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What is CULTURE? What impact does it have on business? “the collective programming of the mind which distinguishes the members of one human group over another… Culture, in this sense, includes systems of values; and values are among the building blocks of culture” Know local culture to sell or market the product Build relationships while setting up business (with employees as well as customers).Employ locals to gain cultural knowledge. Help employees understand you Non-Verbal Gestures Italy – What exactly do you mean? Greece – That’s just perfect Egypt – Be patient Salient features of Indian Society Rich culture Religiously diverse Social Hierarchy Joint Family – Nuclear family Neo urban culture Cricket and bollywood Dimensions of Cultural Diversity in India •Language •Rural vs. Urban India •Rich vs. Poor •Geographical diversity •Liberal vs. Conservative Class and Caste structure of Indian Society 4 Varnas = Jati In India, a caste system organizes division of labour and money in human society. It is a system of social stratification and basis of affirmative action Secularism in Indian Society No State Religion-Separation of State and Religion, Peaceful co-existence of all religions, Treatment of all religions equally by the State, Equality of opportunity in the public field for all irrespective of caste or creed or race or religion ensuring equal citizenship, Freedom of religion both individual and corporate Rural and Urban Differences Joint Family System India has had a prevailing tradition of the joint family system. It is a system under which extended members of a family – parents, children, the children’s spouses and their offspring, etc. – live together. Usually, the oldest male member is the head in the joint Indian family system. He makes all important decisions and rules, and other family members abide by them. Over the last 60 years, the cultural trend in most parts of India has been an accelerated change from joint family to nuclear families, much like population trends in other parts of the world. Youth in lower socio-economic classes are more inclined to spend time with their families than their peers due to differing ideologies in rural and urban parenting. Business Participation in Social and Cultural affairs Support to cultural activities Empowering artists and musicians Organizing exhibitions of contemporary paintings Sponsoring cultural programs through TV Sangeet sammelan by ITC Beauty in building design Earlier infrastructure was based on utilitarian concept Factories now constructed keeping in mind aesthetic values – industrial parks,gardens etc This provides better quality of life to community Better Place for their children Encourages each employee’s own cultural growth Improvement of entire social system Size and growth rate of population High population growth rate implies increase in labour supply. The falling birth rate and rising longevity will alter the age distribution in the population. The changes in the age distribution have a lot of implications for the business. The pharmaceutical companies may pay attention to the requirements of the aged population. Increasing proportion of the aged would have implications for the government. It may increase the welfare burden of the governments. Age structure of Population 7-25 years - Study and focus on education (extreme poverty can drive some to unfortunate child labor) 25-50 - Get married, raise a family and enjoy all that the world has to offer 50-75 - Retire and focus on spiritual pursuits and pilgrimages (People take pilgrimages to Varanasi, Mecca (Haj), Himalayas, Amritsar, focus on Meditation, Yoga) 75- end - Help take care of grandchildren and share your experiences with youngsters. Demographic dividend and its impact on business and growth Demography studies how populations changes overtime, in terms of size and structure. The demographic variables that affect business are overall: - Size of the population - Age and sex of the population - Ethnicity and geographical distribution - Birth rate - Death rate - Net migration Business and Culture : Religion, India is the birthplace of Hinduism, Buddhism, Jainism and Sikhism, collectively known as Indian religions.[4] India is one of the most religiously diverse nations in the world, with some of the most deeply religious societies and cultures. Religion still plays a central and definitive role in the life of many of its people. Religious beliefs , customs , sentiments etc have important implications for business Religions play important role in deciding holiday and starting important work ventures Influence attitude towards work and wealth Riba in Koran Astrological dates , festive and marriage season raises demand Automobile spare part business dominated by Sikhs, money lending by Chettiars in Tamil Nadu, Punjabi Restaurants – Punjabi By Nature, Spanish Restaurant – Imperfecto, Chinese Restaurant – Yo china ; Mainland China Business and Culture : language Switzerland – 3 Languages – French , Italian , German India – 18 Recognized Languages Ford- Truck Name – Fiera(Ugly old woman in Spanish) Chevrolet Nova (Spanish Meaning – it doesn’t go) Pat on shoulder offensive in Thailand Business and Culture - OB Centralized vs Decentralized decision making Safety vs Risk Individual vs Group reward Informal vs Formal Procedure High vs low Orgaizational Loyalty Cooperation vs Competition Short term vs Long term Horizon Stability vs Innovation OB Differences Other Socio Cultural Factors Consumer Preferences Habits and Beliefs Western: “The early bird gets the worm” Eastern:“The first bird in the flock gets shot” Nescafe – ¾ share in Mumbai Mkt , insignificant in Chennai Bicycles – Developing countries – Basic means of transportation Developed countries – Means to stay fit and healthy Food habits, Juices, Coca Cola Etiquettes Color – White Rise in % of women workforce – double income, single parent Technological development and Social Change Development of new techniques, new inventions reflect changing knowledge , beliefs and norms and new standards of living Women – Differentiated tasks, differentiated earnings, new home appliances Transport, communication made suburbanization possible Films , TV Radio have become very helpful in transmission and diffusion of information, Reduction of social distance More industrialized and materialistic society - severe blow to casteism AC , dams – change in natural environment Also have adverse effects like pollution ; global warming etc The Indian Touch Fordcars specially designed for Indian roads. •Electrolux'smade‐for‐India fridge–chill drinking water, keeps food fresh & withstands long power cuts. •Samsung–microwave oven with grill. •Nokialaunched a handset “Made for India”Nokia 1100. •McDonald’s McAlooTikkiBurger & Pizza McPuff. •Cartoon Networkintroduced South Indian folk tale “TenaliRam”. •Walt Disneycartoon TV shows are in Hindi.