publishing as Prentice Hall 2-1 International Business Environments and Operations, 13/ e Part Two Comparative Environmental Frameworks... publishing as Prentice Hall 2-2 Chapter Two The
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International Business Environments and Operations, 13/
e
Part Two Comparative Environmental
Frameworks
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Chapter Two The Cultural Environments Facing Business
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Chapter Objectives
• To understand methods for learning about
cultural environments
• To analyze the major causes of cultural
difference and change
• To discuss behavioral factors influencing
countries’ business practices
• To understand cultural guidelines for companies that operate internationally
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Culture
Learned norms based on values,
attitudes, and beliefs of a group of
people
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Cultural Diversity
A means of gaining global
competitive advantage by bringing
together people of diverse
backgrounds and experience
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Cultural Collision
• Occurs in international business when:
A company implements practices that are less effective
Employees encounter distress because of
difficulty in accepting or adjusting to foreign
behaviors
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Cultural Factors Affecting International
Business Operations
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Cultural Awareness
• Problem areas that can hinder managers’
cultural awareness…
Subconscious reactions to circumstances
The assumption that all societal subgroups are similar
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The Nation as a Cultural Mediator
• A national culture must be flexible enough to
accommodate the diversity of various
subcultures, ethnic groups, races, and classes
• Yet every nation boasts certain human,
demographic, and behavioral characteristics that constitute its national identity
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Country-By-Country Analysis
• Managers find this difficult to implement
because:
Subcultures exist within nations
Similarities link groups from different countries
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Major Language Groups: Population and
Output
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Religion As A Cultural Stabilizer
Centuries of profound religious
influence continue to play a major
role in shaping cultural values
and behavior
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Behavioral Practices Affecting Business
• Issues in Social Stratification
Social ranking is determined by:
• Factors pertaining to you as an individual
• Factors pertaining to your affiliation with certain groups
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• A reflection of class and status
Include those based on religion, political
affiliation, and professional and other
associations
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Work Motivation
• Materialism and Motivation
• Expectation of Success and Reward
• Performance and Achievement: The Femininity Index
Masculinity-• Hierarchies of Needs
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Hierarchy of Needs
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• Monochronic Versus Polychronic Cultures
• Idealism Versus Pragmatism
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Body Language Is Not A Universal
Language
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to encounter fewer cultural differences and
to face fewer cultural adjustments.
Cultural Friction
A business interaction may be viewed
negatively because of possible changes in
power relationships and the sovereignty that sets countries apart.
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requires companies to balance knowledge of their
own organizational cultures with both home and host country needs, capabilities, and constraints
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Strategies for Instituting Change
• Value Systems
• Cost-Benefit Analysis of change
• Resistance to too much change
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Outward expressions of national culture will continue to
become homogeneous while distinct values will remain
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