1. International Management and Cultural Diversity
CHAPTER 2
International Management and Cultural Diversity
Andrew J. DuBrin
Essentials of Management, 6/e South-Western College Publishing Copyright © 2003
Screen graphics created by:
Jana F. Kuzmicki, PhD, Christian Brothers University

2. After reading this chapter, you should be able to:
2.1
After reading this chapter, you should be able to:
Appreciate the importance of multinational corporations markets in international business.
Recognize the importance of sensitivity to cultural differences in international enterprise.
Identify major challenges facing the global managerial worker.
Explain various methods of entry into world markets.
Pinpoint success factors in the global marketplace.
Explain the importance of valuing demographic and cultural diversity in the workplace.
Present an overview of how information technology influences a manager’s job.
Explain how the Internet influences the manager’s job. 2

3. Cultural Mistakes to Avoid
2.2
Cultural Mistakes to Avoid
Country
Great Britain
Spain
Scandinavia
All Asian countries
Japan
India
Cultural Mistake
Asking personal questions. The British protect their privacy.
Expecting punctuality. Your appointments will usually arrive minutes late.
Being overly rank conscious in these countries. Little attention is paid to a person’s place in the hierarchy.
Pressuring an Asian employee to brag about his or her accomplishments. They prefer to let the record speak for itself.
Shaking hands or hugging in public. Japanese consider the practices to be offensive.
Telling Indians you prefer not to eat with your hands. If they are not using cutlery when eating, they expect you to do likewise.
Mexico
Brazil
Latin America
Flying into a Mexican city in the morning, expecting to close a deal by lunch. They build business relationships slowly.
Attempting to impress them by speaking a few words of Spanish. Portuguese is the official language.
Wearing elegant jewelry during a business meeting. They feel people should appear conservative during business meetings.
Adapted from Exhibit 2.1 3

4. Challenges Facing the Global Managerial Worker
2.3
Challenges Facing the Global Managerial Worker
Economic crises in other countries
Balance of trade problems
Collecting money
Liability of being a foreigner
Differences in negotiating style
Human rights violations
Culture shock 4

5. Methods of Entry into World Markets
2.4
Exporting
Licensing
Methods of Entry into World Markets 1 2 3 4 5 6 7 8
Local warehousing & selling
Global startup
Local assembly & packaging
Global merger
Direct foreign investment
Strategic Alliance(joint venture) 5

6. How to Succeed in the Global Marketplace
2.5
How to Succeed in the Global Marketplace
Think globally, act locally
Diversify into similar product markets
Be familiar with local business concepts, laws, and customs
Recruit talented nationals
Research and assess potential markets
Hire or develop multicultural workers
Adopt Environmentally Friendly Policies
Understand your
Competitors
Potential partners
Members of the management team 6

7. The Competitive Advantages of Diversity
2.6
The Competitive Advantages of Diversity
Facilitates recruiting and retaining talented individuals
Leads to better rapport with culturally diverse customers
Improves productivity and profits
Reduces possible cultural bloopers
Improves customer service

8. Organizational Practices for Improving the Management of Diversity
2.7
Organizational Practices for Improving the Management of Diversity
Establish corporate policies favoring diversity
Encourage employees to form network groups
Conduct “valuing diversity” training programs 8