1. Cultural Dynamics What is culture? Cultural values - Hofstede
Business customs - adapting to culture

2. What is culture? the total range of activities and people.
the combination of learned meanings, values, norms and customs shared by a society

3. How do we get culture? learned through the process of socialization
social learning results in shared expectations, norms
norms are used to evaluate objects, people and events
Cultures & subcultures

4. Context Cultures High-context culture Low-context culture
social context affects the meaning of the message; context is as important (or more important) as what is said.
Examples: Japan and Saudi Arabia
Low-context culture
is where the meaning of the message is explicitly expressed by the words; social context has less effect.
Example: North America

5. Factual vs. Experiential Knowledge
Factual Knowledge -- facts & statistics
Experiential Knowledge -- nuances surrounding facts & statistics; interpreted within the context of the culture

6. Elements of Culture Elements Language verbal non-verbal
Religion & Belief systems
Values and Attitudes
Manners and Customs
Material Elements
Aesthetics
Education
Social Institutions

7. Cultural Values - Hofstede’s Research
Individualism/Collectivism
Power Distance
Uncertainty Avoidance
Masculinity/Femininity
Need Gratification

8. Individualism/Collectivism
Extent to which a country values independence of self vs. loyalty to others
Example:
Japan: Collectivist – important to know one’s place; don’t shame family, avoid standing out
U.S.: Individualist – express yourself (Cingular Wireless) & your opinions; show status (American Express); be an individual (Dr. Pepper)

9. Power Distance
High PD: A society’s expectation that power/status is distributed unequally
Example:
India: High PD, caste system, hierarchy; strong dependence of lower social classes on higher classes; respect for authority
U.S.: Low PD, people are created equal; ok to question or even defy authority

10. Masculinity/Femininity
Values for achievement/success (masculinity) vs. values for caring & quality of life (femininity)
Examples:
Scandinavian countries: feminine – not supposed to hurt feelings; respect the loser, or underdog
U.S.: masculine – winning important, in your face; competition and aggressiveness count

11. Uncertainty Avoidance
The extent to which uncertainty and ambiguity are considered threatening
Examples:
Germany: high uncertainty avoidance – a structured education system with lots of rules, experts specialize in distinct areas with recognized qualifications
U.S.: low uncertainty avoidance – liberal arts and general business degrees are valued; anyone can be an expert because there are no rules to define expertise

12. Long-term Orientation
The extent to which a country exhibits pragmatic planning for future vs. “live for the moment” short term perspective
Examples:
China: LT orientation – values perseverance, thrift, respect for tradition
U.S.: ST orientation – values immediate gratification; initiative and entrepreneurship; innovation

13. Hofstede’s Cultural Dimensions
U.S. Values
Individualism: Independence
Low power distance: Equal opportunity
Masculinity: Power, success, winning
Low uncertainty avoidance: Obsession with change; new & better
Short term orientation: Credit card culture
Japanese Values
Collectivist: group harmony
High power distance: status, loyalty to superiors
Masculinity: power, success (but don’t flaunt it)
High uncertainty avoidance: structure, job hierarchy
Long term orientation: cash culture
De Mooij, Marieke (1998). Global marketing and advertising: Understanding Cultural Paradoxes. Thousand Oaks, CA: Sage.

14. Cultural Sensitivity & Adaptation
Levels of Adaptation
Imperatives - customs that must be recognized and accommodated
Adiaphora - customs that are optional but still appreciated
Exclusives - customs that outsiders should not attempt to adopt

15. Methods of Doing Business
Different cultures have different approaches to these concepts.
Level of authority
Management outlook
Communications
Time and tempo

16. Acculturation
Adjusting or adapting to a specific culture other than one’s own … and “one of the keys to success in international operations.

17. Success and Culture Embrace local culture. Build relationships.
Employ locals to gain cultural knowledge.
Help employees understand you.
Adapt products and processes to local markets.
Coordinate by region.