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Differences in Culture

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Title: Differences in Culture


1
chapter 3
  • Differences in Culture

2
Chapter Objectives 1
  • What is culture and society
  • Forces leading to differences in culture
  • Identify the business and economic implications
    of differences in culture
  • Understand how differences in social culture
    influence values in the workplace
  • Understand the economic and business implications
    of cultural change

3
McDonald's in India
  • Did you look at the case in page 86-87?
  • What is the ideas behind this case?
  • Cross-cultural communication?
  • World economic development 2010
  • http//hdr.undp.org/en/media/HDR_2010_AR_Complete_
    reprint.pdf

4
Introduction
  • McDonalds customization
  • What is cross-cultural literacy means?
  • You need to understand cultural differences
  • Play the culture rules and do as Romans do but if
    you have to and you are there.

5
Introduction
  • MacDonalds do not sell Bacon in Muslim
    countries.

6
Culture
  • http//www.youtube.com/watch?featureendscreenNR
    1vhaohj1sVnyk
  • http//www.youtube.com/watch?vloL97DgsvdE
  • http//www.youtube.com/watch?vRVmFsGp9FV4feature
    related
  • http//www.youtube.com/watch?vcB2qo9uAAjUfeature
    related

7
Culture
  • Communication is a way to understand others
    culture.
  • Insha-Allah
  • The culture of generosity.
  • Gift might be misunderstood and rejected in some
    cultures

8
Culture defined
  • Stick to Namenwrith and Weber and Hofestede
  • Culture is a system of values and norms that are
    shared among a group of people and that when
    taken together constitute a design for living.

9
Define it
  • Values abstract ideas about what a group
    believes to be good, right, and desirable.
  • It is shared assumptions about how things ought
    to be

10
Culture
  • Norms the social rules and guidelines that
    prescribe appropriate behaviours in particular
    situations. Our guests are here you should greet
    them this is our norm. Part of our value of
    respect.

11
Society
  • Society is a group of people who share a common
    set of values and norms.
  • Examples of values freedom, justice, honesty,
    integrity, credibility....etc.

12
Culture
  • Norms norms guide your actions.
  • It is a norm here to say inshallah for an
    appointment with another person.
  • It is a norm to come 5 to 10 minutes late for
    that meeting.

13
Culture, society, and the nation state
  • Culture has sub-cultures.
  • Society got multiple society.
  • Muslim culture
  • America culture
  • Indian culture
  • When you get closer you find many cultures inside
    each one and many societies as well

14
What determines culture? See figure 3.1 page 91
  • Social structure
  • Religion and ethical systems
  • Language
  • Education
  • Economic and political philosophy

15
Figure 4.1 Elements of Culture
Language
Education
Social structure
Culture
Religion
Economical And political
16
Social Structure
Individuals, families, and groups
Social stratification (class) - Britain India
social structure
Social mobility (class)
17
Social structure 2
  • Societies differ in the role of family,
    individuals and relationship of individuals with
    each other and with the group.
  • In some societies individualism is high and is
    promoted.

18
Social structure 3
  • Social stratification It has to do with social
    classes.
  • Factors used in stratification occupation,
    income, level of education, birth.
  • Some societies are highly stratified, whereas
    others are less stratified.
  • In highly stratified societies social
    mobility(moving from one stratum to another) is
    not easy.

19
Individualism
  • Individualism emphasizes individual performance
  • Individualism leads to entrepreneurship
  • Creating new products- the case of Steve jobs.

20
Individualism
  • Individualism commitment is to the self, the
    individual not to the company.
  • No lifetime career for managers in the US.
  • Theory Z by William Ouchi
  • http//www.enotes.com/theory-z-reference/theory-z-
    176920

21
The group and the TEAM
  • I versus WE
  • Me versus US

22
Social Stratification
  • Hierarchy
  • Social mobility the extent to which individuals
    can move out of the strata into which they are
    born. You can not marry her, she does not belong
    to our strata or social class.
  • In Japan- middle class

23
Significance
  • The stratification is significant if it affects
    the operation of business.
  • In the US social mobility and individualism limit
    the impact of class background on business
    operations.
  • Social equality- low industrial disputes- low
    cost of production leading to high global
    competitive advantage

24
Language
  • An important means by which a societys members
    communicate.
  • 3000 different languages10,000 different
    dialects (worldwide).
  • Presence of more than one language reflects
    diversity of the population. India is an example.
  • Linguistic ties can facilitate trade. USA, Uk.,
    Australiaetc. (competitive advantage).Colonial
    relationships also have some impact.
  • French language in North Africa!!!!!!!!!
  • Un spoken means what?

25
Language 2
  • English is the most popular language in IB. why?
  • Knowledge of foreign languages is an added
    advantage.
  • Translation can overcome linguistic differences.
    Back-translation may be used. But we should be
    careful. Word placement or misuse of vocabulary
    could change the meaning.
  • Examples
  • Leave your values at the desk
  • WE will execute customers in strict rotation

26
Map 4.1 World Languages
27
Map 4.2 Africas Colonial Legacy
28
Religion
  • Imposes constraints on roles of individuals in
    society
  • Religion shapes attitudes, working days,
    consumption, the types of products consumers may
    purchase.
  • Varies from country to country

29
Religion
Christianity
Islam
Judaism
Hinduism
Buddhism Confucianism
30
Map 4.3 Major World Religions
31
Religion
  • More than Two million Muslims annually descend on
    the Grand Mosque in Mecca, Saudi Arabia as part
    of the Hajj.

32
Economic implications of Confucianism
  • The impact of
  • Loyalty
  • Reciprocal obligations
  • Honesty in dealing with others
  • The above lead to trust in relationships

33
Education
  • Education and individual competencies (self
    fulfilment ...etc.)
  • Education and national competitive advantage
  • Education and international business.

34
Education
  • In KSA and the Middle East
  • In Japan and Korea
  • what Porter says about education in Japan after
    the wwII
  • Japans only endowment (resource) is its human
    capital.

35
Education
  • Education and IB
  • India is following and bypassing Japan in this
    factor.
  • Outsourcing and education- no one is going to
    place production operation in poor education
    country.
  • You can never market books to illiterate nation
    or country.

36
Culture and the workplace
  • IB, culture, and the workplace
  • Management practices are affected somehow by the
    national culture.
  • So culture is related to values in the workplace.

37
Hofstedes Four Dimensions Research Method
  • IBM
  • 100,000 participants
  • 1967- 1973
  • 40 countries

38
Hofstedes Four Dimensions
Power Distance
Uncertainty Orientation
Individualism Vs Collectivism
Masculinity Vs femininity
39
Social Orientation
Individualism Collectivism
Relative importance of the interests of the
individual versus interests of the group
40
Power Orientation Power distance
  • The extent to which less powerful members of
    organizations accept the unequal power
    distribution.
  • People in high-power distance societies are more
    likely to accept the authority of superiors,
    respect authority, and position in the hierarchy.

41
Power Orientation
Power Respect Power Tolerance
Appropriateness of power/authority within
organizations
42
Uncertainty Avoidance
  • Extent to which people feel threatened by
    ambiguous situations.
  • People coming from uncertainty avoidance cultures
    dislike ambiguity and try to avoid whenever
    possible. On the contrary, those coming from
    uncertainty tolerant cultures perceive it as a
    chance to grow and develop. Those are more
    acceptable for flexible hierarchies, rules and
    procedures. Risk taking is highly valued.

43
Uncertainty Orientation
Uncertainty Uncertainty Acceptance
Avoidance
Emotional response to uncertainty and change
44
Masculinity Vs Femininity
  • Masculine culture values such as achievement,
    and the exercise of power determined cultural
    ideals.
  • In feminine cultures, sex roles were less
    distinguished and little differentiation between
    men and women in the same job.

45
Culture Change
  • Culture evolves over time.
  • What makes culture change
  • Towards women
  • Towards collectivism
  • Loyalty- Japan- become like Westerners

46
Cultural change
  • Economy changes culture (rich)
  • As you get rich you move away from traditional
    values
  • Moving to the city.
  • Education, technology, and globalization.
  • Consumerism and civilization.

47
Chapter summary
  • McDonalds customization
  • Page 88 what is cross cultural literacy and its
    importance
  • What is culture page 89
  • Define social structure
  • Individual vs collective impact on business and
    International business

48
Chapter summary
  • Social strata and business and IB.
  • Class system and social mobility
  • Significance page 96
  • Religious systems- just what might enhance
    international relations and effective IB.

49
Chapter summary
  • Economic implications of Islam-page 101
  • Move from page 101 to 105 and read the economic
    implications of Confucianism. Three elements are
    important there.

50
Chapter summary
  • Move to page 108 and look at the role of
    education. See also what porter says about Japan
    and know that the most important secret behind
    nations development is education and compare
    between Egypt and south Korea.

51
Chapter summary
  • Geert Hofstede Study
  • Cultural change just page 111 and 112.
  • Use the slides as a guide if you can.
  • Study Wal-Mart case page 118.
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