Transcript Cultural Dynamics in Assessing Global Markets

Cultural Dynamics in Assessing
Global Markets
Chapter 4
Culture
• “The human-made part of human
environment- the sum total of knowledge,
belief, art, morals, laws, customs, and any
other capabilities and habits acquired by
humans as members of society.”
Cultural Impact
• Birth rates
– China
• Consumption levels of products
– European & Japanese consumption
Cultural Origins
• Geography
– The “direction” of innovation
• History
• Political economy
– WWII
– Cold War
– War on Terror
• Technology
Cultural Origins
• Social Institutions
– Family
– Religion
– School
– Media
– Government
– Corporations
Elements of Culture
• Cultural Values
– Individualism/Collectivism Index
– Power Distance Index
– Uncertainty Avoidance Index
– Masculinity/Femininity Index
Elements of Culture
• Rituals
• Symbols
– Language
• Linguistic distances
– Aesthetics
• Arts, music, dance, folklore
• Beliefs
• Thought processes
Cultural Knowledge
• Factual knowledge
– Can be learned
• Interpretive knowledge
– “Ability to understand cultural traits and
patterns”
• Cultural sensitivity
Cultural Change
• Cultural Borrowing
• Just because things look the same does
not mean that they are!
• Resistance
Planned v. Unplanned Change
• Do any current factors conflict with
innovation?
• Should we change those factors?
– Cultural congruence
– Planned change
– Unplanned change
• Consequences