EFFECTS OF CULTURE ON

BUSINESS
What is culture?
 Culture is the characteristics and
knowledge of a particular group of
people, defined by everything
from language, religion, cuisine,
social habits, music and arts.
 Impact of Language on Business
• Culture is the characteristics and
knowledge of a particular group of people,
defined by everything from language,
religion, cuisine, social habits, music and
arts.
 Impact of Language on Business
• One of the first barriers that companies face
on the path of internationalisation is
differences in natural languages.
 Impact of Language on Business
• The language diversity has created problems
for companies in integrating their workforces
and marketing products on a truly national
level.
 Impact of Language on Business
• When a new product or service enters
another language area, it may take on an
Anglicized name. For example, Russians call
tight denim pants dzhinsi (pronounced
“jeansy”) the French call a self-service
restaurant le self.
Impact of Language on Business

• In Taiwan, the translation of

the Pepsi slogan “Come alive
with the Pepsi Generation“ is
changed as “Pepsi will bring
your ancestors back from the
dead“.
Impact of Language on Business
• In China,the name Coca-Cola was first
rendered as Ke-kou-ke-
la.Unfortunately, the Coke company
did not discover until after thousands
of signs had been printed that the
phrase means “bite the wax tadpole”
or “female horse stuffed with wax”
depending on the dialect.
• Coke then researched 40,000 Chinese
characters and found a close phonetic
equivalent, “ko-kou-ko-le“, which can
be loosely translated as “happiness in
the mouth“.
Impact of Language on Business
Impact of Language on Business
 Music and Arts
Culture is the characteristics and knowledge of a
particular group of people, defined by everything
from language, religion, cuisine, social habits,
music and arts.
 Music and Arts
• One of the easiest way to reach people is music and
arts-especially tv series.When you reach people,your
job is pretty easier for business and marketing.
 Music and Arts
• Some countries have realized the
greatiest impact of tv series,music and
different arts on business.
Music and Arts

KORE
A
Music and Arts
Korean Hallyu Wave
The Korean wave(Hallyu) refers to
the phenomenon of Korean
entertainment and popular culture
rolling over the world with pop
music, TV dramas, and movies. The
Hallyu, meaning Korean Wave, has
been described by the newspaper
the Korea Times, as the 21st Century
version of the Silk Road which once
served as a conduit for trade and
cultural exchanges between the East
and the West.
 Music and Arts
• First major wave of Hallyu was driven by
Korean TV dramas within the Asian continent.
In 1998 President Kim Dae-Jung introduced a
Cultural Industry Policy with a special focus on
TV drama.
The new wave of Korean pop music, referred
to as K-pop, has now spread beyond Asia,
reaching as far as Latin America, Africa, and
the Middle East.
Music and Arts
•
The booming presence and
enjoyment of Korean
popular culture has also
transformed into preference
for other Korean products
and lifestyles alike, leading
to an increase in Korean
product sales overseas. The
growing interest in Korean
culture has further triggered
a rise in inbound foreign
tourists.
Music and Arts
 Music and Arts
• The country last year raked in $5 billion from
its pop-culture exports, and the government
aims to double this figure by 2017.
Meanwhile, inbound tourist arrivals jumped
8.3 percent on year to a record 12.2 million
visitors in 2013, statistics from the Korea
Tourism Organization.
Music and Arts
 Music and Arts
İstanbul-Gyeongju 2013 Dünya Kültür Expo
Music and Arts
•İstanbul-Gyeongju
2013 World Culture
Expo was prepared for
making the cultural
relationship stronger
between Turkey and
Korea.Besides that,
Kadir Topbaş
implements,Silk Road
is invigorated by Expo
and this event made
a major contribution
to tourism and
econmy.
 Music and Arts
• Turkish Tv Series also have a wide audience in
the world.
 Music and Arts
• TV dramas have emerged as Turkey’s most
popular cultural export in the past decade. The
export revenues for broadcast rights of TV
dramas increased from 1 million dollars in 2007
to $130 million in 2012. International interest in
Turkish TV dramas started in the Middle East
nearly a decade ago when millions of Arab TV
viewers were captivated by “Gümüş” (Noor in
Arabic). Now the geographic reach of Turkish TV
dramas has expanded from Pakistan to Eastern
Europe, with market expansion continuing.
Music and Arts
 Religio
• n the characteristics
Culture is
and knowledge of a particular
group of people, defined by
everything from language,
religion, cuisine, social habits,
music and arts.
 Religio
• Religion is anstrong shaper of values.
Religion of a nation has influence on the
way firms are doing business like working
hours, holidays, preferences and tastes.
 Religio
•
n
For example, McDonald’s agreed not to
serve beef in India because of criticism from
Hindus, the Israeli national airline, does not
fly on Saturday, the holiday in Judaism.
 Religio
n that practice the same
• But not all nations
religion have the same constraints on
business. For example, Friday is normally not a
workday in predominantly Muslim countries
because it is a day of worship; however, Turkey
is a secular Muslim country that adheres to
the Christian work calendar to be more
productive in business dealings with Europe.
 Religio
n
Mc-Donald’s
McDonald's dispensed with its most prominent ingredient
in order to respect, and to please, its Indian customers.
Many Indians eat no beef or pork, or any meat at all.
According to Vikram Bakshi, managing director of
McDonald's India North, it was necessary to adapt the
company's offerings while keeping the core brand values
consistent across cultures.
Religio
n •"The menu has evolved over the
years according to customers'
needs," says Bakshi. "Local creations
like McAloo Tikki Burger, Curry Pans,
Wraps Pizza McPuff, and McVeggie
are established.Today 70 percent of
our menu is ‘Indianized', and the
McAloo Tikki burger is our highest
selling product. "
Religio
n •Mc Donald’s also has
operations in Turkey and
take into consideration of
our local tastes and food
habits means that Mc
Donald’s is also adapting
to Turkish culture. The
product it serves us is
McTurko beyond its other
classical products.
 Social Habits
•
Culture is the characteristics
and knowledge of a particular
group of people, defined by
everything from language,
religion, cuisine, social habits,
music and arts.
 Social Habits
• Avoid doing the things below when making
business with Japanese people;
• Do not blow your nose in a public place (including
meeting rooms).
• Do not grab your host's hand in meetings.
• Never pat a Japanese man on the back or
shoulder.
• Always smile, be pleasant, be willing to learn, ask
a lot of questions about your customer's company
(and none about his/her private life).
Social Habits
 Social Habits
• Avoid doing the things below when making
business with Italian people;
• Avoid talking about religion, politics, mafia
and World War II. Good conversational topics
include Italian culture, art, food, wine, family, and
films.
• Don’t expect the meeting to start on time.
Social Habits
 Social Habits
• Other Tips for Meetings
• France;Wear an offical dress.
• Saudi Arabia;During the greetings kiss three
time(never ever try to kiss a women).
• Germany;Be there on time.
 Cuisine
•
Culture is the characteristics
and knowledge of a particular
group of people, defined by
everything from language,
religion, cuisine, social habits,
music and arts.
 Cuisine
Preferences and tastes may be different for
each individual, it also differs among different
cultures. For example, Japan people dislike sour
tastes like lemon, and colors that is reminder of
sour (yellow). Because of this perception, firms
using yellow packages on their product have
faced a decrease in their sales.
 Cuisine
Kellogg’s
Kellogg's set up a branch in India and started selling
Corn Flakes. What they didn't realize was that Indians
think that to start the day with something cold -- like
cold milk on their cereal -- is a shock to the system.
And if they pour warm milk on Kellogg's Corn Flakes,
they instantly turn into wet paper.

In business studies, when you look at a market, you

have to know something about its anthropology and
its cultural rituals. What Kellogg’s ignored was that
the Indians dislike cold breakfast.
Comments on Managing With Cultural
Differences
• Although there are cultural differences between different
companies belonging to the different nations, these
differences are not necessarily a handicap. There is a
need for understanding between the firms in the
different cultures. The parties must learn how to cope
with the cultural differences that exist. In order to
manage these cultural differences, first of all we must
admit that there exist cultural differences in different
nations. So, if multinational firms want to be successful in
different markets, they must be flexible and respond the
local preferences, tastes and perceptions which are
different from their home country.
THANK YOU
FOR
LISTENING
 References
• http://www.hurriyetdailynews.com/turkeys-tv-
drama-industry-deserves-more-
attention.aspx?pageID=449&nID=78068&NewsC
a
tID=396
• http://www.slideshare.net/UmutKeklik/culture-
effects-international-business
• Assoc. Prof. Mahmut ARSLAN, A STUDY ON THE
EFFECT OF CULTURAL DIFFERENCES AND
SIMILARITIES ON MNCs WITH ILLUSTRATIVE
CASES