THE INTERNATIONAL WORLD CULTURE AND DEMOGRAPHICS
residents of Boston may have more in common with London or Moscow than with residents of Montana or Nebraska. No matter whether we are crossing state borders, national borders or oceans, markets will very significantly in customs, language, religious beliefs, and levels of economic development. Any lack of understanding of particular market and its unique differences is almost certain to lead to difficulties. WHOSE’S THE SAME?
DIFFERENCES –RELIGEON –TIME/SPACE –MATERIAL PROSSESSIONS –WORK VS PLEASURE –FRIENDSHIPS –GROUP Vs INDIVIDUAL PSYCHOGRAPHICS VS DEMOGRAPHS –EXAMPLE: WHAT IS IT LIKE TO BE A CATHOLIC –IN SPAIN, MEXICO, US, FINLAND, ITALY, ROME DEFINING CULTURE?
NOT ALL COUNTRIES WILL ADDRESS BUSINESS ISSUES THE SAME WHAT ARE SOME DIFFERENCES YOU COULD NAME? GUNGHO-QT
CULTURE IS A GESTALT CONTEXT –LOW CONTEXT –MESSAGES ARE EXPLICIT –HIGH CONTEXT –INFORMATION IN BACKGROUND, ASSOCIATIONS HAVE VALUES WHAT DO THE WORDS MEAN? –WHEN DOES YES MEAN NO?
SELF REFERENCED PERCEPTION (srp)SELF REFERENCED PERCEPTION HAS MARKET DEVELOPED IN SAME WAY FROM CONTRY TO COUNTRY? Campbell soup/ pop tarts ARE CONSUMER TARGETS SIMILAR IN DIFFERENT PLACES? One step film: 35 mm cameras CONSUMERS SHARE SAME WANTS/NEEDS Tang (positioned tang as orange juice but France do not drink orange juice at breakfast. Positioned to day
WHAT DO WE NEED TO KNOW ABOUT A COUNTRY TO CONSIDER BUSINESS OPPORTUNITIES ? TO CONSIDER BUSINESS OPPORTUNITIES ?
The World Bank Classification System Based on GNP/capita 1.Low income ($755 or less) 2.Lower middle income ($756 - $2995) 3.Upper middle income ($2,996 - $9,265) 4.High income ($9,266 or more)
The Misery Index –is simple total of a country’s unemployment and inflation rates. –is a sort of indicator of economic success. The higher the total score, the worse the misery.
RESOURCES AND SKILLSRESOURCES AND SKILLSRESOURCES AND SKILLSRESOURCES AND SKILLS PERHAPS THE MOST USEFULL FOR BUSINESSPERHAPS THE MOST USEFULL FOR BUSINESSPERHAPS THE MOST USEFULL FOR BUSINESSPERHAPS THE MOST USEFULL FOR BUSINESS
How could they? While, by the end of the 1990s, less than 20 percent of transnational's goods and services were produced outside their home markets, most boards were predominately from one culture and few multinationals had allowed their shareholder base to become as global as their business.