1. The Cultural Environments Facing Business
Chapter 2

2. Culture Defined
Culture: the specific learned norms of a society that reflect attitudes, values, and beliefs
Major problems of cultural collision are likely to occur if:
-a firm implements practices that do not reflect local customs and values and/or
-employees are unable to accept or adjust
to foreign customs.

3. Cultural Dynamics -choice or imposition
Cultures consist of societies, i.e., relatively homogeneous groups of people, who share attitudes, values, beliefs, and customs.
Cultures are dynamic; they evolve over time.
Cultures are influenced by language, religion and geographical boundary.
Cultural value systems are set early in life, but may change because of:
-choice or imposition
-contact with other cultures.

4. The Nation as a Point of Reference
The basic similarity amongt people within countries is both a cause and an effect of national boundaries.
National identity is perpetuated through the rites and symbols of a country and a common perception of history.
Subcultures may link groups from different nations more closely than certain groups within nations.

5. Cultural Formation and Change
Societal values and customs constantly evolve in response to changing realities.
Cultural imperialism is brought about by the imposition of one culture upon that of another.
Certain elements introduced from outside a culture may be known as creolization, indigenization, or cultural diffusion.

6. Language as a Cultural Stabilizer
Isolation from other groups, especially because of language, tends to stabilize cultures.
Some countries see language as being so important that they regulate the inclusion of foreign words and/or mandate the use of the country’s official language for business purposes.
See Map 2.2 and Fig 2.2

7. Religion as a Cultural Stabilizer
Religion is a major source of both cultural imperatives and cultural taboos.
Major religions include:
-Buddhism
-Christianity
-Hinduism
-Islam
-Judaism
See Map 2.3

8. Social Stratification Systems
Ascribed group memberships are defined at birth; they may include gender, family, age, caste, and ethnic or national origin.
Acquired group memberships are based on one’s choice of affiliation, such as political party, religion, and social and professional organizations.
Social stratification affects both business strategy and operational practices.

9. Factors Affecting Work Ethics
The desire for material wealth vs. the desire for leisure
Protestant Ethic
Live to work or work to live?
The expectation of success and reward
Assertiveness (Hofstede’s masculinity vs. femininity index)
Need satisfaction (Maslow’s Hierarchy)
See Fig 2.4
Motivated employees are normally more productive, and higher productivity leads to lower costs.

10. Factors Affecting Relationship Preferences
Power distance, i.e., the psychological and social distance between superiors and subordinates
Individualism vs. collectivism
Individualism represents a desire for personal freedom, time, and challenge.
Collectivism represents a dependence on the organization as well as a need for a safe environment.

11. Factors Affecting Risk-taking Behavior
Uncertainty avoidance, i.e., one’s tolerance
of risk (UK vs. Belgium)
Trust, i.e., one’s belief in the reliability and honesty of another (Sweden vs. Brazil)
Future orientation, i.e., the need for immediate vs. delayed gratification (Canada vs. Italy)
Self-determination vs. fatalism (insurance sales)

12. Factors Affecting Information and Task Processing
Selective perception of cues
Information obtaining
-low-context cultures [explicit]: N. Europe
-high-context cultures [implicit]: S. Europe
• Information processing
-monochronic [work sequentially]: N. Europe
-polychronic [multi-task]: S. Europe
Whereas idealistic cultures are principle driven, pragmatic cultures are detail driven.

13. Factors Affecting the Communication Process
Different spoken and written languages
Silent language may be different too.
-color associations
-conversational distance
-perception of time and punctuality
-kinesics [body language and gestures]
Problems in communication may arise, even
when nations share the same basic language
(e.g., British, Canadian, and American English).

14. Managerial Issues Associated with Cultural Differences
Accommodation to the host culture
Cultural distance [degree of similarity]
See Map 2.4
Culture shock and reverse culture shock
Managerial orientations
Polycentric
Ethnocentric
geocentric

15. Factors Affecting Strategies for Instituting Cultural Change
Impact on the host country’s value systems
Cost/benefits of change (Is it worth?)
Resistance to change
How to reduce resistance
Participation in decision-making
Reward sharing
Role of opinion leaders
Timing
Opportunities to learn from abroad

16. Implications/Conclusions
Culture is dynamic and evolves over time. Economic development and globalization are two engines of cultural change.
In addition to being part of a national culture, people are simultaneously part of other cultures, such as social and professional associations and business and government organizations. [continued]

17. Host cultures do not always expect firms and individuals to conform to their norms; in some instances they may choose to accommodate differences in traditions.
International firms should make a concerted effort to identify ideas and behaviors in host countries and foreign cultures that can be usefully applied across the whole of their organizations.