What is Culture???
DR. R. N. KAR
Some Cultural Scenarios
Tomari has superb qualifications on paper. Tomari just says. Mrs. but when Mrs. “I will do my best. Tomari's résumé is inflated. Mrs. Torres begins to wonder if Ms. I will try very hard. Ms. Torres wants to hire a local interpreter who can advise her on business customs.JAPAN
To help her American Company establish a presence in Japan.” She never gives details about any of the previous positions she has held.
. Ms. Torres tries to probe about her experience.
and he leaves a contract for Mr. Lee to sign.
. Mr. Lee is silent for a time. Stan still hasn’t heard anything. If China is going to be so inefficient. and then says.” Stan smiles. “Your product is good. Weeks later. 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. pleased that Mr. Lee recognizes the quality of his product. He asks Tung-Sen Lee if the Chinese people have enough discretionary income to afford his product. he wonders if his company should try to do business there.
she is careful not to give orders but to ask for suggestions. Assigned in Bombay on behalf of her U. But the employees rarely suggest anything. Even a formal suggestion system she established does not work. she doesn’t sense the respect and camaraderie that she felt at the plant she managed in Texas.S.
.-based company. Perhaps the people in India just are not ready for a woman boss.Gloria Johnson is proud of her participatory management style. Worse still.
Even worse. Alan tries to get right to business. Alan’s first report to his home office is very negative. To save time. his host wants to talk about sightseeing and about Alan’s family. He makes appointments with Senõr Lopez and is careful to be on time.MEXICO
Alan Caldwell is a U. the meetings are interrupted constantly with phone calls. sales representative in Mexico City. long conversations with other people. Perhaps Mexico just isn’t the right place to do business.S.
. and even customers’ children who come into the office. He hasn’t yet made a sale. but his host is frequently late.
How to Win. Achieve and Implement
STRATEGY FOR MANAGING ACROSS CULTURES
As MNCs become more transnational. 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
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. Dacia..
Today. Nissans while maintaining the look and feel of separate brands
. the Romanian auto maker built a $1 billion factory in Brazil to produce Sedan acquired an idle factory in Russia to cater eastern Europe ……………………………………………………………………………………………. bought controlling stakes in Nissan. Samsung.
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
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
with local variatons
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. with autonomous national units Host country Batch production Local product development based on local needs.
Culture Home country Technology Mass production Marketing Product development determined primarily by the needs of home country customers.
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
Best people everywhere in the world developed for key positions every where in the world
. but not across regoins Geocentric Same as regiocentric
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.
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
.Meeting the Challenges
It becomes more difficult as different cultures tend to View emotions. The typical German spot features the standard family of Two parents. two children and grand mother The French avoid reasoning It is based on emotional. enjoyment. humour.
S.High.versus Low-Context Cultures
• 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
• 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
People in China and India are starving. my parents told me. Friedman New York Times Columnist Author “The World is Flat”
Thomas L. "Finish your dinner.Cultural Differences in Selected Countries
When I was growing up.
Today I tell my daughters. People in India and China are starving for your job. "Finish your homework."
KOREAN EXAMPLE Consider the example of Korean Air’s high incidence of plane crashes between 1970 and 2000. Even in the advent of a possible crash. As an analysis of conversations recorded in the black boxes of the crashed planes revealed. Challenging one’s superior in Korea was considered culturally inadequate behavior
. the co-pilots and flight engineers in all-Korean cockpits were too deferential to their captains. Korean Air co-pilots and flight engineers rarely suggested actions that would contradict the judgments of their captains.
Second. laws and public institutions. 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. First.
. if national culture can have significant – not to say existential – consequences among people of the same cultural origin. National culture shapes behavior and this influence reaches beyond administrative attributes such as governmental policies.The Korean Air example is particularly noteworthy for two reasons. we need to be very cautious in how we deal with national cultural differences in cross-border interactions.
food or dessert. I got take-away from the nearest Indian restaurant. But you carry a dish for the others to eat. BYO – ‘Bring your own’ could refer to drinks.AUSTRALIA
I was invited to a dinner party my second week in Australia. And ‘Bring your plate’… your hosts will definitely give you the plates. And the note said it was a ‘Bring a Plate’. they are important words you should be wary of. But nowhere did it specify that you should cook this delicacy. Perhaps because it starts with ‘b’ or it relates to food. hoping it would make up for my ineptitude in the kitchen
. mostly paper plates… saving hours of cleaning and washing. The ‘Australian slang book’ gives us the explanation of these phrases.
They had to bring themselves and the more they ate AND the more they drank. We are known for our hospitality across the world. the hosts were happier. 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’. As a host. 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.
.It was a choice between that or the instant masalas available for exorbitant prices. whim and need is fulfilled.
woman and child invited. irrespective of the number. she cooked for every man. carried a bottle of wine or a basket of fruits as a gift to her host. But when she threw a party.My mother.
It saved me from hours of shopping and cooking. religious beliefs or other quirks.But I rather liked the ‘bring a plate’ concept. But it had been ingrained into me that it was shameful to ask your guest to aid you in treating them right
. Nobody had to sacrifice their diet. It helped add variety. And people constantly discovered new flavors. And it also stopped the hosts from stressing out over their guest’s food habits.
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. diversify and discover new flavors
. making the guest feel valued and welcomed and treasured. 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.
Give a brief account of Cultural Differences in Countries of your Choice and its managerial implications.ASSIGNMENT