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									CULTURE AND BUSINESS
                     By
          Professor Dr. Leilani O. Baumanis
               OUTLINE
I. Relevance of Culture in Business
II. What is Culture? Quick Review
III. Cultural Orientation
    I. Hofstede
        I. Collectivism/Individualism
        II. Masculinity/Femininity
        III. Power Distance
  II.    Culture Shock
Relevance of Culture in Business
             • World is “Globally Interdependent”
                – Joint ventures / Licensing agreements
                – Foreign Capital Investments
             • The Economics of Globalization
                – Lower tariff barriers
                – Privatizing/deregulating national
                  economies
                – Regional alliances
             • Revolution of Markets
                – High speed computers
                – More informed consumers
                – Ease of transportation
Culture in Marketing

• “Biggest mistakes for companies
  is when they assume that if it
  works in the their home country, it
  will work globally.” (Ferraro,
  2001)
• Importance of cultural
  understanding in marketing
  research
Cultural Competency: A Global Problem

          • Today, climate change is forcing us to be
            globally interdependent.
             – We’re depleting our resources quickly.
             – Kyoto Protocol.
          • Global problems include: Poverty; social
            and gender inequality; international
            conflicts.
What is culture?
CULTURE DEFINED


                  • Culture is
                     – “that complex whole which
                       includes knowledge, belief,
                       art, morals, law, custom and
                       any other capabilities and
                       habits acquired by man as a
                       member of society.” (Tylor,
                       1871)
CULTURE FROM DIFFERENT
PERSPECTIVES

                • Historical: social heritage,
                  or tradition passed on to
                  future generations

                • Behavioral: a way of life

                • Normative: ideals, values,
                  or rules for living

                • Mental: complex of ideas,
                  or learned habits, for social
                  control
CULTURE FROM DIFFERENT
PERSPECTIVES
• Functional: the way people
  solve problems of adapting to
  the environment and living
  together.
• Structural: patterned and
  interrelated ideas, symbols, or
  behaviors.
• Symbolic: arbitrarily assigned
  meanings that are shared by an
              organization
Culture Definition Continued

• Culture is…
  – “everything that people have, think, and do as members of
    their society.” (Ferraro, 2001)
  – People must…
     • “have” material objects in their culture
     • “think” ideas, values, attitudes, and beliefs.
     • “do” – behave in a certain way as prescribed by their society.
CULTURE is….
 • Conceptually segmented into generalizations.
 • Shared by social groups.
 • Learned.
   “Culture is transmitted through the process of learning and
     interacting with the environment, rather than through the genetic
     process.”
Culture Influences Biological Processes

• Different cultures…
  – treat food differently. (http://www.youtube.com/watch?v=qXHwQKyD0hs)
  – Practice body mutilations in different ways.
  – Can be biologically affected according to the condition of
    their norm.
CULTURAL UNIVERSALS
“All cultures of the world - despite many difference – face a number of
common problems and share a number of common features we call
universals.”


                                       Economic Systems
                                       Marriage and Family
                                        Systems
                                      • Educational Systems
                                      • Social Control
                                        Systems
                                      • Supernatural Belief
                                        System
CULTURAL CHANGE
“All cultures experience continual change.”

• Cultural Diffusion
   – the spreading of cultural
     items from one culture to
     another
   – Diffusion is a selective
     process – hence the
     differences.
   – As much as 90% of culture
     derive from another.
Cultural Change Processes

  Cultural borrowing is a two-way process.
  Culture is most often modified to meet the needs of the
   receiving society.
  Some cultural traits are more easily diffused than others.

            Technology is more
         easily diffused because
         it doesn’t ask to change
             a cultural behavior,
            rather to innovate a
                   process.
Ethnocentrism

    Evaluate a foreigner’s behavior by the standards of their own
     culture.
    Belief that one’s culture is superior to all others.
    Belief that their way of doing things is right, proper, and normal
     and those practiced by other cultures are wrong and inferior.
    Contribute to prejudism, contempt for others, and interpersonal
     conflict.
 CULTURAL
ORIENTATION
Time Orientation

               Basic Time Orientation –
                   Whether a society is past, present or
                   future orientated.

               Monochronic / Polychronic
                   The degree to which a culture use
                   sequential or synchronized time

                   – Monochronic = one thing at a
                     time

                   – Polychronic = several things
                     done simultaneously
High-Context
 Saudi Arabia
                • Prefer information to be drawn
 Italy            from the surroundings rather
 France           than explicitly expressed
 Vietnam
                • Consider nonverbal cues
 Turkey
 Korea            important
 China          • Rely on physical context for
                  information
                • Maintain more reserve during
                  initial conversations
                • Ask questions or ask for
                  specific information less
                  directly
Low Context Culture
                      • Low-Context Cultures
 -Germany
                      • Prefer information to be
 -Scandinavia
                        provided explicitly, usually
 -Switzerland           in words
 -United States       • Less aware of non verbal
 -England               cues, environment, situation
 -Canada              • Need detailed background
                        information
                      • Ask questions more directly
                      • Tend to segment and
                        compartmentalize
                        information
HOFSTEDE’S DIMENSIONS OF CULTURE

• Masculinity/Femininity (Tough vs. Tender Society)
• Power Distance (Equality Hierarchy Dimension)
• Individualism/Collectivism



                                       Geert Hofstede,
                                       Professor
Masculinity (Tough) vs. Femininity (Tender)

• This values dimensions pertains to the extent to
  which a culture prefer achievement, assertiveness,
  power, competition and material possession over
  nurturing, social relationships and cooperation.
• The tough-tender dimensions define your gender
  roles.
Power Distance (The Equality-Hierarchy
Dimension)
                    • Egalitarian Society:
                       – authority is questioned,
                       – interaction is expected,
                       – and subordinated want their superiors
                         to be accessible.
                    • Hierarchical Society:

                       – distance between the ranks are
                         respected,
                       – status and power are maintained,
                       – very little interaction is practiced
                         among its people.
THE INDIAN CASTE SYSTEM

  • Based on your Guna &
    Karma
  • There are 4 Varnas:
     – the Brahmins (teachers,
       scholars and priests),
     – the Kshatriyas (kings and
       warriors),
     – the Vaishyas (traders),
       and
     – Shudras (agriculturists,
       service providers, and
       some artisan groups).
    Collectivism

• Collectivist societies place a higher value on the
  group and encourage others to put the interest of
  the group above their own.
  – “maintain strong ties and obligations to group members”
  – “value long-term social relationships above short-term
    accomplishments”
         Individualism
• Individualistic societies place a higher value on the goals and
  achievements of the individual.
   – “individual over group”
   – “independence vs. interdependence”
   – Family ties are unimportant
   – Children are taught and encouraged to be self-sufficient at an early
     age
   – Society advocates being the most that you can be
   – The Bill of Rights protect the right of each citizen as opposed to the
     community
          Bulgaria

                Bulgaria

90
80
70
60
50
40
30
20
10
0
     PD   IND              MAS   UA
France
Germany
Netherlands
           Romania

             Rom ania


100

80

60

40

20

 0
      PD    IND         MAS   UA
Turkey
United Kingdom
United States
POWER DISTANCE CULTURAL
DIFFERENCE

                                 Power Distance

100
 90
 80
 70
 60
 50
 40
 30
 20
 10
  0
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Are you experiencing CULTURE SHOCK?
      • 1. The honeymoon stage
         – Positive attitude
         – All is new, exciting, and exotic
         – Attitude towards work and locals are exaggeratedly
           positive.
      • 2. Irritation and hostility
         – Problems arise at work, home and marketplace
         – Simple things taken for granted at home occur and
           become obstacles
      • 3. Gradual Adjustment
         – Marks the passing of a crisis and gradual recovery
         – Understanding slowly emerges and cultural cues begin to
           make sense
      • 4. Biculturalism
         – The ability to function in both cultures.
                 THANK YOU

Dr. Leilani O. Baumanis
Professor, College of Business
Johnson & Wales University
Email: lbaumanis@jwu.edu
SKYPE: Leilani954
Facebook: lbaumanis@jwu.edu

								
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