Transcript The Global Context - International University College, Sofia

The Global Context
LECTURE 5
Culture in a Global Context 2
Lecture Objectives
• Appreciate the importance of International
Orientation
• Gain an understanding of the dimensions
of Culture
International Orientation
The ‘mind set’ of a firm’s managers will
determine the extent to which they
Internationalize.
Perlmutter (1969)
International Orientation
• EPRG Framework
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Ethnocentrism
Polycentrism
Regiocentrism
Geocentrism
International Orientation
• ETHNOCENTRISIM
(home-country orientation)
– the foreign market is seen as a place to
dispose of excess output
– the foreign environment and its opportunities
are seen as no different from those of the
domestic market
International Orientation
• POLYCENTRISIM
(host-country orientation)
– every market where it operates is treated as if it
were unique
– the product is modified to suit the local market
– every market will have its own marketing
strategy
International Orientation
• REGIOCENTRISIM
(regional orientation)
– management views regions as unique and seeks to
develop an integrated regional strategy
– sees similarities and differences in a world of regions
– is ethnocentric or polycentric in its view of the rest
of the world
International Orientation
• GEOCENTRISIM
(world orientation)
– the firm will attempt to develop uniform global
strategies
– the firm identifies homogeneous international
demand segments that can be targeted with a
standard product
Hofstede’s 5 Dimensions Model
• Power Distance (PDI)
The extent to which the less powerful
members of society accept that power is
distributed unequally
Hofstede’s 5 Dimensions Model
• Individualism (IDV)
Individualism : people look after themselves
and their immediate family only.
Collectivism : people belong to in-groups
(families, clans, organizations) who look
after them in exchange for loyalty.
Hofstede’s 5 Dimensions Model
• Uncertainty Avoidance (UAI)
The extent to which people feel
threatened by uncertainty and
ambiguity and try to avoid these
situations.
Hofstede’s 5 Dimensions Model
• Masculinity (MAS)
Masculinity : the dominant values in society
are achievement and success.
Femininity : the dominant values in society
are caring for others and quality of life.
Hofstede’s 5 Dimensions Model
• Confucian Dynamism (CDI)
The extent to which a society exhibits a
pragmatic future-orientated perspective
rather than a conventional historic or
short-term point of view.
Country Comparisons
Cultural Diversity
• Why People/Organizations Fail
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Ethnocentric Orientation
Ignorance
Arrogance
Time Factor
Cultural Diversity
• Success Factors
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Geocentric Orientation
Respect
Learning
Language
Personal Attitude : Humility & Pride
Personal Qualities : Adaptability & Flexibility
Cultural Diversity
• How to be Successful
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Study and Preparation
Awareness of Cultural Differences
Commitment to Learn
Do the Work