What is Culture???


Some Cultural Scenarios




Tomari just says.JAPAN To help her American Company establish a presence in Japan. Mrs. Ms. . Torres tries to probe about her experience. Mrs. “I will do my best. Torres wants to hire a local interpreter who can advise her on business customs.” She never gives details about any of the previous positions she has held. I will try very hard. Torres begins to wonder if Ms. but when Mrs. Tomari's résumé is inflated. Ms. Tomari has superb qualifications on paper.

Lee is silent for a time. .” Stan smiles. Lee recognizes the quality of his product. Stan still hasn’t heard anything. People in the West must like it.CHINA Stan Williams wants to negotiate a joint venture between his American firm and a Beijing-based company. “Your product is good. and then says. pleased that Mr. Lee to sign. and he leaves a contract for Mr. Mr. He asks Tung-Sen Lee if the Chinese people have enough discretionary income to afford his product. If China is going to be so inefficient. Weeks later. he wonders if his company should try to do business there.

Perhaps the people in India just are not ready for a woman boss.-based company. Even a formal suggestion system she established does not work. INDIA . she is careful not to give orders but to ask for suggestions.Gloria Johnson is proud of her participatory management style.S. But the employees rarely suggest anything. Worse still. Assigned in Bombay on behalf of her U. she doesn’t sense the respect and camaraderie that she felt at the plant she managed in Texas.

his host wants to talk about sightseeing and about Alan’s family. and even customers’ children who come into the office. Even worse. He makes appointments with Senõr Lopez and is careful to be on time. but his host is frequently late. Alan tries to get right to business. sales representative in Mexico City. He hasn’t yet made a sale. long conversations with other people.MEXICO Alan Caldwell is a U. Perhaps Mexico just isn’t the right place to do business. Alan’s first report to his home office is very negative. To save time.S. the meetings are interrupted constantly with phone calls. .

How to Win. Achieve and Implement .

their strategies must Focus on cultural similarities & differences Example  Renault sold its products in France Limited geographic market & quality related problems compounded difficulties Renault made a number of strategic changes that dramatically changed the way it did business .STRATEGY FOR MANAGING ACROSS CULTURES As MNCs become more transnational.

Samsung. bought controlling stakes in Nissan. Renault is successfully operating in four continents By adopting the following strategies integrated its own sales organisation with Nissan in Europe Producing Nissan models in Brazilian plant to cater South American market efficiently Long run goal to have 10 common platforms to built Renaults. Nissans while maintaining the look and feel of separate brands . Dacia. Today. the Romanian auto maker  built a $1 billion factory in Brazil to produce Sedan  acquired an idle factory in Russia to cater eastern Europe ……………………………………………………………………………………………..

STRATEGIC PREDISPOSITIONS Most MNCs have cultural strategic orientation towards doing Things in a particular way This orientation /predisposition helps to determine the specific steps the MNC would take Ethnocentric Polycentric Regiocentric Geocentric .

Ethnocentric Allows the values and interests of the parent company To guide strategic decisions Polycentric Strategic decisions tailor made to suit the cultures of the Countries where the MNC operates Regiocentric Tries to blend its own interest with those of its Subsidiaries on a regional basis Geocentric Tries to integrate a global system approach to decision making .

Finance Repatriation of profits to home country Prople of home country developed for key positions everywhere in the world Retention of profits in host country People of local nationality developed for key positions in their own country Redistribution with in region Regional people development for key positions anywhere in the region Redistribution globally Personnel Practices Best people everywhere in the world developed for key positions every where in the world . with autonomous national units Host country Batch production Local product development based on local needs. but not across regoins Geocentric Same as regiocentric Governance Top-down Bottom -up (each subsidiary decides on local objectives) National responsiveness Mutually negotiated at all levels of the corporation Global integration and national responsiveness A network of organizations (including some stakeholders and competitor organizations) Global Flexible manufacturign Global product. with local variatons Strategy Global integration Structure Hierarchical product division Hierarchical area divisions.Orientation of the Firm Mission Ethnocentric Profitability (viability) Polycentric Public acceptance (legitimacy) Regiocentric Both profitability and public acceptance (viability and legitimacy) Mutually negotiated between region and its subsidiaries Regional integration and national responsiveness Product and regional organization tied through a matrix Regional Flexible manufacturing Standardize within region. Culture Home country Technology Mass production Marketing Product development determined primarily by the needs of home country customers.

two children and grand mother The French avoid reasoning It is based on emotional. enjoyment. status Differently Germans want advertising that is factual and rational. rules. dramatic and symbolic gestures The British value laughter above all else The typical British commercial amuses by mocking both the Advertiser and consumer . The typical German spot features the standard family of Two parents. humour.Meeting the Challenges It becomes more difficult as different cultures tend to View emotions.

versus Low-Context Cultures High-context culture • Relationships between people are long lasting and deep personal involvement • what is not being said can carry more meaning than what is said • Agreements tend to be spoken rather than written • focuses on group development • Japan and Saudi Arabia are examples Low-context culture • Relationships are relatively short in duration and deep personal involvement is not valued greatly • what is said is more important than what is not said • Agreements tend to be in writing rather than spoken • focuses on individual development • The U. is an example 14 .High.S.

Cultural Differences in Selected Countries When I was growing up. People in China and India are starving." Thomas L. my parents told me. "Finish your dinner. Friedman New York Times Columnist Author “The World is Flat” .

Today I tell my daughters. "Finish your homework. People in India and China are starving for your job." .

Challenging one’s superior in Korea was considered culturally inadequate behavior . Korean Air co-pilots and flight engineers rarely suggested actions that would contradict the judgments of their captains. Even in the advent of a possible crash.KOREAN EXAMPLE Consider the example of Korean Air’s high incidence of plane crashes between 1970 and 2000. the co-pilots and flight engineers in all-Korean cockpits were too deferential to their captains. As an analysis of conversations recorded in the black boxes of the crashed planes revealed.

.The Korean Air example is particularly noteworthy for two reasons. it is interesting to note that the attitudes and behaviors revealed by Korean Air co-pilots and flight engineers persisted in such a highly regulated environment like commercial aviation. laws and public institutions. Second. National culture shapes behavior and this influence reaches beyond administrative attributes such as governmental policies. First. if national culture can have significant – not to say existential – consequences among people of the same cultural origin. we need to be very cautious in how we deal with national cultural differences in cross-border interactions.

AUSTRALIA I was invited to a dinner party my second week in Australia. they are important words you should be wary of. Perhaps because it starts with ‘b’ or it relates to food. hoping it would make up for my ineptitude in the kitchen . I got take-away from the nearest Indian restaurant. But you carry a dish for the others to eat. The ‘Australian slang book’ gives us the explanation of these phrases. BYO – ‘Bring your own’ could refer to drinks. mostly paper plates… saving hours of cleaning and washing. food or dessert. And the note said it was a ‘Bring a Plate’. But nowhere did it specify that you should cook this delicacy. And ‘Bring your plate’… your hosts will definitely give you the plates.

It was a choice between that or the instant masalas available for exorbitant prices. . As I drove to the party I wondered how people would react in India if I invited them to a party and said ‘oh could you also bring something to eat?’ India prides itself on its motto ‘Athithi Devobhava’ meaning ‘The guest is a God’. We are known for our hospitality across the world. They had to bring themselves and the more they ate AND the more they drank. I do not remember a single occasion when my grandmother ever asked the guest to bring anything to a party. you ensure that your guest’s every wish. As a host. the hosts were happier. whim and need is fulfilled.

But when she threw a party. carried a bottle of wine or a basket of fruits as a gift to her host. irrespective of the number. . she cooked for every man. though.My mother. woman and child invited.

It helped add variety. And people constantly discovered new flavors. But it had been ingrained into me that it was shameful to ask your guest to aid you in treating them right . religious beliefs or other quirks. And it also stopped the hosts from stressing out over their guest’s food habits.But I rather liked the ‘bring a plate’ concept. Nobody had to sacrifice their diet. It saved me from hours of shopping and cooking.

I wondered between the concepts of an ‘easy culture’ that allowed me to socialize and maintain my friendships and relationships and the concept of a ‘traditional culture’ I had grown up in. But would asking your guest to bring a dish make them feel unwelcome? It is food. which stressed on the importance of being a good host and serving the right food. We need to experiment. diversify and discover new flavors . making the guest feel valued and welcomed and treasured.

ASSIGNMENT 1. . Give a brief account of Cultural Differences in Countries of your Choice and its managerial implications.