Chapter 5 provides knowledge of culture, management style, and business systems. What you should learn from chapter 5: The necessity for adapting to cultural differences, how and why management styles vary around the world, the extent and implications of gender bias in other countries, the importance of cultural differences in business ethics, the differences between relationship-oriented and information-oriented cultures.
Trang 115th edition
Trang 2and Exclusives
• Cultural imperatives Business customs and
expectations that must be met and conformed to or
avoided if relationships are to be successful
– In some cultures a person’s demeanor is more critical than
in others
– Imperatives vary from culture to culture
• Cultural electives Relate to areas of behavior or to
customs that cultural aliens may wish to conform to or participate in but that are not required
– A cultural elective in one county may be an imperative in another
• Cultural exclusives Customs or behavior patterns
reserved exclusively for the locals
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Trang 3on Management Style
of social action
merit
Trang 4• Influencers of the authority structure of business:
– High PDI Countries
• Mexico, Malaysia – Low PDI Countries
• Denmark, Israel
• Three typical authority patterns:
– Toplevel management decisions
– Decentralized decisions
– Committee or group decisions
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Trang 5• Breezy informality and haste characterize
American business relationships
– May lead to business misunderstandings
made by Americans in the Middle East
foreign executives in acceptable ways
Trang 6of Various Countries
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Exhibit 5.2
Trang 7• Monochronic time
– Tend to concentrate on one thing at a time
– Divide time into small units and are concerned with
promptness
– Most lowcontext cultures operate on MTime
• Polychronic time
– Dominant in highcontext cultures
– Characterized by the simultaneous occurrence of many
things
– Allows for relationships to build and context to be absorbed
as parts of highcontext cultures
• Most cultures offer a mix of Ptime and Mtime behavior
• As global markets expand more businesspeople from
Ptime cultures are adapting to Mtime.
Trang 8been shown to relate positively to profits
• Firms in other countries have not been able to
move from the traditional production, product,
and sales orientation to the marketing orientation
difficult to encourage a marketing orientation
across diverse business units in global companies
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Trang 9Corruption
• What is Corruption?
– Profits (Marxism)
– Individualism (Japan)
– Rampant consumerism (India)
– Missionaries (China)
– Intellectual property laws (SubSahara Africa)
– Currency speculation ( Southeast Asia)
• Criticisms of Mattel and Barbie
– Sales of Barbie declined worldwide after the global
standardization
– Parents and government did react
– Mattel’s strategy boosted sales of its competition
Trang 10• In the 1970s, bribery became a national issue with public disclosure of political payoffs to foreign
recipients by U.S. firms
• The decision to pay a bribe creates a major conflict between what is ethical and proper and what is
profitable and sometimes necessary for business
• The Organization for Economic Corporation and
Development (OECD) and Transparency
International (TI) are combating the bribery of
foreign public officials in international business
transactions
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Trang 11Transparency International Corruption Perception Index
Exhibit 5.5
Trang 12Bribery – Variations on a Theme (1 of 2)
• Bribery and Extortion
– Bribery is voluntary offered payment by someone seeking
unlawful advantage is bribery
– Extortion takes place only if payments are extracted under
duress by someone in authority from a person seeking only what
he or she is lawfully entitled to
• Subornation and Lubrication
– Lubrication involves a relatively small sum of cash, a gift, or a service given to a lowranking official in a country where such offerings are not prohibited by law
– Subornation involves giving large sums of money, frequently not properly accounted for, designed to entice an official to commit
an illegal act on behalf of the one offering the bribe
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Trang 13Bribery – Variations on a Theme (2 of 2)
• Agent’s Fees
– When a businessperson is uncertain of a country’s rules and regulations, an agent may be hired to represent the company in that country
– The Foreign Corrupt Practices Act (FCPA)
– Change will come only from more ethically and socially responsible decisions by both buyers and sellers and by governments willing to take a stand
• Since 1994, US businesses have bowed out of 294 major overseas commercial contracts valued at
$145 billion rather than paying bribes
Trang 14Ethical and Socially Responsible Decisions
• Difficulties arise in making decisions, establishing policies, and
engaging in business operations in five broad areas
• Laws are the markers of past behavior that society has deemed
unethical or socially irresponsible
• Ethical principles to help the marketer distinguish between right
and wrong, determine what ought to be done, and justify actions
individual?)
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Trang 15A Synthesis
Exhibit 5.7