Describe culture and explain the significance of both national culture and subcultures
Identify the components of culture and describe their impact on international business
Describe cultural change and explain how companies and culture affect each other
Explain how the physical environment and technology influence culture
Describe two frameworks used to classify cultures and explain their practical use
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Cross-CulturalBusinessCopyright © 2014 Pearson Education, Inc. 2Copyright © 2014 Pearson Education, Inc. Chapter ObjectivesDescribe culture and explain the significance of both national culture and subculturesIdentify the components of culture and describe their impact on international businessDescribe cultural change and explain how companies and culture affect each otherExplain how the physical environment and technology influence cultureDescribe two frameworks used to classify cultures and explain their practical use2 - *HariboProblem: Not serving $2 billion subcultureCulprit: Pork-based gelatin in the candiesSolution: New bacteria-based compoundCopyright © 2014 Pearson Education, Inc. 2 - *Copyright © 2014 Pearson Education, Inc. What is Culture?Set of values, beliefs, rules, and institutions held by a specific group of peopleCultural literacyDetailed knowledge of a culture that enables a person to function happily and effectively within it√EthnocentricityBelief that one’s own ethnic group or culture is superior to that of othersX2 - *Copyright © 2014 Pearson Education, Inc. Culture Matters:Creating a Global MindsetCulturalAdaptabilityBridgingthe GapFlexibilityIs KeyBuildingGlobal Mentality2 - *Copyright © 2014 Pearson Education, Inc. National CultureNation states build museums and monuments to preserve the legacies of important events and peopleFilmmakingandBroadcastingGuggenheimandHong Kong Disney2 - *Copyright © 2014 Pearson Education, Inc. SubculturePeople who share a unique way of life within a larger culture (language, race, lifestyle, attitudes, etc.)EXAMPLESGoth, Punk, EmoChina’s DialectsGroups in U.S.2 - *Copyright © 2014 Pearson Education, Inc. Discussion QuestionWhy should business people try to avoid ethnocentricity and develop cultural literacy?2 - *Copyright © 2014 Pearson Education, Inc. Answer to Discussion QuestionEthnocentricity distorts our view of other cultures and causes us to overlook important human and environmental differences among cultures.Cultural literacy improves the ability of managers to manage employees, develop and market products, and conduct negotiations in local markets.2 - *Copyright © 2014 Pearson Education, Inc. Components of Culture2 - *PhysicalenvironmentsEducationPersonalcommunicationReligionSocial structureManners &customsValues &attitudesAestheticsCultureCopyright © 2014 Pearson Education, Inc. AestheticsMusicPaintingDanceDramaArchitecture2 - *Copyright © 2014 Pearson Education, Inc. Values and AttitudesValuesAttitudesPositive or negative evaluations, feelings, and tendencies people hold toward objects or conceptsIdeas, beliefs, and customs to which people are emotionally attached Freedom Responsibility Honesty Time Work Cultural change2 - *Cultural DiffusionSpread of cultural traits across cultures causes much cultural changeCopyright © 2014 Pearson Education, Inc. 2 - *Copyright © 2014 Pearson Education, Inc. Manners and CustomsMannersAppropriate behavior, speech, and dressing in generalCustomsTraditional ways or behavior in specific circumstances2 - *Copyright © 2014 Pearson Education, Inc. CustomsGift GivingFolkPopular2 - *Copyright © 2014 Pearson Education, Inc. Discussion QuestionCustoms differ from _______ in that they define appropriate ways or behaviors in specific situations. a. Values b. Attitudes c. Manners2 - *Copyright © 2014 Pearson Education, Inc. Answer to Discussion QuestionCustoms differ from _______ in that they define appropriate ways or behaviors in specific situations. a. Values b. Attitudes c. Manners2 - *Manager’s Briefcase:A Globetrotter’s Guide to Meetings Familiarity Personal Space Religious Values Business Cards Comedy Body Language2 - *Copyright © 2014 Pearson Education, Inc. Copyright © 2014 Pearson Education, Inc. Social StructureSocial groupTwo or more people who identify and interact with each otherSocial stratificationProcess of ranking people into social layersSocial mobilityEase of moving up or down a culture's "social ladder"2 - *Copyright © 2014 Pearson Education, Inc. World ReligionsChristianityIslamHinduismBuddhismConfucianismJudaismShintoOrigin ofHuman Values2 - *Modernization andTraditional BeliefsDoes globalization endanger traditional beliefs, such as living a life void of materialistic ambitions?Copyright © 2014 Pearson Education, Inc. 2 - *Copyright © 2014 Pearson Education, Inc. Language BlundersJapanese knife manufacturer labeled its exports to the United States with “Caution: Blade extremely sharp! Keep out of children.”English sign in a Moscow hotel read, “You are welcome to visit the cemetery where famous Russians are buried daily, except Thursday.”Sign for non-Japanese-speaking guests in a Tokyo hotel read, “You are respectfully requested to take advantage of the chambermaids.”Sign in English at Copenhagen ticket office read, “We take your bags and send them in all directions.”Braniff Airlines’ English-language slogan “Fly in Leather” was translated into “Fly Naked” in Spanish.2 - *Many endangered languagesYet English, Mandarin, and Spanish are expandingLost languages means lost knowledgeLinguists are recording most threatened languagesGlobal Sustainability:Speaking in Fewer Tongues2 - *Copyright © 2014 Pearson Education, Inc. Copyright © 2014 Pearson Education, Inc. Lingua Franca¿Hola? Guten Tag? Hello?? Ni Hao? Bonjour? Hello!!!2 - *Copyright © 2014 Pearson Education, Inc. Mixed Signals2 - *Copyright © 2014 Pearson Education, Inc. Discussion QuestionHow does an understanding of the spoken, written, and body language in a market abroad contribute to business success?2 - *Copyright © 2014 Pearson Education, Inc. Answer to Discussion QuestionKnowledge of a culture’s spoken, written, and body language gives international managers insight into why people think and act the way they do.2 - *Copyright © 2014 Pearson Education, Inc. EducationCultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc.Education levelWell-educated attract high-paying jobs, while poorly educated attract low-paying manufacturing jobsBrain drainDeparture of highly educated people from one profession, geographic region or nation to another2 - *Copyright © 2014 Pearson Education, Inc. Problem of Illiteracy2 - *Copyright © 2014 Pearson Education, Inc. Physical and Material CultureThese influence a culture’s development and pace of changeTopographyPhysical features characterizing the surface of a geographic regionClimateWeather conditions of a geographic regionMaterial CultureTechnology used to manufacture goods and provide services2 - *Copyright © 2014 Pearson Education, Inc. Kluckhohn-Strodtbeck FrameworkRelation to nature Time orientation Trust and control Material or spiritual Responsibility to others View of personal space 2 - *Copyright © 2014 Pearson Education, Inc. Hofstede FrameworkIndividualism vs. collectivismPowerdistanceMasculinityvs. femininityUncertaintyavoidanceLong-termorientation2 - *Copyright © 2014 Pearson Education, Inc. Power Distance &Individualism vs. CollectivismSource: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p. 82.2 - *Copyright © 2014 Pearson Education, Inc. Power Distance &Uncertainty AvoidanceSource: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p. 84.2 - *Copyright © 2014 Pearson Education, Inc. Discussion QuestionCultures with small ____________ tend to display greater equality and a more equal distribution of rewards.a. Individualismb. Power distancec. Uncertainty avoidance2 - *Copyright © 2014 Pearson Education, Inc. Answer to Discussion QuestionCultures with small ____________ tend to display greater equality and a more equal distribution of rewards.a. Individualismb. Power distancec. Uncertainty avoidance2 - *All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2014 Pearson Education, Inc. 2 - *