Bài giảng International Business - Chapter six: Sociocultural Forces

Learning Objectives Explain the significance of culture for international business Identify the sociocultural components of culture Discuss the significance of religion to businesspeople Explain the cultural aspects of technology Discuss the pervasiveness of the Information Technology Era

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Sociocultural ForcesMcGraw-Hill/IrwinInternational Business, 11/eCopyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.chapter sixLearning ObjectivesExplain the significance of culture for international businessIdentify the sociocultural components of cultureDiscuss the significance of religion to businesspeopleExplain the cultural aspects of technologyDiscuss the pervasiveness of the Information Technology Era3Learning ObjectivesExplain the importance of the ability to speak the local languageDiscuss the importance of unspoken language in international businessDiscuss the two classes of relationships within a societyDiscuss Hofstede’s four cultural value dimensions4Rules of Thumb for Cross Culture BusinessBe preparedSlow downEstablish trustUnderstand the importance of languageRespect the cultureUnderstand the components of culture5What is CultureThe sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populationsLearnedInterrelatedSharedDefines the boundaries 6EthnocentricityEthnocentricityBelief in the superiority of one’s own ethnic group7Living with Other CulturesRealize that there are many different culturesLearn the characteristics of those culturesSpend a lifetime in a countryDo training program8Culture Affects All Business FunctionsMarketingVariation in attitudes and values requires firms to use different marketing mixesP&G Japanese Camay commercialsDisneyland ParisHuman Resource ManagementEvaluation of managersProduction and FinanceAttitudes toward authorityAttitudes toward change9Sociocultural ComponentsCulture is:AestheticsAttitudes and beliefsReligionMaterial CultureLanguageSocietal organizationLegal characteristicsPolitical structures10Aesthetics Culture’s sense of beauty and good tasteArt conveys meaningColors, symbols, numbers--Nike airArchitectural style differencesfeng shuiMusic and FolkloreMusical tastes varyFolklore discloses way of lifeCowboys in Chile or ArgentinaMexican singing cricket11Attitudes and BeliefsAttitudes Toward TimeVary across culturesDifficult area for some AmericansDirectness and drivePerceived to be rudenessDeadlinesLiability abroad12Attitudes Toward Achievement and WorkGermans put leisure first and work secondThe demonstration effectResult of having seen others with desirable goodsJob Prestige The distinction between blue-collar workers and office employees13ReligionResponsible for many of the attitudes and beliefs affecting human behaviorWork EthicProtestant work ethicDuty to glorify God by hard work and the practice of thriftConfucian work ethicDrive toward hard work and thrift; similar to Protestant work ethic14Will this work?15Primary Asian ReligionsHinduismCaste system entire society is divided into four groups (plus the outcasts) and each is assigned a certain class of workBuddhismReform of HinduismJainism (Mahavira a contemporary of Buddha)Nonviolence a major principleSikhism Bridge between Hinduism and Islam16Primary Asian Religions, cont’d.ConfucianismInseparable from Chinese cultureTaoismLao Tzu, contemporary of ConfuciusShintoismIndigenous to Japan17IslamYoungest and second largest faith 1.3 billion followersComparison: Christianity has 2 billion adherentsMuhammad is FounderProphet of God and head of stateHoly Book KoranFive Pillars of FaithConfession of faithFive daily prayersCharityRamadan fastPilgrimage to MeccaJihad – holy warSunni-Shia ConflictConflict gives rise to violent clashes18Religious Population of the WorldInsert Figure 6.119AnimismSpirit worship, incl. magic, witchcraftEverything in nature has its own spirit or divinity20Material CultureMaterial CultureAll human-made objectsconcerned with how people make things (technology) and who makes what and why (economics)21TechnologyTechnologyMix of usable knowledge that society applies and directs toward attainment of cultural and economic objectives22Importance of TechnologyEnables a firm to be competitive in world markets.Can be sold or be embodied in the company’s productsCan give a firm confidence to enter a foreign marketEnables the firm to obtain better than usual conditions for a foreign market investmentEnables a company with only a minority equity position to control a joint ventureCan change the international division of laborCauses major firms to form competitive alliances23Material Culture - TechnologyCultural Aspects of TechnologyIncludes skills in marketing, finance, and managementPeople not always ready to adapt to changes technology bringsTechnological DualismThe side-by-side presence of technologically advanced and technologically primitive production systemsAppropriate TechnologyThe technology (advanced, intermediate, or primitive) that most closely fits the society using itBoomerang EffectSituation in which technology sold to companies in another nation is used to produce goods to compete with those of the seller of the technology.24Information TechnologyInformation Technology EraAs early as 2000 the Internet economyhad reached $850 billionexceeded the size of the life insurance and real estate industries25Spoken LanguageMost apparent cultural distinctionSpoken languages demarcate culturesSwitzerland: four separate culturesMany languages can exist in a single country, but one usually serves as communication vehicleLingua franca or link languageEnglish primary language of business26LanguageTranslationThe ability to speak the language well does not eliminate the need for translatorBack TranslationTo avoid translation problemsJapanese hotel: “You are invited to take advantage of the chambermaid.”Bangkok dry cleaner: “Drop your trousers here for best results.”27Language IssuesTechnical words do not exist in all languagesUsually use EnglishMany cultures avoid saying anything disagreeable28Unspoken LanguageNonverbal communicationGestures vary tremendously from one region to anotherClosed doors convey different meaningsOffice size has difference meanings in various culturesConversational distance small in EastGift giving has specific etiquette in each cultureGift or bribe?Questionable Payments292003 Corruption Index Scores and Ranking30Societal OrganizationKinshipExtended Family includes blood and marriage relatives Member’s responsibilityAlthough the extended family is large, each member’s feeling of responsibility to it is strongAssociationsSocial units based on age, gender, or common interest, not on kinship 31Societal OrganizationAssociationsAge is important market segment criterionGenderAs nations industrialize, more women enter the job market and assume greater importance in the economyFree associationpeople joined together by a common bond: political, occupational, religious or recreational32Understanding National CulturesHofstede’s Dimensions of CultureIndividualism versus CollectivismLarge versus Small Power DistanceStrong versus Weak Uncertainty AvoidanceMasculinity versus Femininity33Scores for Hofstede’s Value Dimensions34Individualism versus CollectivismCollectivistic culturespeople belong to groups that are supposed to look after them in exchange for loyalty Individualistic culturesPeople look after only themselves and the immediate family35Large versus Small Power DistancePower distance the extent to which members of a society accept the unequal distribution of power among individualsIn large-power-distance societies employees believe their supervisors are right; employees do not take any initiative in making non-routine decisions36Strong versus Weak Uncertainty AvoidanceUncertainty avoidance Degree to which members of a society feel threatened by ambiguity and are rule-orientedEmployees in high uncertainty-avoidance cultures tend to stay with their organizationsJapan, Greece, and PortugalThose from low uncertainty-avoidance nations are more mobileUnited States, Singapore, and Denmark37Plot of Nations: Power distance and Uncertainty Avoidance 38Plot of Nations: Individualism and Power Distance39Masculinity versus Femininitythe degree to which the dominant values in a society emphasize assertiveness, acquisition of money and statusMasculinityachievement of visible and symbolic organizational rewardsFemininityemphasize relationships, concern for others, and the overall quality of life40