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Culture!

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Culture is the integrated sum total of learned behavioral traits that are shared ... kiss someone, listen to music, or go out for recreation we are practicing ... – PowerPoint PPT presentation

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Title: Culture!


1
Culture!
  • Thursday, November 2

2
What is culture?
  •  Culture is the integrated sum total of learned
    behavioral traits that are shared by members of a
    society  (Hoebel).
  • What are some examples of learned behavioral
    traits that are shared in society?

3
3 fundamentals
  • Culture is a total pattern of behavior that is
    consistent and compatible in its components. It
    is not a collection of random behaviors
  • Culture is a learned behavior. It is not
    biologically transmitted. It depends on
    environment, not heredity.
  • Culture is behavior that is shared by a group of
    people, a society. It is the distinctive way of
    life of a people.

4
Learned behavior can mean almost anything, from
the way we dress to the way we speak to the food
we choose to eat. Whenever we brush our teeth,
cross our legs, send our parents' a birthday
card, kiss someone, listen to music, or go out
for recreation we are practicing learned
behaviors which are a part of our culture.
5
So what should be know about Culture
  • Understanding the cultural environment will help
    in analyzing the other macro-environments
    (political, legal, economic)

6
Two levels of cultural diversity
  • External cultural diversity
  • Cultural determinants influencing purchasing and
    consumption behaviors (Who buys? What? Where?
    How? Why?)
  • Cultural determinants influencing negotiations
    (relationships with suppliers, buyers, partners)
  • Internal cultural diversity
  • Observed within all MNCs
  • Cultural differences that affect the way
    subsidiaries work together

Explicit culture languages, behavior, know-how,
institutions (directly observable)
Implicit culture moral values, learning process,
beliefs
7
A new term to add
  • A subsidiary, in business, is an entity which is
    controlled by another entity. The controlled
    entity is called a company or Corporation.
  • The most common way that control of a subsidiary
    is achieved is through the ownership of shares in
    the subsidiary by the company. These shares give
    the company the necessary votes to determine the
    composition of the board of the subsidiary and so
    exercise control.

8
There are quite a few reasons why companies have
subsidiaries, but one of the most important one
is.
  • Risk Many businesses use subsidiaries to manage
    risk. This is achieved usually by setting up a
    subsidiary corporation to undertake the higher
    risk venture. If that venture subsequently become
    subject to litigation or liability, legally the
    subsidiary corporation would be liable and not
    the parent (unless the parent made guarantees, in
    which case the parent is liable for the
    guarantees it made).

9
According to Hoebel
  • There are 3 types of cultural norms in terms of
    behavior
  • 10 of norms are technical
  • explicit, logical and transferable written norms
    of a society (laws, technical manuals, rules,
    etc)
  • 30 of norms are formal
  • explicit, moral and transmissible traditions of
    a culture learned through education (manners,
    courtesy)
  • 60 of norms are informal
  • implicit, instinctive and imitated facial
    expressions, body language, cultural perspective
    on time and space)

10
How do we measure cultural distance?
  • Hofstedes Cultural Index
  • - National character survey
  • - 116.000 IBM employees
  • - 43 countries and 20 languages
  • Five different poles make up the cultural index
  • - Power distance
  • - Uncertainty avoidance
  • - Individualism
  • - Masculinity
  • - (Long term orientation)

11
Hofstedes cultural index
  • Power distance (PDI) shows class or social
    structure. It shows how well a society accepts an
    uneven distribution of power in organizations and
    institutions and focuses on the degree of
    equality, or inequality, between people in the
    countrys society.
  • Uncertainty avoidance (UAI) shows how threatened
    a society feels by uncertain or unstable
    situations. It focuses on the level of tolerance
    for uncertainty and ambiguity within the society.
  • Individualism (IDV) focuses on the degree that
    society reinforces individual or collective
    achievement and interpersonal relationships. It
    distinguishes between societies where the group
    and being a member is important (collectively)
    and societies where the group is less important
    (individualism).

12
Hofstedes cultural index
  • Masculinity (MAS) focuses on the degree the
    society reinforces, or does not reinforce, the
    traditional masculine work role model of male
    achievement, control and power. Indicates the
    degree of gender differentiation and the
    importance of masculine values (assertiveness,
    money, material goods).
  • Long-term orientation (LTO) focuses on the
    degree the society embraces, or does not embrace,
    long-term devotion to traditional, forward
    thinking values. Indicates whether the country
    prescribes to the values of long-term commitments
    and respect for tradition.

13
Examples of Hofstedes Dimensions
14
  • Uncertainty Avoidance Index (UAI) deals with a
    society's tolerance for uncertainty and
    ambiguity it ultimately refers to man's search
    for Truth.
  • It indicates to what extent a culture programs
    its members to feel either uncomfortable or
    comfortable in unstructured situations.
    Unstructured situations are novel, unknown,
    surprising, different from usual. Uncertainty
    avoiding cultures try to minimize the possibility
    of such situations by strict laws and rules,
    safety and security measures, and on the
    philosophical and religious level by a belief in
    absolute Truth 'there can only be one Truth and
    we have it'.
  • People in uncertainty avoiding countries are also
    more emotional, and motivated by inner nervous
    energy. The opposite type, uncertainty accepting
    cultures, are more tolerant of opinions different
    from what they are used to they try to have as
    few rules as possible, and on the philosophical
    and religious level they allow many currents to
    flow side by side. People within these cultures
    are not expected by their environment to express
    emotions.

15
Intracultural differences
  • Few cultures are homogeneous in terms of cultural
    traits and norms.
  • Intracultural differences based on nationality,
    religion, race, language or geographic areas have
    resulted in the emergence of distinct
    subcultures.
  • It is important to distinguish relevant
    cross-cultural and intracultural differences and
    isolate potential opportunities and problems.
  • However, international business may act as a
    change agent by introducing new products or ideas
    or practices.

16
To summarize on culture
  • Cultural distance is essential in international
    business
  • Culture is complex and multi-dimensional
  • Acculturation (adjusting and adapting to a
    specific culture other than ones own) is one of
    the keys to success in international operations
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