CULTURE’S

CONSEQUENCES
FOR
MANAGING ORGANIZATIONS

© Maris G. Martinsons
 Traditional Aim of Multinationals
Duplicate domestic success = STANDARDIZE
 Chez Mickey Mouse:
Disney Goes to France
Mickey Mouse and his friends are known
throughout the world. Disney theme parks have been very successful in
the United States. It should be easy to export this winning business
concept to Europe, and France in particular. Right? Wrong!

 Americans commonly visit theme parks. The French do not.

 Disney visitors line up for popular attractions. The French hate waiting.

● Disney encourages park visitors to eat fast food & snacks. The French
insist on eating lunch between noon and 1 pm and they rarely snack.
● Disney bans alcohol from its parks. The French enjoy wine with meals.
● Disney employees (dressed as cartoon characters) greet visitors with
friendly smiles & words. The French are not comfortable with friendly
greetings from strangers.
 Disney employee badges in the U.S. feature the first/given name. The

French are uncomfortable with such informality.

 Disney has rules for employee appearance and behaviour (e.g. no long

or dyed hair, no chewing gum). French workers do not like to obey rules.
Emerging Aims of Multinationals
ADAPT to Regional
Differences / Local Conditions
 “in hot water over shark’s fin soup”
– New York Times 20 June 2005

Disney is being drawn into an unusual showdown between

environmental sensitivities and Chinese tradition.
Hong Kong Disneyland, a theme park scheduled to
open on September 12th, announced that it will serve
shark's fin soup, a Chinese favorite for two centuries.
Plans to serve the culinary delicacy at wedding
banquets have outraged environmentalists. They
say that so many sharks wind up in soup that
not enough are left to swim in the world's oceans.
Leery of looking like the Ugly American in China, the
Walt Disney Co. showed its appreciation for Chinese
traditions, and that has sparked environmental protests.
 Main ballroom is 888 m2.

Lucky / Unlucky Numbers

vs.

8 pm on 08 / 08 / 08 Friday the ?
Cantonese → Chinese Christian → Western

2,238 crystal lotuses decorate the Chinese restaurant

because # sounds like “easily generate wealth”.
Corporate Logos
 Culture
HUMAN NATURE
universal
to laugh to cry to talk

CULTURE
group level construct
When is it appropriate to talk?
Where is it appropriate to talk?
What is it appropriate to talk about?
collective programming of the mind – Geert Hofstede

PERSONALITY
individual
each of us talks at different times, in different places,
and about different things
 Internationalization of Business
 Business interactions with foreigners (people
from different nationalities) are growing.

 People from different cultural backgrounds

must increasingly work together, on special
projects or enduring teams.

 Performance of international businesses and

intercultural teams is often disappointing.

 Cultural differences are a leading cause of

poor performance in international business.
 Cultural Integration @ Lenovo

Press Release Source: Lenovo

Lenovo Names Yolanda Conyers as Vice President,

Cultural Integration and Diversity

Monday February 19, 2007 10:46 am ET

 RESEARCH TRIANGLE PARK, N.C.-- (BUSINESS WIRE) --

Lenovo announces the appointment of Yolanda Conyers,
as Vice President, Cultural Integration and Diversity. She
reports to Ken DiPietro, Senior Vice President, Human
Resources, and will oversee the global integration of the
company's workforce. DiPietro said "Our goal is to
leverage the strengths of our employees worldwide, and
Yolanda's expertise in cultural integration will help us to
become even more competitive."
 Adapting to Hong Kong
• Hong Kong theme park is very “economical”. Much smaller in
area & having fewer attractions than any other Disneyland.
• Fantasy Garden – theatrical scenery instead of some rides
because market research showed that Asians spend more time
taking photos & less time going on rides than Americans.
• 8 restaurants serve primarily Chinese food. Guests will search
in vain for hot dogs & cotton candy.
• Liberal use of red (Chinese lucky colour)
• Balance of Chinese astrology elements throughout the park.
• Tri-lingual (Cantonese, Putongua, English) & bi-literal
• Auspicious dates chosen for
■ ground-breaking ceremony
■ topping-off of Sleeping Beauty’s Castle
■ opening day of the theme park

see scholarly articles by T.Kostova & M.Y.Brennan for more details

 Adapting to the Chinese Market
Oreo = #1 cookie/biscuit
in China largely because
the brand was “reinvented”
since 1912
Less sweet, shaped like wafers
or straws, with green tea & fruit
flavour fillings (not only vanilla),
…
Even the cake in Shanghai to celebrate Oreo cookie’s
100th birthday was “engineered” for Chinese tastes
Other changes for China:
Buick, from mass market car to premium brand (backseat legroom)
KFC introduced congee, chicken rolls (like Peking duck), spicy diced
chicken (Sichuan), fried dough sticks, soymilk shakes, egg tarts, …
McDonalds & Haagen-Dazs: beyond a “take away & consume at home”
model to become popular, middle-class dine-in venues
Coca-Cola developed a Minute Maid “Pulpy” orange juice drink
Why Starbucks Succeeded in China:
A Lesson for All Retailers
MICHAEL ZAKKOUR AUGUST 24, 2017

Status
Family
Inside Circle (Community)
 PHOEBE HURST  NOV 4 2014
Over the course of 8 years, Starbucks opened 84 outlets across Australia, only to shutter 
60 of them due to a lack of customer interest.
Starbucks should’ve known that a coffee culture based on espresso was alive and well in 
Australia long before it arrived. Instead of building on that culture, it tried to arrogantly 
get Australians to adopt American norms.  
In the UK and China, Starbucks was partly responsible for introducing coffee culture in 
countries where a nice cup of tea was the hot beverage of choice.
But in Australia, independent coffee shops were already part of the fabric due to large 
scale immigration from Italy and Greece. Starbucks failed to realise that people were 
loyal to their local coffee shops. They know their barista, feel comfortable, and weren’t 
going to leave all that to go to a global brand.
More than that, Starbucks charged a premium price. Even today, a Starbucks tall latte in 
Sydney costs $4.40 while a large flat white at funky holes in the wall nearby goes for 
$3.50.
The menu, heavy on US‐style creamy sweet drinks and black coffee, only had a handful 
of milk‐based coffees so beloved by Australians.
 Why Business Can NOT be
Globalized (Standardized) ?
Ideal = Maximum Efficiency Reality = Cultural Adaptation
 The Multinational Dilemma

Think Global, Act Local

Foreign
HQ Country

What does that REALLY mean?

STANDARDIZE v CUSTOMIZE
 Business Success in
a Multicultural World

To succeed amidst
cultural diversity,
be willing to learn,
be culturally sensitive
and
be willing to adapt
Source: U.S. President’s Council on Cultural Diversity
CULTURE’S CONSEQUENCES
…

END OF PART 1
© Maris G. Martinsons