Transcript Business Customs in Global Marketing

Culture, Management Style,
and Business Systems
Chapter 5
Adaptation to customs
Global Perspective
“Do Blonds Have More Fun in Japan” pg. 123
Adaptation
The willingness to adapt to other customs is
essential in international marketing
Degree of Adaptation:
• This does not mean that businesses discard their
methods of conducting business, rather that executives
need to be aware of differences and willing to adapt to
the differing customs
Types of Customs
3 Types of Customs
1. Cultural Imperatives
• Business customs and expectations that MUST be met in
order to conduct successful business transactions in
other countries/cultures
2. Cultural Electives
• Business customs and expectations that are OPTIONAL,
in which business executives may participate/conform in,
but is not required.
• May help to establish rapport and respect when
participation occurs
• Majority of customs fall into this category
Types of Customs
3. Cultural Exclusives
• Customs that are reserved exclusively for the
locals, where foreign participation is EXCLUDED
– Example: Foreign business people criticizing local
politicians, business practices where it is acceptable
for the local to do so
The Impact of American Culture
on Management Style
Most widely accepted views regarding U.S.
culture:
“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
Management Styles around the
World
Types of Decision Making Approaches
1. The authoritative approach
• Top level management decision making is usually found
in smaller businesses where centralized decision-making
is possible
2. The delegated approach
• Decentralized decision making is usually found in large
size businesses with highly developed management
systems (U.S.)
• Allows executives at different levels to exercise authority
over their own functions
3. The committee approach
• Decisions are made by consensus or in a group (Japan)
Management Objectives &
Aspirations
Understanding how managers’
objectives and aspirations affect their
business outlook is critical
4 Important areas to understand:
1. Security and mobility
• Importance of security and definition differ in
many countries (can mean good wages and
training; maybe lifetime employment…)
Management Objectives and
Aspirations
2. Personal life
• Personal life takes precedent over other
motivators (wages, status)
3. Affiliation and Social acceptance
• Accepted by peers
– Important element of the group decision making
process
4. Power & Achievement
Communication Styles
Edward T. Hall ideas on Communication
Styles:
Crossing Borders 5.2 pg. 133 – “A Classic –
Edward T. Hall’s Language (Symbolism) of Space”
Exhibit 5.2 pg. 135 “Contextual Background of
Various Countries”
• Face-to-face communications
– Low Context: depends heavily on verbal communication
(Swiss, Germany, U.S.)
– High Context: depends heavily on nonverbal
communications
– See Crossing Borders 5.3 pg. 136 “When Yes Means
No…”
Importance of Communication when
adapting to business customs
Communication
Translation and interpretation
• (See Crossing Borders 5.4 pg. 137 “You Say You Speak
English”)
Formality and tempo
P-time vs. M-time
• M-time (monochronic) – concentrate on one thing at a
time
• P-time (polychronic) – completion of a transaction is
more important than sticking to a schedule
Gender Bias in International
Business
Is there a gender bias against women
managers when operating in International
arenas?
Most evidence indicates that when women are
trained and backed by their corporation, resistance
from other cultures is either minimized or negated
completely
Comparative statistics of women in managerial
positions worldwide (approximations):
•
•
•
•
U.S. – 43%
Britain – 33%
Switzerland – 28%
Germany – 9.2%
Business Ethics
Bribery & Extortion
Bribery
• Voluntary payment offered by individual(s) seeking an
unlawful advantage
– SEC regulates U.S. Companies domestically and
internationally
– “Transparency International” – organization dedicated to
curbing corruptions worldwide
– See Exhibits 5.4 and 5.5 pg. 145
Extortion
• Payments are extracted under duress by someone in an
authoritative position (host country)
– See Crossing Borders 5.6 pg. 146 “Bangladesh at the
bottom…”
Business Ethics
Subordination & Lubrication
Subordination
• Involves giving large sums of money
Lubrication
• Involves giving small amounts of money, or gifts…
Foreign Corrupt Practices Act (FCPA)
• Important act that prohibits U.S. businesses from paying
bribes openly or using middlemen or agents to bribe on
behalf of the U.S. business
Relationship-Oriented vs.
Information-Oriented Cultures
Relationship Orientation
Japan and other Asian countries
Information Orientation
U.S., Great Britain
See Exhibit 5.6 pg. 151 “Dimensions of
Culture, A Synthesis”
Business Customs on the Internet
Points to be aware of:
A message on a company’s website is viewed as
an “extension” of that company
Majority of websites are seen worldwide and
translation can often convey incorrect meaning or
offend other cultures
• Approximately 78% of website is written in English
Companies must pay attention to symbols, icons
or any non-verbal messages on their websites