation for Chinese
    education for 2,000 years until 1911 5
    cardinal relationships
  • The ruled were counseled to trade obedience
    loyalty for benevolence of rulers. Strict
    adherence led to social harmony, the antidote to
    violence civil war of Confucian times.

27
Gifts
  • Its not the gift that counts
  • but how you present it.

28
Japan
  • Gift protocols have prevailed in Japan for
    centuries
  • types of gifts to give, wrapping,
    presentation
  • Gifts opened in private
  • Give receive gifts with both hands
  • No surprises (individual / group)
  • Give gift at end of visit
  • Comment on modesty insignific-ance of your gift
    (conveys humility)
  • Value of gift befits status
  • Expect respect reciprocity
  • Avoid cash gifts
  • Avoid gifts with company logo (except souvenirs)
  • Avoid bows (considered unattractive)
  • Avoid ribbons (different colors have different
    meanings)
  • Avoid 4 of anything (shi death)
  • NEVER give a knife (suggests suicide)

29
China
  • Gift giving in China was once a high art form.
    Communist regime outlawed gift-giving to
    officials. Now communism is relaxing and gifts
    are expected.
  • Exchanging gifts is an important part of Chinese
    culture because it is one way of building guanxi.
  • Proper etiquette to refuse offer of a gift, even
    more than once. Giver is expected to persist.
    Acceptance will follow. No matter its value, the
    gift is referred to as a small token
  • Give and receive gifts with both hands
  • Avoid expensive gifts. Quality pen is good.
  • No white, blue, black gifts, no red ink.
  • No sharp objects no handkerchiefs
  • No clocks
  • No flowers (only for funerals)
  • Symbolism of numbers 2a 8a 6a 4 x

30
  • Middle East
  • Gift giving is an elevated custom in personal
    business relationships.
  • Tenets good manners are essential
    ingredient in persons character, and
    generosity to guests is essential to good
    reputation
  • Do not give gift when 1st meet someone
    (interpreted as bribe)
  • Present gift in front of others (interpreted as
    bribe if one-on-one)
  • Give receive with right hand or both hands
  • Reciprocate in kind
  • No alcohol, no pigskin
  • No gifts to wife of colleague

31
Europe
  • FLOWER POWER
  • Avoid red roses (suggest romance), white flowers,
    number 13
  • Never wrap flowers in paper present flowers
    unwrapped
  • Yellow flowers signal grieving in Eastern Europe.
  • Avoid chrysanthemums in Italy, France, Belgium,
    Spain (only for coffins or graves)
  • Carnations are only used for funerals in Sweden,
    Poland Germany
  • Even numbers of flowers can be bad luck in
    Germany Austria
  • Business gift giving is low-key, few protocols.
    Often superfluous now.
  • UK, France, Italy Send gift (flowers / book)
    after visit.
  • Good to bring chocolates or wine to dinner at
    home.

32
Russia
  • Strong tradition of enthusiastic giving
    receiving gifts.
  • Spontaneity fuels Russian gift-giving (rather
    than strict social protocols).
  • Great honor to be invited to a Russian business
    associates home. It is also a burden for the
    host. Russian tradition demands that you be
    served a meal that far exceeds everyones
    appetite, often the financial capabilities of
    the host, e.g. caviar served with large spoons.
  • Bring chocolates or wine if invited to a home.
  • Avoid bringing vodka.
  • Bring a bouquet of flowers, but there must be an
    odd number of flowers. (Even numbers for
    funerals).
  • From earliest childhood, Russian boys are taught
    the importance of giving flowers.
  • Bring gifts for kids.
  • Host/business associate may find it difficult to
    reciprocate.

33
What do we know about Culture Management
Style?
  • Business behavior derives largely from the basic
    cultural environment in which business operates.
  • Cultivate a global mindset
  • develop cultural adaptability
  • bridge cultural gaps
  • practice openness to unfamiliar
    principles practices
  • commit to flexibility

34
  • Next class Global Political Legal
    Environment
  • Homework Foreign Corrupt Practices Act
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