Topic 2

and 4. 2. Analyse the competitive advantages created by some of the cultural spheres. Explain the cultural spheres of influence which exist in cross culture management.Learning objectives 1. 3. Link each cultural sphere with the current business scenario. . Evaluate the various cultural spheres of influence and the complex interaction in implementing an efficient cultural management.

However. . company or function from one another. it is difficult to identify which of the many spheres of culture is more dominant regardless of whether there is a boundary which separates a country.Introduction   The influence of culture in business can be explored in several cultural spheres.

Industry culture Regional culture Cultural spheres of influence Professional culture Corporate culture Functional culture .CULTURAL SPHERES OF INFLUENCE  Schneider and Barsoux (2003).

.  (a) (b) Cultural influences according to area can be divided into two categories: Within National Borders Beyond National Borders ..CULTURAL SPHERES OF INFLUENCE cont.

Vietnam. Peru. China. Chile and Colombia France. Ireland. Philippines. Belgium. Canada. Indonesia and Brunei Argentina. Thailand. Norway. Britain. New Zealand. Switzerland and Austria Finland. Spain and Portugal United States. Singapore. Venezuela. Mexico. Australia and South Africa Brazil. Denmark and Sweden Turkey. Japan.Categorisation of Countries Source: Ronan & Shenkar (1985) Category Germanic Nordic Near East Countries Germany. Taiwan. Italy. India and Israel Source: Ronan & Shenkar (1985) . Iran and Greece Arab Far East Latin America Latin Europe Anglo Independents Bahrain. Oman and Kuwait Malaysia. United Arab Emirates.

symbols and behaviours that are unique to a particular community History language politics Geography economy religion . lifestyles.Regional Culture  Regional culture refers to the spatially defined communities that share values. opinions. attitudes.

(d) State intervention. (b) Nature of products or services.  . (c) Rate of technology change. and (e) Market characteristics.Industry Culture Different industries will have different cultures and it is due to different task environments such as: (a) Nature of decision-making.

structure and business process developed by management of organisations in the industry.  According to Gordon (2001). competitive environment and societal expectations. (b) Strategies. .. and right things to do‰ in the industry.. and (c) The outcomes of demand for performance and survival in the industry. the industry culture evolves from various sources such as: (a) The industry environment and characteristics such as customer requirements.Industry Culture cont.

It is a complex ensemble of values.Professional Culture   Professional culture is related to the principles of workers. rules and practices. symbols. (b) Supervision. emerging as people react to the requirements and situations they confront as members of a different professional group. attitudes. and (c) Socialisation. How do professionals acquire judgement? Professionals acquire judgement through these three methods: (a) Intensive training. .

marketing and research and development have different cultures. . production.Functional Culture  The various divisions of a firm such as finance.

It is influenced by the industry. Corporate culture derives from the influence of the following elements: Founding Figures and Turnaround Leaders Unique Company History and Stage of Development . rituals and myths all companies develop over time.Corporate Culture   (a) (b) Corporate culture is a blend of the values. business and product of a given company. taboos. symbols. beliefs.

Corporate Culture cont… (b) Unique Company History and Stage of Development .

is professional culture more influential than national culture? Give your reasons .Discussion Question  In your opinion.