You are on page 1of 7




Name Roll No. Learning Center Code Course/Programme SEMESTER Subject code Date of submission Marks awarded : P L SUBHASHINI : 511033149 : 02851 : BBA :6 : BB0027 : _____________________

_____________ Signature of Center Head

_____________ Signature of Evaluator


pg. 1

Bob might just be one of the guys. age. Smith by students when at his U. however. public space. When golfing.D. generally would be called Dr. even to a golf partner who happens to be a graduate student in his department. China and Spain are diffuse cultures. University. because entry into public space affords entry into private space as well. a person’s public and private life often are similar. public space. people are not quickly invited into a person’s open.P L SUBHASHINI BBA 511033149 BB0027 – CROSS CULTRUAL ASPECTS OF BUSINESS Assignment Set.S. Bob has private space that is off-limits to the students who must call him Doctor in class. At the same time. Write a note on specific Vs diffused Culture Answer: Specific Vs Diffused Culture A specific culture is one in which individuals have a large public space they readily let other enter and share and a small private space they guard closely and share with only close friends and associates.S. A great deal of formality is maintained. Ph. because once they are in. 2 . A U. the United States. with the specific U. such as Robert Smith. and Switzerland all are specific cultures. In high diffuse cultures. and they should not get impatient when people are being indirect or circuitous. Conversely. and background connections. people have large public spaces and often conduct themselves differently depending on their public role. the United Kingdom. cultural values. they should respect a person’s title. and bowling alley and even his wife might address him formally in public. Trompenaars recommends that when those from specific cultures do business in diffuse cultures. A diffuse culture is one in which both public and private space are similar in size and individuals guard their public space carefully. Individuals in these cultures often appear to be indirect and introverted and work and private life often are closely linked. Professor. however. Austria.S. local market. there is easy entry into the private space as well. Therefore. An example of these specific and diffuse cultural dimensions is provided by the nited States and Germany. In specific cultures. When shopping. learn to structure meetings with the judicious use of agendas and not use their titles or acknowledge achievements or skills. Herr Professor Doktor Schmidt would be referred to this way at the university.2 (60 Marks) 1. when individuals from diffuse cultures do business in specific cultures. The reason for these changes in status is that. in Germany. BB0022 – CAPITAL AND MONEY MARKET pg. people often are invited into a person’s open. they should try to get to the point and be efficient. In diffuse cultures. on the other hand. individuals in these cultures often are open and extroverted and there is a strong separation of work and private life. he might be referred to by the store clerk as Bob and he might even ask the clerk’s advice regarding some of his intended purchases.. while Venezuela. often giving the impression that Germans are stuffy or aloof.

When changes need to be made. Manuals must be rewritten. Eiffel Tower cultures most commonly are found in Northwest European countries. employees know what they are supposed to do and everything is co-coordinated from the top. Explain Eiffel Tower Culture. criticisms and complaints are handled through channels.P L SUBHASHINI 2. potash may be said to be the strategic (or limiting) factor. Carefully designed rules and policies are relied on and things are done “by the book. however. if the boss of an Eiffel Tower subsidiary were playing golf with a subordinate. thus the term “Eiffel Tower. The way that people in this culture lear and change differs sharply from that in the family culture. Therefore.” which is constructed in this manner. Discuss business strategy and implications of culture on business strategy. The guided missile culture is characterized by a strong emphasis on equality in the workplace and orientation to the task. The Eiffel Tower culture is characterized by a strong emphasis on hierarchy and orientation to the task. jobs are well defined. Answer: Business Strategy “Strategy” is a term that can be traced back to the Ancient Greeks who used to mean the Chief Magistrate or a Military Commander-in-Chief. The incubator culture is characterized by a strong emphasis on equality and orientation to the person. If we wish to increase the yield of grain in certain field and on analysis it appears that the soil lacks potash. BB0022 – CAPITAL AND MONEY MARKET pg. the subordinate would not feel any pressure to let the boss win. methodic approach is used in motivating and rewarding people and in resolving conflict. relationships are specific and status remains with the job. The person holding the top position in the Eiffel Tower culture could be replaced at any time and this would have no effect on the work that organization members are doing or on the organization’s reasons for existence. narrow at the top and broad at the base. this culture is steep. In fact. Examples include Denmark. In addition. promotions reconsidered and qualifications reassessed. 3 . these managers seldom create off-the-job relationships with their people. job descriptions altered. Answer: BBA 511033149 The family culture is characterized by a strong emphasis on hierarchic authority and orientation to the person. because they believe this could affect their rational judgement. procedures changed. In this culture.” Conflicts are viewed as irrational and offences against efficiency. Under this organizational cultural. This same. Germany and the Netherlands. As a result. this culture operates very much like a formal hierarchy – impersonal and efficient. the Eiffel Tower culture often is ill equipped to handle things. 3. Eiffel Tower Culture: Eiffel Tower Culture is characterized by a strong emphasis on the hierarchy and orientation to the task.

Japanese culture promotes a high safety or security need. However. The U. most do not view themselves as international managers. BB0022 – CAPITAL AND MONEY MARKET pg. major differences appear in leadership approaches used by the Japanese and those in other locales. Thus people who make decisions and the way they think.S. Japanese and U. Managers who hail from uncertainty avoidance countries are more willing to take risk than their counterparts (i.e. The manager also has to keep in mind the legal compliance. one study examined the cultural orientations of 522 employees of 28 Japanese-owned firms in the United States and found that the native Japanese employees were more likely to value paternalistic company behaviour than their U. the Japanese are known to be more patient in sacrificing short-term results in order to build for the future with investment. research and development and market share. There are also power distance countries such as Arab countries and Japan in which managers observe interpersonal inequality and hierarchy. counterparts. People in countries such as China and Japan generally have longer time horizon than those in Canada and in U.. they still believe in the Japanese way of doing things and are reluctant to abandon it. leadership approach is almost the opposite.A. Americans will emphasise short Towards term profits.P L SUBHASHINI BBA 511033149 Business Strategy can be defined as the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carryin out those goals.S. As a result.S. Managers from Latin American and African countries prefer to do business through non-equity entry mode in order to minimise exposure to risk. feel and act are based on their ingrained societal culture. They bring this context to work and it influences their propensity toward or against certain type of decisions. Another study found that Koreans also value such paternalism. whereas. For example. The Japanese think of themselves as Japanese managers who are operating overseas. Japanese leadership approach is heavily group oriented. 4 . Explain Japanese leadership approaches. creating positive culture for employees and creating economic value. counterparts. high uncertainty avoidance countries). Answer: Japan is well known for its paternalistic approach to leadership.S. 4. even if they do adapt their leadership approach on the surface to that of the country in which they are operating. Implications of Culture on Business Strategy While formulating various business strategies international manager is always influenced by cultural factors which may have long term and short-term perspective.S. Japanese tend to be more ethnocentric than their U. managers have a basically different philosophy of managing people.. paternalistic and concerned with the employee’s work and personal life. which is present among home country-based employees as well as MNC expatriates.

Many Arabs live in unstable environments where things change constantly. (2) One should not take credit for joint efforts. because they have no control over time in the first place. BB0022 – CAPITAL AND MONEY MARKET pg. Mr. What suggestions Mr Zeeshan shall give the client? Answer: Doing Business in (UAE) Arab Countries : The intense media attention given to continuing conflicts in the Middle East have pointed out that Arab cultures are distinctly different from Anglo cultures. it is common to use the cliché “time is money. Zeeshan is a consultant. should now be arranged. Americans often find it extremely hard to do business in Arab countries and a number of Arab cultural characteristics can be cited for this difficulty. not by correspondence or telephone. Well-connected business people can get things done much faster than their counterparts who do not know the ins and outs of the system. Business meetings typically conclude with an offer of coffee or tea. A higher power dictates the outcome of important events. on the other hand. live in a much more predictable environment and develop trusting relationships with others. a favourite expression is Bukra insha Allah. so individual action is of little consequence. In the United States. One of his client wants to do business in UAE. if Arabs commit themselves to a date in the future and fail to show up. in contrast to Westerners. Another Arab cultural belief that generally holds is that destiny depends more on the will of a supreme being than on the behaviour of individuals. Arabs believe that Allah controls time.P L SUBHASHINI BBA 511033149 5. who believe that they control their own time. if there are to be any. This is why an MNC’s personal presence often is a prerequisite for success in the Arab World. which means “tomorrow if God wills. It often is difficult to sidestep a lot of this red tape and efforts to do so can be regarded as disrespect for legal and governmental institutions.” An expression that explains the Arabs’ fatalistic approach to time. Americans. (3) Much of what gets done is a result of going through administrative channels in the country. Arabs often act based on emotion. Other useful guidelines for doing business in Arab cultures include : (1) It is important never to display feelings of superiority. As a result. 5 . because this makes the other party feel inferior.” In Arab countries. (6) Important decisions usually are made in person. those in an Anglo culture are taught to act on logic. Another important cultural contrast between Arabs and Americans is that of emotion and logic. there is no guilt or concern on their part. A great deal of what is accomplished is a result of group work and to indicate that one accomplished something alone is a mistake. (4) Connections are extremely important in conducting business. in contrast. This is a sign that the meeting is over and that future meetings. so they do not develop trusting relationships with others. (5) Patience is critical to the success of business transactions.

com / and have a look at the cultural dimensions of india. Write a short note based on the observations. Work is the center of one’s life and visible symbols of success in the work place is very important. the actions of the individual are influenced by various concepts such as the opinion of one’s family. 6 . even a psychological security. acceptance of un-equal rights between the power-privileged and those who are lesser down in the pecking order. leaves him or her rudderless and with a sense of intense emptyness. India scores 56 on this dimension and is thus considered a masculine society. to be rejected by one’s peers or to be thought lowly of by one’s extended and immediate in-groups. In more Masculine countries the focus is on success and achievements. This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to. one could use the following words and phrases : dependent on the boss or the power holder for direction. the flash and bling that goes with advertising one’s success. neighbors. India scores high on this dimension. gives reason / meaning to ones work life and rewards in exchange for loyalty from employees. 77. Visit the site http://www. http://www. However. In such situations. If one were to encapsulate the Indian attitude. India is also a spiritual country with millions of deities and various religious philosophies. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of one’s defined in-group(s). we can get a good overview of the deep drivers of Indian culture relative to other world cultures. immediate superiors accessible but one layer above less so. India. The designer brand lable. validated by material gains . Employees expect to be directed clearly as to their functions and what is expected of them. For a collectivist. extended family. BB0022 – CAPITAL AND MONEY MARKET pg. with a score of 48 is a society with clear collectivistic traits. paternalistic leader. India is actually very masculine in terms of visual display of success and power.geert-hofstede. Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and L SUBHASHINI BBA 511033149 6. Answer: If we explore the Indian culture through the lens of the 5-D Model.geert-hofstede.shtml. The employer/employee relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer. indicating an appreciation for hierarchy and a Top – Down Structure in society and Organizations. Control is familiar. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society. is widely practiced. Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder. and attitude towards managers are formal even if one is on first name basis. work group and other such wider social networks that one has some affiliation toward. management directs. Even though it is mildly above the mid range in score.

and thus not as important as to western societies which typically score low on this dimension.P L SUBHASHINI BBA 511033149 India scores 40 on this dimension and thus has a medium low preference for avoiding uncertainty. from turning a blind eye to rules being flouted to finding a unique and inventive solution to a seemingly insurmountable problem. Societies that have a high score on Long Term Orientation. In India the concept of “karma” dominates religious and philosophical thought. making it a long term. 7 . In India there is acceptance of imperfection. India is traditionally a patient country where tolerance for the unexpected is high . The Indians score 61. typically forgive lack of punctuality. People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning. In India there is an acceptance that there are many truths and often depends on the seeker. Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”. an amalgamation of ideas. BB0022 – CAPITAL AND MONEY MARKET pg. Countries like India have a great tolerance for religious views from all over the world – Hinduism is often considered a philosophy more than even a religion. a changing game-plan based on changing reality and a general comfort with discovering the fated path as one goes along rather than playing to an exact plan. A word used often is “adjust” and means a wide range of things. views. even welcomed as a break from monotony. Time is not linear. pragmatic culture. so long as one knows how to “adjust”. practices and esoteric beliefs. nothing has to be perfect nor has to go exactly as planned. There is a saying that “nothing is impossible” in India. It is this attitude that is both the cause of misery as well as the most empowering aspect of the country.