1. CULTURAL ENVIRONMENT INTERNATIONAL BUSINESS II

2. BUSINESS FUNCTIONS VS CULTURE

3. CULTURAL ANALYSIS Understanding the cultures & physical characteristics of groups of people is useful because business employs, sells to, buys from, is regulated and is owned by people. An international company must consider these differences in order to predict & control its relationships & operations. A company first should determine differences in business practices  adjustments necessary.

4. THE NATION AS A DEFINITION OF SOCIETY Similarity among people is a cause & effect of national boundaries. (Belonging sense) Nations include subcultures, ethnic groups, races, classes. (Challenge Segmentation) National Identity (certain characteristics physical, demographic & behavioural norms that may affect a company’s methods of conducting business)

5. THE NATION AS A DEFINITION OF SOCIETY Nationality is not the only basis on which to group people . Everyone belongs to various other groups based on profession, age, religion, and place of residence. Country-by-country analysis has limitations because: Not everyone in a country is alike. Variations within some countries are great. Similarities link groups from different countries Data bases are scarce- Non-reliable-Outdated.

6. PHYSICAL ATTRIBUTES Physical differences can affect business decisions such as whether & how to change a product, how high to place production machinery, & which advertising message to use. (Images-Frequency-Comparative Ads) (Ready to serve food, Cleaning, Shampoo, Packing, Sizing, Digital, Fool-Proof, Organic, Friendly Products) Physical attributes to take into account: An individual’s size. Age distribution.

7. THE CONCEPT OF CULTURE Culture consists of specific learned norms based on attitudes, values & beliefs, all of which exist in every society. It can’t be easily isolated from such factors as economic & political conditions & institutions. Cultural value systems are set early in life & are difficult to change, but change may come through: Choice or imposition. Contact with other cultures.

9. Silent language.

10. Religion: Is a strong moulder of values. When a religion is dominant in an area, it is apt to have great political, legal & economic influence. It is also apt to limit acceptance of products or business practices.

12. RELIGIONS OF THE WORLD

13. BEHAVIORAL PRACTICES AFFECTING BUSINESS Group Affiliations: Populations are subdivided into groups. Ascribed: Determined by birth. Gender, age, family, caste & ethnic, racial or national origin. Acquired: Include those based on religion, political affiliation, profession and other associations. Reflect status, class. Role of competence: In some societies, a person’s acceptability for jobs & promotion is based primarily on competence. Prevention of discrimination is important.

14. BEHAVIORAL PRACTICES AFFECTING BUSINESS Importance of different group membership: Country by country attitudes vary toward: Gender based groups  Male & female roles. Age based groups  Respect for age. Family based groups  Family ties. Importance of Work: Explained by the interrelationship of the cultural & economic environments of the particular country. The motives for working are different in different places.

16. Materialism leads towork.

18. Whichisthemost prestigiousprofession in your country?

19. BEHAVIORAL PRACTICES AFFECTING BUSINESS Importance of Occupation: The perception of what jobs are best. Self Reliance: Superior subordinate relationships. Autocratic. Democratic. Free-rein. Trust. Attitudes of self-determination vs. fatalism. Individual vs. group.

20. STOP AND THINK ABOUT THE FOLLOWING: Do youknowwhichlanguageisspoken in Monaco? What’sthefirstthingthat comes toyourmindwhenyouhearthewordMexico? What do Canada, U.S.A and Englandhave in common?

22. Language  Complex & reflective of environment.

23. Silent Language  Colour associations, sense of appropriate distance, perception of time, status cues and body language.

24. Cultural Awareness: Problem areas that can hinder it are:

25. Things learned subconsciously.

26. Stereotypes.

27. Societal subgroups.

29. Polycentrism: Control is decentralized. Extensive delegation or imitation of proven host country practices. Managers foster local rather than worldwide objectives.

31. CHANGE KEY FACTORS International companies: Change some things abroad. Change themselves when encountering foreign environments. Learn things abroad that they can apply at home.

32. FRACTURED TRANSLATIONS English translations made by Japanese firm added to labels to increase prestige for their products being sold in China. ProductEnglish Translation Equivalent to Japanese Spam Liver Putty Toilet Paper My Fanny Brand Ready to Eat Pancakes Strawberry Crap Dessert Antifreeze Spray Hot Piss Brand Pediatrician’s Slogan Specialist in Deceased Children SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post, December 9, 1996 p. 12.

33. WHOSE ENGLISH? United StatesUnited Kingdom Trunk Boot Hood Bonnet Convertible Top Hood Elevator Lift Toilet W.C. Bathroom Tub or Shower Vacuum Hoover ??? Shag Bloody ??? Irwin/McGraw-Hill

34. RELIGION Marketing in an Islamic Framework Source: MushtaqLuqmani, Zahir A Quraeshi, and Linda Delene, “Marketing in Islamic Countries: A Viewpoint,” MSU Business Topics, Summer 1980, pp. 20-21.

35. CULTURAL FACTORS Never touch the head of a Thai or pass an object over it. The head is considered sacredin Thailand. Avoid using triangular shapes in Hong Kong, Korea, and Taiwan. It is considered a negative shape. The number 7 is considered bad luck in Kenya, good luck in Czech Republic and has a magical connotation in Benin, Africa. The number 10 is bad luck in Korea. The number 4 means death in Japan. Red represents witchcraft and death in many African countries. Red is a positive color in Denmark.

36. IT’S NOT THE GIFT THAT COUNTS, BUT HOW YOU PRESENT IT Japan Do not open a gift in front of a Japanese counterpart unless asked, and do not expect the Japanese to open your gift. Avoid ribbons and bows as part of the gift wrapping. Bows as we know them are considered unattractive, and ribbon colors can have different meanings. Do not offer a gift depicting a fox or badger. The fox is the symbol of fertility; the badger, cunning. Europe Avoid red roses and white flowers, even numbers, and the number 13. Do not wrap flowers in paper. Do not risk the impression of bribery by spending too much on a gift.

37. IT’S NOT THE GIFT THAT COUNTS, BUT HOW YOU PRESENT IT… Arab World Do not give a gift when you first meet someone. It may be interpreted as a bribe. Do not let it appear that you contrived to present the gift when the recipient is alone. It looks bad unless you know the person well. Give the gift in front of others in less –personal relationships. Latin America Do not give a gift until after a somewhat personal relationship has developed unless it is given to express appreciation for hospitality. Gift should be given during social encounters, not in the course of business. China Never make an issue of a gift presentation—publicly or private. Gifts should be presented privately, with the exception of collective ceremonial gifts at banquets.