International Marketing Discussion

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International Marketing Class:

MY PRODUCT IS: "Follow Your Heart" (https://followyourheart.com/

MY COUNTRY IS: The United Kingdom

General Instructions and Purpose of Cultural Analysis

The data suggested in the cultural analysis includes information that helps the marketer make market planning decisions.However, its application extends beyond product and market analysis to being an important source of information for someone interested in understanding business customs and other important cultural features of the country.

The information in this analysis must be more than a collection of facts. Whoever is responsible for the preparation of this material should attempt to interpret the meaning of cultural information.That is, how does the information help in understanding the effect on that market? For example, the fact that almost all the populations of Italy and Mexico are Catholic is an interesting statistic, but not nearly as useful as understanding the effect of Catholicism on values, beliefs, and other aspects of market behavior. Furthermore, even though both countries are predominantly Catholic, the influence of their individual and unique interpretation and practice of Catholicism can result in important differences in market behavior.

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Write ONLY 5 items + Mandatory items for this part:

You need to include mandatory items-- Introduction section, Executive summary and References--and address at least 5 items of 14 items written below, that you think are most important.

Each item you choose to write about can be ¼ - ½ page.

!!!! MY PRODUCT IS: "Follow Your Heart" (https://followyourheart.com/

MY COUNTRY IS: The United Kingdom !!!!!

Guideline: Subtitles to be used

- Introduction(Mandatory: ¼ - ½ page)

Include objectives of this cultural analysis report and short descriptions of the uses of this report related to your product. If you’ve decided on your product already, also include short profiles of the company, the product to be exported, and the country with which you wish to trade. *For this product, you will pick one of the local products that are not yet available in foreign countries. You will investigate marketable opportunities of the given product in this assignment.

- Brief discussion of the country’s relevant history (Item #1)

- Geographical setting (Item #2)

- Social institutions:

A. Family (Item #3)

B. Education (Item #4)

C. Political system (Item #5)

D. Legal system (Item #6)

E. Social organization (Item #7)

F. Business Customs (Item #8)

- Religion and other belief systems (Item #9)

- Living conditions

A. Diet and nutrition (Item #10

B. Housing (Item #11)

C. Clothing (Item #12)

-Language(Item #13)

- A briefing on Negotiation Style (ours and theirs)(Item #14)

- Executive summary (Mandatory: ¼ - ½ page)

After completing all of the other sections, prepare half page summary of the major points and place it at the front of this cultural analysis part. The purpose of an executive summary is to give the reader a brief glance at the critical points of your report. Those aspects of the culture a reader should know in order to do business in the country, but would not be expected to know or would find different from his/her own country. SRC should be included in this summary.

  1. Sources of information (References: Mandatory: Page Break)
  1. Appendixes (Attached if needed)

analysis part should be at least 3 - 5 pages, excluding: the reference list, the cover page, and the half-page executive summary at the beginning of each part. This report should be single-spaced, one-inch margin on all sides, in a professional format with appropriate subtitles numbered and written in bold. Arial or Times New Roman size 12 font should be used for the body. APA styles and guidelines should be applied throughout the report

Some References to please include: + more of your choosing. ( please use actual quotations to reference from articles:)

https://globaledge.msu.edu/global-insights/by/coun...

https://www.international.gc.ca/world-monde/countr...

I attached lecture slides from chapter 4, if you could maybe refer to them a little somewhere in the paper also without actually quoting anything.

Unformatted Attachment Preview

Chapter 3 History and Geography: The Foundations of Culture Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 The importance of history and geography in understanding international markets The effects of history on a country’s culture How culture interprets events through its own eyes How long-past U.S. international policies still affect customer attitudes abroad The effect of geographic diversity on economic profiles of a country Why marketers need to be responsive to the geography of a country The economic effects of controlling population growth and aging populations Communication infrastructures are an integral part of international commerce Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 2 Historical Perspective in Global Business History helps define a nation’s “mission.” ➢ how it perceives it neighbors ➢ how it sees its place in the world ➢ how it sees itself ▪ Knowing the history of a nation helps in understanding: • • • • attitudes about the role of government and business the relations between managers and the managed the sources of management authority attitudes toward foreign corporations Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3 History and Contemporary Behavior ▪ ▪ Historical events between nations influence business and history. Any nation’s business and political culture is shaped by history. James Day Hodgson, former U.S. Labor Secretary and Ambassador to Japan, suggested that anyone doing business in another country should understand at least the encyclopedic version of the people’s past as a matter of politeness, if not persuasion. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4 China: Vigilant of Foreign Influence ▪ First Opium War and the Treaty of Nanjing (1839– 1842) • British traders forced a gateway into xenophobic China ▪ Second Opium War (1857–1860) • British and French forces destroyed the summer palace in Beijing • Signaled more freedom for foreign traders • Allowed Christian evangelism throughout the country ▪ Taiping Rebellion (1851–1864) • Loss of confidence in the Chinese government Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5 Understanding Japanese Behavior ▪ Japanese went through • • • • • seven centuries under the shogun feudal system isolation before the arrival of Commodore Perry in 1853 threat of domination by colonial powers rise of new social classes humiliation of World War II Confucian philosophy emphasizes the basic virtue of loyalty “of friend to friend, of wife to husband, of child to parent, of brother to brother, but, above all, of subject to lord,” that is, to country. A fundamental premise of Japanese ideology reflects the importance of cooperation for the collective good. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6 History Is Subjective Subjective perception of its history is crucial in understanding a nation’s business and political culture. In the case of U.S.–Mexico relations, perception of history presents two sides: “Geography has made us neighbors, tradition has made us friends.” –President John F. Kennedy “Geography has made us closer, tradition has made us far apart.”–Mexicans When the U.S. Marines sing with pride of their exploits “from the halls of Montezuma to the shores of Tripoli,” the Mexicans are reminded of how U.S. troops marched to the center of Mexico and extracted as tribute the area that is now known as Arizona, California, New Mexico, and Texas. Exhibit 3.1 gives an overview of the expansion of U.S. territory from 1783. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7 Exhibit 3.1 Territorial Expansion of United States from 1783 Source: Oxford Atlas of the World, 18th ed., 2002. Reprinted with permission of Philip Maps. back Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8 Manifest Destiny and the Monroe Doctrine ▪ The basis of U.S. foreign policy in the 19th and 20th centuries • Manifest Destiny means that Americans were a chosen people ordained by God to create a model society. • Referred to the territorial expansion of the United States from the Atlantic to the Pacific • Justified the U.S. annexation of Texas, Oregon, New Mexico, and California, and U.S. involvement in Cuba, Alaska, Hawaii, and the Philippines • The Monroe Doctrine is the cornerstone of U.S. foreign policy, proclaiming that • No further European colonization in the New World • Abstention of the United States from European political affairs • Nonintervention by European governments in the governments of the Western Hemisphere Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9 Roosevelt Corollary ▪ An extension of the Monroe Doctrine stating that not only would the United States prohibit non-American intervention in Latin American affairs, but it would also police the area and guarantee that Latin American nations met their international obligations. Using this in: • 1905, the Dominican Republic was forced to accept the appointment of an American economic adviser, who quickly became the financial director of the small state • 1903, the Panama Canal Zone was acquired from Colombia • 1906, Cuba was forced to accept the formation of a provisional government Exhibit 3.2 highlights U.S. interventions in Latin America since 1945. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10 Exhibit 3.2 U.S. Intervention in Latin American since 1945 Source: Oxford Atlas of the World, 18th ed., 2002 Preprinted with permission of Philip Maps Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 11 Geography and Global Markets ▪ Geography • The study of Earth’s surface, climate, continents, countries, peoples, industries, and resources • Includes an understanding of how a society’s culture and economy are affected as a nation struggles to supply its people’s needs within the limits imposed by its physical makeup • Involves the study of: • • • • Climate and topography Nature and economic growth Social responsibility and environmental management Resources Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12 Climate and Topography ▪ Marketers need to be aware of a country’s climatic features that can affect the uses and functions of products and equipment. • Extremes in altitude, humidity, and temperature • Products that perform well in temperate zones may deteriorate rapidly or require special cooling or lubrication to function adequately in tropical zones • Within even a single national market, climate can be sufficiently diverse to require major adjustments • Different seasons between the northern and southern hemispheres also affect global strategies • Mountains, oceans, seas, jungles, and other geographical features can pose serious impediments to economic growth and trade Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13 © John Graham Marveling in Machu Picchu? This advertisement provides the only time we have seen a human vomiting to market a product. The product advertised treats altitude sickness. The billboard appears in the Lima, Peru, airport, targeting tourists traveling from sea level to Cuzco and Machu Picchu (pictured in the scenic background). Cuzco, the old Inca capital, is at more than 11,000 feet in altitude, and many foreign tourists visiting there suffer this particular sort of tourista. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 Geography, Nature, and Economic Growth ▪ Climate and topography coupled with civil wars, poor environmental policies, and natural disasters push these countries further into economic stagnation. • Without irrigation and water management, droughts, floods, and soil erosion afflict them, often leading to creeping deserts. • Population increases, deforestation, and overgrazing intensify the impact of drought and lead to malnutrition and ill health. • Cyclones cannot be prevented, nor can inadequate rainfall, but means to control their effects are available. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 15 © John Graham © John Graham Pollution in Angkor Wat Two kinds of pollution in Cambodia. The monkey with the Coke can may seem kind of funny, until you think about it as an eyesore on the steps of the pristine Angkor Wat temple grounds. We’d also guess that caffeine, sugar, sharp-edged aluminum cans, and monkeys don’t mix too well. The land mines still in the ground from a decade’s past war are not funny. Here, Germany is helping clean up the deadly mess. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 16 Social Responsibility and Environmental Management Environmental protection is NOT an optional extra; it is an essential part of the complex process of doing business. • Global issue rather than national • Poses common threats to humankind and thus cannot be addressed by nations in isolation • Ways to stem the tide of pollution and to clean up decades of neglect are special concern to governments and businesses Exhibit 3.3 shows a comparative analysis of several countries’ rates and pledges for the reduction of greenhouse-gas emissions. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 17 Exhibit 3.3 A Comparison of Greenhouse-Gas Emission Rates and Pledges for Reductions Source: EuroMonitor International, 2012; Intergovernmental Panel on Climate Change Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 18 © John Graham In São Paulo, motorists have a choice! Here in São Paulo, Shell sells two kinds of fuel: alcohol made primarily from sugarcane and gasoline made from dirtier fossil fuels. Flexible-fuel engines in Brazilian cars can burn either kind of fuel or any mixture of the two. Although the price per liter is quite different, so is the mileage per liter. Brazilians make their choice of fuel based on the kind of driving they anticipate, city versus highway. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19 Resources ▪ A nation’s demand for a particular mineral or energy source does not necessarily coincide with domestic supply. ▪ In the underdeveloped world, human labor provides the preponderance of energy. ▪ The principal supplements to human energy are • animals © narvikk/Getty Images • • • • ▪ wood fossil fuel nuclear power to a lesser and more experimental extent the ocean’s tides, geothermal power, and the sun Exhibit 3.4 shows Total World Energy Consumption by Region and Fuel Source Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 20 Exhibit 3.4 Sources: BP Statistics Review of World Energy 2014 and International Energy Outlook 2014, U.S. Department of Energy, both accessed 2015. back Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 21 The Good News ▪ China is beginning to curtail its use of coal in favor of renewable resources as their demand is expected to peak before 2020. ▪ United States and China recently agreed on targets to cut carbon emissions, spurring the global efforts for cutting greenhouse gases. ▪ Countries in Asia and Africa have started using alternative resources for a more sustainable lifestyle. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 22 © John Graham Use of Alternative Resources (1 of 2) Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This Masai woman of Tanzania put to good use both cow dung and urine in building her hut, pictured here in her family village (or boma). The semi-nomadic Masai graze their cattle during the day but enclose them within the acacia bush boma at night to protect them from predators. 23 Use of Alternative Resources (2 of 2) © John Graham Cattle dung, which is used both as farmyard manure and, dried into cakes, as household fuel, is being carried to a local market in India. India’s cattle produce enormous quantities of dung, which some studies suggest provide the equivalent of 10,000 megawatts of energy annually. The Chulha stove described at the beginning of this chapter is designed to safely burn the cattle dung pictured on this fellow’s head. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 24 Global Population ▪ Recent estimates put world population at more than 7 billion people ▪ Expected to grow to about 9.5 billion by 2050 ▪ Almost all the projected growth will occur in less developed regions ▪ 1.2 billion jobs must be created to accommodate new entrants through 2025 ▪ Exhibit 3.5 shows that 85 percent of the population will be concentrated in less developed regions by 2050. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 25 Exhibit 3.5 World Population by Region, 2014–2050 (millions) Source: World Population Prospects, The 2014 Revision, United Nations Economic and Social Affairs, http:// www.unpopulation.org, 2012. Reprinted with permission. back Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 26 Controlling Population Growth ▪ The prerequisites to population control are: • Adequate incomes • Higher literacy levels • Education for women • Universal access to healthcare • Family planning • Improved nutrition • Basic change in cultural beliefs • Procreation is one of the most culturally sensitive, uncontrollable factors. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 27 Religion and Family Planning ▪ Religion plays a major role in attitudes about family size and family planning. ▪ Many religions discourage or ban family planning and thus serve as a deterrent to control. ▪ Case in Point – NIGERIA • The country has a strong Muslim tradition in the north and a strong Roman Catholic tradition in the east, and both faiths favor large families. • Most traditional religions in Africa encourage large families; in fact, the principal deity for many is the goddess of land and fertility. ▪ Map 7 shows the different religions of the world. Some of those have beliefs hampering the population programs of many governments. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 28 Rural/Urban Migration ▪ 1800 • 3.5% live in urban areas ▪ 2015 • 54% live in urban areas ▪ Desire for greater access to sources of education, healthcare, and improved job opportunities ▪ Tokyo has already overtaken Mexico City as the largest city on Earth, with a population of 38 million, a jump of almost 8 million since 1990 ▪ By 2030, 61% of the world’s population will live in urban areas ▪ At least 27 cities will have populations of 10 million or more, 23 of which will be in less-developed regions Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 29 Population Decline and Aging ▪ Birthrates in western Europe and Japan have been decreasing since the early or mid-1960s • More women are choosing career over children • Couples are deciding to remain childless ▪ Global life expectancy has grown more in the past 50 years than over the previous 5,000 years • Today, the over-age-65 group is 14%, and by 2030 this group will reach 25% in 30 different countries • The number of “old old” will grow much faster than the “young old” Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 30 U.N. Projections for 2050 ▪ People Aged 65 to 84 • From 400 million to 1.3 billion (3x increase) ▪ 85 years and over • From 26 million to 175 million (6x increase) ▪ Over 100 years • From 135,000 to 2.2 million (16x increase) ▪ Exhibit 3.6 illustrates the disparity in aging between more developed and less developed countries. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31 Exhibit 3.6 Age Density for World and Japan back Source: Adapted from “There Will Soon Be Seven Billion People on the Planet,” National Geographic Magazine, January 2011. p. 51; “A Special Report on Japan,” The Economist, November 10, 2010, p. 4. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32 Worker Shortage and Immigration Free flow of immigration will help ameliorate the dual problems of explosive population expansion in less developed countries and worker shortage in industrialized regions ▪ ▪ To keep the worker-to-retiree ratio from falling: Europe will need 1.4 billion immigrants over the next 50 years Japan and the United States will need 600 million immigrants between now and 2050 Immigration will not help ameliorate the problem though if political and cultural opposition to immigration cannot be overcome. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 33 World Trade Routes ▪ Trade routes link people and economies • • • • • Bind the world together Minimize distance Break natural barriers Curtail lack of resources Bridge fundamental differences As long as one group of people in the world wants something that another group somewhere else has and there is a means of travel between the two, there is trade. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34 Trading Through the Years Land Sea Air Internet ▪ 1500 – establishment of trade routes between Europe, Asia, and the Americas ➢ The Spanish empire founded the city of Manila in the Philippines to receive its silver-laden galleons bound for China. ➢ On the return trip, the ship’s cargo of silk and other Chinese goods would be offloaded in Mexico, carried overland to the Atlantic, and put on Spanish ships to Spain. ▪ The same trades routes remain important today and many Latin American countries have strong relationships with Europe, Asia, and the rest of the world. Map 8 shows these traditional trade routes and the burgeoning trade linkage between the developing nations. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 35 Port of Corinth During ancient times the Port of Corinth was a crucial trading center and port serving Greece and its neighbors. • The isthmus on which the city is built linked central Greece with the Peloponnesian Peninsula by land before the 6-kilometer canal pictured was completed in 1893. • In ancient times ships were unloaded in Corinth and literally dragged across the 6-kilometer isthmus and reloaded, all to save the weeks-long voyage by sail between the Aegean and Ionian Seas. © John Graham • Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 36 The Changing Climate • Climate change opens up a new trade route that may compete with the Panama Canal, cutting costly days off the travel time between Western Europe and Asia. © Education Images/UIG/Getty Images • Here a German commercial vessel follows a Russian icebreaker through the proverbial Northwest Passage. • Map 2 shows the changing world climate and how it opens up new avenues for foreign trade. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 37 Communication Links ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Telegraph Telephone Television Computer Mobile Phones Satellite Internet Communication has evolved. Each revolution in technology has had a profound effect on human conditions, economic growth, and the manner in which commerce functions. Map 5 illustrates the importance of fiber optic cable and satellites in providing global communications. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38 Summary ▪ A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences. ▪ Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution. ▪ Many of the peculiarities of a country (i.e., peculiar to the foreigner) would be better understood and anticipated if its history and geography were studied more closely. ▪ The study of history and geography is needed to provide the marketer with an understanding of why a country has developed as it has, rather than as a guide for adapting marketing plans. ▪ History and geography are two of the environments of foreign marketing that should be thoroughly understood and that must be included in foreign marketing plans to a degree commensurate with their influence on marketing effort. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 39 Chapter 4 Cultural Dynamics in Assessing Global Markets Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1 The importance of culture to an international marketer LO2 The origins of culture LO3 The elements of culture LO4 The impact of cultural borrowing LO5 The strategy of planned change and its consequences Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 2 Culture’s Pervasive Impact ▪ Culture affects every part of our lives • How we spend money • How we consume • How we sleep Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3 Culture and Birthrates ▪ The birthrate tables in Exhibit 4.1 show the gradual decline beginning in the 1960s. ▪ Birthrate spikes in Singapore in 1976 and 1988 are not a matter of random fluctuation. • In Chinese cultures, being born in the Year of the Dragon is considered good luck. ▪ A sudden and substantial decline in fertility in Japan in 1966 reflects abstinence, abortions, and birth certificate fudging. • The Japanese believe that women born in the Year of the Fire Horse will lead unhappy lives and perhaps murder their husbands. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4 Exhibit 4.1 Birthrates (per 1000 women) back Source: World Bank, World Development Indicators by International Bank for Reconstruction and Development, 2012. Copyright © 2012 by World Bank. Reproduced with permission of World Bank via Copyright Clearance Center. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5 Culture and Consumption ▪ Exhibit 4.2 illustrates culture’s influence on consumption patterns • The Dutch are the champion consumers of cut flowers. • The Germans and British love their chocolates. • The Japanese and Spaniards prefer seafood. • The Italians love pasta. • The French and Italians consume wine. • The Japanese are the highest consumers of tobacco. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6 Exhibit 4.2 Patterns of Consumption (annual per capita) Cut Flowers (€) Chocolate (kg) Fish and Seafood (kg) Dried Pasta (kg) Wine (liters) Tobacco (sticks) France 42 4.3 5.2 9.2 37.9 682 Germany 48 8.1 8.6 9.0 24.6 980 Italy 45 2.5 8.3 24.7 35.1 1147 Netherlands 49 4.9 4.8 3.7 25.7 659 Spain 23 2.1 28.2 5.2 19.5 911 United Kingdom 38 8.0 11.3 4.7 21.2 568 Japan 46 1.1 32.1 8.0 7.2 1490 United States 32 4.4 5.0 2.2 9.9 874 Country Source: CBI Marketing Information Data Base, “CBI Tradewatch for Cut Flowers and Foliage,” http://www.cbi.eu, 2012; and 2015. EuroMonitor International Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 7 Culture and Disease ▪ Exhibit 4.3 shows the consequence of consumption patterns across the countries listed. ▪ The Germans have some of the highest consumption levels of flowers, candy, and wine, but the lowest birthrate among the six European countries. ▪ Perhaps the Japanese diet’s emphasis on fish yields them the longest life expectancy. ▪ The diabetes mellitus death rates have declined in five of the countries. ▪ Japan shows a high incidence of stomach cancer. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8 Exhibit 4.3 Consequences of Consumption Death Rate per 100,000 Birthrates (per 1,000) Life Expectancy Ischemic Heart Disease Diabetes Mellitus Lung Cancer Stomach Cancer France 13.1 82.2 58.6 18.3 52.2 7.8 Germany 8.6 81.2 161.3 30.8 56.7 12.6 Italy 8.9 82.6 120.2 35.2 60.6 16.8 Netherlands 10.7 81.3 57.8 16.4 64.8 8.5 Spain 9.5 82.6 77.6 22.4 48.0 12.5 United Kingdom 12.8 81.2 121.0 9.7 56.4 7.7 Japan 7.9 83.3 62.1 11.7 56.5 39.4 United States 12.7 78.9 120.1 22.3 51.6 3.7 Country Source: EuroMonitor 2015. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 9 The Traditional Definition of Culture ▪ The sum of the values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation • Resides in the individual’s mind • Recognizes that large collectives of people can be likeminded Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10 Exhibit 4.4 Origins, Elements, and Consequences of Culture Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11 Origins of Culture: Geography ▪ Includes climate, topography, flora, fauna, and microbiology ▪ Influences history, technology, and economics • Social institutions • Boy-to-girl birth ratio • Ways of thinking Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12 Origins of Culture: History ▪ The impact of specific events in history can be seen reflected in technology, social institutions, cultural values, and even consumer behavior. • Much of American trade policy has depended on the happenstance of tobacco being the original source of the Virginia colony’s economic survival in the 1600s. • The Declaration of Independence, and thereby Americans’ values and institutions, was fundamentally influenced by the coincident 1776 publication of Adam Smith’s The Wealth of Nations. • The military conflicts in the Middle East in 2003 bred new cola brands as alternatives to Coca-Cola—Mecca Cola, Muslim Up, Arab Cola, and ColaTurka. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13 Origins of Culture: The Political Economy ▪ For most of the 20th century, four approaches to governance competed for world dominance: • Colonialism • Casualty of World War II • Fascism • Fell in 1945 • Communism • Crumbled in the 1990s • Democracy/free enterprise Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 Origins of Culture: Technology ▪ The effect of birth control techniques • Women have careers. • Half the marketing majors in the United States are women. • 10 percent of the crews on U.S. Navy ships are women. • Men spend more time with kids. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 15 Exhibit 4.5 Comparison of Healthcare Systems Source: Michelle Andrews, “Health, The Cost of Care,” National Geographic Magazine, December 2009. Oliver Uberti/National Geographic Stock. Reprinted with permission. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 16 Origins of Culture: Social Institutions ▪ Includes family, religion, school, the media, government, and corporations ▪ Aspects that are interpreted differently within each culture: • The positions of men and women in society • The family • Social classes • Group behavior • Age groups • How societies define decency and civility Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 17 Social Institutions: Family ▪ The technology of birth control has tremendously affected families and reduced family sizes around the world. ▪ Family forms and functions also vary substantially around the world, even around the country. ▪ The ratio of male to female children is affected by culture (as well as latitude). ▪ All these differences lead directly to differences in how children think and behave. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18 Social Institutions: Religion ▪ The impact of religion on the value systems of a society and the effect of value systems on marketing must not be underestimated. • In most cultures, the first social institution infants are exposed to outside the home takes the form of a church, mosque, shrine, or synagogue. ▪ The influence of religion is often quite strong, so marketers with little or no understanding of a religion may readily offend deeply. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19 Every Muslim is enjoined to make the hajj, or pilgrimage, to Mecca, once in his or her lifetime if physically able. Millions of faithful Muslims come from all over the world annually to participate in what is one of the largest ritual meetings on Earth. © John Graham © Mahmoud Mahmoud/AFP/Getty Images Religious Pilgrims Each day at sunrise and sunset, pilgrims crowd the Ghats (steps to the holy river/Mother Ganga/the River Ganges) to immerse themselves in the water and perform puja. The 55-day festival attracts some 60–80 million pilgrims. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 20 Social Institutions: School ▪ The literacy rate of a country is a potent force in economic development. • According to the World Bank, no country has been successful economically with less than 50 percent literacy. • When countries have invested in education, the economic rewards have been substantial. ▪ Communicating with a literate market is much easier than communicating with one in which the marketer must depend on symbols and pictures. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 21 © Cary Wolinsky/Trillium Studios Children reading books rented from a street vendor In the United States, kids attend school 180 days per year; in China, they attend 251 days—that’s six days a week. There’s a great thirst for the written word in China. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 22 Social Institutions: The Media ▪ The relative performance of educational systems (Exhibit 4.6) is seen as a leading indicator of economic competitiveness. ▪ Media time (TV and increasingly the Internet and mobile phones) has replaced family time. ▪ American kids spend only 180 days per year in school. ▪ Chinese, Japanese, and German kids spend around 220 days per year in school. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 23 Exhibit 4.6 OECD Program for International Student Assessment (PISA) Selected Scores and Rankings for 15-Year-Olds, 2013 Source: OECD, PISA, http://www. economist.com/node/21529014, 2015. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back Social Institutions: Government ▪ Most often governments try to influence the thinking and behaviors of adult citizens for the citizens’ “own good.” ▪ In some countries, the government owns the media and regularly uses propaganda to form “favorable” public opinions. ▪ Other countries prefer no separation of church and state. ▪ Governments also affect ways of thinking indirectly, through their support of religious organizations and schools. ▪ Governments influence thinking and behavior through the passage, promulgation, promotion, and enforcement of a variety of laws affecting consumption and marketing behaviors. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 25 Social Institutions: Corporations ▪ Most innovations are introduced to societies by companies, many times by multinational companies. ▪ Multinational companies efficiently distribute new products and services based on new ideas from around the word. As a result: • Cultures change. • New ways of thinking are stimulated. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 26 Elements of Culture ▪ The five elements of culture • Values • Rituals • Symbols • Beliefs • Thought processes Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 27 Cultural Values ▪ Hofstede, who studied over 90,000 people in 66 countries, found that the cultures differed along four primary dimensions. • Individualism/Collective Index (IDV), which focuses on self-orientation • Power Distance Index (PDI), which focuses on authority orientation • Uncertainty Avoidance Index (UAI), which focuses on risk orientation • Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievement Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 28 Individualism/Collective Index ▪ Refers to the preference for behavior that promotes one’s self-interest • High IDV cultures reflect an “I” mentality and tend to reward and accept individual initiative • Low IDV cultures reflect a “we” mentality and generally subjugate the individual to the group Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 29 Power Distance Index ▪ Measures the tolerance of social inequality, that is, power inequality between superiors and subordinates within a social system. • High PDI cultures tend to be hierarchical, with members citing social roles, manipulation, and inheritance as sources of power and social status. • Low PDI cultures tend to value equality and cite knowledge and achievement as sources of power. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 30 Uncertainty Avoidance Index ▪ Measures the tolerance of uncertainty and ambiguity among members of a society • High UAI cultures are highly intolerant of ambiguity, experience anxiety and stress, are concerned with security and rule following, and accord a high level of authority to rules as a means of avoiding risk. • Low UAI cultures are associated with a low level of anxiety and stress, a tolerance of deviance and dissent, and a willingness to take risks. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31 Cultural Values and Consumer Behavior ▪ A variety of studies (Exhibit 4.7) have shown cultural values can predict such consumer behaviors as • word-of-mouth communications • impulsive buying • responses of both surprise and disgust • the propensity to complain • responses to service failures • movie preferences • the influence of perceptions of product creativity Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32 Exhibit 4.7 Hofstede’s Indexes, Language, and Linguistic Distance Source: Geert Hofstede, Gert Jan Hofstede, and Michael Minkov, Culture and Organizations: Software of the Mind, 3rd ed. (New York: McGraw-Hill, 2011); Joel West and John L. Graham, “A Linguistics-Based Measure of Cultural Distance and Its Relationship to Managerial Values,” Management International Review 44, no.3 (2004), pp. 239–60. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back Rituals ▪ Patterns of behavior and interaction that are learned and repeated • • • • • • Marriage ceremonies Funerals Graduation rituals Dinner at a restaurant Visit to a department store Grooming before heading off to work ▪ Coordinate everyday interactions and special occasions ▪ Let people know what to expect Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34 Symbols ▪ Anthropologist Edward T. Hall tells us that culture is communication. ▪ Learning to interpret correctly the symbols that surround us is a key part of socialization. ▪ Aesthetics includes arts, folklore, music, drama, dance, dress, and cosmetics. ▪ Customers everywhere respond to images, myths, and metaphors that help them define their personal and national identities and relationships within a context of culture and product benefits. ▪ Exhibit 4.8 lists the metaphors Martin Gannon identified to represent cultures around the world. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 35 Language ▪ For some around the world, language is itself thought of as a social institution, often with political importance. ▪ Linguistic distance determines differences in values across countries and the amount of trade between countries and demonstrates a direct influence of language on cultural values, expectations, and even conceptions of time. ▪ Bilingualism: Customers process advertisements differently if heard in their native versus second language. ▪ Biculturalism: Customers can switch identities and perception frames. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 36 Exhibit 4.8 Metaphorical Journeys through 23 Nations The Thai Kingdom The Traditional British House The Japanese Garden The Malaysian Balik Kampung India: The Dance of Shiva The Nigerian Marketplace Bedouin Jewelry and Saudi Arabia The Israeli Kibbutzim and Moshavim The Turkish Coffeehouse The Italian Opera The Brazilian Samba Belgian Lace The Polish Village Church The Mexican Fiesta Kimchi and Korea The Russian Ballet The German Symphony The Spanish Bullfight The Swedish Stuga The Portuguese Bullfight Irish Conversations The Chinese Family Altar American Football back Source: From Martin J. Gannon, and Rajnandini K. Pillai Understanding Global Cultures, Metaphorical Journeys through 31 Nations, 5th ed. (Thousand Oaks, CA: Sage, 2012). Reprinted by permission of Sage Publications, Inc. via Copyright Clearance Center. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 37 Beliefs ▪ Beliefs, which mainly stem from religious training, vary from culture to culture. • The western aversion to the number 13 • Japanese concern about Year of the Fire Horse • The Chinese practice of Feng Shui ▪ Myths, beliefs, superstitions, or other cultural beliefs are an important part of the cultural fabric of a society and influence all manner of behavior. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38 © Maxim Marmur/AP Images Russian Orthodox priests blessing a Niva assembly line Part of a joint venture between General Motors and AvtoVaz, the Niva is the bestselling SUV in Russia, making a profit for GM. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 39 Thought Processes ▪ Culture seems to matter more in snap judgments than in longer deliberations. ▪ Studies demonstrate a deeper impact of culture on sensory perceptions themselves, particularly aromas. ▪ Newer products and services and more extensive programs involving the entire cycle, from product development through promotion to final selling, require greater consideration of cultural factors. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 40 Cultural Sensitivity and Tolerance ▪ Successful foreign marketing begins with cultural sensitivity • Being attuned to the nuances of culture • A new culture can be viewed objectively, evaluated, and appreciated ▪ Being culturally sensitive will reduce conflict and improve communications and thereby increase success in collaborative relationships. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 41 The Paradox in Cultural Change ▪ Culture is dynamic in nature. • It is a living process. ▪ Culture is conservative and resists change. ▪ Culture is the accumulation of a series of the best solutions to problems faced in common by members of a given society. ▪ Why do societies change? • War • Natural disaster Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 42 Cultural Borrowing ▪ Cultural borrowing is a responsible effort to learn from others’ cultural ways in the quest for better solutions to a society’s particular problems. ▪ Regardless of how or where solutions are found, once a particular pattern of action is judged acceptable by society, it becomes the approved way and is passed on and taught as part of the group’s cultural heritage. ▪ Culture is learned; societies pass on to succeeding generations solutions to problems, constantly building on and expanding the culture so that a wide range of behavior is possible. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 43 Similarities: An Illusion ▪ A common language does not guarantee a similar interpretation of words or phrases. • Americans and British have a harder time understanding each other because of their apparent and assumed cultural similarities. ▪ The growing economic unification of Europe has fostered a tendency to speak of the “European consumer.” ▪ Marketers must assess each country thoroughly in terms of the proposed products or services and never rely on an often-used axiom that if it sells in one country, it will surely sell in another. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 44 Resistance to Change ▪ Consumers in different cultures display differing resistance. ▪ Observations indicate that those innovations most readily accepted are those holding the greatest interest within the society and those least disruptive. ▪ Historically, most cultural borrowing and the resulting change has occurred without a deliberate plan, but increasingly, changes are occurring in societies as a result of purposeful attempts by some acceptable institution to bring about change, that is, planned change. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 45 © Joe McNally/Getty Images Mom in Mumbai Culture does change—dress and even names of major cities! Mumbai was formerly called Bombay. However, according to a local resident, everyone still calls it Bombay despite the official alteration. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 46 Planned and Unplanned Cultural Change ▪ The first step in bringing about planned change in a society is to determine which cultural factors conflict with an innovation, thus creating resistance to its acceptance. ▪ The next step is an effort to change those factors from obstacles to acceptance into stimulants for change. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 47 Introducing Innovation ▪ Marketers have two options when introducing an innovation to a culture. • They can wait for changes to occur. • Hopeful waiting for eventual cultural changes that prove their innovations of value to the culture • They can spur change. • Introducing an idea or product and deliberately setting about to overcome resistance and to cause change that accelerates the rate of acceptance Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 48 Cultural Congruence ▪ Not all marketing efforts require change to be accepted. ▪ Cultural congruence involves marketing products similar to ones already on the market in a manner as congruent as possible with existing cultural norms, thereby minimizing resistance. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 49 Summary ▪ Marketers have only limited control over the cultural environment. ▪ New environments influenced by elements unfamiliar and sometimes unrecognizable to the marketer complicate the task of planning marketing strategies. ▪ Of all the tools the foreign marketer must have, those that help generate empathy for another culture are, perhaps, the most valuable. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 50 Chapter 5 Culture, Management Style, and Business Systems (Part 1) Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1 The necessity for adapting to cultural differences LO2 How and why management styles vary around the world In order to achieve these LOs, we’ll talk about three things; Adaptation, American Management Style, and Differences in Management Styles Around the World Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. ▪ If you’re watching this lecture video, please pause this video now and find the video clip links for your click-through. ▪ ▪ ▪ ▪ Watch video clips below: http://www.youtube.com/watch?v=6_WAmt3cMdk\ http://www.youtube.com/watch?v=DsIOwPACyOw http://www.youtube.com/watch?v=5OaqF-JT4mQ Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3 Business Customs in Global Marketing ▪ Business etiquette is largely driven by cultural norms. ▪ Cultural analysis often pinpoints market opportunities and gives companies a competitive edge. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4 Required Adaptation ▪ Adaptation is a key concept in international marketing. ▪ To successfully deal with individuals, firms, or authorities in foreign countries, managers should exhibit: • • • • • • • • • • open tolerance flexibility humility justice/fairness ability to adjust to varying tempos curiosity/interest knowledge of the country liking for others ability to command respect ability to integrate oneself into the environment Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5 Degree of Adaptation ▪ Essential to effective adaptation is a awareness of one’s own culture and the recognition that differences in others can cause anxiety, frustration, and misunderstanding of the host’ intentions. • In China, it is important to make a point without winning arguments • In Germany, it is considered discourteous to use first names unless specifically invited to do • In Brazil, do not be offended by the Brazilian inclination to touch during conversation • However, They do not expect you to act like one of them Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6 Cultural Imperatives, Electives, and Exclusives ▪ Cultural imperatives: • business customs and expectations that must be met, conformed to, recognized, and accommodated if relationships are to be successful • guanxi, ningen kankei, compadre ▪ Cultural electives: • areas of behavior or customs that cultural aliens may wish to conform to or participate in but that are not required • Ritual of bowing, greeting with a kiss ▪ Cultural exclusives: • customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred and must not participate • “I’ll curse my brother but if you curse him, you will have a fight.” Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7 American Culture and Management Style ▪ There are at least three reasons to focus briefly on American culture and management style: 1. For Americans, it is important to be aware of the elements of culture influencing decisions and behaviors. 2. For those new to American culture, it is useful to better understand business associates from the U.S., as the U.S. market is the biggest export market in the world. 3. Since the late 1990s, American business culture has been exported around the world. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8 The Impact of American Culture ▪ Ways in which U.S. culture has influenced management style include, but are not limited to, the following: 1. “Master of destiny” viewpoint 2. Independent enterprise as the instrument of social action 3. Personnel selection and reward based on merit 4. Decisions based on objective analysis 5. Wide sharing in decision making 6. Never-ending quest for improvement 7. Competition produces efficiency Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9 Differences in Management Styles Around the World: Authority and Decision Making ▪ In high-PDI countries subordinates are not likely to contradict bosses, but in low-PDI countries they often do ▪ Three typical patterns exist: 1. Top-level management decisions 2. Decentralized decisions 3. Committee or group decisions ▪ Top-level management decision making is generally found in situations in which family or close ownership gives absolute control to owners, and businesses are small enough to allow such centralized decision making. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10 Differences in Management Styles Around the World: Communication Styles ▪ Differences in Communication Styles • Face-to-face communication • Internet communication ▪ According to Edward T. Hall, the symbolic meanings of time, space, things, friendships, and agreements vary across cultures ▪ Hall places eleven cultures along a high-context/low-context continuum ▪ Communication in a high-context culture depends heavily on the contextual (who says it, when it is said, how it is said) or nonverbal aspects of communication ▪ Communication in a low-context culture depends more on explicit, verbally expressed communications Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11 Differences in Management Styles Around the World: P-Time versus M-Time ▪ M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. ▪ Monochronic time divides time into small units and is concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time. ▪ Most low-context cultures operate on M-time, concentrating on one thing at a time. ▪ P-time, or polychronic time, is more dominant in high-context cultures. ▪ P-time is characterized by multi-tasking and by “a great involvement with people.” Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12 Market Orientation ▪ American companies are embracing the market orientation philosophy ▪ Other countries are still in the traditional production, product, and selling orientations Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13 Chrome File Edit View History Bookmarks Profiles Tab Window Help 25%O Tue 10:31 AM a Bb Ch. 5 Culture, Management St x Class MKTG 477 International х Definitions and Origins of Cult X + c prod.reader-ui.prod.mheducation.com/epub/sn_63bac/data-uuid-Oeacce9fda464d8ababd6a29a6c0bd1e Apps M Gmail YouTube Maps 8 Reading List : Аа lg List enu There are many ways to think about culture. Dutch management professor Geert Hofstede refers to culture as the “software of the mind” and argues that it provides a guide for humans on how to think and behave; it is a problem-solving tool.9 Anthropologist and business consultant Edward Hall provides a definition even more relevant to international marketing managers: “The people we were advising kept bumping their heads against an invisible barrier. ... We knew that what they were up against was a completely different way of organizing life, of thinking, and of conceiving the underlying assumptions about the family and the state, the economic system, and even Man himself."10 The salient points in Hall's comments are that cultural differences are often invisible and that marketers who ignore them often hurt both their companies and careers. Finally, James Day Hodgson, former U.S. ambassador to Japan, describes culture as a “thicket.” 11 This last metaphor holds hope for struggling international marketers. According to the ambassador, thickets are tough to get through, but effort and patience often lead to successes. Most traditional definitions of culture center around the notion that culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, 12 then transmitted from generation to generation.13 So culture resides in the individual's mind. But the expression “a culture” recognizes that large collectives of people Page 103 can, to a great degree, be like-minded. The best international marketers not only will appreciate the cultural differences pertinent to their businesses, but they also will understand the origins of these differences-for example, differences in values in the context of their culture.1 4 Possession of the latter, deeper knowledge will help marketers notice cultural differences in new markets and foresee changes in current markets of operation. Exhibit 4.4 depicts the several causal factors and social processes that determine and form cultures and cultural differences. Simply stated, humans make adaptations to changing environments through innovation. Individuals learn culture from social institutions through socialization (growing up) and acculturation (adjusting to a new culture-for example, how immigrants and indigenous people react to one another).15 Individuals also absorb culture through role modeling, or imitation of their peers. Finally, people make decisions about consumption and production through application of their cultural-based knowledge. More details are provided below. EUL:Lid A A clava 12,091 m Chrome File Edit View History Bookmarks Profiles Tab Window Help 25%O Tue 10:31 AM a Bb Ch. 5 Culture, Management St X Class MKTG 477 International х Definitions and Origins of Cult X + c prod.reader-ui.prod.mheducation.com/epub/sn_63bac/data-uuid-Oeacce9fda464d8ababd6a29a6c0bd1e Apps M Gmail YouTube Maps Reading List : Аа lg List enu Geography In the previous chapter, we described the immediate effects of geography on consumer choice. But geography exercises a more profound influence than just affecting the sort of jacket you buy. Indeed, geography (broadly defined here to include climate, topography, flora, fauna, and microbiology) has influenced history, technology, economics, what is farmed and Page 104 eaten,16 our social institutions, perhaps even the boy-to-girl birth ratio, 17 and, yes, our ways of thinking. 18 Geographical influences manifest themselves in our deepest cultural values developed through the millennia, and as geography changes, humans can adapt almost immediately. One sees the latter happening in the new interaction rituals evolving from the HIV/AIDS disaster or outbreaks in SARS, bird flu, swine flu, and the West Nile and Zika viruses. 19 The ongoing cultural divides across the English Channel or the Taiwan Strait also are representative of geography's historical salience in human affairs. The ideas of two researchers are particularly pertinent to any discussion of geography's influence on everything from history to present-day cultural values. First, Jared Diamond 20 a professor of physiology, tells us that historically, innovations spread faster east to west than north to south. Before the advent of transoceanic shipping, ideas flowed over the Silk Road but not across the Sahara or the Isthmus of Panama. He uses this geographical approach to explain the dominance of Euro-Asian cultures, with their superior technology and more virulent germs, over native African and American cultures. Indeed, Diamond's most important contribution is his material on the influence of microbiology on world history. Second, Philip Parker, 21 a marketing professor, argues for geography's deep influence on history, economics, and consumer behavior. For example, he reports strong correlations between the latitude (climate) and the per capita GDP of countries. Empirical support can be found in others' reports of climate's apparent influence on workers' wages.22 Parker, like Diamond before him, explains social phenomena using principles of physiology. The management implications of his treatise have to do with using ambient temperature as a market segmentation variable. We return to this issue in @ Chapter 8. History 5 Chrome File Edit View History Bookmarks Profiles Tab Window Help 24%D Tue 10:31 AM a Bb Ch. 5 Culture, Management St X Class MKTG 477 International х Definitions and Origins of Cult Х + c prod.reader-ui.prod.mheducation.com/epub/sn_63bac/data-uuid-Oeacce9fda464d8ababd6a29a6c0bd1e Apps M Gmail ► YouTube Maps 8 Reading List : < > Аа lg List enu Social Institutions Social institutions including family, religion, school, the media, government, and corporations all affect the ways in which people relate to one another, organize their activities to live in harmony with one another, teach acceptable behavior to succeeding generations, and govern themselves. The positions of men and women in society, the family, social classes, 31 group behavior, age groups, and how societies define decency and civility are interpreted differently within every culture. In cultures in which the social organizations result in close-knit family units, for example, a promotion campaign aimed at the Page 106 family unit is usually more effective than one aimed at individual family members. Travel advertising in culturally divided Canada has pictured a wife alone for the English-speaking market segment but a man and wife together for the French-speaking segments of the population because the latter are traditionally more closely bound by family ties. The roles and status positions found within a society are influenced by the dictates of social institutions. The caste system in India is one such institution. The 1997 election of K. R. Narayanan, a low-caste person-once called an "untouchable”-as president made international news because it was such a departure from traditional Indian culture. Decades ago, brushing against an untouchable or even glancing at one was considered enough to defile a Hindu of high status. Even though the caste system has been outlawed, it remains a part of the culture. Family The technology of birth control has tremendously affected families and reduced family sizes around the world, as described earlier. Women not only are putting off child bearing, but in some countries, they are putting off marriage as well. In America, single women are choosing to have children without marriage.32 This trend is particularly notable in Asia, where the percentages of women aged 35-39 years who have never married has burgeoned to more than 15 percent, up from about 5 percent in 1970.33 In Japan, where this circumstance has led to a fast-shrinking population, government is taking action. The federal government now provides monthly allowances of $150 per child. One provincial government has established Page 107 an online dating service called the Fukui Marriage Hunting Cafe.34 Despite all this, apparently some younger 12,091 07 5 m Chrome File Edit View History Bookmarks Profiles Tab Window Help 24%D Tue 10:32 AM Q Bb Ch. 5 Culture, Management St X Class MKTG 477 International х Definitions and Origins of Cult X + G prod.reader-ui.prod.mheducation.com/epub/sn_63bac/data-uuid-Oeacce9fda464d8ababd6a29a6c0bd1e Apps M Gmail ► YouTube Maps Reading List : < > Аа lg List enu School Education, one of the most important social institutions, affects all aspects of the culture, from economic development to consumer behavior. The literacy rate of a country is a potent force in economic development. Numerous studies indicate a direct link between the literacy rate of a country and its capability for rapid economic growth. According to the World Bank, no country has been successful economically with less than 50 percent literacy, but when countries have invested in education, the economic rewards have been substantial. Literacy has a profound effect on marketing. Communicating with a literate market is much easier than communicating with one in which the marketer must depend on symbols and pictures. Increasingly, schools are seen as leading to positive cultural changes and progress across the planet. In the United States, kids attend school 180 days per year; in China, they attend over 220 days-that's six days a week. There's a great ܗ ܗ 1 ܟr ܕܐ ܗ ܚ ܗ. ܫ ܘܗ ܬܐܬܐܐܚܘ ܘ ܝ. ܗ ܟܠܐܬ ܩܗܬ ܬܐܗܚܝܪ ' ܘܠܐܬ 12,091 5 Chrome File Edit View History Bookmarks Profiles Tab Window Help 24%D Tue 10:32 AM Q Bb Ch. 5 Culture, Management St X Class MKTG 477 International х Definitions and Origins of Cult X + c prod.reader-ui.prod.mheducation.com/epub/sn_63bac/data-uuid-Oeacce9fda464d8ababd6a29a6c0bd1e Apps M Gmail YouTube Maps Reading List : < > Аа g List enu Government Compared with the early (during childhood) and direct influences of family, religion, school, and the media, governments hold relatively little sway. Cultural values and thought patterns are pretty much set before and during adolescence. Most often governments try to influence the thinking and behaviors of adult citizens for the citizens' “own good.” For example, the French government has been urging citizens to procreate since the time of Napoleon. Now the government is offering a new “birth bonus” of $800, given to women in their seventh month of pregnancy-despite France having one of the highest fertility rates in the European Union (see Exhibit 4.3). Likewise the Japanese government is spending $225 million to expand Page 110 day-care facilities toward increasing the falling birthrate and better employing women in the workforce. Or notice the most recent French and British government-allowed bans of hijabs (head scarves worn by Muslim schoolgirls) or the Dutch government initiative to ban burkas in that country (full-body coverings worn by Muslim women 48 or the Swiss government's ban on the construction of minarets. Also, major changes in governments, such as the dissolution of the Soviet Union, can have noticeable impacts on personal beliefs and other aspects of culture. Of course, in some countries, the government owns the media and regularly uses propaganda to form “favorable” public opinions. Other countries prefer no separation of church and state-Iran is currently ruled by religious clerics, for example. Governments also affect ways of thinking indirectly, through their support of religious organizations and schools. For example, both the Japanese and Chinese governments are currently trying to promote more creative thinking among students through mandated changes in classroom activities and hours. Finally, governments influence thinking and behavior through the passage, promulgation, promotion, and enforcement of a variety of laws affecting consumption and marketing behaviors. The Irish government is newly concerned about its citizens' consumption of Guinness and other alcoholic products. Their studies suggest excessive drinking costs the country 2 percent of GDP, so to discourage underage drinking, the laws are being tightened (see the end of Chapter 16 for more details). Corporations Of course, corporations get a grip on us early through the media. But more important, most innovations are introduced to societies by companies, many times multinational companies. Indeed, merchants and traders throughout history have been 5
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International Marketing: "Follow Your Heart"

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Executive Summary
This cultural analysis paper discusses five fundamental aspects that shape the United
Kingdom as a reliable overseas market for "Follow Your Heart" products. After an
introduction that sets a compelling stage for the exercise, the paper adopts a model that
sculptures the United Kingdom in five fundamental aspects. These are the country's relevant
history, political system, legal system, dominant business customs, and religious and other
belief systems practiced in the European powerhouse. Each item provides an overview of the
collective United Kingdom culture by developing a unique profile that differentiates the
country from other regions in Europe and the world. Collectively, the five elements turn out
to be profoundly essential constituents that mold the rich but unmentioned culture in Europe.
The paper segues to the theme by sculpturing a context that captures a snapshot of a richly
diversified economic region that offers opportunities for "Follow Your Heart growth and
development," both as a brand and an overseas investment.
Although each item is discussed individually, the five subtopics collectively spit out
the essential communication practices, business-required skills, and interaction modalities
that assist in the decision to explore foreign markets. For example, the United Kingdom's
relevant history shares the most crucial historical eras and explores potential socio-economic
shortcomings. The political system item reveals the country's leadership style and how its
composition influences business operations. The legal system informs on the various legally
accepted modalities used when one feels mishandled. Dominant business customs sculpture
the ideal business behaviors and norms used in Britain. Lastly, information about religious
beliefs is ideally alert on what to expect in a multi-religious society. As a discipline, this
cultural analysis bases its foundation on qualitatively researched papers that share vital
information that marketers could use to explore a new market segment. The various cultural
phenomena discussed in this analysis could come in handy for other marketers seeking to
interpret and understand unique representations and practices practiced in Britain to improve
their understanding or understanding of overseas markets.
Introduction
Marketers require effectively conducted a cultural analysis to make crucial marketing
decisions (Samiee & Chirapanda, 2019). However, contemporary cultural analysis and its
application extend beyond product and market analysis to become a crucial source of
information for those seeking to evaluate a country's business customs and other essential
cultural aspects. This paper delves into a cultural analysis of the United Kingdom to present a
collection of facts that "Follow Your Heart" products can use to patronage its high-quality
plant-based foods to improve the lives of consumers within and beyond (available at
https://followyourheart.com/). The paper attempts to reasonably interpret the meaning and
implications of cultural analysis by providing information that helps consumers and the
market understand marketplace dynamics. The findings of this analysis provide an insightful
"snapshot" in time of the primary beliefs and values in the United Kingdom that "Follow
Your Heart" can use to influence communication procedures, ignite operational processes,
interactions, and achieve needed skills among its workforce.
This paper also seeks to reveal the unmentioned or seen lifestyle preferences and
communication practices, such as historical and religious beliefs, political systems, legal
procedures, business, and customs routinely exercised in the target market: the United
Kingdom. "Follow Your Heart" is committed to positively contribute towards the betterment
of its consumers' lives by adopting innovations that create high-quality plant foods such as
cheese, dressings, dips and spreads, and veganaise. The business, operational, and ethical
decisions made at the company impact its products, consumers' health, customers' wallets,
and the community and the world.

3
United Kingdom's Relevant History
Britain is an island country found in the Atlantic Ocean, off the coastline of France.
The nation is a union of four independent states, namely Scotland, England, Wales, and
Northern Ireland. The islands that currently make up the United Kingdom share a long
historical background. For example, they were all invaded by the Romans in 55 BC, which
resulted in forced contact between the island inhabitants and the rest of Europe. The Vikings,
Saxons, and finally the Normans took over the islands after the weakening o the Roman
Empire. The English took over Wales in 1282 during the reign of Edward I. The two
countries later unified in 1536. The Scotish became a constituent of the British crown in 1602
under King James I. the British and Scotland's union became official in 1707 to become
Great Britain. Ireland joined the Great Britain union in 1801 despite persistent rebellions
from a portion of Ireland's citizens. Therefore, in 1921, the southern part of Ireland became
an independent country from the Irish Fre...


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