1. Alexander Consulting Enterprise 9/3/2015 Cultural Environment of Global Markets

2. Alexander Consulting Enterprise 9/3/2015 What is Culture?

3. Alexander Consulting Enterprise 9/3/2015 Characteristics of Cultures - Shared - Learned - Patterned - Flexible

4. Alexander Consulting Enterprise 9/3/2015 Elements of Culture 1. Cultural Paradigm - Beliefs - Religion - Superstition 2. Material Culture - Technology - Economy 3. Language 4. Social Institutions - Legal System - Political System - Educational System - Role of Family - Role of Sexes 5. Aesthetics - Graphic Arts - Musical Arts - Culinary Arts

5. Alexander Consulting Enterprise 9/3/2015 Comparison of Learning Techniques in Germany and Brazil Germanic Culture Latin Culture Syllabic Method Schild + kr ö + te = Schildkr ö te Method based on relationship between meaning and object Tortuga Hans hat eine Schildkröte

6. Alexander Consulting Enterprise 9/3/2015 Hofstede’s Dimensions to Compare Cultures - Individualism versus Collectivism - Power Distance - Uncertainty Avoidance -Long Term versus Short Term Thinking - Masculine versus Feminine

7. Alexander Consulting Enterprise 9/3/2015 AULAustralia AUTAustria BELBelgium CAN Canada DEN Denmark FIN Finland FRA France GERGermany GBR Great Britain IREIreland ISRIsrael ITA Italy NET Netherlands NZLNew Zealand NOR Norway SAF South Africa SPASpain SWE Sweden SWISwitzerland USAUnited States Power Distance High Individualism 53 91 71 Small power distanceLarge power distance SPA SAF FRA BEL ITA AUT ISR FIN GER NOR SWI SWE IRE DEN NZL CAN NET GBR USA AUL +11+28+44+64+77+94 Low Individualism Individualism Individualism and Power Distance

8. Alexander Consulting Enterprise 9/3/2015 Hofstede’s Classification of Triad Countries

9. Alexander Consulting Enterprise 9/3/2015 Linguistic Distance - Language and Culture are Interwoven - Whorfian Hypothesis: Language Structures Cultural Reality - Cultural Differences and Language Distance are Positively Correlated

10. Alexander Consulting Enterprise 9/3/2015 High Context Implicit Japanese Arabian Latin American Spanish Italian English (UK) French North American Scandinavian German Swiss Low Context Explicit Austrian High Context Versus Low Context Cultures

11. Alexander Consulting Enterprise 9/3/2015 Non-verbal Communication Language of Time Language of Space Language of Things Language of Friendship Language of Agreements

12. Alexander Consulting Enterprise 9/3/2015 Implications for International Marketers 1. Determine Cultural Values Relevant for Demand - What are the Needs of the Market? - How Does Product/Promotion agree with important Elements of Culture? - Who makes Buying Decisions? - What are Important Reference Groups? 2. Determine Cultural Values Relevant for the Way Business is Conducted - Behavior at the Negotiation Table - Management of Local Employees

13. Alexander Consulting Enterprise 9/3/2015 How Does Product/Promotion agree with important Elements of Culture? New Product Cultural IncongruenceCultural Congruence AdaptationDo NothingPlanned Change

14. Alexander Consulting Enterprise 9/3/2015 3. Avoid Cultural Blunders - Common Blunders:  Translation Mistakes  Do not Use Multiple Meaning Words  Do not Insist on Literal Translation but Conceptual Equivalents  Use Independent Back Translation  Cultural Misunderstandings  Subcultural Idiosyncrasies - Reasons for Blunders:  Ethnocentrism  Carelessness  Quick Decisions  Lack of Research

15. Alexander Consulting Enterprise 9/3/2015 English Translations made by Japanese firm added to labels to increase prestige for their products being sold in China. Product English Translation Equivalent to Japanese Spam Liver Putty Toilet PaperMy Fanny Brand Ready to Eat PancakesStrawberry Crap Dessert Antifreeze SprayHot Piss Brand Pediatrician’s SloganSpecialist in Deceased Children Translation Blunders

16. Alexander Consulting Enterprise 9/3/2015 OldNew Prime TimeHeures de grande ecoute (hours of largest audience) Air BagCoussin gonflable de protection (Inflatable cushion of protection) CookieSable americain American cookie Cultural Imperialism? The French Government is afraid of cultural pollution. There is and ongoing discussion about introducing a law that would prohibit the use of foreign words.

17. Alexander Consulting Enterprise 9/3/2015 Clear expression of joy and sorrow Unequivocal expression of “Yes/No” Strong self-assertion Strong personality Excellent negotiating skills Priority of self-interest Ambiguous expression of Joy/Sorrow Equivocal expression of “Yes/No” Weak self-assertion Weak personality Poor negotiating skills Priority of harmony with others Japanese A Culture of Self- restraint Americans A Culture of Self- expression Cultural Comparison: U.S. versus Japan

18. Alexander Consulting Enterprise 9/3/2015 Dignity of individuals Individual work ethic Great individual freedom Respect for rules An open and transparent society Multi-cultural society A society excelling in creativity and versatility Individual decisions over consensus A society which pursues the ideal Human relations oriented Dependence on the group Lack of individual freedom Low regard for rules A closed society, lacking in transparency Mono-cultural society An orderly and uniform society Dependence on consensus A society which pursues harmony with reality Japanese Society “In the Same Boat” Concept American Society Dignity of Individuals Cultural Comparison: U.S. versus Japan

19. Alexander Consulting Enterprise 9/3/2015 Game concept: Business is a game in pursuit of profits under the rules of laws and contracts Efficiency-oriented and approximate accuracy simplicity, clarity, and quickness Quantity-oriented Short-term performance evaluation Easy layoffs, dismissals of employees, and selling of businesses Japanese BusinessAmerican Business Mutual trust-oriented business: business is based on trusting relationship among people rather than the rules of game Highly precision-oriented and perfectionism-high dependency on human awareness Quality-oriented Mid-to-long term evaluations Job security Cultural Comparison: U.S. versus Japan

20. Alexander Consulting Enterprise 9/3/2015 Top down management Heavy dependence on machinery and technology, vs. Light dependence on human resources Limited loyalty and incentive- oriented work ethics Team Oriented Heavy dependence on human resources Strong loyalty and fewer incentives Japanese BusinessAmerican Business Cultural Comparison: U.S. versus Japan