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Cultural Foundations

C h a p

t e r

3

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

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Outline

The Meaning of CultureCultural Concepts and ModelsCulture and Managerial Skill

Culture and NegotiationsCulture and Business-to-Business MarketingTakeaways

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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.

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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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Japan

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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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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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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Stage

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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Stage

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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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

Takeaway

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

Takeaway

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

counterproductive.

Takeaway

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In negotiations, attempting to adapt completely to a new

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

Takeaway

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

work, & a superior product or service.

Takeaway