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Strategic Information Systems Planning

Fort Valley State University

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A1 -Topic: What is Culture?

The goal is to get you to think about what we mean when we talk about "cultural difference." In each cultural group, people have different ways of doing and understanding things, and these differences can be major barriers when people or objects move across cultural boundaries.

You have two options. The first places you in the position of an expert in North American culture, charged with explaining that culture to people who are totally alien. The second asks you to put yourself in the position of an outsider, trying to anticipate the ways your own North American culture might cause problems for your business plans in another country.

Note that you will do better on both of these questions if you review Chapter 3 PPT and understand about cultural differences.

Option 1: Help the Vulcans.

The US government has selected Indiana University to act as host to the very first delegation of Vulcans (humanoid aliens from the planet Vulcan) visiting the USA. Thirty Vulcans will spend one semester living with various students who want to participate in this interstellar cultural exchange.

Vulcans are quite fluent in English, but cultural misunderstandings might arise between Vulcan and American students. To prevent some of these misunderstandings, IU President Myles Brand has asked you to write a two-page manual describing to your Vulcan guests how American students handle intimate, personal, social, and public space in their apartments and dormitories.

In all cultures, people distance themselves from each other in everyday life, by dividing the places they live and work. Your culture tells you what kinds of activities are appropriate and acceptable in different parts of your living area. For instance, once someone is in your living room, they have to ask your permission to use your bathroom. They are generally not allowed to go in your medicine cabinet or closet at all. In this assignment you must think about how people divide up the space where they live into intimate, personal, social and public areas. Think about the areas strangers are allowed access to, the places close friends would be allowed in, the places where people have to ask permission, the places that nobody except yourself and your spouse or lover would see or use.

You should divide your manual in two distinct parts:

1) In the first part, tell the Vulcans how you divide up the space in your own living areas. What rules regulate and control space - how are the areas named, and what goes on there? You may discuss your present living circumstances, or those where you grew up. If you are a foreign student you are welcome to discuss the different kinds of space in your house in your home country. Give examples and be specific.

2) In the second part, explain in general terms how Americans (or your own culture) define differences between intimate, personal, social, and public space in their home. What are the basic characteristics of each kind of space?

In both 1) and 2), do not forget to describe some rules that will be helpful to the Vulcans so they do not make mistakes and embarrass themselves! Discuss the reasons behind the rules!

Option 2: Selling Hot Dogs in India.

Congratulations! You have just been chosen by Baseball-Dogs Incorporated as one of five candidates for the job of directing the first international division of the company - in Rajasthan in northwestern India.

The company sells hot dogs from mobile stands at sporting events. The all-beef hotdogs, buns, and condiments are a multi-million dollar business here in the United States, and the company has decided the Indian market of 750 million hungry people, many of them sports fans, is the key to future expansion and mega-profits. You are a candidate for the job of leading this effort NOT because you know anything in particular about India, but because you are smart, adaptable, and know enough about cultural difference to be able to anticipate that there will be a number of problems you will have to face in adapting your American business to a new cultural and economic context.

You do NOT have to worry about things like financing, procuring supplies, or buildings and carts. But if you get the job you will have two major tasks. The first is to build a local management and sales force by hiring Indian workers. The second is to figure out how to sell hot dogs to Indians - to anticipate what kinds of cultural problems you might run into in selling a new food to people who are not familiar with it. People in Rajasthan have diverse religious backgrounds, for example, including Muslims, Hindus, Sikhs, and several others. They speak different languages, live in different kinds of families, and eat diverse diets.

This job pays very well. You want it! Write three pages explaining what you will need to know about culture in Rajasthan in order to do this job well and build a flourishing business. Tell the company what kinds of cross-cultural issues you will consider in building a local management team, and in getting Indians to eat your dogs. Suggest some ways you will solve the inter-cultural problems which you think are going to arise.

If you are not a North American, you can do this assignment from the perspective of a business in a country you are more familiar with.

assignment 2 https://fvsu.view.usg.edu/d2l/le/dropbox/1576908/1...

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Ninth Edition 3-1 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals 1. To understand how culture affects all aspects of international management 2. To be able to distinguish the major value dimensions which define cultural differences among societies or groups 3. To understand the interaction between culture and the use of the Internet 3-2 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals 4. To be able to develop a working cultural profile typical of many people within a certain society as an aid to anticipating attitudes toward work, negotiations, and so on 5. To gain some insight into different management styles around the world 3-3 Copyright ©2017 Pearson Education, Inc. Opening Profile: Saudi Arabian Culture 3-4 Copyright ©2017 Pearson Education, Inc. Opening Profile:: Social Media Bring Changes to Saudi Arabian Culture • As of 2014, social media penetration in Saudi Arabia included: 88% on Facebook 81 % on Twitter 78 % on Google • 70 % of Saudis are under 30 and own smartphones • Many use Twitter and YouTube out of boredom with the lack of entertainment • Twitter represents an escape from the lack of social freedom 3-5 Copyright ©2017 Pearson Education, Inc. Opening Profile: Saudi Arabian Culture  Social media used in all sectors of • • • • Saudi society Government officials Royalty Sheikhs Industry Saudi government, an absolute monarchy,  reviews online activity to gather intelligence and monitor public opinion • Social Media • force for modernity in Saudi Arabia • powerful interactions with cultural mores 3-6 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To understand how culture affects all aspects of international management 3-7 Copyright ©2017 Pearson Education, Inc. Culture and its Effects on Organizations Culture A set of shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations 3-8 Copyright ©2017 Pearson Education, Inc. Environmental Variables Affecting Management Functions 3-9 Copyright ©2017 Pearson Education, Inc. Culture and its Effects on Organizations • An awareness of and an Cultural Sensitivity or honest caring about Cultural another Empathy? individual’s culture 3-10 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To be able to distinguish the major value dimensions which define cultural differences among societies or groups 3-11 Copyright ©2017 Pearson Education, Inc. Organizational Culture Exists within and interacts with societal culture 2. Varies a great deal from one organization, company, institution, or group to another 3. Represents those expectations, norms, and goals held in common by members of that group 1. Examples:    3-12 IBM vs. Apple Daimler Benz vs. Chrysler Copyright ©2017 Pearson Education, Inc The Effect of Culture on Organizational Process U.S. Culture Individual influences future Alternative Life is preordained The environment People adjust to is changeable the environment 3-13 Function Affected Planning, scheduling Morale, productivity Hark work leads to success Wisdom and luck Motivation, are also needed rewards Employment can be ended Employment is for a lifetime Copyright ©2017 Pearson Education, Inc. Promotions, recruitment Culture’s Effects on Management     3-14 Convergence—the phenomenon of the shifting of individual management styles to become similar to one another Self-Reference Criterion—the subconscious reference point of ones own cultural values. Many people in the world understand and relate to others only in terms of their own cultures Parochialism—occurs, for example, when a Frenchman expects those from or in another country to automatically fall into patterns of behavior common in France Ethnocentrism—describes the attitude of those who operate from the assumption that their ways of doing things are best—no matter where or under what conditions they are applied Copyright ©2017 Pearson Education, Inc. Influences on National Culture Subcultures  3-15 Stereotyping Many countries  A cultural profile that tends comprise diverse to develop some tentative subcultures whose expectations—some constituents conform cultural context—as a only in varying degrees backdrop to managing in a to the national character. specific international Example: Canada setting Copyright ©2017 Pearson Education, Inc. Cultural Subsystems that Influence People and Their Behavior Kinship Education System Religion Economic System Recreation Health System 3-16 Copyright ©2017 Pearson Education, Inc. Political System Under the Lens: Religion and the Workplace Since the basis of a religion is shared beliefs, values, and •institutions, it is closely aligned with societal culture •Religion and culture are inextricably linked Religion underlies moral and economic norms and •influences everyday business transactions and on-the-job behaviors Foreign managers must be sensitive to the local religious •context and the expectations and workplace norms •Failure to do so will minimize or negated the goals of the firm in that location 3-17 Copyright ©2017 Pearson Education, Inc. Cultural Value Dimensions 3-18 Values Can vary across subcultures Are a society’s ideas about what is good or bad, right or wrong Allow for contingency management Determine how individuals will probably respond in any given circumstances Help managers anticipate likely cultural effects Copyright ©2017 Pearson Education, Inc. GLOBE Research Project Dimensions • Low: Sweden, Japan, 3-19 Assertiveness Switzerland • High: Greece, Austria, Germany Performance Orientation • Low: Russia, Argentina, Italy • High: U.S., Hong Kong, Copyright ©2017 Pearson Education, Inc. Singapore GLOBE Research Project Dimensions 3-20 Future Orientation • Low: Russia, Argentina, Italy • High: Netherlands, Humane Orientation • Low: Germany, Spain, France • High: Malaysia, Ireland, Copyright ©2017 Pearson Education, Inc. Switzerland, Singapore Philippines Cultural Cluster 3-21 Copyright ©2017 Pearson Education, Inc. Copyright ©2017 Pearson Education, Inc. Hofstede’s Value Dimensions Power Distance The level of acceptance by a society of the unequal distribution of power in institutions Individualism The tendency of people to look after themselves and their immediate families only and to neglect the needs of society 3-22 Copyright ©2017 Pearson Education, Inc. Uncertainty Avoidance The extent to which people in a society feel threatened by ambiguous situations Collectivism The desire for tight social frameworks, emotional dependence on belonging to “the organization,” and a strong belief in group decisions Hofstede’s Value Dimensions Power Distance High Orientation Toward Authority Low MAL PHI MEX IND FRA ITA JPN SPA ARG US GER UK DEN ISR AUT Uncertainty Avoidance High Desire for Stability Low GRE JPN POR KOR ARA GER AUL CAN US UK IND DEN SIN 3-23 Copyright ©2017 Pearson Education, Inc. Hofstede’s Value Dimensions Individualism Individualism Collectivism AUL US UK CAN FRA GER SPA JPN MEX ITA KOR SIN Masculinity Assertive/Materialistic Relational JPN MEX GER UK US ARA FRA KOR POR CHC DEN SWE 3-24 Copyright ©2017 Pearson Education, Inc. Hofstede’s Value Dimensions Long-term/Short-term Orientation High Low CHI HK JPN TAI VIE BRA IND US CAN UK 3-25 Copyright ©2017 Pearson Education, Inc. E/W AFR Trompenaar’s Dimensions Obligation High Low Universalistic US Particularistic GER SWE UK ITA FRA JPN SPA SIN Emotional Orientation in Relationship High Low Neutral JPN 3-26 Affective UK GER SWE Copyright ©2017 Pearson Education, Inc. USA FRA SPA ITA CHI Trompenaar’s Dimensions Privacy in Relationship High Low Specific Diffuse UK US FRA GER ITA JPN SWE SPA CHI Source of Power and Status High Personal US UK SWE GER FRA 3-27 Copyright ©2017 Pearson Education, Inc. Low Society ITA SPA JPN CHI Critical Operational Value Differences  Time—differences in temporal values  Change—control and pace of change  Material Factors—physical goods and status symbols versus aesthetics and the spiritual realism  Individualism—“me/I” versus “we” 3-28 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To understand the interaction between culture and the use of the Internet 3-29 Copyright ©2017 Pearson Education, Inc. The Internet and Culture  Over 92 percent of Korean homes have high-speed Internet service  Sweden requires all databases of personal information to be registered with the Data Inspection Board, their federal regulatory agency  About 75 percent of the world’s Internet market lives outside the United States: websites must reflect local markets, customs, languages and currencies 3-30 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To be able to develop a working cultural profile typical of many people within a certain society as an aid to anticipating attitudes toward work, negotiations, and so on 3-31 Copyright ©2017Pearson Education, Inc. Developing Cultural Profiles 3-32 Managers can gather considerable information on cultural variables from current research, personal observation, and discussion with people. Managers can develop cultural profiles of various countries. Managers can use these profiles to anticipate drastic differences that may be encountered in a given country. It is difficult to pull together descriptive cultural profiles in other countries unless one has lived there and been intricately involved with those people. Copyright ©2017 Pearson Education, Inc. Comparative Management in Focus Japan  “Wa”—peace and harmony  A mix of authoritarian and humanism in the workplace  Emphasis on participative management, consensus, and duty  Open expression and conflict discouraged 3-33 Copyright ©2017 Pearson Education, Inc. Germany  Preference for rules and order, privacy  Dislike of inefficiency and tardiness  Assertive, but not aggressive  Organizations are centralized but still favor consensus decision making Comparative Management in Focus Latin America  Not homogenous, but common similarities  “Being-oriented” compared with “doingoriented”  Work and private lives are more closely integrated  Very important to maintain harmony and save face 3-34 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To gain some insight into different management styles around the world 3-35 Copyright ©2017 Pearson Education, Inc. Under the Lens: Doing Business in Brazil  Almost everyone has a combination of European,       African, and indigenous ancestry Individual relationships are important Brazilians take time when negotiating Brazilian business is hierarchical, and meetings are required Avoid confrontations Dress well and conservatively Business cards are exchanged  Having your business card printed in Portuguese on the opposite side is a good idea. 3-36 Copyright ©2017 Pearson Education, Inc. Developing Management Styles and Ways of Doing Business: Saudi Arabia Tribalism Close friendships Honor, shame 3-37 Copyright ©2017 Pearson Education, Inc. Paternalism, nepotism Person-orientation, Theory Y management (treat workers with freedom and respect) Conflict avoidance, positive reinforcement Developing Management Styles and Ways of Doing Business: Chinese Family Business  Small, family businesses predominate  “Guanxi” connections  People are put ahead of business – human centered management style  Globalization has resulted in more competitive management styles: the new generation manager is more individualistic, more independent and takes more risks 3-38 Copyright ©2017 Pearson Education, Inc. Summary of Key Points  Each society has its own unique culture  Managers must develop cultural sensitivity  Researchers such as Hofstede and Trompenaar have created studies which help describe cultural profiles; GLOBE study created a body of data on cultural dimensions  Managers can use research results and personal observations to develop cultural profiles of countries 3-39 Copyright ©2017 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2017 Pearson Education, Inc. 40 Crème Brulee - Mini Case Study Food from street carts have become a foodie favorite for San Franciscans. Food carts travel from neighborhood to neighborhood, offering their delicacies to range of local foodies. But without a set location, how do these carts let consumers know here they will be? Well, through Twitter of course. Curtis Kimball, the man behind the enormously popular Crème Brule Cart in San Francisco, has quickly amassed over 12,000 followers in a little over a year. He knows that most of his business comes from people who follow him on Twitter because Twitter is the only way you can find the cart’s location for the day, says Kimball, a former construction worker turned crème Brule expert. “It gives people a valid reason to follow me,” he says. The other use of Twitter for Kimball is to tell people what flavor of crème Brule he is serving in a given day. And Kimball says that Twitter gives him the ability to develop a personal relationship with his followers and others. He says he tries to engage his followers by asking for suggestions of what type of custard to serve or where he should park his cart, and he always tries to keep things humorous. Kimball says he has no marketing budget and Twitter has been a great way to amass fans. He doesn’t have as much of a presence on Facebook, and he’s not sure the model is as efficient as Twitter. “Twitter can absorb more than Facebook with very little effort,” Kimball adds. Yelp has also been a valuable source of referrals for the entrepreneur. The cart has 224 reviews and is rated with 4 and a half stars. QUESTIONS: 1. Make a SWOT analysis based on the organization in the given case study. 2. What is the importance of social media in the strategic marketing? 3. What type of market segmentation would work well for this organization? 4. Imagine this organization decide to market their product/service in your home country. What cultural differences do they need to be wary of? 5. Give three alternative strategies that the organization could follow? 6. Are these strategies feasible? 7. Is there any possibility for the following strategies at Innocent Drinks? If so, give your ideas. 1. 2. 3. 4. 5. 6. 7. Forward integration Backward integration Horizontal integration related diversification unrelated diversification market development product development 8. Which of Porter’s five generic strategies would be most successful do you think? And why?
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