In-International-Business

Unit8CulturalEnvironmentInInternationalBusinessObjectivesofthechapterUnderstandthebasicaspectsofcultureIdentifyvariousapproachestoculturestudyWorkouttheimplicationsofculturalstudytobusinessesBusinessEnvironmentsWhatisculture?Definitionofculture:TheintegratedtotalsumoflearnedbehavioraltraitsthataremanifestandsharedbymembersofsocietyEssentialFeaturesofCultureItislearned,notinnate.Thevariousfactsofcultureareinterrelatedandexistinastateofconstantchange.Itissharedbythemembersofagroupanddefinestheboundariesbetweendifferentgroups.e.g.Waysoforganizingsociety,fromkinshipgroupstostatesandmulti-nationalcorporations;thedistinctivetechniquesofagroupandtheircharacteristicproducts.Howdoescultureinfluencecustomerbehavior?CulturalInfluenceonMarketingTastecolorattitudestyleIntheUSthereisahighculturalpredispositiontobeinterestedandintriguedbyproductinnovationsthathavea“gadgety”quality.ApproachestoStudyofCultureMaslow’sHierarchyofNeedsSelf-ReferenceCriterion(SRC)AdoptionProcessofInnovationDiffusionHighandLowcontextCulturePerceptionMaslow’sHierarchyofNeedsMaximizationofpotentialRespect,recognitionFriendships,LoverelationshipsWell-being,JobsecurityFood,water,air,shelter,clothingEconomicdevelopmentSpiritualMaterialThemorehighlydevelopedamarket,thegreatertheportionofgoodsandproductsthatwillbefillingsocialandesteemneedsasopposedtophysiological.Readthetextandfindoutthesignificanceofneedhierarchytointernationalmarketers.universalityStatus-improvinggoodsDoyouhaveanystereotypestowardthegoalsofemployeesaroundtheworld?Americans:moneyFrenchmen:autonomyGermans:workskillsutilizedandimprovedAlthoughthereareabundantsourcesofstereotypesthatsuggestenormousdifferencesinthebasicnatureofdifferentnationalitiesandraces,increasingevidenceisaccumulatingtodisputethesestereotype.Inastudyof25overseasoperationsoflargemanufacturingcompany,Sirota&Greenwoodfoundconsiderablesimilarityintheworkgoalsofemployees.PolicyimplicationAmanagementwhosepoliciesandpracticesreflectthesestereotypesshouldbepreparedtosuffertheconsequencesofmanagingafrustratedanduncommittedworkforces.Donot:☆Providefewadvancementopportunitiesinsomecountries.☆Usecertaincountriesasdumpinggroundsforroutine,unchallengingwork.Inthisrespect,itwouldbeinterestingtodeterminehowmuchofthedifficultyexperiencedinmanagingemployeesinothercountriesisduenottoculturaldifferencesatall,rather,totheautomaticandpsychologicallyself-servingassumptionofdifferences,thatinreality,maybeminororevennonexistent.Self-ReferenceCriterion(SRC)andEthnocentrism:MajorObstaclesSelf-ReferenceCriterion(SRC)anunconsciousreferencetoone’sownculturalvalues,experiences,andknowledgeasabasisfordecisions(JamesLee)Ethnocentrism（种族中心主义）thenotionthatone’sowncultureorcompanyknowsbesthowtodothingsFourstepsforeliminatingSRC1.Definethebusinessproblemintermsofhomecountryculturaltraits,habits,andnorms.2.Definethebusinessproblemintermsoftheforeigncountryculturaltraits,habits,andnorms.Makenovaluejudgments.3.IsolatetheSRCInfluenceintheproblemandexamineitcarefullytoseehowitcomplicatestheproblem.4.RedefinetheproblemwithouttheSRCinfluenceandsolvefortheforeignmarketsituation.InformationGaps:ListentoYourCustomer(s)SelfReference:HomeBuildersconstructwhattheythinkcustomerswillneed.(Presumptuous)RESULT:CookieCutter（千篇一律）designs,massproductionforeconomiesofscaleandsalespressureSURPRISE!!!Ahomebuilder(finally)surveyedbuyers(1996)andfoundthat:InformationGaps:ListentoYourCustomer(s)SURVEYFINDINGSManyCustomerspreferhousingwithout...FireplacesCoveredPorchesCoffeeBarTheypreferLoffice(Acombinationloft+officespaceforacomputer)TheadoptionprocessInterestEvaluationTrialAdoptionAwarenessThespeeddependsonthecharacteristicsofthenewproductandtheadoptercategoriesDiffusionTheoryEverettRogers,inhisbookDiffusionofInnovations(1962),suggestedthatadoptionwasasocialphenomenon,characterizedbyanormaldistributionofadopters.InteractioneffectInteractioneffect:Theprocessthroughwhichindividualsinasocialsystemwhohaveadoptedaninnovationinfluencethosewhohavenotyetadopted.Adoptionofanewideaorproductistheresultofhumaninteraction.PolicyImplication:stepstakentopersuadeinnovatorsandearlyadopterstopurchaseaproductarecritical.CharacteristicsofInnovationsRelativeadvantage(convenience,performance,style,safety,statussymbol,augmentationetc.)Compatibility(consistentwithcurrentvalues,taste,economicpower,experiences,knowledge,customsetc.)Complexity(user-friendlinesstoadopters)Divisibility(abilitytotryandpay,livinghabit,income)Communicability(bi/tri/lingualinstructions,label)SquashisnotwelcomedInZimbabwe.SellwellinUSbutnotinEuropeOthercharacteristicsInitialvs.ongoingcostsRiskoruncertaintysocialapprovalgasheaterelectricheatersolarheaterHighandlowcontextculturesEdwardT.Hall(1977):theconceptasawayofunderstandingdifferentculturalorientations.Inlowcontextcultures-Messagesareexplicit;wordscarrymostoftheinformationincommunication.-Formalanalysisofproformaprofitandlosstatementandbalancesheetsiscrucial.-Legalpaperworkisessential.Inhighcontextcultures-Lessinformationiscontainedinthe