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 behavio
Society
Some countries have several societies or subcultures and some societies em
ace 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-ve
als)
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
eakfast. The French drink little orange juice and almost none at
eakfast.
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 employe
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 emba
assment or ange
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 characte
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