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International Marketing Chapter 5

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International Marketing Chapter 5 Cultural, Management Style, and Business Systems Degree of Adaptation Businesses may not have to adapt to all markets. – PowerPoint PPT presentation

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Title: International Marketing Chapter 5


1
International MarketingChapter 5
  • Cultural, Management Style, and Business Systems

2
Degree of Adaptation
  • Businesses may not have to adapt to all markets.
    As an example, kids in Asia want the golden
    haired Barbie just like kids in the US.
  • However, business must adapt in some ways to be
    successful.
  • Business customs can be grouped into imperatives,
    electives and exclusives.

3
Degree of Adaptation Continued
Cultural Imperatives, Electives and Exclusives
  • Cultural imperatives are the business customs and
    expectations that must be met, conformed,
    recognized and accommodated if relationships are
    to be successful
  • Cultural electives relate to areas of behavior or
    to customs that cultural aliens may wish to
    conform to or participate in but that are not
    required
  • Cultural exclusives are those customs or behavior
    patterns reserved exclusively for the locals and
    from which the foreigner is barred and must not
    participate

4
Degree of Adaptation Continued
  • Imperatives Guanxi trust and human
    relationships,
  • never lose your patience, correct someone in
    public
  • Electives Greeting another man with a kiss, eat
    foods that are disagreeable, drink alcohol,
    bowing
  • Exclusives Taking on anothers religious
    symbolisms
  • or important political or cultural symbols
    used in inappropriate ways

5
Required Adaptation
  • Adaptation is a key concept in international
    marketing
  • To successfully deal with individuals, firms, or
    authorities in foreign countries, managers should
    exhibit
  1. open tolerance,
  2. flexibility,
  3. humility,
  4. justice/fairness,
  5. ability to adjust to varying tempos,
  6. curiosity/interest,
  7. knowledge of the country,
  8. liking for others,
  9. ability to command respect, and
  10. ability to integrate oneself into the environment

6
The Impact of American Culture
  • Ways in which U.S. culture has influenced
    management style include, but are not limited to,
    the following
  • Master of destiny viewpoint
  • Independent enterprise as the instrument of
    social action
  • Personnel selection and reward based on merit
  • Decisions based on objective analysis
  • Wide sharing in decision making
  • Never-ending quest for improvement
  • Competition yielding efficiency

7
Management Styles Around the World
  • Management values, and behaviors vary around the
    world.
  • Differences in the contact level, communications
    emphasis, tempo, and formality of foreign
    businesses are encountered from culture to
    culture.
  • Ethical standards and sales interactions and
    negotiation styles differ substantially.

8
Management Styles Around the World
  • Cross-cultural differences influence management
    styles in the following areas
  • Authority and Decision Making
  • Management Objectives and Aspirations
  • Communication Styles
  • Formality and Tempo
  • P-Time versus M-Time
  • Negotiations Emphasis

9
Differences in Management Styles Around the World
  • Three typical patterns exist
  • top-level management decisions,
  • decentralized decisions, and
  • committee or group decisions
  • Security especially of lifetime employment
  • Affiliation and Social Acceptance by neighbors
    and fellow workers
  • Power and Achievement Orientation sought by
    managers
  • Importance of personal/family life over work and
    profit

10
Differences in Management Styles Around the World
  • According to Edward T. Hall, the symbolic
    meanings of time, space, things, friendships, and
    agreements, vary across cultures
  • In some cultures, messages are explicit the
    words carry most of the information. In other
    cultures ... less information is contained in the
    verbal part of the message since more is in the
    context
  • Communication in a high-context culture depends
    heavily on the contextual (who says it, when it
    is said, how it is said) or nonverbal aspects of
    communication
  • Communication in a low-context culture depends
    more on explicit, verbally expressed
    communications
  • Hall places eleven cultures along a
    high-context/low-context continuum

11
Low Context vs High Context Cultures
12
Differences in Management Styles Around the World
  • Level of formality in addressing business clients
    by first name
  • Level of formality in addressing your boss by
    first name
  • Tempo or speed in getting down to business
  • Perception of time varies in many cultures

13
Differences in Management Styles Around the World
  • M-time, or monochronic time, typifies most North
    Americans, Swiss, Germans, and Scandinavians
  • Most low-context cultures operate on M-time
    concentrating on one thing at a time
  • P-time, or polychronic time, is more dominant in
    high-context cultures
  • P-time is characterized by multi-tasking and by
    a great involvement with people

14
The Time Element in Culture
15
Gender Bias in International Business
  • The gender bias against women managers exists in
    some countries
  • Gender bias poses significant challenges in
    cross-cultural negotiations

16
Business Ethics
Business ethics is complex in the international
marketplace because value judgments differ widely
among culturally diverse groups
Corruption varyingly defined from culture to
culture
Existence of different levels of corruption,
bribery, and fraud
The Foreign Corrupt Practices Act 1997
Imprisonment for bribery
Bribery creates a major conflict between ethics
and profitability
17
Cultural and Corruption
18
Culture and Bribery
19
Bribery Variations on a Theme
  • Voluntarily offered payment by someone seeking
    unlawful advantage
  • Payments are extracted under duress by someone in
    authority from a person seeking only what they
    are lawfully entitled

20
Bribery Variations on a Theme
  • Involves a relatively small sum of cash, a gift,
    or a service given to a low-ranking official in a
    country where such offerings are not prohibited
    by law
  • Involves giving large sums of moneyfrequently
    not properly accounted fordesigned to entice an
    official to commit an illegal act on behalf of
    the one offering the bribe involves breaking the
    law

21
Ethical and Socially Responsible Decisions
  • Areas of decision making where ethical issues
    arise
  • employment practices and policies,
  • consumer protection,
  • environmental protection,
  • political payments and involvement in political
    affairs of the country, and
  • basic human rights and fundamental freedoms

22
Cultures Influence on Strategic Thinking
  • Culture influences managers thinking about
    business strategy
  • The British-American individualistic view of
    capitalism typifies adversarial relationships
    among labor, management, and government
  • The communitarian form of capitalism in Japan
    and Germany are typified by cooperation among
    government, management, and labor, particularly
    in Japan
  • The Chinese emphasis on guanxi (ones network of
    personal connections) is a kind of capitalism
    manifested by culture

23
Information vs Relationship Orientation
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