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Culture & Socio-Cultural Issues in International Cooperation
Dr Robert Harris
© 2011 masslearning.com
What is Culture? • Culture is learned. social. shared and transmitted • Can be passed on by family.com . © 2011 masslearning. state and religious organisations • Two Types of Cultural Knowledge – Factual : facts that can be studied and understood – Interpretative : requires experience and degree of empathy.
What is Culture? • Success of an alliance often depends on whether it is ‘culturally accepted’ • Managers must avoid applying their own cultural values or rules of behaviour • ‘Self reference criterion trap’ © 2011 masslearning.com .
values and customs that serve to direct managerial and employee behaviour in a particular country market © 2011 masslearning.com .Culture Defined • The sum total of learned beliefs.
Components of Culture: 1 Beliefs: A large number of mental and verbal processes which reflect our knowledge and assessment of products and services © 2011 masslearning.com .
L. & Kanuk.com .Cultural Values and their Relevance to Manager/Employee Behaviour Value Achievement & success Efficiency & practicality Progress Material comfort Individualism External conformity Youthfulness Features Success flows from hard work Admiration of things that solve problems People can improve themselves The ‘good life’ Being oneself Uniformity of observable behaviour Relevance To Behaviour Justification for acquisition of goods Stimulates purchase of well functioning products Ready acceptance of ‘new’/‘improved’ products Fosters acceptance of convenience/luxury products Stimulates acceptance of customised or unique products Stimulates interest in products used by others State of mind that stresses being Stimulates acceptance of products young at heart that promote youthfulness Source: Schiffman. (2000) © 2011 masslearning. L.G. L.
Components of Culture: 2 Values: The indicators stakeholders use to serve as guides for what is appropriate behaviour. they tend to be relatively enduring and stable over time and widely accepted by members of a particular market © 2011 masslearning.com .
Customs are evident at major events in ones life eg birth. marriage.g.Components of Culture: 3 Customs: Overt modes of behaviour that constitute culturally approved or acceptable ways of behaving in specific situations.com . etc. death and at key events in the year e. Easter. Ramadan. © 2011 masslearning. Christmas.
A Cultural Framework Religion Language Values & Attitudes Aesthetics Cultures Education Social Organisations Law & Politics Technology & Material Culture © 2011 masslearning.com Adapted from Terpstra & Sarathy (2000) .
com . colours etc. social class. shapes. © 2011 masslearning. family. group behaviour etc. • Need to consider local preferences even if developing a ‘global brand’ Social Organisation • Defines the way people relate to each other: role of men and women.Elements of Culture Aesthetics • Refers to designs.
wealth . Information on household units useful • Roles and status: gender roles • Social hierarchy: income.com .Elements of Culture • Family Unit: fundamental unit of social org. power. religion.need to understand social stratification • Attitudes to foreign products • Attitudes towards achievement • Attitudes towards change © 2011 masslearning..
The Socio-cultural Environment • Understanding of socio-cultural differences is of prime importance in ensuring success in foreign alliances: • language • religion • social organisations • aesthetics • education • plus many more!! © 2011 masslearning.com .
Culture & International Cooperation • Cultural segmentation important in order to offer the right product and use appropriate business communications.com . • Need to understand extent of cultural differences in relation to: – – – – – – Language Needs and wants Consumption patterns Market segments Socio-economic factors Marketing conditions © 2011 masslearning.
g.The Socio-cultural Environment • Firms increasingly need to understand partners requirements and how to manage operations across countries e.com . Honda: Different organisational structures and synthesis of Resource Based Management style. • © 2011 masslearning.
com Space Things .Appointment scheduling .The interest in the latest © 2011 masslearning.The Main Silent Languages in Overseas Business: 1 Silent Language Implications For Marketing & Business Time .Sizes of offices -Conversational differences between people .The relevance of material possessions Source: Hall & Hall (1987) .The importance of being ‘on time’ -The importance of deadlines .
Rules of negotiations based on laws.The Main Silent Languages in Overseas Business: 2 Silent Language Implications For Marketing & Business .com . Agreements moral practices or informal customs © 2011 masslearning.The Friendship significance of trusted friends as social insurance in times of stress and emergency .
Cultural Influences on Business Behaviour Cultural Forces Religion History Family Language Education Arts Cultural Message Symbols Morals Knowledge Rules of Behaviour Consumer Decision Process Selecting Prioritising Wants Decision Making Behaviour Adapted from: Jeannet and Hennesey (2002) © 2006 masslearning.com .
place. promotion. – People. processes and physical elements – Communications. customs.com .Culture & International Cooperation Discussion Point: • What are the key cultural issues that need to be considered by managers? • Consider how cultural differences may impact on the business you have chosen for your assignment: – Product. © 2011 masslearning. etc. price.
Robert Harris File source: masslearning.com .Dr.com © 2011 masslearning.