Chapter 5

MANAGING ACROSS CULTURES

Presented by Group 2
 b l e o f
T a t s
n t e n
Co
1. The Strategy for Managing Across 7. Many Differences across Cultures
Cultures 8. Figure 5-2: GLOBE Analysis:
2. Strategic Predispositions Comparing Values in China, the U.S., and
3. Meeting the Challenge Argentina
4. Globalisation versus Nation 9. Using the GLOBE Project to Compare
Responsiveness Managerial Differences
5. Cross-Cultural Differences and 10. Managing Culture in different
Similarities countries
6. Similarities across Cultures

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 The Strategy for Managing Across Cultures

The cultural affinities and
differences in their diverse
markets must be taken into
account by MNCs when they
expand internationally.
A good example is provided The firm had record-high
by Renault, the French auto growth in revenues in the
giant. They created a first half of 2018, up about
cohesive, effective sales 10%.
force by integrating its
sales divisions with Nissan's
throughout Europe.

2
 polycentric
ethnocentric predisposition
predisposition make strategic decisions tailored
to suit the cultures of the
allows the values and interests of countries where the MNC operates
the parent company to guide
strategic decisions

Strategic
Predispositions geocentric
predisposition
regiocentric
predisposition the company tries to integrate a
global systems approach to
lead the firm tries to blend its decision making
own interests with those of its
subsidiaries on a regional basis

Successful MNCs typically combine these tendencies according to the needs of the present environment.
3
 MEETING THE CHALLENGE

A lot of MNCs adhere to the

globalization imperative,
which holds that efficiency
and effectiveness can only
be achieved by adopting a
single, global strategy.
MNCs discover that
regional methods work
Yet, these factors well for grabbing and
seem to call for unique holding onto global
strategies. market niches.

4
Globalisation versus Nation Responsiveness
The challenge of globalisation becomes
more difficult when products and
marketing strategies must confront the
significant diversity among consumer
markets.
Delivering the marketing message
correctly is a key factor.
Sometimes, applying a common
message for a product globally is
necessary.
Adjusting global strategies to reflect
the specificities of each regional market
is a crucial challenge for MNCs.
Firstly, they need to grasp the
local market conditions accurately.
Secondly, they must understand
the strengths and weaknesses of
their subsidiaries.
Finally, MNCs need to allow their
subsidiaries to operate
autonomously.
5
 CROSS-
Global cultures differ significantly. CULTUR
Successfully acknowledging and DIFFERE AL
managing these distinctions is crucial NCES A
for effective cross-border engagement. SIMILAR ND
ITIES
Parochialism, the tendency to view the world through one’s own
eyes and perspectives. A temptation for international managers.

Simplification, on the other hand, involves adopting a uniform

approach across diverse cultural groups, showcasing a particular
individual's cultural background.

6
 1 2
Some similarities between A study conducted in the largest
cultures have been discovered by textile factory in Russia found
researchers. the following.

SIMILARITIES
ACROSS
CULTURES 3
Another study at the same
4
The similarity from a study
Russian factory tested OB's compares Korean and U.S
amendment. workers.

7
 Many Differences across Cultures
1 A solid grasp of HRM strategies is crucial for effective industry management.
2 HRM variations encompass wage structures, pay equity, and paid time off.
3 Cultural clusters can influence compensation strategies significantly.
4 Employ group-based incentives in Pacific Rim nations.
5 In high-masculinity cultures, offer substantial salaries to senior managers.
6 Maintain consistent compensation strategies within EU nations.
7 Embrace individualism in managerial values in the U.K., Ireland, and the U.S.
8 Drive motivation through earnings, recognition, advancement, and challenges.
9 Rethink conventional wisdom regarding HRM practices in specific countries.
10 The traditional job loyalty in Japan is giving way to increased job-hopping tendencies.
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 G UR E 5 - 2 :
FI
A N A LY S IS :
G LO BE
N G V A LU E S
COM P A R I
, T HE U . S.,
IN C H IN A
A RG E N T IN A
AND

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 The trend of executives from different regions taking on
leadership roles in one another is becoming increasingly

N G T H E common.
US I T
PR O J EC In 2018, NTT Data Services named John McCain as the executive chairman -

GL O BE the first non Japanese board member in the company's history.

In 2012, American CEO Craig Naylor resigned suddenly after just two years
M P AR E
TO C O as CEO.

G E R IA L The executives identified key characteristics that contributed to

M A N A their growth as managers in emerging markets :

R EN C ES Able to grow in unstable environments

DIF FE Understanding of emerging markets and their businesses. Can also learn
through formal education, training and practice.

10
 Arrive on time, as the
Technical proficiency is a Chinese tend to
vital requirement for emphasise timeliness
conducting business in China
Remember that
patience is incredibly
vital

The changing business

culture brought
about by the
economy's change has
MANAGING Guanxi, or "good
an impact
professionals'
on
CULTURE IN CHINA connections," is another
significant aspect of
personal lives Even with China's widespread influence, conducting Chinese culture; it is
business in China can still be a drawn-out, taxing similar to nepotism
procedure for many multinational corporations.

Reciprocity is crucial
in negotiations
As a society, the Chinese take great
pleasure in belonging to a group

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Managing Cultu
re 1 Establish personal connections before hammering out contracts.

in Russia 2 Employ local advisors; foreigners are frequently mistrusted by local

businesspeople and may not be up to speed.

3 Think about corporate ethics: conduct in the US and Europe differs from that in Russia at times.

4 Avoid making hasty decisions or compromising too much.

5 These days, Russians are usually wary of anything that is given out too easily.

6 Fix and reaffirm the final agreements over a lovely supper and an invitation to come see your facilities and nation.

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 MANA G I N G C U L T U R E
IN INDIA

INDIANS ARE TOLERANT APPROPRIATE ATTIRE : COMMON ETIQUETTE :

TOWARDS FOREIGNERS SO FOR INDIAN BUSINESSMEN: LOCAL ATTIRE SHAKING HANDS WITH MALE
THERE IS NO NEED TO WORRY FOR FOREIGN BUSINESSMEN: CASUAL OR BUSINESS PARTNERS
IF YOU ARE NOT FAMILIAR FORMAL OFFICE ATTIRE GREETING "NAMASTE"
WITH LOCAL CUSTOMS.

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 Managing Culture in France

Organizations with
Working with little highly centralized
French society
competition. structures, French
has class
Achieving high senior managers
stereotypes.
productivity even have more
Social class is
though they have authority than
crucial.
a lot of time off. their US
counterparts.

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 MANAGING CULTURE IN BRAZIL

In business, their attitude is somewhat relaxed.

Acknowledge inherited wealth over current business opportunities.
They are not likely to be punctual, but patience and never unprepared.

Friendly and harmonious attitudes can be seen in people, though they are not afraid of challenges.
Communication through physical contact is diverse.
The appearance of individuals is the face of the company.

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 MANAGING CULTURE IN ARAB COUNTRIES

Family background Business leaders

and relationships value society's
determine social
Beliefs and status and position.
status deeply.
attitudes in
business are deeply Holding meetings to
influenced by become acquainted
religion. with new partners.

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Q&A

17
China, the United States and Argentina all scored
low on which value?

A. Assertiveness C. Power Distance

B. Humane Orientation D. Uncertainly Avoidance

18
China, the United States and Argentina all scored
low on which value?

A. Assertiveness C. Power Distance

B. Humane Orientation D. Uncertainly Avoidance

19
 What does it’s mean the word “GUANXI”?

A. Good and Services

B. Smell and Delicious
C. Good connection
D. Both A, B, and C

20
 What does it’s mean the word “GUANXI”?

A. Good and Services

B. Smell and Delicious
C. Good connection
D. Both A, B, and C

21
Which strategic predisposition involves
tailoring strategic decisions to suit the
cultures of the countries where a
multinational corporation (MNC) operates?
A. Ethnocentric predisposition
B. Polycentric predisposition
C. Regiocentric predisposition
D. Geocentric predisposition

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Which strategic predisposition involves
tailoring strategic decisions to suit the
cultures of the countries where a
multinational corporation (MNC) operates?
A. Ethnocentric predisposition
B. Polycentric predisposition
C. Regiocentric predisposition
D. Geocentric predisposition

23
In Arab countries, which factor below
affects a person's social status strongly?

A. Family background and connections.

B. Education background.
C. National contribution.
D. Outstanding career.

24
In Arab countries, which factor below
affects a person's social status strongly?

A. Family background and connections.

B. Education background.
C. National contribution.
D. Outstanding career.

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THANK
YOU!
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