Imperatives, Electives, 5

and Exclusives
• Cultural imperatives - Business customs and
expectations that must be met and conformed to or
avoided if relationships are to be successful
• In some cultures a person’s demeanor is more critical than in
others
• Imperatives vary from culture to culture
• Cultural electives - Relate to areas of behavior or to
customs that cultural aliens may wish to conform to or
participate in but that are not required
• A cultural elective in one county may be an imperative in
another
• Cultural exclusives - Customs or behavior patterns
reserved exclusively for the locals

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The Impact of American Culture 5
on Management Style
• “Master of destiny” viewpoint
• Independent enterprise as the instrument of social action
• Personnel selection and reward based on merit
• Decisions based on objective analysis
• Wide sharing in decision making
• Never-ending quest for improvement
• Competition producing efficiency

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Authority and Decision Making 5

• Influencers of the authority structure of business:

• High PDI Countries
• Mexico, Malaysia
• Low PDI Countries
• Denmark, Israel
• Three typical authority patterns:
• Top-level management decisions
• Decentralized decisions
• Committee or group decisions

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 5
Formality and Tempo

• Breezy informality and haste characterize

American business relationships
• Europeans not necessarily “Americanized”
• Higher on Hofstede’s Power Distance Index (PDI)
• May lead to business misunderstandings
• Haste and impatience most common mistakes
made by Americans in the Middle East
• For maximum success marketers must deal with
foreign executives in acceptable ways

4
 Contextual Background 5
of Various Countries

Exhibit 5.2

5
 5
P-Time versus M-Time

• Monochronic time
• Tend to concentrate on one thing at a time
• Divide time into small units and are concerned with
promptness
• Most low-context cultures operate on M-Time
• Polychronic time
• Dominant in high-context cultures
• Characterized by the simultaneous occurrence of many
things
• Allows for relationships to build and context to be absorbed
as parts of high-context cultures
• Most cultures offer a mix of P-time and M-time behavior
• As global markets expand more businesspeople from
P-time cultures are adapting to M-time.

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 5
Marketing Orientation

• The extent of a company’s market orientation has

been shown to relate positively to profits
• Firms in other countries have not been able to
move from the traditional production, product,
and sales orientation to the marketing orientation
• Research has shown that sometimes in can be
difficult to encourage a marketing orientation
across diverse business units in global companies

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 5

Adaptation

• As a guide to adaptation, all who wish to deal with

individuals, firms, or authorities in foreign countries
should be able to meet 10 basic criteria: (1) open
tolerance, (2) flexibility, (3) humility, (4)
justice/fairness, (5) ability to adjust to varying
tempos, (6) curiosity/ interest, (7) knowledge of the
country, (8) liking for others, (9) ability to command
respect, and (10) ability to integrate oneself into the
environment.

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 5
Omnibus Trade and Competitiveness Act of 1988

• The trade act was designed to deal with trade deficits, protectionism, and the
overall fairness of our trading partners. Congressional concern centered on the
issue that U.S. markets were open to most of the world but markets in Japan,
western Europe, and many Asian countries were relatively closed. The act
reflected the realization that we must deal with our trading partners based on
how they actually operate, not on how we want them to behave. Some see the
act as a protectionist measure, but the government sees it as a means of
providing stronger tools to open foreign markets and to help U.S. exporters be
more competitive. The bill covers three areas considered critical in improving U.S.
trade: market access, export expansion, and import relief.

• Export controls, the Foreign Corrupt Practices Act (FCPA), and export promotion
were specifically addressed in the export expansion section of the act. Export
licenses could be obtained more easily and more quickly for products on the
export control list.

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 5

Three ethical principles

• Three ethical principles also provide a framework to help the marketer

distinguish between right and wrong, determine what ought to be done, and
properly justify his or her actions. Simply stated, they are as follows:

• • Utilitarian ethics. Does the action optimize the “common good” or benefits of
all constituencies? And who are the pertinent constituencies?

• • Rights of the parties. Does the action respect the rights of the individuals
involved?
• • Justice or fairness.

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 5
Varying objectives and aspirations of management
• The training and background (i.e., cultural environment) of managers significantly affect their
personal and business outlooks. Society as a whole establishes the social rank or status of
management, and cultural background dictates patterns of aspirations and objectives among
businesspeople. One study report that higher CEO compensation is found in Scandinavian fi rms
exposed to Anglo-American financial influence and in part reflects a pay premium for increased
risk of dismissal. These cultural influences affect the attitude of managers toward innovation, new
products, and conducting business with foreigners. To fully understand another’s management
style, one must appreciate an individual’s values, which are usually reflected in the goals of the
business organization and in the practices that prevail within the company. In dealing with foreign
business, a marketer must be particularly aware of the varying objectives and aspirations of
management.

A. Security and Mobility

B. Personal Life
C. Affiliation and Social Acceptance
D. Power and Achievement

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 5

Information-oriented culture

Low context, Individualism, Low power distance, Bribery less common,

Low distance from English, Linguistic directness, Monochronic time,
Internet, Foreground, and Competition.

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 5
Relationship-oriented culture

High context, Collectivism, High power distance (including gender),

Bribery more common, High distance from English, Linguistic
indirectness, Polychronic time, Face-to-face, Background, and Reduce
transaction costs.

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