Cross Culture &

Digital Business
• Bachelors Program on Digital Business
• Foreign Trade University
• October 2023
• 5th Class
How can we make the use of Lewis Model
in business?

Project: How do you design the following, knowing the

three cultures and their pros and cons?
• Scheduling
• Project planning
• Time keeping
• Tasks and actions
• Facts, etc.
Please discuss among your team for 7 minutes
and present your group’s agreement:
You are the team leader and have an American, a German, a
Japanese and an Italian team members.

1. How do you schedule meetings and make sure that all the
members are on board?
2. How will you make sure that all the team members’
opinions are heard and discussed?
3. How do you agree on a strategy for the business?
Recap from the last class
◆“Culture Clash in the Board Room” Case Study Discussion
◆Homework very interesting – some suggest agreeing to bribery.
◆Team 2 mentions of a lack to trust – what should be done?
◆Team 3 mentions of adopting a little to the ethical issue – what does this mean?
→ However, please do NOT submit lengthy word documents. I will not be able to read them
all. All homework should be submitted as power point presentation (converted into PDF).
Succinct summary.

◆ Do you think the same thing will happen if a German company insists on
following their rules/regulations in Vietnam?
From Last Week’s Discussion
Issues to think about
Long term vs. short term
• Do the short-term gains lead to the expansion of business in the long-term?
Domestic Customers vs. Foreign Customers
• With the current globalization, is there a difference between domestic and foreign?

Reputation in China and outside China

• What if the existing Chinese customers find out that Chongqing factory gave some gifts
to one client, and start demanding the same for them? When do you stop?
• What if the European clients find out what Almond China does in China?
→ What is the reputation of Formosa in Vietnam now?
What actions were missing in the case
study?

Persuade the Chinese side with emotion and persuade the German side with reason
to ensure the benefits for both sides

Missing actions – not enough discussions among the participants.

• Did Shulman spend enough time to discuss the matter with Chen and others?
• Did Peijing spend time to discuss the matter with Shulman or Chen? Privately
or in front of others?
• Did the Finance Director, George Ho, discuss the financial implications with
Shulman and Peijing?
What is Bribe?

• Bribes occur in many forms, ranging from minor transactions

between individuals to major deals between corporations
and/or governments. Bribes can also be masked as tips, gifts,
favors, donations, et al. There is no universal definition or
classification system for bribery as some nations approve of
and legalize certain transactions that are illegal elsewhere.
Leadership Styles : from R. Lewis
Managers in Linear-active cultures will:
• Demonstrate and look for technical competence
• Place facts before sentiments, logic before emotion
• Be deal oriented, with a view to immediate achievement and results

Managers in Multi-active cultures will:

• Rely on their eloquence and ability to persuade
• Use human force as an inspirational factor
• Complete human transactions emotionally

Managers in Reactive cultures will:

• Dominate with knowledge, patience and quiet control
• Display modesty and courtesy
• Create a harmonious atmosphere for teamwork
• Be paternalistic
Group Presentation on National Traits
Please present the following:

• Comparison of two countries

• Explain the national traits
• How the two countries compare
• Name of companies which exemplifies the national traits and
your reasons the companies for their national traits
What do you learn from the exercise?
• Which country is good for starting a new digital
business and why?
• Which country is good for a new consumer product
business and why?
• What kind of strategy will you consider in marketing
an on-line product in the USA? Japan? United
Kingdom? Germany?
National Traits and How They Affect
Corporate Cultures in Seven Countries: USA
• Confidence (American Dream): nothing is impossible, bold, firm
• Bias for action (speed – time is money): restless
• Bottom-line focus: the business of America is business
• Masculinity: persistent growth, steady profits, accumulation of wealth, aggressive
marketing and advertisement

• Corporate culture: Young, successful, rich and powerful, frontier spirit. The vast land
was there for the taking.
• Stamina, does things quickly, hard negotiator, egalitarian, informal, take risks, mobile,
future oriented, tough, optimistic, nothing is impossible in the USA, resilient,
steadfastness
• Slow to adapt to the globalization – unwilling to learn from the others like Germans,
Japanese, Koreans, Chinese.
What do you learn from the exercise?
• Which country is good for starting new digital business and
why?
• If you are to collaborate with a company from the seven
countries for your business, which country do you choose?
And why?
• What kind of strategy will you consider in marketing an on-
line product in the USA? Japan? United Kingdom?
Germany?
Homework for Next Class: Vietnam and
USA:
→Read USA and Vietnam sections of ‘When Cultures Collide
(Page 179-186; Page 480-484)

→Read USA and Vietnam country profile of Geert Hofstede

Hofstede’s analysis of Vietnam and USA

Vietnam:
https://www.hofstede-insights.com/country-
comparison/vietnam/

USA:
https://www.hofstede-insights.com/country-
comparison/USA/
Homework for Next Class
Please respond to the following questions:
• What are the similar characteristics between the two
countries’ culture? What are the differences between the
two?
• According to Richard Lewis
• According to Geert Hofstede
• What are the advantages and disadvantages of two
nationalities working together as a team? Use both analyses.