Ninth
Edition
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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
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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
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Opening Profile: Saudi Arabian Culture
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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
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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
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Chapter Learning Goals
To understand how culture affects
all aspects of international
management
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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
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Environmental Variables Affecting
Management Functions
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Culture and its Effects on Organizations
• An awareness
of and an
Cultural
Sensitivity or honest caring
about
Cultural
another
Empathy?
individual’s
culture
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Chapter Learning Goals
To be able to distinguish the
major value dimensions which
define cultural differences among
societies or groups
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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:
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IBM vs. Apple
Daimler Benz vs. Chrysler
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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
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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
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Promotions,
recruitment
Culture’s Effects on Management
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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
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Influences on National Culture
Subcultures
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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
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Cultural Subsystems that Influence People
and Their Behavior
Kinship
Education
System
Religion
Economic
System
Recreation
Health
System
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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
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Cultural Value Dimensions
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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
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GLOBE Research Project Dimensions
• Low: Sweden, Japan,
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Assertiveness
Switzerland
• High: Greece, Austria,
Germany
Performance
Orientation
• Low: Russia, Argentina, Italy
• High: U.S., Hong Kong,
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Singapore
GLOBE Research Project Dimensions
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Future
Orientation
• Low: Russia, Argentina, Italy
• High: Netherlands,
Humane
Orientation
• Low: Germany, Spain, France
• High: Malaysia, Ireland,
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Switzerland, Singapore
Philippines
Cultural Cluster
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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
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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
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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
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Hofstede’s Value Dimensions
Long-term/Short-term Orientation
High
Low
CHI HK JPN TAI VIE BRA IND US CAN UK
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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
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Affective
UK GER SWE
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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
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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”
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Chapter Learning Goals
To understand the interaction
between culture and the use of
the Internet
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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
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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
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Developing Cultural Profiles
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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
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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
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Chapter Learning Goals
To gain some insight into different
management styles around the
world
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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.
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Developing Management Styles and Ways
of Doing Business: Saudi Arabia
Tribalism
Close
friendships
Honor,
shame
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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
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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
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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.
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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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