Cultural Differences - International Marketing - Lecture Slides, Slides for Marketing. Amity Business School
adrika18 December 2012

Cultural Differences - International Marketing - Lecture Slides, Slides for Marketing. Amity Business School

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International Marketing is course name for this lecture. This lecture includes: Cultural Differences, Management Styles, Gender Bias, Business Ethics, Open Tolerance, Flexibility, Humility, Knowledge of the Country, Liki...
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Slide 1

Chapter Learning Objectives

• The necessity for adapting to cultural differences • How and why management styles vary around the world • The extent and implications of gender bias in other

countries • The importance of cultural differences in business ethics • The differences between relationship-oriented and

information-oriented cultures

Required Adaptation

All who wish to deal with individuals, firms, or authorities in foreign countries should be able to meet 10 basic criteria:

- 1) open tolerance - 2) flexibility - 3) humility - 4) justice/fairness - 5) ability to adjust to varying tempos - 6) curiosity/interest - 7) knowledge of the country - 8) liking for others - 9) ability to command respect - 10) ability to integrate oneself into the environment

Degree of Adaptation

• Essential to effective adaptation is awareness of one’s own culture and the recognition that differences in others can cause anxiety, frustration, and misunderstanding of the host’s intentions.

• The self-reference criterion (SRC) is especially operative in business customs.

• The key to adaptation is to remain American but to develop an understanding of and willingness to accommodate the differences that exist.

Cultural Imperatives

• The business customs and expectations that must be met and conformed to or avoided

• Friendship motivates local agents to make more sales. • The significance of establishing friendship cannot be

overemphasized, especially in those countries where family relationships are close.

• In some cultures a person’s demeanor is more critical than in other cultures

• What may be an imperative to avoid in one culture is an imperative to do in another.

Cultural Electives and Exclusives

• Cultural electives: - Relate to behavior or customs that you may wish to

conform to or participate in but that are not required. - A cultural elective in one county may be an

imperative in another. - Cultural electives are visibly different customs

• Cultural exclusives: - Those customs or behaviors reserved exclusively for

the locals and from which the foreigner is barred.

The Impact of American Culture on Management Style

• “Master of destiny” viewpoint • Independent enterprise as the instrument of social action • Personnel selection and reward based on merit • Decisions based on objective analysis • Wide sharing in decision making • Never-ending quest for improvement • Competition producing efficiency

Authority and Decision Making

• Influencers of the authority structure of business: - High PDI Countries

• Mexico, Malaysia - Low PDI Countries

• Denmark, Israel • Three typical authority patterns:

- Top-level management decisions - Decentralized decisions - Committee or group decisions

Contextual Background of Various Countries

• Insert Exhibit 5.2

P-Time versus M-Time

• Monochronic time: - Tend to concentrate on one thing at a time - Divide time into units, concerned with promptness - Most low-context cultures operate on M-Time

• Polychronic time: - Dominant in high-context cultures - Characterized by the simultaneous occurrence of

many things - Allows for relationships to build and context to be

absorbed as parts of high-context cultures.

Gender Bias in International Business

• Women represent only 18% of the employees who are chosen for international assignments.

• In many cultures women are not in upper management, and men and women are treated very differently.

- Asia, Middle East, Latin America • Prejudices toward women in foreign countries. • Executives who have had international experience are

more likely to get promoted, have higher rewards, and have greater occupational tenure.

Bribery: Variations on a Theme

• Bribery and Extortion: - Voluntary payment by someone seeking unlawful

advantage is bribery. - payments extracted by someone in authority from a

person seeking what he is lawfully entitled to is extortion. • Subornation and Lubrication:

- Lubrication is small sums of cash, or gifts, given to a low- ranking official in a country where this is legal.

- Subornation involves large sums of money, often not accounted for, designed to entice an official to commit an illegal act on behalf of the one offering the bribe.

A Synthesis, Relationship-Oriented vs. Information-Oriented Cultures

• Studies note a strong relationship between Hall’s high/low context and Hofstede’s Individualism/Collective and Power Distance indexes.

• Information-Oriented Culture - United States

• Relationship Culture - Japan

• Understanding cultural differences allows us to make predictions about unfamiliar cultures.


• Some cultures appear to emphasize the importance of information and competition while others focus more on relationships and transaction cost reductions.

• Businesspersons working in another country must be sensitive to the business environment and must be willing to adapt when necessary.

• Understanding the culture you are entering is the only sound basis for planning.

• Business behavior is derived in large part from the basic cultural environment in which the business operates.

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