Differences in Culture Differences in Culture Chapter 4 Culture Understanding and adapting to the local cultural is important in international companies. Cross-cultural literacy is important for...

The company chosen is BP
Using this MNC's origin nation, outline why the culture of this country might influence the costs of doing business in that country. Illustrate your answer with examplesI have listed a power as a reference tool when making examples for the paper


Differences in Culture Differences in Culture Chapter 4 Culture Understanding and adapting to the local cultural is important in international companies. Cross-cultural literacy is important for business success A relationship may exist between culture and the costs of doing business in a country or region. Culture Is rooted in values and norms Evolves over time What Is Culture? Culture Multiple definitions Values Shared assumptions about how things ought to be Norms Rules for appropriate behavior Society Some countries have several societies or subcultures and some societies embrace more than one country Determinants of Culture Why Do We Have to Understand Culture ?? So we don’t make blunders! Impacts the consumers’ desire and ability to pay for goods and services in a culture Not just “different”, not understanding a communications (language, context, non-verbals) Different or wrong interpretations: “Body by Fisher” (GM) = “Corpse by Fisher” “Let Hertz put you in the drivers seat” = “Let Hertz make you a chauffeur” “Teeth are extracted by the latest Methodists” “Specialists in women and other diseases” “Our wines leave you nothing to hope for” INTERNATIONAL MARKETING BLUNDERS Phillips – began to earn a profit in Japan only after it had reduced the size of its coffeemakers to fit into smaller Japanese kitchens and its shavers to fit smaller Japanese hands. Coca-Cola – had to withdraw its two-liter bottle in Spain after discovering that few Spaniards owned refrigerators with large enough compartment to accommodate it General Foods – Tang initially failed in Frnace as it was positioned as a substitute for orange juice at breakfast. The French drink little orange juice and almost none at breakfast. Kellogg’s -- Pop-Tarts failed in Britain because the percentage of British homes with toasters was significantly lower than in the USA and the product was too sweet for British tastes. P&G – Crest toothpaste initially failed in Mexico when it used the US campaign. Mexicans did not care as much for the decay-prevention benefit,. nor did scientifically oriented advertising appeal to them. General Foods – squandered millions trying to introduce packaged cake mixes to Japanese consumers. The company failed to note that only 3& of Japanese homes were equipped with ovens. Then they promoted the idea of baking cakes in Japanese rice cookers, overlooking the fact that the Japanese use their rice-cookers throughout the day to keep rice warm and ready. S.C. Johnson – wax floor polish initially failed in Japan. The wax make the floors too slippery, and Johnson had overlooked the fact that Japanese do not wear shoes in their homes. Culture & Language Spoken Language Language structures the way we see the world Countries with more than one language often have more than one culture Chinese is the mother tongue of the largest number of people English is becoming the language of international business Culture & Education Formal Education Medium through which individuals learn languages and other skills Socializes the young into the values and norms of a society Citizenship and culture Provides a national competitive advantage Culture and Business Culture and Values in the Workplace Hofstede’s dimensions of culture Power distance Uncertainty avoidance Individualism vs. collectivism Masculinity vs. femininity Long-term vs. short-term orientation And more recently: Indulgence vs. restraint CULTURAL IMPACTS Goals defined by culture Asian: respect Latin: family & fulfilling personal life US/Euro: money & prestige Employee Role Euro: Focus -- is self Asian: Focus -- is group acceptance Latin: Focus: -- is best interest of employer CULTURAL IMPACTS Introductions: US are casual Latins like to hug and give a kiss to the right cheek Japanese bow in respect Asians and Germans like space Sense of Time: Asians and Germans – punctuality is a must Titles and positions are important Germans put their degree on their business card Latins – are always late! Americans – “time is money” CULTURAL IMPACTS Formality: Germans, Asians and Latins value formality Never stand with your hands on your hips or your pockets Asians and Europeans smoke much more than we do Latins enjoy talking about family – Europeans and Asians do not Eye Contact: USA – eye contact communicates honesty, reliability and attentiveness Latins – intense eye contact can mean a challenge or aggression If a Latin looks away when being questioned, it shows respect rather than hiding something USA – eye contact between sexes in business is normal and common In Latin America, it can communicate the desire for a more intimate relationship CULTURAL IMPACTS Smiling: USA – smile communicates friendliness Asia – smiles often cover up embarrassment or anger France – anyone who smiles too much can be regarded as “simple” Germany – smiles are reserved for family, friends or social occasions – but never in business Shaking hands: USA – firm hand shake indicates strength of character Asia – the grip is weak Muslims – must be careful in touching women Devout Muslims and Jews must NOT touch women CULTURAL IMPACTS Dress: Europeans – stylish and buy high quality clothes French do not loosen their ties or remove their coats in the office French never wear blue shirts (only white) – as army recruits blue shirts Some Latins – wear formal, conservative clothes – even in socila situations Brazilians – business people are casual but stylish Saudi Arabia – dress formally at first meeting, than later, ties and coats can come off But legs are always covered (shorts, NEVER!) Women always wear loose-fitting clothes British – like custom tailored, conservative clothes CULTURAL IMPACTS Top management decision making Europe – top Mgm’t makes all major decisions (subordinates are inadequate) 2. Decentralized decision making USA – subordinates give more responsibility for decisions 3. Committee decision making Far East – consensus and group decision making