JOHANSSON - chap (3)

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  • 8/7/2019 JOHANSSON - chap (3)


  • 8/7/2019 JOHANSSON - chap (3)


    Cultural Foundations

    C h a p

    t e r


    2006 The McGraw-Hill Com anies Inc. All ri hts reserveMcGraw-Hill Irwin

  • 8/7/2019 JOHANSSON - chap (3)



    The Meaning of CultureCultural Concepts and ModelsCulture and Managerial Skill

    Culture and NegotiationsCulture and Business-to-Business MarketingTakeaways

  • 8/7/2019 JOHANSSON - chap (3)


  • 8/7/2019 JOHANSSON - chap (3)


    Cultures Across Countries

    High versus Low Context CulturesHigh Context Cultures

    The meaning of individual behavior and speech changesdepending on the situation or context

    Nonverbal messages are full of important and intendedmeanings

    When words are spoken, reading between the lines isimportant

    High context cultures can be found in most of the Europeancountries, some of Latin American countries, and in Japanand many of the newly industrializing Asian countries

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    Cultures Across Countries

    Low Context Cultures

    Intentions are expressed verbally

    A persons meaning should be explicit

    not taken for granted

    Propositions have to be justified

    and opinions defended openly

    Low context cultures can be found in culturally diversecountries

    in the U.S., China, Russia, Australia and New Zealand

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    What you say is what you think -No, I really mean it

    Silent languages role is LOW.

    What you say is not really what youthink. As I am sure youunderstand, Read between thelines.

    Silent languages role is HIGH.

    A b c d e f g hi j k l m n o p

    A b c d e f g hi j k l m n o p

    A b c d e f g hi j k l m n o p

    W b x d y e

    Low and High Contexts

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    Halls Silent Languages

    SpaceThe comfortable distance between two people conversing differs acrosscultures

    Material PossessionsThe possessions that describe a persons station in life differ across

    culturesFriendship PatternsCulture determines what friendship means to a person

    Agreements Between PeopleContracts are interpreted differently across cultures

    TimeTime perceptions vary considerable across cultures - a little late insome countries means 5 minutes, elsewhere 2 hours.

  • 8/7/2019 JOHANSSON - chap (3)


  • 8/7/2019 JOHANSSON - chap (3)


    Hofstedes Cultural Dimensions

    Individualism versus CollectivismIn a collective society the identity and worth of the individualis rooted in the social system, less in individual achievement

    High versus Low Power DistanceHigh power distance societies tend to be less egalitarian, whiledemocratic countries exhibit low power distance

    Masculine versus FeminineCaptures the degree to which culture is dominated by assertivemales , rather than nurturing females and the corresponding values

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  • 8/7/2019 JOHANSSON - chap (3)



    Anglo-America W. Europe (USA, UK, Canada) Northern Continent

    Individualism low

    high high low

    Power distance high low low high

    Masculinity high high low high

    Risk tolerance low high high low

    Context high low high low

    Hofstedes Cultural Dimensions

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    Gannons Metaphors

    Gannon suggested the use of descriptive metaphors fordifferent cultures

    Suggestive analogues which characterize cultures in such asway as to help managers anticipate what peoples reactionsmight be in different situations

    Gannons Metaphors offer a mental anchor for themanager

    Who has to deal with a new culture and cannot foresee allcontingencies

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    1. American football: Individualism and competitivespeculation; huddling; ceremonial celebration of perfection.

    2. The British house: Laying the foundations; building the brickhouse; living in the brick house.

    3. The German Symphony: 0rchestra; conductors; performancesociety; education, and politics.

    4. The French wine: Purity; classification; composition;compatibility; maturation.

    Gannons Metaphors

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    Secret 1: People don't buy products and services - they buy relationships.

    Secret 2: Understanding the local culture makes a relationship successful.

    Secret 3: Each culture has a DNA archetype to be decoded.

    Secret 4: After decoding, the strategy can be encoded.

    Secret 5: Decoding and encoding are necessary to succeed in globalmarketing.

    Rapailles Cultural Marketing Secrets

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  • 8/7/2019 JOHANSSON - chap (3)


    Culture and How to do Business

    Managerial StylesCultures tend to generate different managerial styles anddifferent managerial skills.

    Managing SubordinatesCultural differences suggest that d ifferent types of leadershipskills will be needed in managing marketing overseas as opposedto in the home market

    To help managers cope with or avoid cultural clashes m ostcompanies offer new expatriate managers (and their families)predeparture workshops and briefings

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  • 8/7/2019 JOHANSSON - chap (3)


    Culture and How Managerial SkillsAre Developed

    Culture and Managerial Skill Development (contd)Successful managers tend to be good at acceptable behaviorsand at avoiding unacceptable behaviors

    Successes and failures in the past will be repeated elsewherewhether or not applicable.Therefore

    The managers successful in one culture will often NOT besuccessful in very different cultures.

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    Universalism vs. Particularism

    Individualism vs. Communitarianism

    Neutral vs. Emotional

    Specific vs. Diffuse

    Achievement vs. Ascription

    Attitudes towards time

    Attitudes towards the environment

    Trompenaars cultural contrasts

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    Culture and Negotiations

    Know Whom You Are Dealing WithIn most negotiations knowing something about the culturalbackground of the opposite partner is considered a must

    Know What They Hear

    The second caution from experts is the possibility of discrepancies between what the manager thinks he or she iscommunicating and what is actually received by the other party

    Nonverbal communication is always a mysterious ingredientin negotiations

    Know When to Say WhatSpend some time to understand the other culture

    And build a relationship if necessary

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    1. Non-task sounding

    2.Task-related exchange of information

    Considerable timeand expense devoted

    to such efforts

    Relativelyshorter periodsare typical.

    Japanese Americans

    Most important step high first offers withlong explanations and

    in-depth clarifications.

    Information isgiven briefly anddirectly. Fairfirst offers aretypical.

    The Four Stages of Negotiations

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    3. Persuasion

    4. Concessions andagreement

    Japanese Americans

    Done primarilybehind the scenes.

    Vertical status dictatesbargaining outcomes.

    Most importantstep : minds are

    changed at thenegotiations tableand aggressivepersuasive tacticsare used.

    Concessions madeonly toward the end holistic approach todecision making.

    Concessions andcommitments aremade throughout asequential approachto decision making.

    The Four Stages of Negotiations

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  • 8/7/2019 JOHANSSON - chap (3)


    The Limits to Cultural Sensitivity

    NonadaptationIt is important to recognize that when a country is readyfor change, a different culture can be attractive

    There are limits to the effectiveness of cultural sensitivityas an accommodation strategy

    Attempts at cultural adaptation is prone tomisinterpretation and may even create distrust

    Keeping Ones CenterCultural adaptation runs the risk of the manager losing hisor her bearings

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    Culture is a fundamental dimension of any society,and is a very visible force that affects market demand

    as well as customer & managerial behavior


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    Culture affects strategy implementation & execution,how things are done, more than strategy formulation.


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    Our own culture has given us useful behavioral skills.In new situations, these skills may be useless or even



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    In negotiations, attempting to adapt completely to a new

    culture may be counterproductive since it is unexpectedand might erode trust.


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    Cultural differences are examples of market entrybarriers & can be overcome with sensitivity, hard

    work, & a superior product or service.